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Hiring in Bangladesh: Why It’s Emerging as a Cost-Effective Talent Hub

In recent years, global companies seeking new growth have started to look beyond the traditional hiring hot spots. Bangladesh—a country often mentioned in conversations about global manufacturing—is now drawing attention for a different reason. More and more organizations are seeking ways to hire in Bangladesh, not just for savings but for access to a broad set of skills in a rapidly developing talent market. At EWS Limited, we’ve worked with organizations at all stages of international expansion, and we know first-hand how transformative the right hiring strategy can be. In this article, we share our perspective on Bangladesh EOR models, cost-saving opportunities, skills availability, and common hiring journeys into this emerging economic center.

The changing face of Bangladesh’s workforce

Before considering the practicalities of recruiting in Bangladesh, we think it’s helpful to understand the environment. Its workforce is evolving quickly—in size, skill, and demographic make-up.

  • The Bangladesh Investment Development Authority reports that Bangladesh is now home to the world’s 8th largest labor force. That means more than 70 million people (as of 2024), including nearly 46 million young adults aged 15–29.
  • This creates a youthful, motivated workforce for employers to tap, though youth unemployment and underemployment remain important considerations, highlighted in a recent International Labour Organization study.
  • The participation of women in the workforce has grown and now stands at about 42.7%. Gender wage gaps are remarkably narrow—reported around 2.2%.

From our experience at EWS, clients who hire in Bangladesh often comment on these demographics as a major strength. Not only is there massive scale, but the diversity makes it possible to build teams for a wide variety of business needs.

Why companies are considering Bangladesh for talent

Bangladesh’s global image is shifting. Once seen only as a leader in manufacturing, especially garments, it now offers a wider pool of talent. Let’s take a closer look at the main reasons businesses choose this market.

Bangladesh is no longer just a place for cheap manufacturing—its knowledge economy is on the rise.

Cost savings

For C-level executives, HR directors, and partner managers, cost is always central. Compared to established outsourcing centers elsewhere in Asia, Bangladesh offers clear financial advantages. Labor costs remain among the lowest in the world, and this extends to not only blue-collar or manufacturing roles but also to many skilled positions in technology, finance, research, and customer service.

Average monthly wages for university graduates can start at $250–$400 USD, while highly qualified tech or engineering talent can sometimes be secured for less than half the cost of equivalent talent in some other Asian markets. These savings can be even more pronounced for companies using local partners or Employer of Record models, which we will discuss later.

Growing skills and industries

In our experience advising multinational clients, we’ve seen a noticeable shift. Increasing numbers of university graduates are trained in IT, software engineering, business analytics, customer service, digital marketing, fintech, and more. Local government and foreign investment have supported initiatives to boost technical capabilities and English proficiency. STEM programs have expanded, and Bangladesh’s young workforce shows strong interest in digital skills.

  • The digital economy is projected to reach 7% of Bangladesh’s GDP by 2025, according to the country’s Digital Bangladesh vision.
  • Tech startups and outsourcers are rising, especially in cities like Dhaka, Chattogram, and Sylhet.
  • A growing number of professionals are choosing freelance platforms or remote work, making cross-border hiring logistics simpler.

English proficiency and cultural compatibility

Many companies worry about communication or workflow problems in new countries. In Bangladesh, English is widely taught at school and is the working language for most white-collar business. As a result, recruitment of English-speaking professionals is often less complicated than assumed.

We regularly remind clients that cultural adaptability is another strength. Bangladesh shares cultural ties to both South Asia and global business norms. Time zone overlap with Europe and East Asia also means smoother coordination.

The expanding remote work landscape

Interest in remote and hybrid work has expanded worldwide—and Bangladesh is keeping pace. There’s rising comfort with cloud-based workflows and remote management solutions, even among newly formed teams. For IT and technical staffing, distributed teams are now standard.

This approach brings new possibilities to companies wanting a “virtual presence” without opening a full office. We have worked with several clients who first opted for a remote-first or distributed team structure, with plans to scale up as their market knowledge and trust grew.

What is the cost to hire in Bangladesh?

Direct labor costs in Bangladesh attract companies, but you need the full picture—including taxes, social security, benefits, compliance, and the hidden cost of “time to hire.” Let’s break down what typically goes into cost calculation for hiring locally, either by direct hire or through a global Employer of Record.

Salary bands and local wage differences

Salaries for university-educated professionals begin around $250–$400 per month for entry-level roles. Middle management and technical specialists may earn between $500–$1200 per month. Senior developers and experienced IT managers can sometimes command $1,500 or more—but rates still trend below what’s common in India, China, or the Philippines.

