Payroll outsourcing in Bangladesh for foreign-owned companies
Monthly BDT payroll, payslips, NBR withholding and statutory contributions run by our Dhaka payroll team, reported to your finance function in your own currency — from USD 49 per employee per month.
What is payroll outsourcing in Bangladesh?
Payroll outsourcing in Bangladesh is a managed service in which a local provider calculates monthly salaries, withholds income tax for the National Board of Revenue, administers Provident Fund, gratuity and bonus accruals, disburses net pay in taka and files the statutory returns on behalf of a company that already has its own Bangladesh entity.
It differs from an Employer of Record in one respect: with payroll outsourcing, your subsidiary or branch remains the legal employer and Nexus Payroll acts as your processing agent. That makes it the right service for foreign groups that have incorporated in Bangladesh, or for representative and liaison offices approved by BIDA, that do not want to run a local finance team.
What does the Bangladesh payroll service include each month?
Each cycle covers gross-to-net calculation for every employee, income-tax withholding under the Income Tax Act 2023, Provident Fund and gratuity accruals, festival-bonus scheduling, bank disbursement in taka, PDF payslips, a general-ledger file in your currency, monthly tax deposit challans and the annual salary statements required for employee returns.
Gross-to-net calculation
Basic wage, house rent, medical and conveyance allowances structured to the NBR's exemption rules; overtime at twice the basic rate under s.108; arrears, deductions and loan recoveries tracked per employee.
Income-tax withholding
Monthly tax deducted at source on projected annual income, deposited to the NBR by the statutory deadline, with challans and the annual withholding return (Income Tax Act 2023) prepared for your signatory.
Statutory accruals
Provident Fund contributions at 7–8% matched (s.264), gratuity accrued at 30 days' wages per year (s.2(10)) and two festival bonuses (Labour Rules 2015, r.111(5)) booked monthly so year-end holds no surprises.
Bank disbursement
Bulk salary transfer files for Standard Chartered Bank Bangladesh and BRAC Bank or your own bank, mobile-wallet payments (bKash, Nagad) for field staff, and reconciliation against the approved register.
Payslips and reporting
Password-protected PDF payslips emailed to each employee, a management report in USD/EUR/GBP, cost-centre and department splits, and a GL file mapped to your chart of accounts.
Joiners, leavers and audits
Onboarding and final settlements calculated under ss.26–27, PF withdrawals processed, and payroll audit support for your statutory auditor and the NBR.
How is personal income tax withheld from salaries in Bangladesh?
Employers must deduct tax from salary at the time of payment and deposit it with the National Board of Revenue, based on the employee's projected annual taxable income and the slab rates for the assessment year. For 2026-27 the first BDT 375,000 is tax-free, the next bands are taxed at 10%, 15%, 20% and 25%, and the balance at 30%.
| Annual taxable income | Rate |
|---|---|
| First BDT 375,000 | 0% |
| Next BDT 300,000 | 10% |
| Next BDT 400,000 | 15% |
| Next BDT 500,000 | 20% |
| Next BDT 2,000,000 | 25% |
| Balance | 30% |
The tax-free threshold rises to BDT 425,000 for women and taxpayers aged 65 or over, and a minimum tax of BDT 5,000 applies once income exceeds the threshold. Non-resident foreign nationals are taxed at a flat 30% on Bangladesh-source income. A portion of house-rent, medical and conveyance allowances is exempt within NBR limits, which is why salary structure matters: the same gross can produce materially different net pay.
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.
How much does payroll outsourcing cost in Bangladesh?
Nexus Payroll charges USD 49 per employee per month with a minimum of USD 299 per month, covering calculation, disbursement files, payslips, tax deposit preparation and reporting. Year-end withholding returns, PF trustee administration and audit support are quoted separately. There is no implementation fee for payrolls under 50 employees.
Compare this with the fully loaded cost of a payroll officer in Dhaka — salary, PF, bonuses, software and the risk of a single point of failure — and outsourcing usually pays for itself below 15 employees. If you do not yet have an entity, the EOR service bundles payroll with legal employment for USD 299.
What does a monthly payroll calendar look like with Nexus Payroll?
Inputs close on the 20th; you receive the draft register within two business days; approval by the 25th locks the run; salaries are disbursed on the last working day; tax is deposited and payslips issued in the first week of the following month. Festival bonuses are scheduled before Eid-ul-Fitr and Eid-ul-Adha.
- the 20th: joiners, leavers, overtime, leave without pay and variable pay submitted through the shared workbook or your HRIS export.
- 22nd–23rd: draft payroll register and variance report sent to your approver.
- 25th: approval received; bank file generated; funding invoice issued in your currency.
- the last working day: net salaries credited; employees receive payslips.
- By the 7th of the following month: withheld tax deposited to the NBR; challans, GL file and management report delivered.
Payroll outsourcing FAQ
What is the payroll cycle in Bangladesh?
Bangladesh payroll runs monthly. Section 123 of the Labour Act requires wages to be paid within seven working days of the end of the wage period, so most employers pay on the last working day of the month. Nexus Payroll closes inputs on the 20th, issues draft payroll for approval within two business days, and disburses on the last working day.
Which payroll taxes and contributions apply in Bangladesh?
Bangladesh has no general social-security payroll tax. Employers withhold personal income tax under the Income Tax Act 2023 and deposit it monthly with the NBR; where a Provident Fund exists they match the employee's 7–8% contribution; and companies above the capital thresholds in s.234 of the Labour Act contribute 5% of net profit to the workers' participation and welfare funds. Gratuity and festival bonuses are employer costs, not taxes.
Can you pay our Bangladesh staff from our foreign bank account?
Salaries must be paid in taka into a Bangladesh bank account or mobile-financial-services wallet. You fund Nexus Payroll in USD, EUR, GBP or AUD by wire; we convert at the interbank rate quoted on the invoice and disburse in BDT. Paying a resident employee directly from abroad in foreign currency breaches foreign-exchange rules and leaves no tax trail.
Do you integrate with our HRIS or accounting system?
We deliver a general-ledger file (CSV or Excel) mapped to your chart of accounts every month, plus payslips as PDF. Clients on Xero, QuickBooks, NetSuite, SAP and Workday import it directly. Native API integrations are available on request for ten or more employees.
Move your Bangladesh payroll to Dhaka specialists
Send us your current headcount and pay structure. We return a fixed monthly quote and a migration plan that keeps your next payday on schedule.