Bangladesh Payroll & Social Contributions

Payroll withholding and social contributions

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 system (Bangladesh Labour Act 2006)
• 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 scale (Income Tax Act 2023 (Bangladesh))
• Provident fund requirement — Private-sector employer must establish a provident fund if at least three-quarters of workers request it in writing (Bangladesh Labour Act 2006)
• Provident fund — employee contribution — 7% to 8% of basic salary percent ((rate set by the fund's rules within statutory range — confirm)) (Bangladesh Labour Act 2006)
• Provident fund — employer contribution — Matching the employee contribution (7% to 8% of basic salary) percent (Bangladesh Labour Act 2006)
• Workers' Profit Participation Fund (WPPF) — Eligible companies contribute 5% of net profit to the workers' participation and welfare funds percent ((applies to companies meeting paid-up capital / asset thresholds — confirm)) (Bangladesh Labour Act 2006)
• Gratuity — Payable on termination of employment in addition to other dues, per the establishment's service rules (Bangladesh Labour Act 2006)
• Withheld salary tax remittance deadline — Deposited to the government treasury, generally within two weeks of the month of deduction ((approx — confirm exact deposit timeline)) (Income Tax Act 2023 (Bangladesh))