Payroll Services in Bangladesh for Foreign Companies

PayrollBangladesh runs monthly payroll for foreign companies with staff in Bangladesh — salaries disbursed in BDT, income tax (TDS) withheld and deposited with the National Board of Revenue, and every run compliant with the Bangladesh Labour Act 2006. You can run payroll with or without a local entity: use our payroll service if you already have a registered Bangladeshi company, or our Employer of Record service if you do not.

Reviewed by Romana Akther Shila

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What a Monthly Payroll Run Includes?

Every cycle we handle the full path from gross salary to a paid employee and a filed tax return:

1. Gross-to-net calculation: basic salary, allowances, overtime and deductions computed under the Bangladesh Labour Act 2006.

2. Income tax (TDS) at source: each employee's tax calculated, withheld, and deposited with the National Board of Revenue (NBR) on the statutory calendar, keeping your company out of Bangladeshi tax filings.

3. Salary disbursement in BDT: paid through local bank transfer and mobile financial services (bKash / Nagad) on a fixed monthly cycle.

4. Provident fund & festival bonus: administered where applicable under Bangladeshi rules.

5. Final settlement: leave encashment, gratuity and dues calculated correctly at exit.

What Payroll Outsourcing Costs in Bangladesh

Payroll outsourcing at PayrollBangladesh starts at USD 199 per employee per month, covering payroll processing, TDS filing and core compliance. The employee's gross salary and statutory employer costs are billed at cost on the same monthly invoice, so your landed cost is fully transparent — with no hidden markup.

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Bangladesh Payroll Compliance Essentials

Foreign employers pay staff in Bangladesh under three overlapping rulebooks. Getting any one wrong creates back-pay liability or NBR penalties.

Working hours, overtime and leave — Labour Act 2006

Standard working hours, overtime paid at twice the ordinary rate, weekly rest, annual and festival leave, and festival bonus are all governed by the Bangladesh Labour Act 2006. See our detailed guides on how overtime pay is calculated in Bangladesh and the Labour Act overtime and extra-hours regulations.

Income tax deducted at source — NBR

Employee income tax is withheld from each salary and deposited with the National Board of Revenue on the statutory monthly calendar. We handle staff overtime compensation and TDS as part of every run.

Statutory registration and records

Payroll registers, appointment letters and personnel files are maintained to the standard a labour inspection expects. See statutory registration.

Own-Entity Payroll vs Employer of Record: Which Fits You

	Own-entity payroll	Employer of Record (EOR)
Local entity required?	Yes	No
Setup time	Already set up	1–2 weeks
Legal employer	You	PayrollBangladesh
Monthly cost	From USD 199/employee	Quote-based
Best for	Established local presence	Fast market entry or testing

How We Start Running Your Payroll

Scope & Quote

you tell us the roles and approved salary levels; you receive a written per-employee cost, no obligation.

Compliant contracts

employment contracts drafted under the Labour Act 2006 before anyone starts.

Employee onboarding

documentation, personnel files and payroll registration completed ahead of day one.

First monthly run

salaries paid in BDT, payslips issued, TDS deposited with the NBR.

For expatriate hires we also handle work permit support.

Why Foreign Companies Run Payroll Through Us

How We Run Payroll for a Foreign Client

A US software company hired 25 staff in Bangladesh without setting up a local entity. Under our Employer of Record service, we handled Labour Act 2006 contracts, monthly BDT salary disbursement, and NBR TDS filing — the team was fully onboarded in 3 weeks. The client runs payroll from US with a single monthly invoice and English reporting.

On the ground in Dhaka since 2011 — over a decade processing payroll under Bangladeshi law, not a global platform reselling a local partner.
30+ foreign clients · 750+ employees paid monthly .
One invoice, one point of contact — salary, statutory costs and service fee consolidated every month.
Built for foreign clients — reporting in English, timezone-aware support, and payments compliant with Bangladesh Bank rules for inbound funds.
Average onboarding: 5 to 14 days — from signed quote to first BDT payroll run.
100% on-time NBR TDS filing — every deposit on the statutory calendar.

Metrics	Insights
Active Payroll Processing	662+ Employees Monthly
Retention Rate	97% Client Satisfaction
Top Client Origin	USA,CANADA,UK & EU
Compliance Accuracy	100% On-time Tax Filings

Frequently Asked Questions

1Can a foreign company run payroll in Bangladesh without a local entity?

Yes. Under our Employer of Record service, PayrollBangladesh acts as the legal employer using our own Bangladeshi entity, trade licence and NBR registration — so you can hire and pay staff without incorporating. If you already have a registered company, our payroll outsourcing service runs payroll under your entity instead.

2How much does payroll outsourcing cost in Bangladesh?

Payroll outsourcing starts at USD 199 per employee per month, covering processing, TDS filing and core compliance. Gross salary and statutory employer costs are billed at cost on the same monthly invoice.

3Who withholds and deposits employee income tax with the NBR?

The legal employer does. We calculate each employee's income tax, withhold it from the monthly BDT salary, and deposit it with the National Board of Revenue on the statutory calendar — keeping foreign clients outside Bangladesh's payroll-tax filings.

4How are salaries paid to employees in Bangladesh?

Salaries are paid in Bangladeshi taka on a monthly cycle through local bank transfer and mobile financial services such as bKash and Nagad, following Labour Act 2006 payment-timing rules. Payslips are issued every cycle.

5What is the difference between payroll outsourcing and an Employer of Record?

Payroll outsourcing runs payroll under your Bangladeshi entity. An Employer of Record makes us the legal employer, so no entity is required. See our EOR service for the entity-free route.

6How long does it take to start running payroll in Bangladesh?

After you approve a quote and roles, onboarding is typically completed within 2 weeks, before your first monthly cycle.

7What are the TDS filing deadlines for employers in Bangladesh?

As per the Income Tax Act, TDS deducted from salary must be deposited to the NBR within 2 weeks from the end of the deduction month.

Run Payroll in Bangladesh Without the Compliance Risk

BDT payroll, NBR tax filing and Labour Act 2006 compliance — with or without a local entity.

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