Professional Employer Organization (PEO) in Bangladesh

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Employ contractors and employees in 160+ countries
Employ and pay
global talent

starting at

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Global PEO in Bangladesh

With bustling cities, an expansive workforce of more than 160 million workers, inexpensive labor costs, and a fast-growing economy, Bangladesh is an untapped location for international business expansion. Its beautiful natural scenery and unique wildlife — including its national animal, the majestic Bengal tiger — can make living and doing business in Bangladesh a once-in-a-lifetime opportunity.

It can seem like hiring an employee that’s living in Bangladesh would be out of the question for startups or small businesses, but it’s not.

With remote working becoming ever more popular, it is possible.

In fact, professional employer organizations (PEOs) like Skuad don’t just make it possible to hire internationally, they make it easy.

Businesses can seamlessly onboard, pay, and hire remote employees using a PEO in Bangladesh — or anywhere else in the world for that matter. It becomes just as feasible as hiring someone from home.

What is a professional employer organization (PEO), you ask? Let us explain.

What is PEO?

A PEO, or professional employer organization, is a service provider that completes time-consuming human resources and administrative tasks for a company. This allows leaders to focus more on core business activities that will grow startups, SMEs, and small businesses. These services might include:

  • Payroll
  • Compliance
  • Benefits 
  • Onboarding
  • Employee contracts

A PEO tackles the burden associated with these tasks, saving companies a lot of costs associated with hiring and training internal teams. And the best part? With the help of a PEO, you can grow your remote team to include people from all over. 

At Skuad, we employ workers from 160+ countries, including Bangladesh. Contact one of our helpful agents today to discuss how we can assist.

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What are the benefits of using PEO services in Bangladesh? 

Partnering with a PEO in Bangladesh can bring a whole host of benefits to your organization. Let’s take a look at them.

Hire talented employees from Bangladesh 

When you work with a PEO, you expand your hiring talent pool extensively.

Only hiring local employees can be restrictive and might mean you miss out on talented workers. With the rise of remote working models, there is no reason you can’t hire the most talented of workers from all over the world…including Bangladesh.

Bangladesh has a GDP four times that of the US and over 160 million workers. Using a PEO allows you access to that large, thriving talent pool.

Position your company as a global competitor 

Workers talk and word gets around about what your company is like. You can position your company as a global competitor by attracting qualified talent in Bangladesh.

A PEO can help you to make attractive and competitive benefits and compensation packages to help position your company competitively. 

Save on unnecessary costs 

Hiring in Bangladesh has a lot of costs associated with it. If you decide to incorporate, you have a lot of expenses involved.

But did you consider how much costs you save by outsourcing your HR function? You won’t have to pay salaries and benefits for a full staff. You would also have to have continuous training to remain updated on changing employment laws all over the world. 

Learn about new markets 

Working with workers in Bangladesh will give you insight into how the market works. This can help you with future endeavors when your company is ready to expand to more locations. 

Avoid setting up a new entity in Bangladesh 

The only other option your company has to hire in Bangladesh is to create a new entity. So, if you decide to not work with a PEO, you are now facing the costs associated with incorporating into a new company. 

It’s important to also factor in unexpected expenses. These could include hiring lawyers to maintain local compliance, traveling to complete registration and the Bangladesh corporate tax rate. 

Working with a PEO bypasses all of that. When you hire a PEO, you are meeting all legal requirements to hire employees in Bangladesh. And the PEO will manage your compliance, so hiring lawyers isn’t necessary. Most PEOs already have entities established all over the world, so you save a lot of time, effort, and money. 

Do you want to work with a PEO to save on the cost of doing business in Bangladesh? Contact us today for more information. 

Increase cultural awareness 

A culturally aware leader is a good one. 

When you work with workers in foreign locations, you learn a lot about the culture and business etiquette. This can help you with future interactions and strengthen your leadership abilities. 

