Bangladesh PEO Services

Bangladesh is the 32nd largest economy in the world by purchasing power parity (PPP). The country’s economy has grown steadily at around 6% annually since the mid-1990s and grew at 7.28% in 2017. The major industries that drive growth include export of readymade garments, shipbuilding, jute, seafood, fish, and leather goods. Garment exports account for 80% of total exports, which along with overseas remittances provide sustainability to the country’s economy.

Capital City

Dhaka

Currency

Bangladeshi Taka

Principal Language

Bengali

Government

Parliamentary Democracy

Other Major Cities

Chittagong, Khulna, Rajshahi, Barisal, Sylhet, Comilla

The Bangladesh Labour Act, 2006 restricts working time in any establishment to 8 hours during a day and 48 hours during a week. Women cannot be made to work between 10.00 pm and 6.00 am in any establishment without their consent.

Any worker of a shop, industrial establishment or commercial establishment must be allowed a resting period of 1½ days per working week. Factory workers are entitled to 1 day of rest. Employees of a road transport service are entitled to a resting period of 24 consecutive hours per working week.

Overtime

Overtime is payable at double the regular rate of basic wage plus dearness allowance, including interim or ad-hoc pay. Limitations on overtime hours are as follows:

• The normal or regular working hours in any establishment cannot be more than 48 hours in a week.
• An adult worker is allowed to work more than 48 hours in a week provided the total number of hours does not exceed 60 in a week, and an average weekly work time of 56 hours during a year.

Pension and Social Security

It is not mandatory for employees in Bangladesh to contribute towards any social security fund. Companies that satisfy the criteria set out in the Bangladesh Labour Act 2006 need to pay 5% of their profits into a Workers Profit Participation Fund which provides benefits to all employees except the owners, partners or a director of the company employed for at least 9 months.

Healthcare and Benefits

Large local and multinational companies typically provide employees with private health care, car facilities, subsidized meals, and other fringe benefits. Employers must also pay compensation to employees who suffer a personal injury arising out of and in the course of his employment. Most of the companies in Bangladesh provide provident and gratuity benefits to permanent employees. Provident funds are generally built through the contribution of both the employees and employers. Provident funds for ‘workers’ within the meaning of the Bangladesh Labour Act 2006 have to be as per the requirements set out in the said Act.

 Welfare and Social Protection

The setting up of provident fund is not compulsory. It is based on the demand of a specific number of workers. Providing for Group insurance is also based on the number of the workers and the required number is high in most industries. The amount of compensation that workers receive due to disability, work-related injury, and death is not sufficient for the worker and his/her family. The provision of compensation varies according to the age of the workers, with an adult worker getting Tk.1,25,000 for complete permanent injury whereas the benefit payable to a child/adolescent/young worker is Tk.10,000 only. Other aspects of social protection have remained untouched in the labor law of Bangladesh such as provisions on pension and medical and life insurance for the workers. There are no pension schemes sponsored by the government in Bangladesh.