A Step–by Step Process And Procedure of Payroll Services
A small mistake in payroll service can be the reason for a client’s displeasure and also affect a company’s growth rate. This makes us understand the phases of the payroll service process and the requirements for payroll service which is essential to conduct a business successfully in Bangladesh.
Our team of payroll specialists has addressed your most important payroll service process queries in order to help your business from any obligation.
1. Which information do I need for payroll service in Bangladesh?
- Full name
- Date of birth
- Joining date
- Contact detail
- Payment currency
- Total Salary
- Method of payment
- Bank account detail
2. What are the conditions to work in Bangladesh?
- Working hour: A Bangladeshi employee usually works either 8 am to 5pm or 9 am to 6 pm in a day or not more than 48 hours in a week.
- Payment method: Some workers are paid on a daily basis and some paid monthly. Also, overtime workers are paid according to their company policy.
- Age Limit: Children below fourteen years old cannot work in Bangladesh.
3. What are the benefits and compensation for payroll in Bangladesh?
Employees get two or three festival bonuses in a year in Bangladesh. Importantly, if female employees take maternity leave and they are paid before and after their leave. Also, organizations provide transportation benefits, health benefits, education benefits according to their policy.
4. What are the holiday and leave requirements for payroll in Bangladesh?
- Govt. Holidays: Although there are 21 national holidays in Bangladesh each year.
- Maternity leave: Female employees are allowed to take a whole nine months leave during their pregnancy.
- Sick leave: Employees usually have 14 days paid sick leave per year available; however, this is a one-time benefit that cannot be carried over from one year to the next.
Paternity leave: There is no paternity leave in Bangladesh.
5. What social security contributions are required for employers?
- Health Insurance: There are different health insurance policies in different organizations. Some private organizations provide discount or free treatment from a specific health center. On the other hand, sometimes the government organizations offer compensation for their employees’ health services. The HR payroll management service that maintains and records this information.
- Provident fund policies: ‘The Govt. Provident Fund’ act includes compulsory deposit from the employees at the end of a month. This information is recorded by the HR payroll management.
- Unemployment Insurance: An initiative has been taken with the partnership of ILO and UNIQLO to re-train the unemployed people so that they can work for the betterment of bangladesh.
- Insurance of disable employee: In 2016, Bangladesh Business and Disability Network (BBDN) has been established to support the disable employees.
- UN Coordination: After COVID-19 UN and Unicef has supported a ‘Social Economy Framework’ to support the employment services.
- Minimum payment policy: Every department of an organization has different payroll policies which are easily maintained with payroll software.
6. Termination term:
Globalization Partners advises creating a written employment contract for each employee that specifies their rights and grounds for termination.Employees must receive a written termination notice before 30 days. Each employee is designated to 30 days of pay.
7. Payroll Taxation Process:
Employers must ensure that they are up to date on all payroll service taxation regulations in Bangladesh. There is no social security tax in the nation, which has a progressive tax rate of 10 to 30%. Employers must pay a corporation tax rate of either 25% or 35% depending on whether they are publicly traded or not.
8. Should all workers have to be on payroll?
All the workers should get their payment according to the Employment Service rule of Bangladesh.
Want experienced assistance for payroll processing in Bangladesh for your business?
The procedures involved in the payroll process in Bangladesh are very complicated, as you can see from the information above. For businesses having offices across the nation, this makes it very difficult to maintain compliance.
Additionally, at present it can be difficult and time-consuming to stay with payroll compliance rules, especially if your organization processes a large volume of payroll.