Source-cited draft: payroll & social contributions for Bangladesh (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Overview
Bangladesh has no universal, mandatory state social-security/payroll contribution scheme. Employers withhold income tax from salaries and, where a provident fund is constituted, contribute alongside employees; certain firms must also fund a Workers' Profit Participation Fund.
State social security
No universal mandatory social-security/payroll contribution systemBangladesh Labour Act 2006 (https://taxsummaries.pwc.com/bangladesh/corporate/other-taxes)
Salary income tax withholding (PAYE-equivalent)
Employer deducts income tax at source from salary, computed at the employee's average tax rate on the slab scaleIncome Tax Act 2023 (Bangladesh) (https://taxsummaries.pwc.com/bangladesh/individual/tax-administration)
Provident fund requirement
Private-sector employer must establish a provident fund if at least three-quarters of workers request it in writingBangladesh Labour Act 2006 (https://taxsummaries.pwc.com/bangladesh/corporate/other-taxes)
Provident fund — employee contribution
7% to 8% of basic salaryBangladesh Labour Act 2006 (https://taxsummaries.pwc.com/bangladesh/corporate/other-taxes)
Provident fund — employer contribution
Matching the employee contribution (7% to 8% of basic salary)Bangladesh Labour Act 2006 (https://taxsummaries.pwc.com/bangladesh/corporate/other-taxes)
Workers' Profit Participation Fund (WPPF)
5% of net profit contributed to the workers' participation and welfare fundsBangladesh Labour Act 2006 (https://taxsummaries.pwc.com/bangladesh/corporate/other-taxes)
Gratuity
Payable on termination of employment in addition to other dues, per the establishment's service rulesBangladesh Labour Act 2006 (https://taxsummaries.pwc.com/bangladesh/corporate/other-taxes)
Withheld salary tax remittance deadline
Deposited to the government treasury, generally within two weeks of the month of deductionIncome Tax Act 2023 (Bangladesh) (https://taxsummaries.pwc.com/bangladesh/corporate/tax-administration)
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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Other Bangladesh computations in the OpenAccountants Tax Library.