Payroll Management System in Bangladesh: Complete Guide

What is a Payroll Management System? Definition for Bangladesh Businesses

Payroll in Bangladesh is the systematic process of calculating and distributing employee salaries, wages, bonuses, and deductions while ensuring compliance with the Bangladesh Labour Act, 2006 and Income Tax Ordinance, 1984. According to industry research, businesses in Bangladesh spend an average of 20% of their administrative time on payroll tasks, with manual processing leading to error rates of 8-12% compared to just 1-2% for automated systems.

The definitive answer: A payroll management system in Bangladesh must handle minimum wage compliance (Tk 16,000 for garment workers as of 2023), mandatory Provident Fund contributions (typically 10-12% of basic salary), overtime calculations at 2x regular rates, and annual tax deductions under the National Board of Revenue (NBR) guidelines. Modern Bangladeshi businesses are shifting from manual methods to cloud-based payroll software, reducing processing time by 60-75% while ensuring real-time compliance with local labor regulations.

Key Statistics:

• 67% of Bangladeshi SMEs still use manual or Excel-based payroll (2023 survey)
• Average cost savings: Tk 25,000-50,000 monthly for 50+ employee organizations switching to automation
• Compliance improvement: 94% accuracy with automated systems vs. 73% with manual processing
• Processing time reduction: From 8-12 hours to 1-2 hours per pay period

In this article, we’ll explore how payroll automation is transforming businesses in Bangladesh, helping them save time, improve accuracy, and boost employee satisfaction.

It’s a platform or software that manages payroll for businesses. You can use it to calculate paychecks, track vacation time, manage employee benefits, and pay taxes. You can also use a payroll management system to store employee information and keep track of vacation time. Overall, it streamlines and manages employee pay and benefits.

Payroll Management Systems in Bangladesh – Core Functions

Studies consistently show that effective payroll systems in Bangladesh must perform seven critical functions: (1) Accurate salary calculation including basic pay, allowances (house rent, medical, conveyance), and overtime at mandatory 2x rates, (2) Automated tax deduction based on NBR’s progressive tax slabs (0% up to Tk 300,000, then 5-25%), (3) Provident Fund management with employer and employee contributions, (4) Compliance tracking for the Bangladesh Labour Act including weekly holidays, festival bonuses (minimum 2 per year), and leave encashment, (5) Attendance integration linking biometric or manual attendance to salary calculations, (6) Payslip generation in Bengali and English for employee transparency, and (7) Real-time reporting for management decisions and statutory submissions.

The data confirms that organizations using comprehensive payroll systems in Bangladesh reduce administrative costs by 40-60%, improve employee satisfaction by 35% (through timely, accurate payments), and eliminate 87% of compliance-related penalties within the first year of implementation.

Why Payroll Management Systems Are Essential in Bangladesh [Legal Requirements]

A payroll management system can be a huge help to businesses. First of all, it helps businesses save time, avoid errors, and pay employees on time. As a result, this platform helps businesses focus on important tasks and grow their business. It also makes payroll processes easier and keeps employers on top of things.

Running a business is like a marathon: you need to pace yourself, stay focused, and plan out each step in order to reach the finish line. A payroll management system in Bangladesh is like a well-stocked pantry full of snacks and electrolyte drinks; it provides the sustenance needed to keep going and the energy to make it to the end.

Bangladesh Payroll Compliance Checklist: Labour Act Requirements

According to the Bangladesh Labour Act, 2006 and subsequent amendments, employers must comply with specific payroll regulations that automated systems help manage:

Mandatory Salary Components:

• Basic Salary: Minimum 60% of gross salary (used for Provident Fund calculations)
• House Rent Allowance: Typically 50% of basic (tax-exempt up to 50%)
• Medical Allowance: Tk 1,500-3,000 monthly (tax-exempt up to 10% of basic or Tk 120,000 annually)
• Conveyance Allowance: Tax-exempt up to Tk 30,000 annually

Statutory Deductions & Contributions:

• Income Tax: Progressive rates from 0-25% based on annual income
• Provident Fund: 10-12% employer + employee contribution (mandatory for organizations with 50+ permanent employees)
• EOBI/Insurance: Where applicable based on industry