You’ll also learn key factors about workers in Bangladesh from your PEO. For example, did you know that workplace problems in Bangladesh are often resolved through assertiveness and exertion of someone’s influence? 

Ensure 100% compliance with employment laws in Bangladesh 

A PEO has the expertise needed to remain 100% compliant with employment laws. In Bangladesh, employment laws are governed by two specific acts — the 2006 Labor Act and the 2015 Labor Rules Control. 

The workweek is 48 hours and overtime is allowed for up to 2 hours a day with a maximum of 12 hours a week. Overtime pay is 200% of normal wages. The hours do vary depending on the industry, so it’s important to understand local laws before doing business in Bangladesh. 

There are many protections in place for employees in Bangladesh. But the penalties for companies can be hefty, so understanding and following all laws is vital. 


Payroll is paid on a weekly basis. The currency in Bangladesh is the Bangladeshi Taka. 1 Bangladeshi Taka is equal to around $0.012. 


Bangladesh income tax rate for employees: 

  • Less than  250,000Tk = 0%
  • 250,000Tk - 400,000Tk = 10%
  • 400,000Tk - 500,000Tk = 15%
  • 500,000Tk - 600,000Tk = 20%
  • 600,000Tk - 3millionTk = 25%
  • More than 3millionTk = 30%

Bangladesh tax rate for employers: 

  • Social security: 5% 

Paid Leave 

Employees are entitled to 11 paid holidays each year. If an employee is required to work a holiday, they are entitled to 2 additional holiday days with full leave and an alternative leave day. 

Employees can take 14 days of paid medical leave with a medical certificate. After one year of service, employees accrue one day of paid leave every 18 worked days. Employees can cash out accrued paid time off for full pay instead. 

Maternity leave is 8 weeks of paid leave before and after the birth of the child. This is for workers who have at least 6 months of service. If someone has under 6 months of service, they can take unpaid leave. 

Probation periods and termination 

Probation periods vary based on the industry. It generally ranges between 3 and 6 months. 

There are five different options for terminating an employee. Those include: 

  • Termination with notice
  • Dismissal
  • Discharge
  • Layoff
  • Retrenchment

Notice of 120 days is required for rated monthly employees. 60 days is required for other employees. Employees receive one month’s pay for every year of service upon termination. 

Check out this page to learn more about how Skuad can help your company hire in Bangladesh.

What does it cost to build a team in Bangladesh? 

The cost of creating a team in Bangladesh varies greatly on the option you choose. You have two choices: incorporating into the country or working with a PEO. Discover the differences below: 

Setting up a business in Bangladesh 

To set up a business in Bangladesh, you have to first choose what type of entity you want to create. There are three options:

  • Private limited company 
  • Branch office
  • Liaison office 

Each of these has its own set of rules and requirements, which can be found at the link above. You do not have to have a minimum capital amount to start a business in Bangladesh, but to obtain many benefits you must have at least $50,000.

The process to establish a new entity is lengthy. It includes obtaining agreements, securing licenses, registering with authorities, opening a bank account, and paying registration fees. 

You can of course avoid this extensive process and work with a PEO. 

PEO in Bangladesh 

Working with a PEO in Bangladesh will have various costs depending on the provider you choose and the type of package. With Skuad, you can create an account for free and cancel at any time…so what are you waiting for?

Our PEO services allow you to onboard and pay employees in Bangladesh for only $19 a month per worker. If you need a more comprehensive solution, our employer of record in Bangladesh services start at $199 a month per worker. 

If you are an enterprise client, please reach out for a custom quote.

Book a demo with Skuad today 

Is your company ready to start doing international business in Bangladesh? Skip the company incorporation and start working with a dedicated PEO today!

At Skuad, we’ll help you expand your team while maintaining 100% compliance. Do you want to see for yourself? Book a free demo today and check out our easy-to-use platform.

Building a remote team?

Employ exceptional talent, anywhere, anytime!

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