PEO services in Bangladesh, run by our Dhaka-based team, are professional employer organization (PEO) services for an international company that already owns a local entity. They replace the human resources (HR) and payroll desk it would otherwise staff itself. Your entity stays the employer on every appointment letter. We run payroll, leave, records and the Labour Act deadlines for it, per employee, at a fixed price, while your managers direct the work. An HR administrator and a payroll accountant work inside your HR and payroll systems under a signed non-disclosure agreement (NDA). Your owner approves each payroll run before it is paid.
One exit after each step. No long-term commitment at any stage. We start with the entity you own in Bangladesh: headcount, contracts in place, who runs payroll today, which filings are open, and what you want handed over. If part of that headcount is foreign nationals, expat payroll in Bangladesh covers their tax residency, remittance records and work permit dates inside the same monthly run. Each task is marked yours, ours or shared, and the first payroll calendar is drawn back from the Labour Act’s wage deadline.
You get a written verdict — a PEO scope for your entity, payroll processing only, a handover from your current provider, or an employer of record because no entity exists yet. Where no entity exists and you want us to find, employ and pay the team for you, our remote staffing agency in Bangladesh covers that route. If your desk already covers it, you stop there and the review is yours to keep.
PEO services in Bangladesh cover six things for a company that already employs people through its own local entity: a written split of duties, appointment letters and employee records, monthly payroll approved by your owner, leave registers, statutory filings in scope, and final settlements when someone leaves. Each card is one deliverable.
Before the first payroll run, every recurring HR and payroll task is listed and marked yours, ours or shared. Hiring decisions and supervision stay with you. Letters, registers, payroll and deadlines come to us. Both sides sign the list, and it is kept with the contract.
Each new hire’s appointment letter is drafted from your approved terms and issued in your entity’s name, with the identity card the Labour Act requires. One file per employee holds the contract, ID, pay history and leave, kept in your HR system, not ours.
Gross-to-net is calculated per employee, with deductions and employer costs shown line by line. Your owner receives the payroll register for approval. Payment is released only after that approval, inside the Labour Act’s wage deadline.
Casual, sick, annual and festival leave accrues per employee at the Act’s rates. Managers see the balances, and approvals are recorded. Registers are kept in the form an inspector or auditor asks to see.
Every filing your entity owes as an employer sits in the written scope with its due date and owner. We prepare and file those marked ours on your calendar. For those marked yours, you get a reminder two weeks ahead.
When an employee resigns or is let go, the final dues are calculated per the Act: wages, leave encashment, gratuity where it applies, and deductions. Your owner approves them, they are paid inside the statutory window, and the file is closed with a dated record.
Four dates in the Bangladesh Labour Act, as amended, drive a PEO’s calendar: wages inside seven working days of the wage period, an appointment letter for each hire, leave earned by days worked, final dues inside thirty working days. The review shows which one your entity is closest to missing. No entity? Our employer of record service fits instead.
Section 123: wages fall due within seven working days of the wage period’s end; a payroll run from abroad often lands later.
Section 5: a written appointment letter and photo identity card for every worker, when hires started on an email.
Sections 115–117: ten days of casual leave and fourteen of sick leave a year, a day of annual leave per eighteen worked, when nobody reconciles the spreadsheet.
Section 123: final dues within thirty working days of exit, when nobody knows what a leaver is owed.
The first payroll cycle under a PEO contains five logged steps, because “we handle HR and payroll” proves nothing. Each item traces to an employee file, a Labour Act date, an approver and a day. The example is a twelve-person entity whose parent ran payroll from abroad without letters or registers. Yellow shows the step a person signs.
The five logged steps
On file at that step · its result
Scope signed
| Scope item | Sample entity |
|---|---|
| Employees | 12 |
| Recurring tasks | 31, marked yours, ours or shared |
| Owner | Named |
| Calendar | Drawn from the wage deadline |
Files built
Payroll calculated
Owner sign-off · a person signs
Paid and reported
Open a step to see what is on file
After the first cycle, payroll runs monthly on the approved calendar.
Illustrative run. The yellow step is the one a person signs; each step is logged and traceable to an employee file, a Labour Act date, an approver and a day.
A PEO engagement is set up in five steps, each an exit: a free call to scope, a one-week review, the first payroll cycle, production for each later hire, and Managed Ops. Arrangements fail when the split of duties lives in someone’s head and payroll runs before anyone reads the contracts. Each step ends with a document you keep.
