Payroll outsourcing in Bangladesh is priced per employee, per month. The price depends mostly on which service model you choose:
If you are hiring in Bangladesh, payroll is rarely the hard part to decide on. The hard part is working out what it will actually cost. Provider websites quote very different numbers, some in US dollars and some only “on request”, and the headline fee is never the full picture.
This guide breaks down the real cost of payroll outsourcing in Bangladesh in 2026: what providers charge, which statutory and customary costs sit on top of salary, and how to budget accurately before you sign a contract.
The Short Answer: Typical Price Ranges
Payroll outsourcing in Bangladesh is priced per employee, per month. The price depends mostly on which service model you choose:
| Service model | What you get | Typical monthly fee per employee |
|---|---|---|
|
Payroll-only (you have a local entity)
|
Salary calculation, payslips, tax withholding, filings
|
Roughly USD 25–40 on global platforms; local providers usually quote by headcount
|
|
PEO / co-employment
|
Payroll plus HR administration and benefits
|
Usually custom-quoted
|
|
Employer of Record (no local entity)
|
Legal employment, contracts, payroll, compliance
|
Roughly USD 200–700
|
These figures are service fees only. Salary, bonuses, provident fund contributions and other employer costs are billed on top.
Payroll-Only vs EOR: Why the Gap Is So Large
The biggest pricing decision is whether you already have a registered company in Bangladesh.
If you have a local entity, you only need someone to run payroll. Publicly listed global payroll plans for Bangladesh sit in the USD 27–39 range per employee per month. Dhaka-based providers often price more flexibly, with a monthly minimum for small teams and lower per-head rates as headcount grows.
If you do not have a local entity, you need an Employer of Record (EOR). The EOR becomes the legal employer, signs the employment contract, and carries the compliance risk. That is why the fee is far higher. Published EOR pricing for Bangladesh ranges from about USD 199 at local specialists to USD 599–699 at large global platforms, with most providers landing between USD 300 and 500.
For a company testing the market with one to ten hires, an EOR is usually cheaper and faster than setting up a subsidiary. Once your team grows and your plans are long term, forming a local company and switching to payroll-only outsourcing typically brings the per-employee cost down sharply.
What Drives the Price
Two providers can quote very different fees for the same headcount. These are the main reasons:
- Headcount. Per-employee rates usually fall as you add staff, but small teams often pay a minimum monthly fee.
- Scope of service. Basic salary processing costs less than a package that includes tax return support, leave tracking, HR policy drafting and employee helpdesk.
- Complexity of pay. Overtime, shift allowances, commissions and multiple pay grades take more work to process accurately.
- Industry. Sectors with their own wage boards, such as garments, have specific minimum wage and compliance requirements.
- Currency and funding. Some global providers add a foreign exchange margin or ask for a security deposit, often equal to one or two months of employment cost.
- Direct vs partner model. EOR providers that own a Bangladeshi entity tend to cost more than those that rely on local partners, but they give you more control and clearer accountability.
The Costs That Sit on Top of the Fee
The outsourcing fee is the smallest part of your budget. The real cost of employing someone in Bangladesh includes several statutory and customary items, and your provider will process all of them.
Festival bonuses
Two festival bonuses a year are standard practice in Bangladesh, each usually equal to one month’s basic salary. Muslim employees receive them at Eid-ul-Fitr and Eid-ul-Azha; employees of other faiths receive them at their main religious festivals. In practice, this adds roughly one-sixth of annual basic pay to your costs.
Provident fund and gratuity
Many employers run a provident fund, typically contributing 7–10% of basic salary to match the employee’s contribution. Gratuity, where it applies, is usually calculated on years of service and must be accrued during employment so it is ready when someone leaves.
Workers' Profit Participation Fund (WPPF)
Qualifying companies must set aside 5% of net profit for the WPPF. This is a company-level cost rather than a per-employee fee, but it belongs in your total workforce budget.
Income tax withholding
Employers must deduct income tax from salaries at source and deposit it with the National Board of Revenue. Following the 2026–27 budget amendment, the tax-free threshold for general individual taxpayers rose to Tk 400,000 for income earned between July 2025 and June 2026, and the first taxable slab is now 10% rather than 5%. Changes like this are exactly why accurate, up-to-date payroll processing matters. Withholding errors become the employer’s problem.
VAT on the service fee
VAT applies to the provider’s fee. The rate depends on how the service is classified, so ask every provider whether their quote is inclusive or exclusive of VAT.
Severance and termination
Termination costs are governed by the Bangladesh Labour Act and depend on the reason for exit and length of service. Budget for them in advance, especially if you are hiring through an EOR on a fixed-term basis.
Worked Example: One Employee in Dhaka
Consider a software engineer on a gross salary of Tk 100,000 a month, with basic pay set at Tk 60,000. These figures are illustrative, so use them as a planning template rather than a quote.
| Cost item | Monthly estimate (Tk) |
|---|---|
|
Gross salary
|
100,000
|
|
Festival bonuses (2 × basic ÷ 12)
|
10,000
|
|
Employer provident fund (8% of basic)
|
4,800
|
|
Gratuity accrual (≈ 1 month basic per year)
|
5,000
|
|
Employment cost before fees
|
≈ 119,800
|
|
Add: payroll-only fee (with local entity)
|
≈ 3,000–5,000
|
|
Or add: EOR fee (no local entity)
|
≈ 25,000–75,000
|
The lesson: your statutory and customary costs add roughly 15–20% on top of gross salary. The provider fee then depends almost entirely on whether you need an EOR.
In-House Payroll vs Outsourcing
Running payroll yourself is not free. You need a payroll officer or accountant, payroll software, and time spent tracking changes to tax rules, wage board rates and labour law. For companies with fewer than 50 employees, that overhead usually costs more than an outsourced service.
Outsourcing also reduces risk. Late tax deposits, incorrect withholding and missed bonus payments can lead to penalties, employee disputes and reputational damage. A good provider absorbs that complexity.
In-house payroll starts to make sense once you have a large, stable workforce, a dedicated finance team and a local entity.
Hidden Costs to Ask About Before You Sign
Get written answers to these questions from every provider you shortlist:
- Is there a one-time setup or onboarding fee?
- Is there a monthly minimum, regardless of headcount?
- Is VAT included in the quoted price?
- Do you add a margin on currency conversion?
- Is a security deposit required, and how much?
- Are year-end tax returns and employee tax support included?
- Are offboarding, final settlement and tax certificates included?
- What do off-cycle payments, such as bonuses or corrections, cost?
How to Get an Accurate Quote
To get a quote you can actually budget against, share the following with providers upfront: your headcount and hiring plan for the next 12 months, whether you have a registered entity in Bangladesh, salary bands and pay structure, the benefits you plan to offer, and your industry. Then compare quotes on the total annual cost per employee, not the headline monthly fee.
Frequently Asked Questions
How much does payroll outsourcing cost in Bangladesh?
Is outsourcing payroll cheaper than doing it in-house?
Do I need a local company to outsource payroll in Bangladesh?
Are festival bonuses mandatory?
Plan Your Bangladesh Payroll With Confidence
The cost of payroll outsourcing in Bangladesh depends on your entity status, headcount and pay structure. The best way to control it is to understand the full cost of employment before you hire.
AccouSource helps international companies set up, hire and run compliant payroll in Bangladesh, from company formation and tax registration to monthly payroll processing. [Contact our team] for a transparent, all-inclusive quote based on your hiring plan.
