Staff Payroll Services in Bangladesh for Factories, Retail & Field Teams
Staff payroll is the monthly payroll for workforces whose pay depends on attendance, overtime and grade, such as factories and RMG units, retail and restaurant chains, security and facility companies, and NGOs with field staff. The service covers wages, overtime, leave pay, festival bonuses, maternity benefit, lawful deductions and final settlements under the Labour Act 2006 as amended in 2026, and the wage slips and wage records that rule 111 of the Labour Rules 2015 requires.
Staff Payroll Services for Teams Paid by Attendance, Overtime and Grade
A salaried head-office payroll changes little from month to month. A staff payroll changes every month. Absences, late arrivals, night shifts, overtime, joiners and leavers all change the figure, and the Labour Act sets how each one is paid. Late payment and deductions outside the Act can lead to claims under s.132. The service is built for three kinds of employers:
Factories and RMG units
Large workforces on grades, with overtime, attendance bonuses and night allowances every month. No wage may fall below the sector minimum wage (s.149), and the wage record required by rule 111(1) of the Labour Rules 2015 must be available for inspection.
Retail, restaurant and service chains
Shift staff across many outlets, weekly holidays on different days and frequent joiners and leavers. The same wage rules apply at every outlet, and each leaver’s dues must be paid within 30 working days of exit (s.123(2)).
Security, facility and NGO field teams
Staff posted at client sites or in districts. Section 124 allows payment by bank transfer or another digital method where the worker asks for it, and rule 111(3) requires a wage slip before each payment.
What Is Included in Our Staff Payroll Services?
Our staff payroll services in Bangladesh cover nine parts of the monthly cycle: attendance and time data; wages by grade; overtime; leave pay; festival bonuses; maternity benefit; lawful deductions; payment and payslips; and final settlements. Each card names the section of the Labour Act or the Labour Rules that governs that part.
The nine parts of every staff payroll
Attendance & time data
Missing punches, unapproved absences, late arrivals, shift changes and weekly holidays have to be resolved before any wage is calculated, because overtime (s.108) and absence deductions (s.126) are both worked out from attendance.
Wages by grade
Basic wage and allowances are set for each grade, and no wage may be below the minimum rate declared for your sector. Paying below that rate is prohibited under s.149, and the declared rate binds every employer under s.148.
Overtime
Overtime paid at twice the ordinary rate of basic wage, dearness allowance and any ad hoc or interim wage (s.108). The double rate does not apply to piece-rate workers (s.108(2)).
Leave pay
Casual leave of 10 days and sick leave of 14 days on full wages (ss.115–116), annual leave at 1 day per 18 days worked for adult workers (s.117), 13 festival holidays (s.118), and unused annual leave paid out when a worker leaves (s.11).
Festival bonuses
Two festival bonuses a year, each up to one month’s basic wage, for workers with one year of continuous service (Labour Rules 2015, rule 111(5)). Because eligibility depends on each worker’s length of service, it has to be checked worker by worker before each festival.
Maternity benefit
Benefit for the 120-day maternity period (s.46 as amended in 2026), at a daily rate of the last fixed monthly gross wage divided by 26, paid in cash, to a bank account or by EFT (s.48 as substituted in 2026).
Lawful deductions
Deductions may be made only from the basic wage and only for the reasons s.125 allows, such as unauthorised absence (s.126), advances and loans, income tax, provident fund and union check-off. No other deduction is allowed.
Payment & payslips
A wage period of no more than one month (s.122), payment within 7 working days of its end, on a working day (s.123), and payment by bank transfer or another digital method where the worker asks for it (s.124). Every worker must receive the wage slip required by rule 111(3), showing wages, overtime, deductions and the net amount.
Final settlements
All dues must be paid within 30 working days of the exit date (s.123(2)): earned wages, unused annual leave (s.11), notice pay, resignation compensation under s.27(4) as replaced in 2026, or termination benefits under s.26.