It’s also worth noting that Dhaka and Chattogram may have slightly higher salary expectations due to cost of living and demand, but the gap is not as extreme as in some neighboring economies.

Indirect costs and payroll tax

Bangladesh imposes social security payments and statutory gratuities, but overall labor tax is below 10% for most private employers. Additional rules apply for provident funds and bonuses, and payroll tax rates can vary according to job grade, but the administrative load is lighter than in many emerging economies.

Cost of recruitment and onboarding

When hiring direct, recruitment costs can grow quickly. Advertising, local agency fees, onboarding, and training must be counted in. Turnover can also be high if selection and onboarding are not handled well.

Using a local Employer of Record is sometimes preferred, as this can centralize payroll, compliance, contracting, and onboarding for a single fee. This model minimizes upfront investment, reduces time-to-hire, and lowers the risk of missteps.

We have compiled a compliance checklist for international hiring in 2025 to help clients understand key steps and requirements before making the leap.

What is an Employer of Record (EOR) and how does it help in Bangladesh?

A Bangladesh EOR acts as the employer-on-paper for staff, handling local payroll, contracts, and labor law—while you oversee day-to-day team tasks. It’s a popular route for companies looking to test a new market, start a distributed team, or cut through bureaucratic obstacles.

A trusted EOR partner helps global firms start hiring in Bangladesh quickly, with less resource investment and lower risk of compliance errors.

  • The EOR sets up local contracts in compliance with Bangladesh’s employment law, reducing your legal exposure.
  • Payroll, taxes, and statutory benefits are taken care of, with multi-currency support as needed.
  • HR functions such as onboarding, policy documentation, and even separation are handled efficiently.

At EWS, we’re frequently asked: will an Employer of Record option save time and budget versus opening a legal entity? For most of our clients—especially Series B and C start-ups or established IT firms—the answer is yes. The cost to run a compliant EOR solution is typically lower than incorporating, renting an office, hiring local counsel, and running payroll yourself. We break this comparison down further on our Bangladesh Employer of Record solution page.

Industry spotlights: Where Bangladesh talent shines

Some industries in Bangladesh are especially attractive for hiring. We’ve seen most demand (and client satisfaction) in the following:

  • IT, software, and cybersecurity: The tech talent ecosystem has matured fast, with many university programs producing software engineers, QA testers, UI/UX designers, and cybersecurity specialists. Companies serving global clients benefit from strong programming and English skills.
  • Finance, accounting, and analytics: Bangladesh has produced large numbers of English-proficient graduates with finance, accounting, and business research skills. Many have international exposure through BPOs.
  • Design and digital marketing: Digital agencies and freelancers are growing fast. Access to content creators, graphic designers, and digital marketers is increasingly competitive.
  • Customer service and virtual support: With solid English skills and cultural flexibility, Bangladesh is ideal for 24/7 customer experience or technical support roles.
  • R&D and engineering: Textile, chemical, and general engineering roles are widely available with competitive wage rates.

Many clients have expressed surprise at how quickly they were able to build long-term teams with low churn in these sectors, especially when work flexibility is offered.

Skills availability and gaps: The real story

While the scale and capability of Bangladesh’s workforce are evolving, several factors should be weighed before entering the market.

Talent strengths

  • Large population of English-speaking tech and support professionals.
  • Substantial numbers of graduates trained in IT, business process outsourcing (BPO), and modern digital skills.
  • High adaptability and willingness to work with global clients and business practices.

Challenges to consider

  • Youth unemployment and underemployment: While there are millions of trained youth, many face challenges finding roles that match their skills, as noted by the World Bank.
  • Gender disparity: Despite a growing female workforce, female unemployment remains higher than men’s and workforce participation is lower, particularly among young women according to recent World Bank reports.
  • Job mobility and career development: Fast-moving talent markets can create high turnover if employee development and retention aren’t prioritized.
  • Regulatory changes: Visa, immigration, and employment paperwork can shift, so a reliable partner (such as EWS) is key to avoiding disruption.

As with any talent market, understanding both the promising potential and the current gaps shapes the most effective hiring strategy.

Compliance and hiring risks in Bangladesh

Hiring internationally always has risks—compliance, intellectual property, and HR management chief among them. Bangladesh’s labor laws are improving, but there are still requirements that international employers should understand:

  • Statutory benefits include paid leave, festival bonuses (usually two per year), and end-of-service gratuity payments for longer tenure.
  • Job contracts should clearly specify working hours, break times, salary, and termination notice.
  • Labor law is governed by the Bangladesh Labour Act 2006, with amendments in later years.
  • For remote roles or project contractors, compliance on taxation can be tricky.
  • Visa and permit rules for relocating staff change often and can require in-country representation.

