Employer of Record in Bangladesh: hire employees without a local entity
Nexus Payroll employs your Bangladesh staff through our own Dhaka-registered company, runs their BDT payroll and statutory benefits, and gives you one monthly invoice — with the first hire live in 5–7 business days.
What is an Employer of Record (EOR) in Bangladesh?
An Employer of Record in Bangladesh is a locally registered company that legally employs staff on behalf of a foreign business. The EOR holds the employment contract, runs monthly payroll in taka, withholds income tax for the National Board of Revenue and administers Provident Fund, gratuity and festival bonuses, while the client directs the employee's daily work.
Employment in Bangladesh is governed by the Bangladesh Labour Act 2006 (as amended, most recently in 2025), the Bangladesh Labour Rules 2015 and, for tax, the Income Tax Act 2023 administered by the National Board of Revenue (NBR). All three assume an employer that is registered in Bangladesh, holds an e-TIN and can deposit withheld tax at a local bank. A foreign company without a subsidiary cannot satisfy those requirements, which is why an Employer of Record exists.
Nexus Payroll's EOR service supplies that registered employer. Your team member signs a Bangladesh-law employment contract with Nexus Payroll Limited that names you as the client whose work they perform, assigns intellectual property to you and binds them to your confidentiality terms. We then run the employment end-to-end for a fixed monthly fee from USD 299.
Can a foreign company hire in Bangladesh without a local entity?
Yes. A foreign company can employ staff in Bangladesh without incorporating by using an Employer of Record: the EOR's Bangladeshi entity signs the employment contract and carries the statutory obligations, while the foreign company manages the work. This avoids RJSC registration, BIDA approval, a local bank account and a resident director.
Three situations still call for your own entity, and we will say so when we see them: you expect to employ more than roughly 40 to 50 people in Bangladesh within two years; you need to invoice Bangladeshi customers in taka; or you are setting up a manufacturing or regulated financial operation that requires a licence in your own name. Our EOR vs entity comparison works through the numbers, and our entity-setup advisory service (from USD 2,900) can run the incorporation when the time comes while your team stays employed with us.
What you remain responsible for under an EOR: directing the work lawfully (working hours, safety of any workplace you provide), approving payroll inputs by the 20th each month, paying our invoice on time, and telling us promptly about any change — a raise, a warning, a resignation — so the paperwork follows the Act.
What does the Nexus Payroll EOR service include?
The fixed monthly fee covers the employment contract, monthly BDT payroll and payslips, NBR income-tax withholding and deposit, Provident Fund and gratuity administration, leave and benefits management, onboarding and offboarding, HR record-keeping, and a named account manager in Dhaka. Salary, statutory employer contributions and benefits are billed at cost.
Compliant employment contract
Bangladesh-law contract with appointment letter and ID card under s.5 of the Labour Act, probation clause, IP assignment, confidentiality, and your working-hours and code-of-conduct terms attached as a schedule.
Payroll and tax
Gross-to-net calculation, salary disbursed in taka through Standard Chartered Bank Bangladesh and BRAC Bank by the last working day, monthly NBR withholding (Income Tax Act 2023, s.86) and annual salary certificates for the employee's return.
Statutory benefits
Provident Fund membership and matching contributions where a fund applies, gratuity accrual at 30 days' wages per year, two festival bonuses, maternity benefit, and leave ledgers maintained per ss.115–118.
Onboarding and equipment
Identity and e-TIN verification, background reference checks, bank account set-up, laptop procurement and delivery anywhere in Bangladesh, and a Dhaka welcome session if the employee is local.
HR administration
Leave approvals routed to your manager, HR letters, salary revisions, disciplinary process under ss.23–24 when needed, and a monthly HR report alongside the invoice.
Exit management
Resignation and termination handled under ss.26–27: notice or pay in lieu, compensation, gratuity and PF settlement, final tax certificate, equipment recovery and a clearance letter.
How much does an Employer of Record cost in Bangladesh?
Nexus Payroll's EOR fee is USD 299 per employee per month, or USD 249 for ten or more employees, plus the employee's gross salary and statutory employer costs billed at cost with no mark-up. There is no set-up fee, a refundable deposit of one month's total employment cost, and the agreement ends on 30 days notice.
| Line | Amount | Basis |
|---|---|---|
| Gross salary | BDT 150,000 | As agreed with the employee; basic wage set at 60% of gross in our template |
| Employer Provident Fund contribution | BDT 7,200 | 8% of basic wage (BDT 90,000), matching the employee's contribution — s.264 |
| Gratuity accrual | BDT 7,500 | 30 days' wages per year ÷ 12 — s.2(10); paid out on exit |
| Festival bonus accrual | BDT 15,000 | Two bonuses of one month's basic wage per year ÷ 12 — Labour Rules 2015, r.111(5) |
| Group insurance | BDT 1,800 | Optional supplementary benefit at cost |
| Nexus Payroll EOR fee | USD 299 | Fixed, per employee per month |
Income tax is withheld from the employee's salary, not added on top. For assessment year 2026-27 the first BDT 375,000 of annual income is tax-free and the marginal rate runs from 10% to 30%. See the pricing page for the full included / billed-separately list.