Legal frame: Bangladesh Labour Act 2006 ss.2(10), 11, 26, 27, 46, 48, 100, 102, 108, 115–118, 122–126, 132, 148–149, 232, 234, 264 and 307 (official text, Act No. 42 of 2006, bdlaws.minlaw.gov.bd), as amended by the Bangladesh Labour (Amendment) Act 2026, official text, Act No. 43 of 2026. Festival bonus and wage slips: Labour Rules 2015, rule 111 (official gazette text, Ministry of Labour and Employment), as also summarised by RMG Times and MiHCM’s payroll guide. Tax on wages: Income Tax Act 2023, s.86, official text, and Finance Act 2026, Act No. 96 of 2026, Schedule 2, official text.
What Rules Must a Staff Payroll Follow in Bangladesh? Key Facts at a Glance
Every staff payroll in Bangladesh has to meet these rules. Each one is tied to its section, and the 2026 changes are marked.
| Item | Position | Source |
|---|---|---|
| Wage period | No longer than one month | Labour Act 2006, s.122(2) |
| Payment of wages | Within 7 working days after the wage period ends, on a working day | Labour Act 2006, s.123(1), (3) |
| Dues on leaving | All dues within 30 working days of the date employment ends | Labour Act 2006, s.123(2) |
| Payment method | Cash or cheque; at the worker’s request, electronic transfer to a bank account or another digital method | Labour Act 2006, s.124 |
| Minimum wage | No wage below the rate the government declares for the sector on the Minimum Wage Board’s recommendation | Labour Act 2006, ss.139–140, 148–149 |
| Working hours | 8 hours a day and 48 a week as normal hours; with overtime, up to 10 hours a day and 60 in any week, averaging no more than 56 a week over a year | Labour Act 2006, ss.100, 102 |
| Overtime | Twice the ordinary rate of basic wage, dearness allowance and ad hoc or interim wage; the double rate does not apply to piece-rate work | Labour Act 2006, s.108 |
| Deductions | Only from basic wage and only for listed reasons: fines, unauthorised absence, damage or loss, housing, approved services, advances, income tax, court orders, provident fund, approved funds with consent, union check-off | Labour Act 2006, ss.125–126 |
| Casual and sick leave | Casual 10 days and sick 14 days a year, both on full wages and not carried forward | Labour Act 2006, ss.115–116 |
| Annual leave | 1 day per 18 days worked in factories, shops and commercial or industrial establishments; unused leave paid when employment ends | Labour Act 2006, ss.117, 11 |
| Festival holidays | 13 days a year (previously 11) | Labour Act 2006, s.118(1) as amended 2026 |
| Festival bonus | Two a year, each not more than one month’s basic wage, after one year of continuous service | Labour Rules 2015, rule 111(5) |
| Wage slip and wage record | A wage slip before each payment showing wages, overtime, deductions and net pay; a wage record kept for every worker (Form 38) | Labour Rules 2015, rule 111(1), (3) |
| Maternity benefit | 120 days; daily rate = last fixed monthly gross wage ÷ 26; paid in cash, to a bank account or by EFT | Labour Act 2006, ss.46, 48 as amended 2026 |
| Resignation compensation | Permanent worker, per completed year: 7 days’ wages up to 3 years; 15 days from over 3 to under 10 years; 30 days, or gratuity if higher, from 10 years | Labour Act 2006, s.27(4) as replaced 2026 |
| Termination by employer | Permanent worker: 120 days’ notice if monthly-rated, 60 days otherwise, or wages in lieu; plus 30 days’ wages per completed year or gratuity, whichever is higher | Labour Act 2006, s.26 |
| Gratuity, where payable | At least 30 days’ wages per completed year; 45 days’ wages for service over 10 years | Labour Act 2006, s.2(10) |
| Provident fund | At 100 or more permanent workers, when two-thirds ask in writing, unless enrolled in the Pragati pension scheme; contributions split 50/50 | Labour Act 2006, s.264 as amended 2026 |
| Workers’ participation fund | 5% of net profit within 9 months of year end, split 80:10:10, where paid-up capital is at least BDT 1 crore or fixed assets at least BDT 2 crore | Labour Act 2006, ss.232, 234 |
| Income tax on wages | Deducted when salary is paid, at the average rate on estimated income; tax-free threshold BDT 400,000 for 2026-27 (BDT 450,000 for women and taxpayers aged 65+; BDT 525,000 for persons with disabilities and third-gender taxpayers) | Income Tax Act 2023, s.86; Finance Act 2026, Schedule 2 |
| General penalty | Fine of BDT 25,000–50,000, imprisonment up to 3 months, or both | Labour Act 2006, s.307 as amended 2026 |
What Makes a Staff Payroll Accurate and Inspection-Ready?
