Employee Benefits Administration for Teams in Bangladesh
Employee benefits administration is the work of setting up, recording and paying what an employer owes its people beyond salary. Eicra Soft Limited, a Dhaka-based employer of record serving international companies, runs it per employee inside your HR system. That covers festival bonuses, leave, end-of-service pay, group insurance and a monthly statement your owner approves before anything is paid.
One exit at each step. No long-term commitment at any of them. We start with the team you employ, or are about to employ, in Bangladesh: headcount, start dates, basic pay, benefits in place, and what your home-country staff get that this team does not. Each statutory benefit is marked present, partial or missing, and the gap is costed in your numbers.
You get a written verdict — statutory benefits set up first, a group health policy for a small team, an end-of-service ledger, or full administration under an employer of record (EOR). That full administration is included for every hire made through our remote staffing service in Bangladesh. If everything is already in place, you stop here and keep the audit.
30 minutes 01 Scope · free call
1 week 02 Diagnose · benefits audit, credited to the first month
30 days 03 Pilot · benefits setup for the first month, per team
Per employee 04 Production · a fixed price per employee per month
Monthly 05 Managed Ops · inside the per-employee price, cancel any month
What does employee benefits administration include?
Employee benefits administration in Bangladesh covers six things for a company employing people there, and our service handles each one. They are a benefits audit against the Labour Act, festival bonus scheduling, fund and end-of-service ledgers, leave tracking, a group health policy with a local insurer, and a monthly statement your finance team books. Each card is one deliverable.
Benefits audit against the Labour Act
Every employee’s statutory entitlements are listed against what is actually in place: festival bonus eligibility, leave balances, maternity cover, group insurance and end-of-service pay. Each item is marked present, partial or missing, with the cost of closing it, so your owner sees the gap in money before deciding what to fix first.
Festival bonus scheduling
The two annual festival bonuses are calculated per employee on basic pay and service length and scheduled against the festival calendar. Your owner approves each one before it is paid. It then runs through your payroll with the entry your finance team books, so no bonus date is missed when a payroll only handles monthly salary.
Fund and end-of-service ledgers
A per-employee ledger accrues what each person would be owed on leaving, from their start date, and reconciles it with payroll every month. Where a provident fund applies or you choose to run one, contributions are recorded on the same ledger. The liability is then visible every month, not discovered on the day someone resigns.
Leave tracking for every employee
Casual, sick, annual and maternity leave is accrued and recorded per employee at the rates the Labour Act sets, along with the festival holidays. Balances are visible to your managers. Carry-forward limits and leave encashment are handled at year end and at exit, so the final settlement matches what the records show.
Group health policy with a local insurer
A group medical plan is arranged with a licensed insurer in Bangladesh and sized to your headcount, with hospital and outpatient cover and dependants where you choose. We handle enrolment, renewals and claims paperwork. The insurer underwrites the policy and decides each claim, and no premium is paid until your owner approves it.
Monthly benefits statement
One statement a month lists bonuses paid, fund contributions made, end-of-service pay accrued, leave balances, insurance premiums and claims. Each line is tied to a payroll entry and to an approval with a date. Your accountant can book it as it stands, and your auditor can trace any figure back to the record it came from.
Not included: Underwriting insurance · acting as fund trustee · legal or tax advice · deciding entitlements the Labour Act leaves to the employer, which your owner and your counsel decide.
Which benefits does Bangladesh law require?
Bangladesh law sets the core benefits an employer owes a worker. Most come from the Bangladesh Labour Act 2006, as amended by the Bangladesh Labour (Amendment) Act 2026; the festival bonus comes from the Bangladesh Labour Rules 2015. The table lists each one and the section behind it, and the audit shows which your team lacks first. All of them sit inside our employer of record service.
| Ref | Benefit | Applies to | What the law requires |
|---|---|---|---|
| R111 | Festival bonus | Workers after one year | Two bonuses a year, each no more than one month’s basic wage, under rule 111(5) |
| 115 | Casual leave | Every worker | 10 days a year on full wages, not carried forward |
| 116 | Sick leave | Every worker | 14 days a year on full wages |
| 117 | Annual leave | Workers after one year | Paid leave earned by days worked, with limits on carry-forward |
| 118 | Festival holidays | Every worker | 13 paid festival holidays a year since the 2026 amendment |
| 46 | Maternity leave | Women with six months’ service | 120 days paid, 60 before and 60 after delivery |
| 99 | Group insurance | 100 or more permanent workers | Group insurance for the permanent workers |
| 264 | Provident fund | 100 or more permanent workers | Not required below 100; the 2026 amendment changed the rule above it |
| 20 | Retrenchment pay | Workers retrenched | 30 days’ wages per completed year, or gratuity where that is higher |
| 26 | Termination pay | Workers the employer terminates | 30 days’ wages per completed year, or gratuity where that is higher |
| 27 | Resignation pay | Permanent workers who resign | 7, 15 or 30 days’ wages per year, by length of service |
| 28 | Retirement pay | Workers who retire | 30 days’ wages per completed year, or gratuity where that is higher |
Who counts as a worker. These rights belong to workers as the Labour Act defines them. Since the 2026 amendment, managerial officers fall outside that definition, so their contract decides their benefits. The audit marks which of your people are workers before anything is costed.
