Payroll Outsourcing in Bangladesh
TRW provides payroll outsourcing in Bangladesh for local subsidiaries, branches, liaison offices and foreign employers with staff here. We run monthly payroll, withhold and deposit salary tax, file returns, handle statutory payments and payslips, manage salary remittances and support you through tax and labour audits.
- Payroll health check
- Set-up and parallel run
- Monthly cycle
- Year end and audits
Why companies choose payroll outsourcing in Bangladesh with a law firm
Payroll in Bangladesh looks simple until something goes wrong. Salary tax has to be deducted at the right rate each month, deposited on time and reported correctly. Festival bonuses, overtime, leave encashment, provident fund contributions, gratuity and final settlements all follow rules in the Bangladesh Labour Act 2006 as amended and the Bangladesh Labour Rules 2015. TRW offers payroll outsourcing in Bangladesh for companies that want those calculations handled by people who understand the law behind them, as part of our private client and employment practice serving employers across Dhaka and beyond. Every run is checked before payment.
Our clients include subsidiaries and branches of foreign groups, liaison offices, start-ups that have outgrown spreadsheets, and businesses whose finance teams want an independent check on payroll. Some already have an entity and need payroll outsourcing in Bangladesh only. Others have no entity and use our employer of record service, where TRW is the legal employer and payroll is part of the package. Either way, we agree a monthly timetable, collect inputs from your HR team, run the calculations, share a draft register for approval and then process payments and filings once you confirm the figures.
Tax is the area where payroll errors are most expensive. Under the Income Tax Act 2023, employers must deduct tax at source from salaries, deposit it with the government within the required time and file the related returns and statements. Each employee also needs accurate annual salary information to complete a personal return. Rates, thresholds and allowable exemptions change through annual finance legislation, including the Finance Act 2026. Our payroll outsourcing in Bangladesh service updates calculations when the law changes and documents the basis for each deduction, so the position can be explained if the tax authority asks questions.
Labour law adds further obligations. Wages must be paid within the statutory period, deductions are restricted, and records such as wage registers, leave records and service books must be kept and produced on inspection by the Department of Inspection for Factories and Establishments. Some companies must also run a workers' participation fund and welfare fund. We check which rules apply to your business, build them into payroll and keep the records in a form inspectors accept. Where disputes arise over unpaid dues, our dispute resolution lawyers can step in quickly. Good payroll outsourcing in Bangladesh covers these duties too.
Payroll data is personal data, and the Personal Data Protection Act 2026 makes careful handling of salary, bank and identity information a legal requirement as well as good practice. We limit access, use secure channels for inputs and outputs, and agree data processing terms with each client. For foreign groups, we also coordinate with head office on reporting, intercompany charges and foreign exchange questions, such as funding payroll from abroad and the rules that apply when expatriate employees remit part of their salary home through authorised banks in Bangladesh under Bangladesh Bank regulations. Payroll outsourcing in Bangladesh needs this care.
Core workstreams
Four clear stages
- 01Payroll health check
- 02Set-up and parallel run
- 03Monthly cycle
- 04Year end and audits
Talk to a partner
Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.
Book →Payroll services we deliver each month and year
Monthly payroll processing
- Payroll health check
- Set-up and parallel run
- Monthly cycle
- Year end and audits
Salary tax withholding and returns
- Payroll health check
- Set-up and parallel run
- Monthly cycle
- Year end and audits
Statutory payments and funds
- Payroll health check
- Set-up and parallel run
- Monthly cycle
- Year end and audits
Payslips and employee queries
- Payroll health check
- Set-up and parallel run
- Monthly cycle
- Year end and audits
Remittances and foreign exchange
- Payroll health check
- Set-up and parallel run
- Monthly cycle
- Year end and audits
Payroll audits and inspections
- Payroll health check
- Set-up and parallel run
- Monthly cycle
- Year end and audits
Monthly payroll processing
We collect attendance, leave, overtime and change inputs from your team, calculate gross pay, allowances, deductions and net pay, and share a draft register for approval. After sign-off we prepare bank payment files or instructions so salaries reach employees within the statutory period. Our payroll outsourcing in Bangladesh service works for a handful of staff or larger teams across several locations. Send changes such as new joiners, leavers and salary revisions before the agreed cut-off, so they are included in the right month.
