---
name: bd-payroll-social
description: "Source-cited draft: payroll & social contributions for Bangladesh (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/bd-payroll-social"
  jurisdiction: "BD"
  tax_year: "2025"
  last_updated: "2026-07-13"
  review_status: "pending_review"
---

# Bangladesh Payroll & Social Contributions

## Payroll withholding and social contributions

- **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 system  _(Bangladesh 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 scale  _(Income 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 writing  _(Bangladesh Labour Act 2006 (https://taxsummaries.pwc.com/bangladesh/corporate/other-taxes))_
- **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 (https://taxsummaries.pwc.com/bangladesh/corporate/other-taxes))_
- **Provident fund — employer contribution** — Matching the employee contribution (7% to 8% of basic salary) percent  _(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 funds percent (applies to companies meeting paid-up capital / asset thresholds — confirm)  _(Bangladesh 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 rules  _(Bangladesh 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 deduction (approx — confirm exact deposit timeline)  _(Income Tax Act 2023 (Bangladesh) (https://taxsummaries.pwc.com/bangladesh/corporate/tax-administration))_

<!-- openaccountants-cta-block -->

---

## Talk to a verified accountant

This guide is maintained by the OpenAccountants network — accountants who put
their name behind the tax answers AI gives people. The live, always-current
version (and the professional behind it) is at
[openaccountants.com](https://www.openaccountants.com).

- Use it in your AI: https://www.openaccountants.com/connect
- Meet the accountants: https://www.openaccountants.com/network

> **General reference only.** This document does not constitute tax, legal, or
> financial advice. Verify figures against the cited primary sources or with a
> licensed professional before relying on them.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `bd-payroll-social` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/bd-payroll-social. If neither is available, confirm every figure against the official source pages cited above before relying on it.