Payroll Compliance in Bangladesh
Payroll compliance in Bangladesh means wages paid, tax deposited, registers kept and returns filed on time. As a Dhaka-based company, we do this work for international employers and document each task, so you can show what was done and when. Payroll and HR compliance in Bangladesh answers to three laws: the Labour Act as amended, the Income Tax Act and the data protection law for employee data. A compliance lead and a payroll accountant work in your human resources (HR) and payroll systems, under a non-disclosure agreement (NDA) and a data processing agreement (DPA). Every filing is logged with its date and evidence in a pack your owner receives monthly.
One exit at each step. No long-term commitment at any of them. We start with what your entity, or our employer of record (EOR), owes as a Bangladesh employer today: current payroll, contracts, policies, registers and filings made. Each item is checked against the three laws, and the gaps are ranked by risk in writing.
You get a written verdict — one of four. A ranked gap list with a fix and monthly upkeep. Upkeep alone, because the records are already in order. Payroll first, because nobody runs it. A lawyer, because a case or an inquiry is already open. For teams employed through our remote staffing agency in Bangladesh, these filings are already our duty every month. If nothing is missing, you stop here and keep the review.
30 minutes 01 Scope · free call
1 week 02 Diagnose · compliance review, credited to the fix month
One month 03 Pilot · the fix and first pack, fixed price per entity
Per employee 04 Production · monthly upkeep, price fixed in the contract
Monthly 05 Managed Ops · cancel any month, inside the per-employee price
What is included in payroll and HR compliance services in Bangladesh?
Payroll and HR compliance services cover six things for a company employing people in Bangladesh, beyond being told the rules. Our service does all six: a review against three laws, prescribed registers in form, tax at source deposited on its dates, returns filed with evidence, employee data access recorded, and a dated monthly pack.
Review against the three laws
Payroll, contracts, policies, registers and filings are checked line by line against the Bangladesh Labour Act as amended, the Income Tax Act and the data protection law. Each gap is written up with its section, risk rank and fix before anything further is billed.
Prescribed registers kept in form
The worker and leave registers are kept in the forms the Labour Rules prescribe. Each worker has a service book, an appointment letter and an identity card under sections 5 and 6 of the Labour Act, kept current in the format an inspector asks to see.
Tax at source, deducted and deposited
Salary tax is calculated each month at the average rate on estimated total income under the Income Tax Act and deducted at payment. Each deposit is made on its date, its receipt filed against the register your owner approved for the year-end return.
Returns in scope, filed with evidence
Every statutory return your entity owes as an employer sits in the written scope with its due date and its owner. Returns marked ours are prepared, filed and evidenced. Returns marked yours get a reminder two weeks ahead; nothing outside the scope is assumed.
Employee data access recorded
Payslips, identity documents and records are personal data. We record which employee data is held, where, by whom and why, to the data protection law’s expectations as its official text is confirmed. Access is limited to named people and logged.
Dated monthly compliance pack
One pack a month holds the payroll register, tax deduction and deposit records, register updates, filings made with evidence, policy changes applied after new law and the open-items list with an owner for each. A lawyer, auditor or inspector asks for this record first.
Not included: Legal or tax advice · representation before a labour court or regulator · certification of your compliance · the payroll run itself · new entities, new returns or law changes, priced first as a change request.
What changed in Bangladesh employment law, and which change hits your payroll compliance first?
Two laws changed payroll compliance in Bangladesh, and most pages still quote the old figures: the Bangladesh Labour (Amendment) Act and a new data protection law. Our review shows which change reaches your entity first. Where we act as your employer of record, the duty sits with us and the evidence goes to you. Each card names one change.
