Employee benefits administration in Bangladesh
Group insurance, Provident Fund, gratuity, festival bonuses, allowances and leave benefits designed, enrolled and administered for your Bangladesh employees — USD 19 per employee per month, premiums at cost.
What is employee benefits administration in Bangladesh?
Employee benefits administration in Bangladesh is the design, enrolment, day-to-day running and renewal of statutory and voluntary benefits for a company's local employees — Provident Fund and gratuity under the Labour Act 2006, festival bonuses under the Labour Rules 2015, group health and life insurance, and cash allowances — including claims support, insurer negotiation and cost reporting.
Benefits are where foreign employers in Bangladesh most often either over-spend or under-deliver: a headquarters plan copied without local equivalents, or a bare statutory package that loses candidates to local competitors offering hospitalisation cover. Nexus Payroll's benefits desk sits between your HR team and MetLife Bangladesh and Green Delta Insurance, the Provident Fund trustees and the NBR rules, and can serve employees on our EOR or on your own entity's payroll.
Which employee benefits are mandatory in Bangladesh?
Mandatory for workers under the Labour Act: Provident Fund contributions of 7–8% of basic wages matched by the employer where a fund exists (compulsory from 2025 at 100+ workers), gratuity of 30 days' wages per year, two festival bonuses of up to a month's basic wage, 120 days' paid maternity leave, and paid casual, sick, earned and festival leave.
Provident Fund
Worker 7–8% of basic wages, employer match; membership after one year; mandatory at 100+ permanent workers since 2025, or Progoti pension enrolment.
s.264Gratuity
30 days' wages per completed year; 45 days' per year beyond ten years; accrued monthly and paid on separation.
s.2(10)Festival bonus
Two bonuses a year, each up to one month's basic wage, after one year's service; paid before the Eid festivals.
Labour Rules 2015, r.111(5)Maternity benefit
120 days paid leave (60 + 60) with six months' service, for up to two confinements; raised from 112 days in 2025.
ss.46–47Group insurance
Not statutory for office staff. Market norm: hospitalisation cover of BDT 200,000–500,000 per year and life cover of 24–36 months' salary; premiums typically 1–2% of gross payroll.
Market benchmarkEmployment injury
Employment Injury Scheme fund created by the 2025 amendment; contribution rates and sector coverage set by government notification.
Labour (Amendment) 2025This page is informational and reflects Bangladesh law as we understand it on the review date. It is not a substitute for licensed legal or tax advice in Bangladesh or in your own jurisdiction. Statutory figures change; confirm current values with your adviser before relying on them.
What does the benefits administration service include?
Package design and benchmarking, insurer tender and renewal negotiation, enrolment and off-boarding, claims support for employees in Bangla and English, Provident Fund trustee administration and NBR fund recognition, gratuity and bonus accrual schedules, allowance structuring within NBR exemption limits, and a monthly benefits cost and take-up report for your HR and finance teams.
Insurance programmes
Tender across MetLife Bangladesh and Green Delta Insurance and other licensed carriers; hospitalisation, life, accident and dependant cover; renewal negotiation and claims escalation.
Provident Fund and gratuity
Fund constitution, trustee board support, NBR recognition, contribution schedules, withdrawals and transfers; gratuity accrual and settlement on exit.
Allowances and structuring
House-rent, medical, conveyance and internet allowances within NBR limits; bonus and incentive schemes; cash-settled equity alternatives.
How much does benefits administration cost?
Nexus Payroll charges USD 19 per employee per month for standalone benefits administration, with premiums, fund contributions and allowances passed through at cost. The service is included at no extra charge for employees on our EOR or managed-team services. No set-up fee; 30 days notice.
Benefits administration FAQ
Is group health insurance mandatory in Bangladesh?
No statute requires private health insurance, but group hospitalisation and life cover are the market norm for professional roles and the most-asked-about benefit in offers. Statutory obligations are Provident Fund where a fund exists, gratuity, festival bonuses, maternity benefit and, from 2025, the Employment Injury Scheme in designated sectors. We administer both the statutory and the voluntary layers.
Can we offer the same benefits as our headquarters?
Mostly, with local equivalents. Health, life and accident cover are available through Bangladesh-licensed insurers; retirement savings map to a recognised Provident Fund; wellness, learning and equipment allowances run through payroll. Equity is the exception — foreign-share ownership needs Bangladesh Bank permission, so most clients use cash-settled or phantom awards, which we administer.
How are benefits taxed for the employee?
Employer-paid insurance premiums are generally not taxable to the employee; cash allowances are taxable salary except within the NBR's exemption limits for house rent, medical and conveyance; employer Provident Fund contributions to a recognised fund are deductible for the employer and taxed to the employee only above the statutory limit. We structure packages so the same gross yields the best net.
Related pages
- Contractor Management — Compliant agreements, BDT payment, tax withheld
- Managed Remote Teams — Dedicated teams employed and run by Nexus
- Offshore Development Center — Engineering ODC in Dhaka, all-in seat fee
- Global Capability Center — Build-operate-transfer GCC in Bangladesh
- Managed Services hub — all managed HR and payroll services
- Employer of Record — the employment layer under every managed service
- Pricing
- FAQ
- Bangladesh HR compliance guide
Give your Bangladesh employees a benefits package that competes
Send your current package or headquarters plan. We return a local equivalent with insurer quotes and the statutory layer costed per employee.