A staff payroll is right only when every worker’s figure is right. Each part below is tied to the rule it follows.
Wage-level detail
Grades, shifts, overtime, attendance bonuses and night allowances all change the wage, so each one has to be worked out per worker, per month, from attendance.
One record from attendance to payslip
The wage, the overtime register, the leave balance and the wage slip should all come from one attendance record. That way the wage slip (rule 111(3)) and the wage record (rule 111(1)) show the same figures.
Statute-cited calculations
The rule behind each wage line is set out on this page with its section (ss.108, 115–118, 123, 125), so a worker’s query can be checked against the law.
Payroll data protected
Biometric attendance data is sensitive personal data under the Personal Data Protection Act 2026 (s.2(21)). The Act requires security safeguards (s.17) and processing records kept for at least 5 years (s.19).
Inspection-ready records
Rule 111(1) requires a wage record in Form 38 for every worker, and s.108(3) provides for an overtime register. Both should come from the same payroll run as the wage slip.
Exits settled on time
Each leaver’s final settlement must be paid within the 30-working-day limit in s.123(2); unpaid dues can be claimed under s.132.
How Does Staff Payroll Work Each Month in Bangladesh?
A staff payroll in Bangladesh runs in six steps every month: payroll review, set-up, monthly inputs, calculation and review, approval and payment, and reports and settlements. Set the monthly cut-off date so that wages can be paid within the 7 working days that s.123 allows.
- 01Payroll review. Recalculate a sample of the last payroll against the Labour Act as amended in 2026 and the sector minimum wage, and list each gap with the section behind it.
- 02Set-up. Set up grades, allowances, shift and overtime rules, leave balances, bonus eligibility and the attendance file format, and fix the monthly payroll calendar.
- 03Monthly inputs. By the cut-off date, collect attendance, approved overtime, joiners, leavers and changes, and resolve gaps and unapproved hours before calculating.
- 04Calculate & review. Calculate every wage, deduction and bonus, compare the totals with last month, and have someone other than the preparer review each variance.
- 05Approve & pay. The employer approves the payroll summary. Wages are paid in cash, by cheque or, at the worker’s request, by bank or digital transfer (s.124), within the s.123 deadline and with a wage slip for each worker (rule 111(3)).
- 06Reports & settlements. Close the month with the wage, overtime, leave and bonus registers, the tax deduction schedule, and every final settlement due that month.
Which Checks Should Every Staff Payroll Pass Each Month?
Use this list to test a staff payroll before it is approved.
Nine checks on every payroll run
- ✓No wage below the minimum declared for your sector (ss.148–149).
- ✓Overtime matches approvals and is paid at twice the ordinary rate (s.108).
- ✓Leave applied correctly: casual, sick and annual leave, and 13 festival holidays (ss.115–118).
- ✓Deductions lawful: only from basic wage and only for the reasons in s.125.
- ✓Bonus eligibility checked worker by worker before each festival bonus cycle (Labour Rules 2015, rule 111(5)).
- ✓Maternity benefit calculated at the last monthly gross wage ÷ 26 for the 120-day period (ss.46, 48).
- ✓Payment date within 7 working days of the wage period, on a working day (s.123).