HR practices in Bangladesh follow the Labour Act. Every worker gets an appointment letter before work starts, a photo identity card, a service book and a line in the register of workers. Ordinary hours are an eight-hour day and a 48-hour week, and wages fall due within seven working days after the wage period ends. Paid leave covers 10 days of casual leave, 14 days of sick leave and 13 days of festival holiday a year, and maternity benefit runs 120 days. The 120-day notice for monthly-rated permanent workers is unchanged. A policy or payroll calendar still carrying the old numbers is out of compliance today. See how the fix is priced
Maternity and holidays
Maternity benefit now covers 120 days, sixty days before the birth and sixty days after. Festival holidays rose from 11 to 13 days a year, so leave registers and payroll calendars must change.
Resignation benefit tiers
Benefit on resignation now scales with service: 7 days’ wages per completed year up to three years, 15 days’ from three to ten years and 30 days’ from ten years. The wage base is basic plus dearness allowance.
Who counts as a worker
People appointed in writing to managerial, administrative or supervisory roles sit outside the Act’s worker definition. Their terms follow the contract, so each appointment letter decides which rules apply.
Employee data
A new data protection law replaces the earlier ordinance. Payslips, identity copies and records are personal data, so who holds what, and why, must be written down.
What does the first payroll compliance month contain for a twenty-two-person entity?
The first month of payroll compliance in Bangladesh contains five logged steps, because ‘we keep you compliant’ tells you nothing. Every item traces to a law, a register, an approver and a date. The example is a twenty-two-person entity whose parent ran payroll from abroad for two years and kept no register. Yellow marks where a person signs.
Fix-month log
The record at that step · its result
Review signed
| Review item | Result |
|---|---|
| Employees | 22 |
| Register gaps | 5 |
| Filing gaps | 4 |
| Letter gaps | 3 |
| Data gaps | 2 |
14
Gaps ranked by riskowner named
Registers built
| Record | After this step |
|---|---|
| Worker register | In prescribed form |
| Leave register | In prescribed form |
| Appointment letters | Missing ones issued |
| ID cards | Missing ones issued |
6
Missing appointment letters and ID cards issued
Deposits reconciled
| Item | Result |
|---|---|
| Tax at source | Re-computed for the year |
| Short deposits | Topped up |
| Deposit receipts | Filed against registers |
2
Short deposits topped up
Owner sign-off
| Recorded | Entry |
|---|---|
| Approver | Your owner |
| Approved | Fix list and first pack |
| Date | Logged |
| Version | Logged |
2
Approvals loggedwith date and version
Pack issued
| In the first dated pack |
|---|
| Payroll register |
| Tax deduction and deposit records |
| Register updates |
| Filings made with evidence |
| Policy changes |
| Open-items list |
3
Returns in scope filed with evidencein your document system · open items listed
Open a step, or a number below, to see the record at that stage
Every step logged and traceable to a law, a register, an approver and a date.
Illustrative run. Yellow marks the step where a person signs.
How does a payroll compliance engagement run, from review to Managed Ops?
A payroll compliance engagement runs in five steps, each ending in a document. A free 30-minute scoping call comes first, then a one-week review ranking every gap and a one-month fix closing agreed items. Production covers later hires and law changes; Managed Ops follows. Payroll compliance in Bangladesh fails when explained in a guide and never done, filed or evidenced.
01 30 min · free
Scope A call about your entity or the team we employ: headcount, who runs payroll, which registers and returns exist, any inspector or auditor request. If the setup is known, you leave with a review quote.
02 1 week · credited
Diagnose Payroll, contracts, policies, registers and filings read against the three laws; every gap written with its section, risk rank and fix; the fix month priced in writing.
03 One month · fixed price
Pilot Agreed items closed: registers in prescribed form, missing letters and cards issued, tax deposits reconciled, overdue returns in scope filed with evidence, data access recorded, the first dated pack issued and approved by your owner.
04 Per employee · after the fix
Production Every later hire entered in the registers on day one, every deduction deposited and every return in scope filed on its date with evidence; the pack issued monthly; the per-employee price fixed in the contract.
05 Monthly · cancel any month
Managed Ops The monthly cycle: registers updated, deposits made, returns filed, the pack issued, the review re-run when a law, rule or circular changes — the amendments are the model — with a lead who knows your entity.