You meet a named team on day one: an HR administrator who owns letters, files and registers, a payroll accountant who calculates gross-to-net and prepares filings, and a reviewer who checks every register.
PEO buyers arrive in one of four situations. An entity with no HR desk → a PEO scope. An entity whose HR is fine but payroll is late → Bangladesh payroll processing only. An entity served by another provider → a handover with a gap list first. No entity → an employer of record. Five questions show which fits.
1. Does your company own an entity in Bangladesh?
2. How many people does that entity employ?
3. Who runs HR and payroll for it today?
4. What do you want handed over?
5. When is the next wage period due?
Your entity employs the team and nobody owns the calendar. The review lists every recurring task as yours, ours or shared, and files and registers are built from the contracts. Your owner approves the first payroll run, and it is paid inside the statutory window within one cycle.
A first estimate; the one-week review confirms it.
How the verdict is decided
A PEO is judged on whether wages land inside the deadline of the Bangladesh Labour Act and whether the file survives an inspector’s question, not on the number of countries it lists. Your entity stays the employer. Your owner approves; we administer. Priced per employee, in writing.
Section 123 of that Act states: “The wages of a worker shall be paid before the expiry of the seventh working day following the last day of the wage period in respect of which the wages is payable.” Section 121 states that “Every employer shall be liable to pay to workers employed by him all wages required to be paid under this Act”. The deadline is the law’s, and the duty to pay stays with your entity; a PEO runs the calendar that meets both. A PEO is not a staffing agency: it administers the staff your entity already employs in one country. If your staff sit in several countries, our multi-country payroll services put every country on one consolidated register. If you still need to find those people, our recruitment services in Bangladesh run the search, the verification and the appointment letter.
Reviewed by Asma Sultana Minu, Local Corporate Counsel. The Bangladesh Labour Act 2006 references on this page were last checked on 5 October 2026.
A PEO is safe when your entity stays the employer, your owner approves and access is limited to what the work needs. The risk is who approves payments and who sees employee data, not where an administrator sits. Our Bangladesh-based team works under NDA and a data processing agreement (DPA), releasing no unapproved payment. Reviewed By Eicra.com team
Before you pay for PEO services, you get three things you can check: a free 30-minute scoping call about your entity, a one-week review that ends in your own task-by-task scope list, and a wage deadline the Labour Act fixes, not one we made up. No setup fee is charged if the first cycle misses its agreed scope list.
30 minutes
A free call about your entity and what you want handed over. If the entity and headcount are known, you leave with a quote for the review.
1 week
A scoping review that ends in your own task-by-task scope list, with every recurring task marked yours, ours or shared. Its fee is credited to your first cycle.
One cycle
To a payroll run approved by your owner and paid inside the Labour Act’s wage deadline of seven working days, following the one-week review.
PEO services in Bangladesh are priced per employee, never per hour; the cards at the top show each step’s time and term. A one-week scoping review ends in a written scope, credited to the first cycle. The first payroll cycle is priced per entity, then administration per employee per month, starting from US$18 per employee per month; cancel any month. For comparison, PEO administration fees in the United States run US$40 to US$160 per employee per month, or 2 to 12 per cent of payroll, and NAPEO puts the average at US$1,395 per employee per year. Justworks publishes US$79 and US$124 per employee per month for its two PEO plans. In the United Kingdom, fully managed payroll runs about £4 to £12 per employee per month, and adding HR administration costs a further £10 to £25. A freelance payroll specialist on Upwork charges US$40 to US$75 an hour and still leaves the registers, the filings and the liability with you. An employer of record, where the provider becomes the legal employer instead of your entity, runs US$400 to US$699 per employee per month.
A professional employer organization in Bangladesh runs HR and payroll administration for a company that owns a local entity: appointment letters, employee files, monthly payroll, leave registers, filings in scope and final settlements. Your entity stays the employer on every letter. We administer against a written scope; your owner approves each payroll.
The difference is who holds the employment contract: your entity under a PEO, ours under an employer of record. Under a PEO your Bangladesh entity employs the staff and we administer HR and payroll for it. So a PEO needs your registered entity; without one, choose an employer of record.
Yes. A PEO works alongside an entity you already own, such as a subsidiary or branch, because that entity remains the legal employer and signs every appointment letter. Without one there is nothing for a PEO to administer. The test is simple: ask who signs the appointment letter.
Your Bangladesh entity is the legal employer and stays liable: it is named on every appointment letter and carries the obligations the Labour Act places on an employer. We run the administration that meets those obligations, so you see what was done and when. We do not sign as employer and give no legal or tax advice.