What does the first benefits month contain?
The first month of employee benefits administration is five steps over thirty days, because “we handle benefits” tells you nothing. Every item traces to an employee record, a Labour Act entitlement, an approver and a date. The example is an eight-person engineering team whose employer had paid salaries for two years and nothing else. Yellow marks where a person signs.
First-month log · eight-person team
The log at that step · its result
Audit signed
| Audit item | Sample team |
|---|---|
| Employees | 8 |
| Past one year of service | 6 |
| Entitlements each | 4: festival bonus, leave, insurance, end-of-service pay |
| Each one marked | Present, partial or missing |
| Owner | Named |
32
Entitlements in the audit8 employees · 4 entitlements each
Calendar set
Festival bonuses2 scheduled per employee, on basic pay
Leave balancesloaded from start dates
2
Festival bonuses scheduled per employeeagainst the festival calendar
Ledgers opened
End-of-service payaccrued from each start date
Provident fundrule checked against headcount
Group policyinsurer quote received
Ledgers openedfrom each start date
Owner sign-off
EnrolmentsScheduleGroup policy
3
Approvals recordedapprovals logged with dates
Statement issued
First monthly statement→Your HR system→Premiums bound→Next cycle dated
8 of 8
Employees enrolledfirst month accepted · passed the agreed gate
Open a step, or a number below, to see its log entry
Each month after that: statement issued, ledgers reconciled with payroll, leave balances updated, claims followed up.
Illustrative run. A person signs where the mark is yellow; each step is logged and traces to an employee, an entitlement and an approval.
How is benefits administration set up?
Our employee benefits administration is set up in five steps, each one an exit with a statement you keep. They are a free scoping call, a one-week audit, a first month enrolling the team, production for later hires, then monthly Managed Ops. Benefits go wrong when a foreign payroll copies home-country rules onto a team the Labour Act governs.
What each benefits step delivers
| # | Step | Time | What you get |
|---|---|---|---|
| 01 | Scope | 30 minutes · free | A call about the team; you leave with an audit quote |
| 02 | Diagnose | 1 week · credited | Every entitlement marked present, partial or missing; first month priced |
| 03 | Pilot | 30 days · fixed price | Team enrolled, calendar set, ledgers opened, first statement approved |
| 04 | Production | Per employee | New hires enrolled, leavers settled, accruals posted every month |
| 05 | Managed Ops | Monthly · cancel any month | Statement, ledger checks, claims follow-up; audit re-run when law changes |
Who runs your benefits administration?
On day one you meet the team. A benefits administrator owns enrolments, schedules and the insurer relationship, and is the person your employees contact about a benefit or a claim. A payroll accountant posts contributions and accruals; a reviewer checks every statement against the Labour Act.
References Labour Act, its Rules as amended, and the insurer’s terms
Communication A monthly review call and one shared channel
Delivery In your HR system, payroll tool and document store; we keep no copy
Quality assurance (QA) A second person reviews every statement; versioned; approver named
Ownership Every policy, ledger and employee record in your name
Risk Stop at any step; a written result at every step
Which benefits setup do you need first?
Employee benefits administration starts from one of four situations; five questions show which fits. Statutory benefits never scheduled: set them up first. A small team without medical cover: a group health policy. Employees past one year with no record of what they would be owed: an end-of-service ledger. No local employer: full administration under an employer of record, with Bangladesh payroll alongside.
1. How many people do you employ in Bangladesh?
2. Are festival bonuses scheduled and paid?
3. Does the team have a group medical plan?
4. Is an end-of-service ledger kept?
5. Who is the legal employer today?
Which setup do you need?
Answer the five questions and the result below changes to match your team. It is a first estimate, built from the same rules the audit uses, and it names one starting point rather than a package. The one-week diagnostic then confirms it against your real headcount, start dates and pay.
Statutory benefits set up first
Festival bonuses, leave and end-of-service pay are owed to every worker whether or not anyone scheduled them. The audit lists each employee’s entitlement, the calendar is set, the ledgers are opened from each start date, and the first statement goes to your owner within thirty days.
A first estimate; the diagnostic confirms it.
