HR solutions in Bangladesh are project-based services that design the framework a business uses to manage people: employer service rules under Section 3 of the Bangladesh Labour Act 2006, HR policies, organisation structure, job descriptions, salary grades and tax-efficient pay structures, and HR or payroll systems. The aim is a documented, compliant framework that monthly HR operations can then apply consistently.
HR solutions are for businesses whose people practices have grown informally and now need structure. Typical triggers are crossing 50 or 100 employees, a foreign investor or bank asking for HR policies during due diligence, repeated disputes over leave or termination, or a group that wants consistent rules across several companies.
Unlike our HR services, which run every month, HR solutions are a defined project with clear deliverables and a fixed scope. We design the framework; your team, or our HR services team, then operates it day to day. For headcount and cost planning, see our workforce page.
On this page
Service rules under the Labour Act
Section 3 of the Bangladesh Labour Act 2006 allows an establishment to have its own service rules, provided they are not less favourable to workers than the Act. Where required, service rules are submitted to the Chief Inspector at DIFE for approval. Well-drafted service rules give managers clear authority, set out procedures for discipline and separation, and often provide better benefits than the statutory minimum to support retention.
Service rules must reflect the Labour Rules 2015 and any sector requirements. Copying another company's rules is a common shortcut that imports provisions which do not fit your operations.
HR policies and handbook
- Recruitment, probation and confirmation policy
- Working hours, attendance, leave and holiday policy
- Code of conduct, conflict of interest and anti-bribery
- Prevention of sexual harassment and complaint committee procedure
- Travel, expense and mobile allowance policies
- Grievance, disciplinary and separation procedures
- Data confidentiality and IT acceptable use
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Organisation structure, grading and pay design
A grading structure links roles to responsibility levels and salary bands so that increments and promotions follow a rule rather than negotiation. We map roles, write job descriptions and build grades with minimum and maximum pay, checking that the lowest grades meet any applicable minimum wage.
Pay structure design also has a tax dimension. Under the Income Tax Act 2023, how salary is split between basic pay, allowances and benefits affects both the employee's tax and the employer's deduction at source. Benefits such as provident fund and gratuity schemes need trust deeds and, for tax advantages, recognition or approval from the tax authority. We design structures that are transparent and defensible rather than aggressive.
HRIS and payroll system set-up
A suitable HR information system holds employee master data, leave, attendance and documents, and feeds payroll. We help you select or configure a system that supports Bangladesh leave types, overtime rules, festival bonuses and salary TDS, and we migrate clean data into it. A good system is one your team will actually use; for many SMEs a well-configured cloud tool is enough.
Data migration is often underestimated. Before go-live we clean employee master data, confirm leave opening balances and reconcile salary components with the last payroll, so the new system starts from figures everyone agrees on.
Signs you need an HR framework
- Managers apply different leave or overtime rules in different departments
- Salary offers depend on who negotiated hardest
- No written disciplinary procedure, or one never followed
- Investors, auditors or buyers asking for HR policies you do not have
- Payroll tax calculated outside any system, in personal spreadsheets
How the process works
- DiagnosticWe review existing documents, practices, disputes and compliance gaps against the Labour Act and tax rules.
- Design workshopManagement agrees principles for structure, grading, benefits and key policies.
- DraftingService rules, policies, job descriptions and grade structure are drafted in English, with Bangla where needed.
- Review and approvalDrafts are reviewed with management, finalised and, where required, submitted to DIFE.
- System set-upHRIS and payroll are configured to match the new rules and data is migrated.
- Roll-outWe brief managers and staff and hand over an implementation checklist.
Typical timeline: An HR framework project typically takes six to twelve weeks, depending on company size and number of policies; DIFE approval of service rules, where sought, depends on the authority's processing.
How Tax & VAT Associates helps
- Service rules drafted under Section 3 of the Labour Act 2006
- Employee handbook and core HR policies
- Organisation chart, job descriptions and grading structure
- Tax-aware salary and benefits structure design
- Provident fund and gratuity scheme documentation support
- HRIS selection, configuration and data migration
Frequently asked questions
What are HR solutions?
HR solutions are project-based services that design how a business manages people: service rules, policies, organisation and grading structure, pay design and HR systems. They differ from ongoing HR services, which carry out monthly administration within that framework once it exists.
Do service rules need DIFE approval?
The Labour Act allows employers to frame service rules that are not less favourable than the Act, and provides for them to be submitted to the Chief Inspector of DIFE for approval. Having approved rules strengthens your position in inspections and disputes. We prepare the rules and the submission.
Can a salary structure reduce employee tax legally?
Structure can affect tax within the rules of the Income Tax Act 2023, for example through recognised provident fund contributions or approved gratuity schemes. Artificial splits designed only to avoid tax create risk for both employer and employee. We aim for transparent structures that withstand scrutiny.
Which HR software should a Bangladesh SME use?
There is no single answer. Key requirements are support for Bangladesh leave types, overtime at the statutory rate, festival bonuses, salary TDS and bank payment files, plus Bangla support where needed. We compare a few options against your size and budget before recommending.
We are a foreign subsidiary. Can our global policies apply?
Global policies can apply where they are more favourable than Bangladesh law, but local service rules must meet the Labour Act's minimum standards. We usually produce a local addendum that adapts global policies on leave, termination, working hours and benefits to Bangladesh requirements.
How much does an HR framework project cost?
Cost depends on headcount, the number of companies or sites, how many policies are needed and whether HRIS configuration is included. After a short diagnostic we quote a fixed project fee with defined deliverables, so you know in advance what you will receive and when, without open-ended hourly billing.
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Learn more →Last reviewed: . Bangladesh tax and regulatory rules change with each Finance Act, SRO and authority circular. This page is general guidance; confirm current requirements for your case before filing.