Who runs your payroll and HR compliance, and with what?
You meet the team on day one. A compliance lead owns the gap list, registers and filing calendar. A payroll accountant computes and deposits tax at source, and a reviewer checks every pack.
References Labour Act and Rules as amended; Income Tax Act
Communication Monthly review call, shared channel
Delivery Your HR, payroll and document systems; nothing stored on our side
Quality assurance (QA) Second-person review of every pack; versioned; approver named
Ownership Every register, filing, receipt and pack in your entity’s name
Boundary We do, file and document; your entity and your counsel decide
Do you need a payroll compliance fix, upkeep only, payroll first, or a lawyer?
Payroll compliance buyers arrive in one of four situations. Staff employed, registers patchy, filings uncertain → review, fix and upkeep. Records in order → upkeep alone, or under our professional employer organisation (PEO) for your entity. Nobody running payroll → payroll first, compliance built in. A court case or inquiry already open → a licensed lawyer, with our file. Five questions show which fits.
1. How many people do you employ in Bangladesh?
2. Who runs payroll today?
3. Are the prescribed registers kept in form?
4. Has anyone asked for records this year?
5. Who is the legal employer?
Which one do you need? Answer five questions.
A compliance review, fix and upkeep
Staff employed and nobody sure what is filed is the case this page exists for. A one-week review ranks every gap by risk. A one-month fix closes the agreed items and issues the first dated pack. Monthly upkeep then keeps registers, deposits and returns current, priced per employee.
A first estimate; the diagnostic confirms it.
How the verdict is decided
An inspector or a court has asked → a lawyer, with our file
Nobody runs payroll → payroll first
Registers inspected and in form → upkeep only
Otherwise → review, fix and upkeep
Why choose us for payroll and HR compliance in Bangladesh?
Payroll compliance in Bangladesh is judged on two things, not the length of a guide. Did the register exist the day the inspector asked, and did the deposit receipt match the payslip? Section 123 of the Bangladesh Labour Act fixes the wage deadline at seven working days after the wage period ends. This page works from the amended text.
Without documented compliance
!!!!!
- A guide to the rules and nobody who filed the return
- Registers that exist in a spreadsheet, in no prescribed form, found the day an inspector asks
- Tax deducted but deposited late, with no receipt matched to any payslip
- Policies still quoting 112 days’ maternity and eleven festival holidays
With EICRA
Fix-month report · twenty-two-person entity
Employees covered22 of 22Gaps closed14Returns filed3Approvals recorded2VerdictFirst pack accepted, passed the agreed gate
Illustrative example
- Every return in scope filed on its date, with the evidence in the pack
- Worker and leave registers in the prescribed form, updated every month
- Deposits reconciled to the register your owner approved, receipt by receipt
- Policies and payroll re-read against the amended Acts, with the change logged
Is it safe to outsource payroll and HR compliance in Bangladesh?
Outsourcing payroll and HR compliance is safe when the pack lives in your systems and access is logged. The risk is not where the lead sits but who holds the evidence and who sees employee data. As a Bangladesh-based company, our offshore team stays inside your systems under NDA and files nothing unapproved.
Reviewed by Asma Sultana Minu, Local Corporate Counsel. The statutory references on this page — sections 5, 6, 116, 123 and 125 of the Bangladesh Labour Act 2006, section 86 of the Income Tax Act, and the register forms prescribed by the Bangladesh Labour Rules 2015 — were last checked on 8 October 2026. Informational only, not legal advice.
Which agreements are signed, and when?
NDA — mutual, signed before any register, salary figure, employee record or filing is shared with anyone.
DPA — processor terms under Article 28(3) of the General Data Protection Regulation (GDPR) where it applies, and under the Bangladesh Personal Data Protection Act for the employee data we handle.
Data transfers — signed before any employee data moves: standard contractual clauses, or whichever transfer instrument your jurisdiction asks for.
Access — only the HR, payroll and document modules named in the scope, nothing more. We hold no bank credentials, no payment authority and none of your production systems.