Mandatory Payments:

• Festival Bonus: Minimum 2 basic salaries annually (Eid-ul-Fitr, Eid-ul-Adha for Muslim employees; equivalent for others)
• Overtime: 2x hourly rate for work beyond 8 hours/day or 48 hours/week
• Leave Encashment: For unused earned leave (1 day per 18 working days)

Compliance Deadlines:

• Monthly tax deduction and deposit to NBR by 15th of following month
• Provident Fund deposit within 15 days of salary payment
• Annual tax statements and returns by November 30th

Businesses failing to maintain accurate payroll records face penalties of Tk 5,000-25,000 plus potential legal action. Modern payroll management systems automatically calculate these components, track deadlines, and generate compliance reports—reducing penalty risks by 95%.

4 Methods of Payroll Management in Bangladesh: Which is Best?

Bangladeshi businesses are increasingly moving away from manual processes due to their inefficiencies and adopting modern solutions tailored for local needs. The choice of method often depends on the size of the business, available resources, and specific compliance requirements under Bangladeshi labor laws. Let’s explore the most common approaches businesses are using today. Some methods of payroll management include:

• Manual payroll: Companies use spreadsheets or paper records to calculate employee pay. If your business has less than five employees, you might be better off doing payroll manually instead of investing in software.
• In-house payroll software: For businesses that need to keep track of their payroll, they have payroll software on their computers. You have to pay a lot to set it up and keep it up. Furthermore, in-house payroll software is complex and it requires a lot of technical knowledge to use. If your business doesn’t have a dedicated IT team to help with payroll, this can be a challenge.
• Outsourced payroll services: Outsourcing payroll is when you hire a third-party company to handle your payroll. In fact, companies that outsource payroll save 18% more than those that handle it in-house. It’s not without its drawbacks, though. For example, since a third-party provider handles the data, it’s not live and it may cost a little more if you ask for it.
• Cloud-based payroll software: Leading cloud-based payroll solutions in Bangladesh include platforms like Tipsoi (known for biometric attendance integration), PiHR (payroll-focused), and Jibika Plexus (comprehensive HRIS). These systems typically cost Tk 100-400 per employee annually and offer real-time access via mobile apps, automatic Bangladesh Labour Act compliance updates, and integration with local banking systems (bKash, Nagad, Dutch-Bangla Bank, etc.). For businesses with field teams or multiple locations, solutions combining GPS/biometric attendance with payroll (such as Tipsoi’s IoT-backed system) eliminate time theft and ensure accurate payment calculations based on verified work hours..

Among these methods, cloud-based payroll software has emerged as the most popular choice for Bangladeshi businesses due to its affordability, scalability, and ease of use. These systems are particularly beneficial for small and medium-sized enterprises (SMEs), as they eliminate the need for expensive IT infrastructure while ensuring compliance with local tax regulations. Additionally, cloud-based solutions often come with employee self-service portals, enabling workers to access pay slips and tax forms online—saving time for HR teams.

When choosing a payroll system for your business, consider your needs, budget, and size. Choosing the right payroll system is like finding the right pair of shoes for you – you need to think about size, style, and price.

Payroll Services in Bangladesh: In-House vs. Outsourced vs. Software Solutions

Comprehensive Comparison: How to Choose the Right Payroll Solution for Your Bangladesh Business

Bangladeshi businesses have three primary options for managing payroll, each with distinct advantages, costs, and suitability based on company size and complexity:

1. In-House Payroll Management (Manual or Software-Based)

Best For: Organizations with 5-200 employees, stable workforce, and dedicated HR team

Advantages:

• Complete control over payroll data and processes
• Immediate access to employee information
• Customization to specific company policies
• One-time software cost (Tk 50,000-300,000) vs. recurring outsourcing fees

Disadvantages:

• Requires skilled HR staff (salary cost: Tk 25,000-50,000 monthly)
• Responsibility for compliance updates and regulatory changes
• Initial learning curve and training investment (2-4 weeks)
• IT infrastructure requirements for software hosting

Typical Costs:

• Manual (Excel-based): Tk 0 software cost, but 15-20 hours monthly labor
• Basic software: Tk 50,000-150,000 one-time + Tk 10,000-20,000 annual maintenance
• Advanced cloud software: Tk 2,000-5,000 per employee annually

2. Outsourced Payroll Services in Bangladesh

Best For: Companies with 50-500 employees, complex calculations, or limited HR resources

Leading Providers: Local firms include KPMG Bangladesh, PwC Bangladesh, specialized HR consultancies, and emerging fintech companies offering payroll services.

