Overtime in Bangladesh is generally paid at twice the ordinary rate of basic wage, dearness allowance, and any ad-hoc or interim wage for workers covered by the Bangladesh Labour Act, 2006. For monthly-rated workers, calculate the hourly base using 208 hours, then multiply by 2 and by the overtime hours worked. Foreign employers should not apply a 1.5× overtime rule imported from another jurisdiction without checking Bangladesh requirements.
Bangladesh Overtime Pay Calculator
Estimate overtime allowance for a monthly-rated worker using the 208-hour method and a 2× overtime multiplier. Enter only the wage components used for the statutory overtime calculation.
Your estimated overtime allowance
Formula used: [(Monthly basic wage + dearness allowance + ad-hoc or interim wage) ÷ 208] × 2 × overtime hours.
This calculator provides an estimate for monthly-rated workers. It does not determine worker classification, attendance validity, entitlement, daily or weekly hour-cap compliance, tax treatment, or contractual premiums. This article is general information, not legal or tax advice. Verify current rules with the relevant Bangladesh authority or a licensed adviser.
What is overtime under Bangladesh labour law?
Overtime under Bangladesh labour law is work performed by a worker beyond the statutory working-hours limits: ordinarily more than 8 hours in a day or more than 48 hours in a week. Section 108 provides an overtime allowance at twice the ordinary rate of basic wage, dearness allowance, and any ad-hoc or interim wage. The calculation is not a generic 1.5× rule and should not be based automatically on gross salary.
Bangladesh working-hours compliance also requires employers to track the daily and weekly limits, not just calculate a payroll amount after the fact. A worker may exceed the ordinary 48-hour weekly limit where overtime applies, but total hours including overtime are limited by the Act.
| Rule | Ordinary limit | Ceiling including overtime | Statutory reference |
|---|---|---|---|
| Daily hours | 8 hours | 10 hours | Bangladesh Labour Act, 2006 — Sections 100 and 102 |
| Weekly hours | 48 hours | 60 hours | Bangladesh Labour Act, 2006 — Section 102 |
| Yearly weekly average | — | 56 hours per week | Bangladesh Labour Act, 2006 — Section 102 |
| Overtime rate | 1× ordinary rate | 2× ordinary rate | Bangladesh Labour Act, 2006 — Section 108 |
A week above the statutory 60-hour limit creates a working-hours compliance risk and should be investigated immediately. Maintain attendance records, overtime approvals, wage sheets, and overtime registers that can explain both the hours worked and the allowance paid.
If you are still designing a Bangladesh salary structure, document each wage component clearly before payroll goes live. Section 108 and Rule 102 calculate overtime on monthly basic wage, dearness allowance, and any ad-hoc or interim wage; classification of other recurring payments should be reviewed against the employment terms and current Bangladesh guidance.
How do you calculate overtime pay in Bangladesh?
For a monthly-rated worker, calculate Bangladesh overtime pay by dividing monthly basic wage, dearness allowance, and any ad-hoc or interim wage by 208, multiplying the result by 2, then multiplying by overtime hours worked. Rule 102 of the Bangladesh Labour Rules, 2015 sets the monthly calculation method and treats 208 as one month of standard working hours: 52 ÷ 12 × 48 = 208.
Statutory formula:
Overtime Pay = [(Monthly Basic Wage + Dearness Allowance + Ad-hoc or Interim Wage) ÷ 208] × 2 × Overtime Hours
Rule 102 also provides matching divisors for other pay bases: 1/8 of daily wage for daily-rated workers and 1/48 of weekly wage for weekly-rated workers. For monthly-rated employees, use the fixed 208-hour divisor rather than actual calendar hours in the month.
Worked example: a monthly-rated employee in Dhaka
An employee with a monthly basic wage of BDT 31,200 who works 14 overtime hours has an estimated overtime allowance of BDT 4,200.
| Calculation step | Calculation | Amount |
|---|---|---|
| Hourly base | BDT 31,200 ÷ 208 | BDT 150 per hour |
| Statutory overtime rate | BDT 150 × 2 | BDT 300 per hour |
| Overtime allowance | BDT 300 × 14 hours | BDT 4,200 |
Two recurring payroll errors create avoidable exposure. First, calculating the rate from the wrong wage components can produce an incorrect result. Second, dividing by variable calendar hours or actual hours present can understate the calculation. For monthly-rated workers, the Rule 102 divisor is 208.