Salary tax withholding and returns
We calculate tax deducted at source on each employee's salary under the Income Tax Act 2023, prepare challans, deposit tax on time and file the employer returns and statements that apply. We issue the salary and tax certificates employees need for their own returns, and we reconcile deductions at year end so that annual figures, employee records and tax filings all match. Rate changes are tracked throughout the year.
Statutory payments and funds
We administer festival bonuses, overtime, leave encashment, maternity benefit payments, provident fund contributions and gratuity in line with law, contracts and your policies. Where your company falls within the workers' participation fund and welfare fund rules, we calculate allocations and support the trustee board with records. We flag statutory changes as they occur, so employer obligations do not slip. We check eligibility for each fund every year.
Payslips and employee queries
We issue clear payslips in English, with Bangla available, showing every element of pay and every deduction. Employees can raise questions about tax, bonuses or leave balances, and we answer them or escalate them to your HR team. This reduces internal workload and lowers the risk of grievances caused by misunderstanding, which often start labour disputes in Bangladesh. Payroll outsourcing in Bangladesh should make life easier for employees too.
Remittances and foreign exchange
For foreign-owned companies, we advise on funding payroll from abroad and the documentation banks require. For expatriate employees, we prepare the salary certificates and tax documents needed when they remit part of their salary overseas through authorised dealer banks under Bangladesh Bank rules. Our payroll outsourcing in Bangladesh team also coordinates intercompany recharges and reporting to head office. Each remittance file is checked before submission.
Payroll audits and inspections
We review existing payroll for errors in tax withholding, statutory payments, deductions and record keeping, and we recommend practical corrections. When the tax authority, an auditor or a labour inspector asks for records, we prepare the files, attend meetings with you and respond in writing. Where past errors exist, we advise on voluntary correction and limiting penalties. We also train your team on controls that prevent repeat errors.
Partner-led, on every matter.
Private Client & Employment matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.
Meet the firm →01Is payroll outsourcing in Bangladesh allowed if our company remains the legal employer of its staff?
Yes. Outsourcing payroll does not change who the employer is. Your company keeps its employment contracts, its tax registration and its legal responsibility for wages and withholding, while TRW performs the calculations, prepares payments and filings and keeps records on your behalf under a services agreement. Because the employer remains responsible in law, the agreement sets out approval steps, timelines and the information each side must supply. We design the process so you stay in control of decisions while relying on accurate, documented payroll outsourcing in Bangladesh every month. Both sides sign off each month.
02What information do you need from us to run payroll each month under a payroll outsourcing in Bangladesh arrangement?
At the start, we need employee master data: names, identification, tax identification numbers, bank details, contracts, salary structures and any benefit schemes. Each month, we need attendance and leave records, overtime approvals, new joiners, leavers, salary changes and any one-off payments or deductions. We agree a monthly cut-off date and a simple template so inputs arrive in a consistent format. If something is missing or looks unusual, we query it before running payroll rather than correcting it afterwards, which keeps registers, payslips and tax filings aligned throughout the year. This keeps payroll outsourcing in Bangladesh predictable.
03How does payroll outsourcing in Bangladesh handle salary tax deducted at source on each employee's monthly pay?
We calculate each employee's expected annual tax liability under the Income Tax Act 2023 and the current finance legislation, including the Finance Act 2026, and spread the deduction across the year's salary payments. Allowable exemptions, investment rebates and other adjustments are reflected where the employee provides evidence. We prepare the challans, deposit the tax on time and file the employer statements that apply. At year end we reconcile figures and issue salary and tax certificates, so each employee has what they need to file a personal return accurately. Employees can also ask us to explain their deductions.
04Which statutory payments are commonly missed by employers in Bangladesh, and how do you catch them?
Common gaps include festival bonuses paid late or calculated on the wrong base, leave encashment not paid on exit, overtime recorded but not paid at the correct rate, and final settlements that ignore earned leave or service benefits. Some companies that fall within workers' participation fund rules have not set up the fund or the trustee board. Provident fund and gratuity schemes are often run under informal rules without proper documentation. Our payroll outsourcing in Bangladesh review identifies these issues and builds the correct treatment into future payroll runs. Fixing them early costs far less.