How the verdict is decided
Nobody local employs the team → employer of record first
Bonuses not scheduled → statutory benefits first
Five or more people with no group plan → the health policy
No end-of-service ledger with employees past one year → the ledger
Why choose us for benefits administration?
An administrator of employee benefits in Bangladesh is judged on whether the ledger survives an employee’s exit and an auditor’s question, not on the plan names it lists. We set every benefit up to the Bangladesh Labour Act’s own list, per employee, with a person who answers. Your owner approves; we administer; the setup stays current as the rules move.
Without local administration
A payroll built for another country can pay salary on time and still miss everything else the Labour Act requires. When nobody owns the festival calendar, the leave records or the end-of-service liability, each gap shows up late, usually when someone leaves or an auditor asks. These are the patterns the audit is built to catch.
!!!!!
- A home-country benefits plan copied onto a team the Labour Act governs
- Festival bonuses paid late, or missed, because no calendar existed
- End-of-service pay discovered as a lump sum on the day someone leaves
- An international insurance plan priced for fifty seats, bought for five
With Eicra Soft Limited
With Eicra Soft Limited administering, every benefit is set up per employee from the audit, and each payment waits for your owner’s approval. The ledgers reconcile with payroll monthly. The illustrative report below shows what the first month leaves you with: every employee enrolled, every gap closed and every approval on record.
First-month report · eight-person team
Employees enrolled8 of 8Entitlements set up32Gaps closed11Approvals recorded3VerdictFirst month accepted
Illustrative example
- Every statutory benefit audited per employee against the Labour Act’s wording
- Bonuses, contributions and accruals on a calendar your owner approved
- An end-of-service ledger reconciled with payroll every month
- A local group policy sized for your headcount, with claims paperwork handled
Is it safe to outsource benefits administration?
Outsourcing employee benefits administration in Bangladesh is safe when your owner keeps approval and access is limited to the records the work needs. The risk is who approves payments and sees employee data, not where the administrator sits. As a Bangladesh-based company, we work inside your HR system under NDA and pay nothing without your approval.
Which agreements are signed, and when?
Three agreements are signed before any employee record moves, and access is set up in the order shown below. Each one names what we may see, where it may be processed and when our access ends. Certifications are listed only when they are actually held, and we claim none today.
NDA — mutual, signed before any employee record, salary figure, policy document or statement is shared with anyone.
Data processing agreement (DPA) — our processor terms follow Article 28(3) of the General Data Protection Regulation (GDPR) wherever it applies; the employee data we process in Bangladesh falls under the Bangladesh Personal Data Protection Act.
International data transfers — the standard contractual clauses, or whichever transfer instrument your jurisdiction requires, are signed before any employee data moves.
Access — read and write access to the benefits and leave modules of your HR system only; no bank credentials, no payment authority, no production systems of yours.
Certifications — named only once held; we claim none, and we are not an insurer, a fund trustee or a law firm.
Which controls, IP and rework terms apply?
Five controls apply to every engagement and are written into the contract rather than promised in a proposal. They cover where the records live, who owns them, where our work stops, who approves each payment, and how a statement line that fails its acceptance check is reworked at no charge.
Your accounts From the first day, each policy, ledger, schedule and employee record sits in your own HR system and document store; we hold no copy.
Document ownership The contract assigns every record to you: export them, give them to an auditor or take them to another provider whenever you choose.
Boundary We administer benefits; we do not underwrite insurance, act as fund trustee, give legal or tax advice, or decide entitlements the Labour Act leaves to the employer — your owner and your counsel decide.
Approval No bonus, contribution, premium or settlement is paid until your named owner has approved that month’s statement; approvals, dates and versions are recorded.
Rework No charge when a statement line fails its agreed acceptance list within thirty days. A new benefit, a new entity or a change in the law is priced first, as a change request.
What proof do you get before you pay?
Before you pay the per-employee monthly price for employee benefits administration, you get three proofs. They are a free 30-minute scoping call, a one-week audit that leaves you your own per-employee entitlement list, and a first month with no setup fee if it misses its agreed enrolment list.
30 minutes
A free scoping call about the team; if the team is known, you leave with an audit quote.
1 week
For the benefits audit: every employee’s statutory entitlements marked present, partial or missing, and the first month priced in writing.
30 days
To every statutory benefit enrolled and the first festival bonus or fund contribution scheduled, after the one-week audit.
Case studies: client results with numbers are added here as clients give permission to name them. Ask on the scoping call for references in your industry.
What do buyers ask about employee benefits?
Buyers ask thirteen questions about employee benefits in Bangladesh before they book a call. They ask about cost, which benefits the law requires, the festival bonus, the provident fund, pay on leaving, managers and small-team health cover. They also ask how the first month runs, who is accountable, how data is protected, switching, what follows a call and what we do not cover.
