Employee Benefits in Bangladesh

Who Is Entitled to Employee Benefits In Bangladesh

In Bangladesh, employee benefits are primarily governed by the Bangladesh Labour Act of 2006. This legislation mandates that all employees, regardless of their employment status—be it full-time, part-time, or contractual—are entitled to certain fundamental benefits. These benefits encompass aspects such as working hours, leave entitlements, and health and safety regulations. However, the scope and extent of these benefits can vary based on factors like the industry sector, the nature of employment, and specific organizational policies.

Overview of Employee Benefits In Bangladesh

Employee benefits in Bangladesh are structured to ensure the welfare and rights of workers, aligning with international labor standards. The country's workplace culture places significant emphasis on employee well-being, with both mandatory and supplemental benefits playing pivotal roles. Compared to other nations, Bangladesh offers a comprehensive set of mandatory benefits, while supplemental benefits are often introduced by employers to attract and retain top talent.

Mandatory Employee Benefits In Bangladesh

Mandatory benefits are legally required and form the core of any employee benefits package in Bangladesh. Here’s a comprehensive list of mandatory benefits in Bangladesh:

Minimum Wage

The National Minimum Wage Board in Bangladesh determines the minimum wage for each sector every five years. As of the latest update, the general minimum wage is set at BDT 8,000 per month, though this amount can vary depending on the specific industry sector.

Working Hours and Overtime Pay

The standard workweek in Bangladesh typically runs from Sunday to Thursday, with employees working up to 9 hours per day and a maximum of 48 hours per week. Any additional hours worked are considered overtime and are compensated at a rate of 200% of the regular salary.

Festival Bonuses

Employees who have completed at least one year of service are entitled to two festival bonuses each year. Each bonus should not exceed the basic salary.

Annual Leave

Employees are entitled to 1 day of paid annual leave for every 18 days of work in a calendar year. This entitlement ensures that employees have adequate time to rest and rejuvenate, contributing to their overall well-being and productivity.

Supplemental Employee Benefits In Bangladesh

Supplemental benefits are not required by law, but can help you stand out as an employer and attract top talent. They include:

Flexible Working Hours

Offering flexible working hours allows employees to balance their professional responsibilities with personal commitments. This flexibility can lead to increased job satisfaction, reduced stress, and higher productivity.

Performance-Based Bonuses

Performance-based bonuses reward employees for meeting or exceeding specific targets or performance metrics. These bonuses serve as incentives, motivating employees to perform at their best.

Tax Implications of Employee Benefits in Bangladesh

In Bangladesh, most remunerations and benefits provided to employees are taxable, except for certain allowances like medical allowances. Employers may receive tax deductions for certain employee benefits, provided they maintain proper documentation and comply with reporting requirements.

How to Offer an Employee Benefits Program for Employees in Bangladesh

Set Budget & Goals

Begin by defining clear objectives for your employee benefits program. For example, you might want to boost employee satisfaction, improve retention rates or attract top talent globally. Now, establish a realistic budget that aligns with these goals, taking into account the financial implications of offering various benefits across different regions. 

Use tools like Playroll’s employee cost calculator to benchmark your offering across regions.

Partner with Benefits Providers

Collaborate with reputable global benefits providers who have proven experience in international markets. These partners can ensure compliance, and offer insights into local regulations, cultural expectations as well as competitive standards – making your benefits program more attractive to employees in each country. 

Customize Benefits for Local Culture and Expectations

Employee needs and preferences can vary significantly across cultures. That’s why it’s so important to tailor your benefits offerings to reflect local customs, values, and expectations. For instance, while flexible work arrangements might be highly valued in one country, healthcare benefits could be more critical in another. Customizing your benefits packages accordingly can help make your offering more competitive to local talent. 

Playroll’s benefits team provides expert insights into tailoring your benefits packages in 180+ regions to local needs, helping to attract and retain top talent.

Communicate the Benefits Program to Employees

Good communication is crucial to ensure employees understand and make use of the benefits available to them. Use appropriate messaging channels to inform employees about the program's details, how to access benefits, and any relevant procedures.

Encourage open lines of communication within the organization, and update the team on any changes in the benefits program. It’s a good idea to conduct regular employee engagement surveys to get feedback on satisfaction with your benefits program, to make proactive changes as needed.

Legal Considerations for Employee Benefits in Bangladesh

The Bangladesh Labour Act of 2006 governs employee benefits, ensuring fair working conditions. Failure to comply with employee benefits regulations can result in penalties, including fines and legal action.

How Benefits Impact Employee Cost

Providing comprehensive benefits increases overall payroll costs for employers. However, offering competitive benefits can enhance employee retention, satisfaction, and productivity.

How Can Playroll Help with Benefits Management in Bangladesh?

Managing employee benefits across multiple countries can be complex, but it doesn’t have to be. Playroll simplifies the process by handling administrative tasks, ensuring compliance with local regulations, and providing access to tailored benefits packages in 180+ regions.

With everything managed through a single platform, companies can focus on supporting their teams  – wherever they are.

• Pick and choose from localized benefits packages to attract and retain global talent.
• Built-in compliance to stay ahead of evolving regulations.
• Manage leave, expenses, and more, through one intuitive dashboard.