Employment Cost Calculations for a ৳ 85,000.00 Salary in Bangladesh
Employing staff in Bangladesh involves understanding the various costs associated with a salary. For a salary of ৳ 85,000.00 per annum, there are several factors that contribute to the total employment cost. This article aims to provide a detailed breakdown of these costs, helping employers in Bangladesh navigate through the financial responsibilities of hiring employees.
Bangladesh Cost of Employee Earning ৳ 85,000.00 Salary per Annum Calculation | ৳ 85,000.00 | Annual Salary in 2024 |
+ | ৳ 10,285.00 | Bangladesh Employers Social Security Contributions on ৳ 85,000.00 in 2024 |
| |
= | ৳ 95,285.00 | Total Payroll cost of Employee in Bangladesh in 2024 |
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৳ 85,000.00 Salary in Bangladesh - Payroll Cost Analysis
As an employer in Bangladesh, it is clearly important to understand the gross salary you pay your employees as this figure tends to be used for salary comparison against other related jobs and positions when recruiting and retaining staff in Bangladesh. A good employer also understands the value of understanding "net pay" or "take home pay" as it is commonly referred to. Visability of the take home pay your employees in Bangladesh attain is important for understanding how they cope with the cost of living in Bangladesh and ensuring that they have sufficient funds to engage their focus in work activities during employment hours, i.e. they are not preoccupied with financial concerns due to poor salary or considering leaving for better salary package oppertunities.
Employer Cost Elements
Employee Cost Elements Key Points:
Employer Socail Security1: 10.79%
Gross Salary1: 89.21%
৳ 85,000.00 Salary Elements
৳ 85,000.00 Salary Elements Key Points:
Employee Socail Security2: 12%
Personal Income Tax2: 0%
Take Home Pay2: 88%
Note1: Employer Social Security and Salary percentages shown as a percentage of total employment cost in Bangladesh.
Note2: Employee Social Security, Personal Income Tax and Take Home Pay in Bangladesh shown as a percentage of Gross Salary in Bangladesh in 2024.
What is the take home pay on a ৳ 85,000.00 salary in Bangladesh?
For our ৳ 85,000.00 salary in Bangladesh, our employee would have an annual take home pay after payroll deductions and taxes of ৳ 74,800.00 which is 88% of their gross pay, you can see a salary and payroll deductions example for ৳ 85,000.00 here.
What are the employer costs on a ৳ 85,000.00 salary in Bangladesh?
As we showed on the snapshot table earlier, the cost on an employee on a ৳ 85,000.00 annual salary in Bangladesh is ৳ 95,285.00, let's take a look at how this figure was calculated:
Bangladesh: Employer Social Security and Payroll Contributions Calculation 2024 | ৳ 3,204.50 | Bangladesh Employers Contributions for Provident Fund in 2024 |
+ | ৳ 7,080.50 | Bangladesh Employers Contributions for Employee Pension Scheme (EPS) in 2024 |
| |
= | ৳ 10,285.00 | Bangladesh Employers Contributions on ৳ 85,000.00 in 2024 |
Bangladesh: Employer Contributions Calculation for Provident Fund 2024 | ৳ 85,000.00 | Salary in 2024 |
x | 3.77% | Bangladesh Employer Contribution Rate for Provident Fund in 2024 |
| |
= | ৳ 3,204.50 | Bangladesh Employers Contributions for Provident Fund on ৳ 85,000.00 in 2024 |
Bangladesh: Employer Contributions Calculation for Employee Pension Scheme (EPS) 2024 | ৳ 85,000.00 | Salary in 2024 |
x | 8.33% | Bangladesh Employer Contribution Rate for Employee Pension Scheme (EPS) in 2024 |
| |
= | ৳ 7,080.50 | Bangladesh Employers Contributions for Employee Pension Scheme (EPS) on ৳ 85,000.00 in 2024 |
These calculations are based on the annual gross salary of ৳ 85,000.00 and the Social Security Rates and Thresholds for Bangladesh during the 2024 tax year which are displayed below.
Bangladesh Social Security in 2024: Rates for Employers and EmployeesSocial security category | Employee | Employer | Total |
---|
Provident Fund | 12% | 3.77% | 15.77% |
Employee Pension Scheme (EPS) | 0% | 8.33% | 8.33% |
Bangladesh Social Security in 2024: Earnings Thresholds for Employers and EmployeesSocial security category | Employee | Employer |
---|
Min. | Max. | Min. | Max. |
---|
Provident Fund | n/a | n/a | n/a | n/a |
Employee Pension Scheme (EPS) | n/a | n/a | n/a | n/a |
Holistic Cost of Employee in Bangladesh calculations
In this cost of employment analysis of a ৳ 85,000.00 salary in Bangladesh we have focused on the specific payroll elements of Basic Salary and Social Security but this is not a holistic employment cost calculation. The true cost of employing someone with a salary of ৳ 85,000.00 per annum in Bangladesh extends well beyond the gross salary. Employers must account for social security contributions, taxes, additional benefits, training costs, administrative expenses, and legal obligations. A comprehensive understanding of these elements is crucial for effective financial planning and management of human resources in Bangladesh. This is particulalry true for the first year of employment when setup costs are higher.
1. Basic Salary
The base of the employment cost is the gross salary, which in this case is ৳ 85,000.00 per annum. This amount is what the employee earns before any deductions or additional costs are considered.
2. Social Security Contributions
In Bangladesh, employers are required to contribute to social security, which includes Provident Fund, Employee Pension Scheme (EPS). In 2024, an employer contributions typically amount to around 12.1% of the gross salary where as employees typically contribue 12% to social security in Bangladesh.
3. Additional Benefits and Bonuses
Many employers in Bangladesh offer additional benefits such as bonuses, and other perks. These should be factored into the total employment cost as they can significantly increase the overall financial commitment.
4. Training and Development Costs
Investments in training and development are vital for keeping your employees in Bangladesh skilled and motivated. These costs can vary but should be included in the total employment cost calculation.
5. Administrative and Overhead Costs
There are also administrative costs related to Bangladesh payroll management and other HR functions. Overhead costs like workspace, equipment, and utilities attributed to the employee should also be considered.
6. Legal Obligations and Insurance
Employers in Bangladesh are also responsible for certain legal obligations and insurances, which can add to the employment cost. These include liability insurance and adherence to labor laws and regulations.
Similar Employee Cost Examples in the 85k earning range
You may also find the following salary based employee cost examples for Bangladesh useful as they were viewed by others who read the "Employment Cost Calculations for a ৳ 85,000.00 Salary in Bangladesh", alternatively you can create your own employee cost calculation here.