- ✓Final settlements due this month paid within 30 working days of exit (s.123(2)).
- ✓Wage records and wage slips produced for every worker (rule 111); biometric attendance data is sensitive data under the Personal Data Protection Act 2026 (s.2(21)).
Primary sources: official text, Act No. 42 of 2006, bdlaws.minlaw.gov.bd; Labour (Amendment) Act 2026, Act No. 43 of 2026; Personal Data Protection Act 2026, Act No. 63 of 2026; Income Tax Act 2023, s.86; Finance Act 2026, Act No. 96 of 2026; Labour Rules 2015, Ministry of Labour and Employment.
Staff Payroll, Corporate Payroll or Employer of Record: Which Do You Need?
These services answer different problems. The table shows whose workforce each one fits and who is the legal employer.
| Service | Best for | What changes each month | Legal employer |
|---|---|---|---|
| Staff Payroll (this page) | Factories, retail chains, security, facility and NGO field teams | Attendance, overtime, grades, bonuses and many exits | Your company |
| Corporate Payroll | Salaried office teams of foreign and local companies | Mainly tax deduction and occasional changes | Your company |
| HR Outsourcing | Companies with no HR team | HR administration as well as payroll | Your company |
| Employer of Record | Companies hiring in Bangladesh without a local entity | Payroll, contracts and compliance | Payrollbangladesh |
See Corporate Payroll Service, HR Outsourcing and Employer of Record for the other models.
Should You Run Staff Payroll on Spreadsheets or Outsource It? Direct Comparison
The rows below set a payroll run by hand in spreadsheets against the standard the law sets for every run. Outsourcing makes sense when an in-house team cannot meet the right-hand column every month.
| Dimension | In-house spreadsheets | Standard every run must meet |
|---|---|---|
| Attendance to wage | Copied by hand from attendance to payroll | Gaps resolved before calculation, since overtime and absence deductions depend on attendance (ss.108, 126) |
| Overtime | Hours entered by hand | Overtime hours at twice the ordinary rate (s.108) |
| Minimum wage | Checked manually | No worker below the sector minimum wage (s.149) |
| Deductions | Entered by hand | From basic wage only, for s.125 reasons |
| Festival bonus | Eligibility worked out by hand | Eligibility after one year of continuous service (rule 111(5)) |
| Final settlements | Calculated by hand, case by case | Paid within 30 working days of exit (s.123(2)) |
| Registers | Compiled by hand when requested | Wage record in Form 38 for every worker (rule 111(1)) |
| Payroll data | Attendance exports stored as files | Biometric data is sensitive data under the PDPA 2026 (s.2(21)) and needs security safeguards (s.17) |
Statutory filings that follow the payroll are covered by Statutory Compliance; grade and wage structures by Compensation Consulting.
What Determines the Cost of Staff Payroll Services in Bangladesh?
Four things set the cost of staff payroll services in Bangladesh: the number of workers, the number of sites, how many pay rules apply (grades, shifts, overtime, bonuses), and the format of your attendance data. Monthly payroll is priced per worker per month. You get a written quote after the payroll review.
| Option | Typical fit | What’s included |
|---|---|---|
| Payroll review | Employers who want to know where their payroll stands | Sample recalculation against the Labour Act as amended in 2026 and the sector minimum wage, with a gap list and the section behind each item |
| Monthly staff payroll | Employers with a large or changing workforce | Attendance import, wage, overtime, leave and bonus calculation, deductions, payslips, registers and final settlements |
| Staff payroll with filings | Employers who also want the statutory returns handled | Monthly staff payroll plus the statutory filings covered by the Statutory Compliance service |
For a salaried office team, see the Corporate Payroll Service.
Frequently Asked Questions — Staff Payroll in Bangladesh
Eleven questions on staff payroll in Bangladesh
What do staff payroll services in Bangladesh include?
