Country pack: Bangladesh

Run HR and payroll for a legal entity in Bangladesh: income tax withheld from salary, provident fund, festival bonus, gratuity and end-of-service benefits, leave and holidays under the Labour Act, Bangla letters and the BEFTN bank salary file.

Contents: Who can use it · What the pack contains · Install · Employee fields · Income tax · Other payroll lines · End of service · Bank file · Reports and deadlines · Status of the figures · Example · FAQ

Who can use it

Admins and HR staff who can install country packs on a legal entity. Payroll content (pay components, the bank file, tax and provident fund reports) needs payroll on your plan.

What the pack contains

Area	Bangladesh: private sector
Income tax	Tax year July to June. Income year 2026-27: tax-free income 400,000 (450,000 for women and people aged 65 or more, 500,000 for persons with a disability or third-gender taxpayers, 525,000 for gazetted war-wounded freedom fighters and injured July fighters); then 10% on the next 300,000, 15% on 400,000, 20% on 500,000, 25% on 2,000,000 and 30% on the rest. Salary exemption: a third of salary, at most 500,000. Investment rebate: the least of 3% of taxable income, 10% of eligible investment and 750,000. Minimum tax 5,000
Provident fund	7% to 8% of basic from the employee and the same from the employer (your provident fund settings)
Festival bonus	Two a year after one year of service, each one month's basic wage, unless you enter another amount
End of service	Termination by the employer: 30 days' basic wage per completed year. Resignation: 14 days per year from 5 years, 30 days from 10 years. Gratuity (30 days a year, 45 after ten years) when it is higher
Leave	Casual 10 days, sick 14 days, annual (earned) leave one day for every 18 days worked, maternity 120 days
Holidays	Shaheed Day, Independence Day, Pohela Boishakh (Bengali calendar), May Day, July Mass Uprising Day, Victory Day, Christmas, Shab-e-Barat, Shab-e-Qadr, Eid-ul-Fitr (3 days), Eid-ul-Adha (3 days), Ashura, Eid-e-Miladunnabi
Working time	8 hours a day, 48 a week; overtime at twice the basic rate, at most 2 hours a day; Friday weekly holiday
Notice	120 days by the employer and 60 by the worker for permanent monthly-rated workers; probation up to 6 months
Letters	Appointment letter, service certificate, salary certificate and no objection certificate, in English and Bangla
Bank file	BEFTN bulk salary file with routing numbers
Reports	Monthly tax deducted from salary, yearly salary and tax (for returns), provident fund contributions, workers' participation fund list

The pack also carries the workers' participation fund rules, contract clauses in English and Bangla, local formats (day/month/year dates, lakh grouping, the Bengali calendar beside dates), data protection defaults and electronic signature rules.

Install the pack

1. Go to Settings → Legal entities and open the legal entity (its country must be Bangladesh).
2. Click Install country pack and choose Bangladesh: private sector (draft).
3. Read the preview: it lists what will be added to your setup (pay components, holidays, leave types, work rules, letters, employee fields).
4. Tick the notice that the pack is not yet verified and click Install.

Letters arrive as drafts: read them and publish them in Documents and letters before use. Leave types that you already created with the same code (for example CL) are kept as they are.

Hijri holidays (Eid, Shab-e-Barat, Shab-e-Qadr, Ashura, Eid-e-Miladunnabi) are added for this year and the next, and every following year on their own. Bangladesh follows its own moon sighting, which is often a day later: change the date in Holidays when the government announces the year's list. Durga Puja, Janmashtami, Buddha Purnima and Jumatul Bida are added by hand each year.

Employee fields

The pack adds a section Income tax (Bangladesh) to every employee profile of that country:

• Person with a disability or third-gender taxpayer: Yes raises the tax-free income to 500,000.
• Gazetted war-wounded freedom fighter or injured July fighter: Yes raises it to 525,000.
• Worker under the Labour Act: Yes for staff who are workers under the Labour Act (not managerial or administrative roles). Use it to pick the people who share in the workers' participation fund.

Women and people aged 65 or more get the higher tax-free income from the gender and date of birth on the profile. Put the NID under National ID (10, 13 or 17 digits) and the e-TIN under Tax ID (12 digits).

Income tax withheld from salary

Every month the payroll estimates the year's salary (what was paid so far in the tax year plus this month for every month left), takes off the salary exemption, works out the tax on the slabs with the person's tax-free income, takes off the investment rebate and spreads what is left of the year's tax over the months left. Above the tax-free income the year's tax is never less than the minimum tax.