How fast can an employee be onboarded in Bangladesh through an EOR?
Onboarding through Nexus Payroll typically completes in 5–7 business days once the role, compensation and the employee's identity documents are confirmed. We issue the contract within 24 hours, collect the national ID and e-TIN, open the bank account if needed, and register the employee on payroll and Provident Fund before the start date.
- Day 0 — Requirement received. You send the candidate details, gross salary, benefits and start date. We return a cost breakdown and draft contract the same or next business day.
- Day 1–2 — Contract signed. The employee signs electronically or in our Gulshan office; we verify NID, e-TIN and bank details and run reference checks if requested.
- Day 3–5 — Registration. Payroll, Provident Fund (where applicable) and insurance enrolment are completed; the laptop is dispatched.
- Day 5–7 — Start. The employee begins work with you; the first payslip is issued on the last working day of the month.
By comparison, incorporating a private limited company through RJSC, obtaining a trade licence, e-TIN, VAT registration and a bank account, and registering with BIDA for foreign investment typically takes 3–6 months before a compliant payroll can run.
Is our data and intellectual property protected with a Bangladesh EOR?
Yes. Nexus employment contracts assign all work product and inventions to the client and impose confidentiality obligations that survive termination, so ownership does not depend on the default employer-ownership rule in the Bangladesh Copyright Act 2023. Client and employee data is processed under a written data-processing agreement with defined storage, access and deletion terms.
Bangladesh does not yet operate a comprehensive data-protection statute equivalent to the GDPR; the draft Personal Data Protection Ordinance was still being finalised at our last review. We therefore contract to GDPR-grade standards regardless: data minimisation, role-based access, encryption at rest, and a breach-notification commitment of 72 hours. Our data-handling statement lists where records are stored and who can see them.
How does an EOR compare with other ways to hire in Bangladesh?
Four routes exist: your own entity, a local EOR, a global EOR platform, or independent contractors. The EOR routes give you employees within a week and no entity; the entity route gives you full control at the highest cost and slowest start; contractors are fastest but carry misclassification risk under the Labour Act.
| Criterion | Own entity (RJSC/BIDA) | Local EOR (Nexus Payroll) | Global platform | Contractor |
|---|---|---|---|---|
| Legal employer | Your new subsidiary | Nexus Payroll Limited, Dhaka | Platform's partner entity | None (misclassification risk) |
| Time to first hire | 3–6 months | 5–7 business days | 1–3 weeks | Days |
| Set-up cost | USD 12,000–25,000 first year | None | Often a deposit or onboarding fee | None |
| Monthly cost | Office, accounting, audit, director | Fixed fee from USD 299 | From about USD 599 | Invoice only |
| Compliance ownership | Yours, with local counsel | Nexus, with indemnity for our errors | Shared with partner entity | Yours, if reclassified |
| IP ownership | Your subsidiary, then group | Assigned to you in the contract | Assigned via platform terms | Only if the contract says so |
| Exit cost | Liquidation (6–12 months) | 30 days notice | Notice period | Low |
| Local HR support | Hire your own | Team in Dhaka, GMT+6 | Remote help desk | None |
Read the full EOR vs entity setup comparison · EOR vs PEO
This page is informational and reflects Bangladesh law as we understand it on the review date. It is not a substitute for licensed legal or tax advice in Bangladesh or in your own jurisdiction. Statutory figures change; confirm current values with your adviser before relying on them.
Employer of Record FAQ
Who is the legal employer when we use Nexus Payroll as our EOR?
Nexus Payroll Limited, a company registered with the Registrar of Joint Stock Companies in Dhaka, is the legal employer of record. The employment contract, payslips, tax withholding certificate and Provident Fund membership are all in our name. You remain the client that directs the work, sets objectives and decides on promotion, pay changes or termination within the law.
Can an EOR employee in Bangladesh work from home or must they be in Dhaka?
Employees can work from anywhere in Bangladesh; they do not need to sit in Dhaka. The Labour Act does not require a fixed workplace for office-based roles, and most of our client teams work remotely or from co-working space. Where a client wants a physical seat, we arrange desk space in Gulshan or Banani at cost.
What happens to the employee if we end the EOR agreement?
Nothing changes for the employee until you decide. On 30 days notice you can transfer the employee to your own new entity (we hand over contracts, PF and tax records), continue with another provider, or end the employment, in which case we apply the statutory notice and compensation rules and bill you the cost. Gratuity and Provident Fund balances follow the employee.
Do EOR employees receive the same benefits as staff of a local company?
Yes, and usually more. Every Nexus employee receives statutory entitlements — leave, festival bonuses, Provident Fund where applicable, gratuity accrual and maternity benefit — plus whatever supplementary benefits you choose, typically group life and hospitalisation insurance, a laptop and an internet allowance. Benefits are written into the contract, not left to policy.
Related pages
Ready to hire in Bangladesh?
Send us the role, salary range and start date. We reply within one business day with a cost breakdown and a compliant employment plan. First hire in 5–7 business days.