EWS works to centralize global workforce management for our clients, so legal, tax, and HR risks are reduced, especially for C-level and IT vendor decision-makers. We outline many of these steps in our centralized workforce management benefits guide.

How a Bangladesh EOR approach accelerates business goals

When companies expand into Bangladesh, they often face the same questions: Should we register an entity? Can we simply hire freelancers? What’s the risk of direct contracts? In our work, we’ve seen that a Bangladesh EOR partnership often delivers the best blend of speed, cost saving, and compliance.

Using an Employer of Record in Bangladesh lets you “test and scale” your hiring strategy, adding team members in weeks instead of months.

  • No need for a brick-and-mortar presence or complex bureaucracy.
  • Immediate access to payroll, taxes, statutory benefits, and compliant contracts.
  • Streamlined onboarding, particularly valuable for firms tackling new projects or pilots.
  • Scalable hiring: increase or decrease team size without restructuring an entire business unit.

This approach lets leadership “prove out” markets with lower risk and make better-informed long-term decisions.

Growth trends: Where is the Bangladesh talent story heading?

Bangladesh’s labor force is growing, but so are the expectations of both employers and employees. According to the International Labour Organization, youth unemployment and the need for economic diversification remain at the center of employment policy.

Entrepreneurship and freelancing are also on the rise, broadening the options for digital businesses and fast-moving companies seeking experts for project-based engagement. Yet, as noted by the International Labour Organization’s recent analyses, recruitment cost for Bangladeshi workers can remain high, unless transparent models like EOR are applied.

By taking advantage of EOR models and hiring strategies fit for Bangladesh, modern organizations can sidestep several hurdles and make the most of both today’s and tomorrow’s opportunities.

The role of global expansion partners

At EWS, we’ve helped countless companies answer the question: is now the right time to enter Bangladesh? The answer depends on growth goals, budget, and readiness to work with a new culture. What is clear, though, is that with the right support, companies can reduce risk, scale faster, and take a forward-looking approach to resource planning.

To better understand the global context, we encourage decision-makers to review the key reasons to expand your workforce globally and learn how a scalable HR strategy will make your international team a long-term asset.

Conclusion: Bangladesh hiring as a next step for global-minded organizations

Bangladesh’s growing talent pool, highly competitive costs, and maturing knowledge workforce present global businesses with a compelling new hiring option. As organizations seek to extend their reach, launch new products, or build international teams, the market becomes even more attractive. At EWS, we believe that choosing the right Employer of Record or “hire-in-country” strategy can unlock true value, speed, and resilience for the future of business.

Smart hiring in Bangladesh brings fast impact and real long-term savings.

To discover how we’ve helped other organizations make the most of Bangladesh’s opportunity, or to discuss your goals for growth and hiring in 2024 and beyond, we invite you to connect with our team at EWS—your partner for global workforce solutions.

Frequently asked questions

What is an Employer of Record in Bangladesh?

An Employer of Record in Bangladesh is a third-party organization that legally employs workers on behalf of a foreign company, handling payroll, benefits, contracts, and compliance with local labor laws. This makes it possible for firms to hire talent quickly and compliantly, even without their own local entity, and ensures smooth HR, tax, and regulatory processes from day one.

How to hire employees in Bangladesh easily?

The most straightforward way to hire employees in Bangladesh is by using an Employer of Record (EOR) service, which takes care of contracts, payroll, benefits, and legal compliance on your behalf. This reduces setup time, lowers administrative costs, and simplifies onboarding. For direct hiring, you would need to register a legal entity, comply with all statutory requirements, and administer payroll and HR locally, which is more time-consuming.

Is it worth it to hire in Bangladesh?

Hiring in Bangladesh often leads to significant savings in labor costs while providing access to a broad, skilled, and youthful workforce. For many industries—IT, tech, finance, digital marketing—the balance of affordability, skills, and scalability makes Bangladesh an excellent market to consider for global talent needs.

How much does Bangladesh EOR service cost?

Fees for Bangladesh EOR services vary according to provider, employee headcount, and required contract types, but in general, they are a fraction of the cost of establishing a wholly owned subsidiary. The typical cost structure is a flat monthly fee per employee, plus salary and statutory benefit payments. Onboarding, contract management, and compliance are included, making long-term budgeting simple.

Where to find top talent in Bangladesh?

Top talent in Bangladesh can be found through a mix of channels: leading job boards, university placement programs, tech communities, social media, and professional networks. Dhaka, Chattogram, and Sylhet are primary cities for skilled professionals in IT, tech, finance, and business services. Working with a local partner or Employer of Record helps you reach vetted talent pools and handle the entire hiring process, reducing missteps and maximizing fit.

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