How to Hire Remote Employees In 


The Basics

Bangladesh taka (BDT)
Employer Taxes
10% to 30%
Payroll Frequency
Official Language

Employment in 


Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Time savings: Hiring through a subsidiary or EOR can take months of onerous paperwork and legal wrangling. This is only multiplied if you want to hire in multiple countries.
Reduced overhead: You can save tens of thousands of dollars in onboarding costs by hiring through a company like Panther. You also have fewer responsibilities to provide benefits, further reducing overhead.
Greater flexibility: Contractors can be brought on as-needed. If they are not a good fit, you can choose not to renew them without incurring significant additional termination costs.
Reduced legal risk: Contractors generally don't have the host of legal protections that typically cover full-time employees.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: While it's important to understand local contractor law, for most firms, misclassification risk is minimal.
Lack of Control: For a worker to be classified as a contractor, they should be allowed to work independently on their assigned tasks. Hiring full-time employees offers a wider range of management options.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.

Set up a subsidiary in 


A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Bangladesh can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Bangladesh, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Bangladesh.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Bangladesh is not the same as paying workers in your own country. Employees have to be paid using Bangladesh's employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.


 Specific Information

Working Hours

Bangladesh has a 40-hour week with Friday and Saturday off. 


Bangladesh Labor Act section 102, the working hours should not exceed 48 hours per week. 

Overtime is generally calculated by dividing the total salary (including medical and housing benefits) by 208.

Employers then double this number and multiply the result by the number of overtime hours worked. 

Payroll Tax



  • Sales Tax
  • Social Security
  • Statutory contributions
  • Medical Insurance

Minimum Wage

The Bangladesh minimum wage is 1,500 taka per month for all economic sectors not covered by industry-specific wages (in the garment industry the minimum wage is 5,300 taka per month).


Pay Cycle

In Bangladesh, employees receive their salary monthly.

The employee must be paid wages within 7 days after the last day of the wage period.

13th Salary

In Bangladesh, employees who have completed at least one year of service are entitled to two festival bonuses each year. 

Each bonus should not be more than the basic salary. 


Paid Time Off (PTO)

PTO is calculated by the year of service:

  • Employees is entitled one day of paid leave for every 18 days, if they are working in a commercial establishment, factory, shop or transport.
  • Employees who work for a newspaper, they receive one day of vacation for every 11 days worked.
  • If they work on a tea plantation, they receive one day off every 22 workdays.
  • In Bangladesh, any unused leave can be carried over, up to a maximum of 60 days unless the employee works for a factory, then they can carry over 40 days.

Public Holidays

There are 17 public holidays.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • Employees receive 14 days of sick leave per year after a year of service, except for newspaper employees.
  • Employee must present a medical certificate to receive sick leave and employees cannot carry over the remaining sick leave to the following year.
  • Sick leave is paid at the equivalent of the employee’s normal wages.

Maternity Leave

Pregnant employees receive eight weeks of fully paid maternity leave before and after the birth.

A medical certificate affirming pregnancy must be provided to an employer to be eligible.

Unpaid maternity leave will be provided for expectant mothers employed with their company for fewer than six months, or for expectant mothers who already have two years.

Paternity Leave

In Bangladesh, fathers (service holder) will be getting fixed 15 days paternity leave.

Parental Leave

No Info.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.


Termination Process

Employees may be terminated for reasons of physical or mental incapacity or continued ill-health as certified by a medical practitioner. 

Employees can be terminated for misconduct without notice or severance pay, or alternatively, demoted, blocked from a promotion for a year, fined or warned.

If the employee has served at least one year, s/he is entitled to 30 days of wages for each year of service. 

Notice Period

Employees with at least one year of service are generally entitled to one month’s notice or pay in lieu of notice, and 30 days of pay for every year served. 

Employees who have been convicted of a criminal offense or found guilty of misconduct are not owed notice or severance. 

Termination of employment in  Bangladesh for other reasons generally requires the employer to provide written notice of 120 days for monthly rated workers or 60 days for other workers, or equivalent pay in lieu. 

Severance Pay

In Bangladesh, employee has served at least one year, s/he is entitled to 30 days and then 45 days for each year of service above ten years.

Probation Period

Clerical workers are entitled to a probationary  period of six months; other workers are entitled to a three-month probation period.