Staff payroll services in Bangladesh calculate and pay workers whose wages change with attendance, overtime and grade. That covers attendance checks, wages, overtime, leave pay, festival bonuses, maternity benefit, lawful deductions, payslips, registers and final settlements under the Labour Act as amended in 2026.
Payrollbangladesh runs this every month for your workforce.
How is staff payroll different from corporate payroll?
Staff payroll is for large workforces whose pay changes every month with attendance, overtime, grades and exits. Corporate payroll is for salaried teams where the main monthly work is tax deduction.
An employer can use both: staff payroll for the factory or field team and the Corporate Payroll Service for head office.
When must wages be paid under the Bangladesh Labour Act?
A wage period may not be longer than one month (s.122). Wages must be paid within 7 working days after the wage period ends, on a working day (s.123). When employment ends for any reason, all dues must be paid within 30 working days of the exit date (s.123(2)).
How is overtime calculated for workers in Bangladesh?
Under s.108, overtime is paid at twice the ordinary rate. The rate is based on basic wage, dearness allowance and any ad hoc or interim wage. Normal hours are 8 a day and 48 a week (ss.100, 102).
The double rate does not apply to work paid at piece rates (s.108(2)).
Who is entitled to a festival bonus, and how much?
Under rule 111(5) of the Labour Rules 2015, a worker with one year of continuous service is entitled to two festival bonuses a year. Each bonus may not exceed one month’s basic wage. The Labour Act defines the festival allowance in s.2 and leaves the rate to the rules.
Because eligibility depends on length of service, it has to be checked worker by worker before each festival.
What deductions can an employer make from wages?
Only the deductions listed in s.125, and only from the basic wage. They include fines under s.25, unauthorised absence (s.126), loss caused by the worker’s negligence, employer housing, advances and loans, income tax, court orders, provident fund contributions, approved funds with the worker’s written consent, and union subscriptions under check-off.
How is maternity benefit calculated after the 2026 amendment?
Maternity leave is 120 days (s.46 as amended in 2026). Under s.48 as substituted in 2026, the daily rate is the last fixed monthly gross wage divided by 26. The benefit must be paid in full in cash, to a bank account or by electronic fund transfer.
What must a final settlement include, and when is it due?
It must be paid within 30 working days of the exit date (s.123(2)). It includes earned wages, overtime and unused annual leave (s.11). Depending on why the worker left, it also includes resignation compensation under s.27(4) as replaced in 2026, or notice pay and termination benefits under s.26.
Where a gratuity is payable, ss.26 and 27(4) pay it instead of the statutory compensation if it is higher, and s.2(10) sets its minimum rate.
Can wages be paid by bank transfer or mobile financial services?
Yes. Section 124 allows wages to be paid in cash or by cheque. Where the worker asks for it, wages can also be paid by electronic transfer to the worker’s bank account or by another digital method, which can include mobile financial services.
Do workers’ wages have income tax deducted?
Only where a worker’s estimated annual income is above the tax-free threshold, which is BDT 400,000 for 2026-27 under Schedule 2 of the Finance Act 2026 (BDT 450,000 for women and taxpayers aged 65 or over). Where tax applies, s.86 of the Income Tax Act 2023 requires it to be deducted when salary is paid, at the average rate on estimated income. A worker earning BDT 25,000 a month, or BDT 300,000 a year, is below the general threshold.
Which other Payrollbangladesh services pair with staff payroll?
Staff payroll pairs with Statutory Compliance for the filings, Compensation Consulting for grades and wage structures, and HR Management for the attendance and leave system that feeds payroll.
Head-office salaries can go through the Corporate Payroll Service.
Want Every Worker Paid Right and on Time Under the Labour Act as Amended in 2026?
Get a quote for staff payroll services in Bangladesh, starting with a payroll review of your wages, overtime, deductions, bonuses and final settlements against the Labour Act as amended in 2026.
Payrollbangladesh · Rupayan Shopping Square, Suite 610, Bashundhara R/A, Dhaka 1229 · +880-1711-990010 · info@payrollbangladesh.com