Most of the cost of employing someone in Bangladesh is priced off the basic wage, not the gross salary. Festival bonuses are capped at one month's basic wage, provident fund contributions are a percentage of basic, overtime runs at twice basic and dearness allowance, and since Act No 43 of 2026 the wage for every exit payment is the last monthly basic wage plus dearness allowance and any ad hoc or interim wage. That is why the first input in this employee cost calculator Bangladesh payroll teams use is the split between basic and allowances. You can enter gross pay with a basic percentage, or type the basic wage and each allowance separately.

The annual table starts from twelve months of gross salary and adds each employer cost line. Two festival bonuses follow rule 111(5) of the Labour Rules 2015. The provident fund match applies only if you run a fund. Gratuity accrues only where a contract, service rules or a scheme provide for it, and is shown as an annual accrual so that the exit bill is budgeted from the first year. Leave encashment and overtime are budget assumptions, valued on the divisors shown beside them. Group insurance, the workers' participation fund and the work permit fee appear only when you switch them on.

With the defaults, a Tk 1,00,000 gross salary with 50 per cent basic, an 8 per cent provident fund match, a gratuity scheme, five days' leave encashment and ten hours' overtime a month, the employee cost calculator Bangladesh finance teams rely on gives the same answer as the worked example in our guide to the cost of hiring in Bangladesh: Tk 14,72,359 a year, or 22.7 per cent over gross. Change any input and the table, tax and exit panels update at once.

Maternity benefit is shown under the table but left out of the total, because it is contingent: 120 days, 60 before and 60 after childbirth, at the most recently fixed gross monthly wage divided by 26, for a woman with at least 6 months' service and fewer than two surviving children. On Tk 1,00,000 gross that is about Tk 4,61,538.

Three costs depend on the company, not the employee, so the employee cost calculator Bangladesh employers use leaves them off by default. The workers' participation fund under Chapter XV applies where, on the last day of the accounting year, paid-up capital is at least Tk 1 crore or permanent assets are worth at least Tk 2 crore. A foreign company is tested on the capital and fixed assets of its Bangladesh branch. The company must set up the funds within a month of qualifying and pay 5 per cent of net profit, in the ratio 80:10:10, to the participation fund, the welfare fund and the Bangladesh Workers' Welfare Foundation Fund within 9 months of the year end.

Beneficiaries need 9 months' service and exclude the employer, partners and management board members. In 100 per cent export-oriented sectors a central sector fund applies instead. The payment is deductible for tax up to 5 per cent of disclosed net profit. The calculator turns your profit estimate into a per-head figure for budgeting; the 2026 changes to how the fund is distributed are not modelled.

Group insurance against death and permanent incapacity is compulsory from 100 permanent workers under section 99 and rule 98. The employer pays the premium, cannot deduct it from wages, and claims must be settled within 120 days. No statutory premium rate exists, so enter your insurer's quotation. A provident fund is optional for most employers, but replaced section 264 makes one compulsory where there are at least 100 permanent workers and two-thirds of them demand it in writing. The employer is exempt if it lets interested workers join the Progoti universal pension scheme, with employer and worker each paying 50 per cent of the contribution.

Section 86 of the Income Tax Act 2023 requires the employer to deduct tax from each salary payment at the average rate on the employee's estimated income from employment. For residents and non-resident Bangladeshi citizens in 2026-27, income is tax-free up to Tk 4,00,000 for general taxpayers and Tk 4,50,000 for women and those aged 65 or over, then taxed at 10, 15, 20, 25 and 30 per cent in bands, with minimum tax of Tk 5,000.

The employee cost calculator Bangladesh tax panel adds salary, bonuses, overtime and leave encashment, applies the slabs and divides by twelve. It applies no standard deduction, exemption or investment rebate, so treat it as an upper estimate and confirm with your payroll provider.

Switch on the foreign national setting and the calculator adds the published work permit fee of Tk 5,000 per person per year, the same for a new permit or an extension, and lets you tax a non-resident foreigner at the flat 30 per cent rate. Invest Bangladesh has operated since 23 August 2026 and inherited the One Stop Service from BIDA, so confirm the fee before relying on it. Branch, liaison and joint-venture offices and wholly foreign-owned companies must also show USD 50,000 of inward remittance, a company-level condition rather than a cost per employee.