05Can payroll outsourcing in Bangladesh cover expatriate employees and their salary remittances?
Yes. Expatriate employees are taxed on their Bangladesh employment income and often have allowances such as housing, schooling or travel that need correct treatment. We include them in payroll, deduct tax at source and prepare the certificates they need. When an expatriate wishes to remit part of their salary abroad, authorised dealer banks ask for documents such as the work permit, tax certificates and salary statements, and they apply Bangladesh Bank rules. We prepare those documents so remittances proceed smoothly, and we coordinate with our global mobility team on permits and exit steps.
06How do you keep employee payroll data confidential and compliant with the Personal Data Protection Act 2026?
Payroll involves salary, bank, identity and sometimes health information, so we treat it as sensitive. Access is limited to the people who work on your payroll, files move through secure channels and we agree data processing terms that reflect the Personal Data Protection Act 2026. We keep only the data needed for payroll, tax and statutory record keeping, and we follow retention periods required by labour and tax law. If your group has its own data standards or transfer rules, we align our procedures with them and document how data moves between Bangladesh and head office.
07What happens if the tax authority or a labour inspector reviews our payroll records after you take over?
Because we keep organised registers, challans, returns and supporting documents, most information requests can be answered quickly. We help you understand what is being asked, prepare the response, and attend meetings or inspections with your team where that is useful. If the review identifies errors, we explain the exposure and options for correction, and our tax and employment lawyers handle any formal objection, appeal or labour proceeding. The aim is to resolve questions early and in writing, before they turn into assessments, penalties or claims by employees. Payroll outsourcing in Bangladesh with lawyers makes that easier.
08How do we move to payroll outsourcing in Bangladesh from an in-house system without disrupting salaries?
We start with a transition review of your current payroll: employee data, salary structures, tax withholding history, statutory funds and records. We usually run one or two parallel months, comparing our results with yours and explaining any differences before we take over. We agree the monthly calendar, approval steps and reporting format, and we document responsibilities in a services agreement. Where the review reveals historic errors, we recommend whether and how to correct them, so the switch to payroll outsourcing in Bangladesh starts from an accurate base. Employees see no disruption to pay dates.
From first call to resolution.
- 01
Payroll health check
We review your current payroll, contracts, tax withholding history, statutory funds and records, identify errors or gaps, and agree the scope of our payroll outsourcing in Bangladesh service with you. Findings come in a short written report.
- 02
Set-up and parallel run
We build employee records and salary structures in our system, agree input templates and cut-off dates, and run parallel payrolls until results match and every difference has been explained to your team. Nothing goes live until both teams are satisfied.
- 03
Monthly cycle
Each month we collect inputs, prepare a draft register for approval, process salary payments, deposit tax, issue payslips and file statutory returns, then send you a clear summary report for your records. Final approvals always stay with you.
- 04
Year end and audits
We reconcile annual tax, issue certificates to employees, update calculations for new finance legislation and support you through tax audits, labour inspections and statutory audits with organised records and written responses. Records stay organised and easy to produce.
“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”
The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback
Related reading.
Payroll in Bangladesh

Withholding Tax (TDS) in Bangladesh 2026: Rates and Obligations

Provident Fund, Gratuity and Pension in Bangladesh: The 2026 Guide for Employers and Workers

Labour Law Compliance in Bangladesh 2026: Registers, Deadlines, Penalties and HR Checklist
All insights →
What exactly is included in payroll outsourcing in Bangladesh with TRW?
How much does payroll outsourcing in Bangladesh cost for a small or growing team?
Do you handle payroll for foreign companies without a Bangladeshi entity?
Can you correct payroll mistakes made in previous years before you took over?
Will employees still deal with our own HR team after payroll is outsourced?
Do you support payroll outsourcing in Bangladesh for companies in export processing zones?
How often do payroll rules in Bangladesh change, and how do you keep up?
Can we see payroll reports for head office in our own format and currency?
Primary sources: Bangladesh Labour Act 2006 · Bangladesh Labour (Amendment) Act 2026 · Income Tax Act 2023 (NBR)
Hand over payroll to people who know the law
Speak with the partners about payroll outsourcing in Bangladesh or across borders.
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