Reviewed by Mohammad Nazrul Islam, Managing Director, Eicra Soft Limited.
How much does benefits administration cost?
Benefits administration is priced per employee per month, never per hour, and quoted after a free 30-minute scoping call. A one-week benefits audit ends in a written entitlement list and is credited to the first month. The first month, with the team enrolled and any group policy bound, is priced per team, and the per-employee price is fixed in the contract.
Which employee benefits are legally required?
For workers in Bangladesh the law requires two festival bonuses after one year, casual, sick, annual and maternity leave, 13 festival holidays, and pay on retrenchment, termination, resignation or retirement. Group insurance applies at 100 or more permanent workers. Group medical cover is optional and follows your own benefits policy. The table above gives the section for each benefit.
Must we pay a festival bonus?
Yes, for every worker with one year of continuous service. Rule 111(5) of the Bangladesh Labour Rules 2015 requires two festival bonuses a year, each no more than one month’s basic wage. A payroll that only runs monthly salary misses both dates, so we schedule them per employee and book them through your payroll after your owner approves.
Is a provident fund mandatory?
Not below 100 permanent workers. The provident fund rules in section 264 start at that headcount, and the 2026 amendment changed how they apply above it, including a universal pension option. If your team is near 100, the audit checks the current text with your counsel before any fund is opened. A fund you choose to run below that headcount is recorded on the same ledger.
What does an employee get on leaving?
It depends on how the job ends. A worker who is retrenched, terminated by the employer or retires gets 30 days’ wages per completed year, or gratuity where that is higher. A permanent worker who resigns gets 7, 15 or 30 days’ wages per year, depending on length of service. We accrue this monthly so the final pay holds no surprise.
Do these rules cover managers too?
Not always. The Labour Act protects workers as it defines them, and since the 2026 amendment managerial officers are outside that definition. Their benefits come from their employment contract instead. Status depends on the duties in each person’s appointment letter, not on the job title. The audit marks each person’s status first, so nobody is costed under the wrong rules or left without a written entitlement.
Can small teams get group health cover?
Yes. Licensed insurers in Bangladesh write group medical plans for small teams, so a handful of employees does not have to rely on individual policies. The audit asks an insurer for a quote sized to your headcount, with the cover and dependants you choose. We handle enrolment, renewals and claims paperwork, while the insurer underwrites the policy and decides each claim.
How does the first month run?
The first month runs in five steps over about thirty days, and each one ends with a record your owner can check before the next step starts. Nothing is paid during the month until your owner signs off, and every step traces to an employee, an entitlement and a dated approval.
- The audit is signed, with every entitlement marked present, partial or missing.
- The festival bonus calendar is set and leave balances are loaded from start dates.
- The end-of-service ledger is opened and any insurer quote is received.
- Your owner approves the enrolments, the schedule and any group policy.
- The first monthly statement is issued in your HR system.
Who is legally responsible for the benefits?
The legal employer is. If the team is employed through our employer of record service, Eicra Soft Limited is the employer in Bangladesh and owes the benefits. If your own entity employs them, the obligation stays with you, and we administer it under contract. Either way, nothing is paid until your named owner approves that month’s statement, and every approval is recorded.
How is employee data protected?
Employee data is protected by contract before any record is shared. A mutual NDA comes first, then a data processing agreement that follows Article 28(3) of the GDPR where it applies; data processed in Bangladesh falls under the Bangladesh Personal Data Protection Act. We work inside your HR system, hold no copy, and our access ends at handover.
Can we switch from our current provider?
Yes. A team already on another provider or an in-house payroll is audited the same way as a new one. Every employee’s entitlements are checked against what was actually paid, and any gap is costed before anything moves. Records stay in your own HR system, so the switch is a handover of tasks rather than a transfer of data.
What happens after we book a call?
After you book, the scoping call and every later step follow a fixed order, and nothing is charged until you accept a written quote. You can stop after any step and keep what it produced, and no employee record is shared with us until a signed NDA is in place.
- On a 30-minute call we cover headcount, start dates, basic pay and existing benefits.
- You receive a written audit quote.
- An NDA is signed before any employee record is shared.
- The one-week audit starts once you accept the quote.
What does the service not cover?
We administer benefits; we do not underwrite insurance, act as fund trustee or give legal or tax advice. Entitlements the Labour Act leaves to the employer are decided by your owner and your counsel. Where the 2026 amendment leaves a rule open to reading, such as the provident fund above 100 workers, we flag it for your counsel rather than decide it.
Start with a free 30-minute scoping call or a one-week benefits audit.