The investment rebate counts the investments the employee declared and proved in Tax declarations (DPS up to 120,000, savings certificates and government securities up to 500,000, life insurance, listed shares and mutual funds, other approved funds, approved donations and zakat) and the provident fund paid in through payroll.

Festival bonuses are not foreseen when the year is estimated; the tax evens out over the months that follow.

Provident fund, festival bonus and gratuity

• Provident fund: set the employee and employer rates in the payroll provident fund settings; they are taken from basic every month.
• Festival bonus: in a festival bonus run, everyone with at least one year of service gets one month's basic wage as on the festival date. If you entered a bonus for the person, that amount is paid instead.
• Gratuity (accrual): a monthly employer cost for your books (30 days of basic a year, 45 after ten years). It is not on the payslip.

End of service

When an offboarding settlement is worked out, the pack adds:

• Compensation on termination: 30 days' basic wage for each completed year (termination by the employer, discharge, retrenchment).
• Resignation benefit: 14 days' basic wage for each completed year from 5 years of service, 30 days from 10 years.
• Gratuity above the compensation: the gratuity (30 days' basic wage a year, a part year over six months counting as a year, 45 days after ten years) when it is higher than the compensation. At the end of a fixed term it is the whole gratuity.

The basic wage comes from the person's salary structure on the last working day (the pay on file when there is none). Unused annual leave is paid out, notice not given is paid or taken back, and the final pay is due within 30 days. If your company has no gratuity scheme and your lawyer agrees no gratuity is owed, remove the gratuity line from the settlement. Dismissal for misconduct, retirement and death are settled by hand.

BEFTN bank salary file

In a locked payroll run, open the Bank file tab and choose BEFTN bulk salary file (CSV). The file has one line per payee: name, account number, account type, 9-digit routing number, amount, payment details and employee ID. Anyone without an account number or with a routing number that is not 9 digits is listed and the file is not made. The file is for taka only.

Banks name their upload columns differently. If your bank's template uses other headings or asks for an account type code (for example SB or CA), set them under Pack settings of the legal entity's country pack.

Salaries paid to mobile wallets go through the payout providers, not this file.

Reports and deadlines

In Compliance → Reports, choose the legal entity:

• Tax deducted from salary (monthly): code, name, e-TIN, NID, salary paid and tax deducted for everyone taxed in the month. Use it for the tax deposit and the withholding return.
• Salary and tax of the year (for returns): run it for July to June. Basic, house rent, medical, conveyance, overtime, bonus, total salary, provident fund and tax per person, the data your staff need for their income tax returns. Year-end statements in Payroll use the title "Certificate of salary and tax deducted at source" and can be read in English or Bangla.
• Provident fund contributions: the month's own and employer contributions.
• Workers' participation fund: people paid in the year: the starting list for the fund; keep only workers with six months of service in the year.

Compliance → Calendar shows the wage payment (7th of the month), the tax deposit (14th), the quarterly withholding return, Tax Day (30 November) and the participation fund payment (31 March for a June year end).

Status of the figures

The pack is draft: written from the Income Tax Act 2023 with the Finance Act 2026, the Bangladesh Labour Act 2006 with its amendments up to 2026, the Labour Rules 2015 and the government holiday list, with the source of every item and a list of points the reviewer must confirm. It becomes verified only after a Bangladeshi labour lawyer and a chartered accountant sign. Until then every screen that uses it says the figures are not verified. Your company stays responsible for its tax deposits and filings.

Example scenario

Dhaka Traders Ltd installs the Bangladesh pack. Nusrat earns 100,000 a month gross from July and declared a 200,000 savings certificate, which HR verified: her yearly tax is 45,000 less a 20,000 rebate, so 2,083 is withheld each month. Rafiq resigns after 7 years on a basic wage of 30,000: his settlement shows a resignation benefit of 98,000 and a gratuity above the compensation of 112,000. HR makes the September BEFTN file from the locked run and uploads it to the bank.

Troubleshooting and FAQ

No tax is withheld for someone earning 50,000 a month. That is right: 600,000 a year less the one-third exemption is 400,000, the tax-free income.

A woman's tax looks the same as a man's. Check the gender on her profile.

The BEFTN file is refused. The message lists who has no account number or a routing number that is not 9 digits. Fix the bank account on the profile and make the file again.

The Eid holiday is on the wrong day. Change the date in Holidays when the moon sighting is announced.

The tax rates change next year. A new version of the pack carries the new Finance Act; you see it under Compliance → Country packs and upgrade when ready.