Does Bangladesh require double pay or triple pay for extra work?
Section 108 sets a 2× overtime allowance for eligible overtime hours; it does not establish a separate statutory triple-pay tier within that provision. Before applying a separate holiday, weekend, or peak-season premium, employers should check appointment letters, applicable wage orders, collective arrangements, and current Bangladesh requirements.
| Element | Typical 40-hour / 1.5× system | Bangladesh statutory position |
|---|---|---|
| Weekly threshold | 40 hours | 48 hours |
| Daily threshold | Often none | 8 hours |
| Statutory multiplier | 1.5× | 2× |
| Calculation base | Regular hourly rate | Basic wage + dearness allowance + ad-hoc or interim wage |
| Monthly divisor | Varies by employer | 208 hours for monthly-rated workers |
Any payment above the statutory floor should be treated as a documented contractual or company-policy premium. Record the policy in the appointment letter, wage sheet, and overtime register so the calculation can be explained during a payroll review.
How do employers stay inside Bangladesh’s overtime limits?
Employers stay inside Bangladesh’s overtime limits by monitoring attendance daily, checking weekly totals before the roster closes, and reconciling approved overtime to payroll and statutory registers. Payroll calculation cannot cure an attendance breach discovered after the week has already exceeded the legal ceiling.
Foreign employers running a Bangladesh team without a local payroll department should align timekeeping, roster approvals, wage components, payroll calculations, wage sheets, and overtime registers. A premium above the statutory floor is only defensible when the appointment letter, wage sheet, attendance record, and overtime register agree.
For operational support, see our time and labor management service in Bangladesh, statutory compliance services for employers in Bangladesh, and corporate payroll services in Bangladesh for foreign and local companies.
Frequently asked questions about overtime in Bangladesh
Is overtime calculated on basic salary or gross salary in Bangladesh?
Section 108 and Rule 102 expressly use basic wage, dearness allowance, and any ad-hoc or interim wage. Do not assume that every other payment is excluded. Review recurring payments against employment terms, payroll records, and current Bangladesh guidance before finalising the wage base.
Are managers and white-collar staff entitled to overtime in Bangladesh?
Section 108 applies to people who fall within the Act’s definition of “worker.” Job title alone is not decisive; examine actual duties and legal classification. For employees outside that definition, any overtime entitlement may depend on the employment contract. Obtain Bangladesh-specific professional advice for borderline roles.
Do piece-rate workers get overtime allowance?
Section 108 excludes workers paid on a piece-rate basis from the overtime allowance provision. Employers should still monitor applicable working-hour limits and maintain accurate attendance records.
What is the maximum overtime allowed per week in Bangladesh?
Total hours, including overtime, are limited to 10 hours in a day and 60 hours in a week, with a yearly average of 56 hours per week under Section 102. Investigate and correct weeks that exceed the statutory ceiling.
Why is 208 used as the divisor instead of actual monthly hours?
Rule 102 uses 208 hours for monthly-rated workers, calculated as 52 ÷ 12 × 48. The divisor is fixed for this calculation and does not change with the number of calendar days in a particular month.
What happens if an employer does not pay overtime in Bangladesh?
Unpaid overtime can create a wage-payment dispute and may be examined by the Department of Inspection for Factories and Establishments or a Labour Court, depending on the facts and procedure. Maintain wage sheets, attendance records, approvals, and overtime registers to support accurate payment and compliance review.
Sources and further reading
- Bangladesh Labour Act, 2006 — official Laws of Bangladesh text
- Section 108 — Extra-allowance for overtime, official Bengali text
- Bangladesh Labour Rules, 2015 — Rule 102, method of calculating the general rate of overtime allowance, Bangladesh Gazette, Extraordinary
- Department of Inspection for Factories and Establishments (DIFE)
Last reviewed: 15 September 2026
Reviewed by: Asma Sultana, Payroll and Employer of Record Specialist, Payrollbangladesh — 18 years of payroll and employment administration experience. This review covers payroll and HR operations content; it is not a legal opinion.
This article is general information, not legal or tax advice. Verify current rules with the relevant Bangladesh authority or a licensed adviser.