Certifications — none are claimed; any we hold later will be listed. We are not a law firm, a tax adviser or a licensed representative before a court or a regulator.
What controls, intellectual property (IP) and rework terms apply?
Your accounts Every register, filing, deposit receipt, policy and monthly pack lives in your HR, payroll and document systems from the first day; nothing is stored on our side.
Document ownership The contract makes every record your entity’s property. Export them, pass them to an auditor, an inspector or a lawyer, or take them to another provider whenever you choose.
Boundary We do, file and document; we do not give legal or tax advice, represent you before a labour court or regulator, publish penalty figures we have not verified, or decide questions the Acts leave to the employer — your entity and your counsel decide.
Approval No return is filed, no deposit made and no policy changed until your named owner has approved that month’s pack; approvals, dates and versions are recorded.
Rework Free within thirty days when a pack item fails its agreed acceptance list. New entities, new returns or changes in the law are priced first as a change request.
What proof do you get before you pay for payroll compliance?
Before you pay for payroll compliance in Bangladesh, check three things we did not make up: the wage deadline the Labour Act fixes, 14 days of sick leave a year on full pay under section 116, and the figures the amendment changed. After the review you get a fourth: your ranked gap list, with the section beside each item.
The same goes for the rules this service applies every month. Section 5 of the Labour Act states: “No employer shall employ any worker without giving such worker an appointment letter and every such employed worker shall be provided with an identity card with his photograph”. On the salary deduction rules in Bangladesh, section 125 states: “Except the cases for deduction authorized by this Act, no deduction shall be made from the wages of a worker”. The kinds it allows include fines, unauthorised absence, advances or loans, income tax, court orders and provident fund subscriptions.
30 minutesA free scoping call about your entity or the team we employ for you, its registers and its returns; if the setup is known, you leave with a review quote.
1 weekA compliance review of payroll, contracts, policies, registers and filings against three laws, every gap ranked by risk with its section and fix, credited to the fix month.
One monthTo a ranked gap list closed, the prescribed registers in form and the first dated compliance pack; no fix fee if the first pack misses its agreed item list.
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 payroll and HR compliance?
How much do payroll and HR compliance services cost?
Payroll and HR compliance services are never billed per hour. The 30-minute scoping call is free. The $490 one-week review ends in a ranked gap list, credited to the fix. The one-month fix is priced per entity, and monthly upkeep starts at $249 per entity.
Which registers must an employer keep in Bangladesh?
An employer must keep a worker register and a leave register in the forms the Bangladesh Labour Rules prescribe. Every worker also needs an appointment letter, an identity card and a service book under sections 5 and 6 of the Bangladesh Labour Act. We bring existing records into the prescribed form and keep them current.
Who deducts tax from salaries in Bangladesh?
The employer does. Under section 86 of the Income Tax Act, whoever pays salary must deduct tax at the time of payment, at the average rate on the employee’s estimated total income. We calculate the deduction each month on the register your owner approves, deposit it on its date, and file the receipt for the year-end return.
Do we need a Bangladesh entity for compliance services?
No. If we employ your staff under our employer of record, the employer’s duties sit with our entity and you receive the same monthly pack as evidence. If you own a Bangladesh entity, we run the compliance work for it and your entity remains legally responsible as the employer. Our PEO service administers HR and payroll alongside.
How long does it take to become compliant?
About six weeks from the free scoping call to the first dated compliance pack: one week for the review that ranks every gap, then one month for the fix that closes the agreed items. Monthly upkeep starts after the first pack is approved, and you can cancel any month.
When is this service not enough, and what will you never do?
A labour court case or a regulator’s inquiry is where this service stops, and we never give legal or tax advice. Those matters need a licensed lawyer; we say so and hand over the complete file. We also never represent you before a court or regulator, certify your compliance, publish unverified penalty figures, or file anything unapproved.
Start with a free 30-minute scoping call or the one-week review.Prefer to talk first? Call +880 1917 746550 or email support@eicra.com.