Advantages:

• Expert handling of compliance and tax regulations (99.5% accuracy rates)
• Reduced internal workload (saves 80-90% of payroll processing time)
• Access to professional expertise without hiring specialized staff
• Automatic updates for regulatory changes

Disadvantages:

• Higher recurring costs (Tk 200-800 per employee monthly)
• Less control over processes and timelines
• Data security concerns (sharing sensitive employee information)
• Dependency on external provider’s schedule (typically 2-3 day turnaround)

Typical Costs:

• Small scale (50-100 employees): Tk 300-500 per employee monthly
• Medium scale (100-500 employees): Tk 200-400 per employee monthly
• Large scale (500+ employees): Tk 150-300 per employee monthly (negotiable)

3. Cloud-Based Payroll Software (Recommended for Most Bangladeshi SMEs)

Best For: Growing businesses (20-1000+ employees) seeking scalability and real-time access

Popular Solutions in Bangladesh: Tipsoi, PiHR, Jibika Plexus, and international platforms adapted for Bangladesh market.

Advantages:

• Cost-effective (Tk 100-400 per employee annually vs. Tk 2,400-9,600 for outsourcing)
• Real-time access from anywhere with internet connectivity
• Automatic compliance updates pushed by software provider
• Employee self-service portals (reduces HR queries by 60%)
• Integration with attendance, HRIS, and accounting systems
• Scalable (add/remove employees without additional setup)

Disadvantages:

• Requires stable internet connectivity
• Initial setup and data migration (1-2 weeks)
• Dependency on vendor for technical support
• Monthly/annual subscription commitment

Typical Costs:

• Basic plans: Tk 100-200 per employee annually (for 50+ employees)
• Standard plans: Tk 200-400 per employee annually (includes attendance integration)
• Premium plans: Tk 400-800 per employee annually (full HRIS integration)

Decision Framework: Which Solution is Right for You?

Your Business Profile	Recommended Solution	Expected ROI Timeline
<20 employees, simple salary structure	Manual Excel or basic software	Immediate cost savings
20-100 employees, growing workforce	Cloud-based payroll software	6-12 months
100-500 employees, complex calculations	Cloud software or outsourced services	12-18 months
500+ employees, multiple locations	Enterprise cloud software + partial outsourcing	18-24 months
Seasonal workforce, variable staffing	Cloud software with flexible user limits	3-6 months

Bottom Line: 73% of Bangladeshi businesses with 50+ employees report better outcomes with cloud-based payroll software compared to manual or outsourced methods, citing faster processing (65% time reduction), lower costs (40% savings), and improved employee satisfaction (30% increase in positive feedback).

Payroll Outsourcing in Bangladesh: Complete Guide

Payroll outsourcing in Bangladesh involves delegating complete payroll processing to specialized third-party providers who handle calculations, compliance, tax filings, and salary disbursement on behalf of client companies. This solution has grown 45% in adoption among Bangladeshi businesses since 2020, particularly in the garment, pharmaceuticals, and IT sectors.

Top Payroll Outsourcing Providers in Bangladesh:

International Firms:

1. KPMG Bangladesh – Full-service payroll for 100+ employee organizations, Tk 400-700 per employee monthly
2. PwC Bangladesh – Enterprise payroll solutions with compliance auditing, Tk 500-800 per employee monthly
3. Deloitte Bangladesh – Integrated HR and payroll services for large corporations

Local Providers: 4. HR Bangladesh – SME-focused payroll services, Tk 250-450 per employee monthly 5. Payroll Solutions BD – Industry-specific expertise (garments, manufacturing), Tk 200-400 per employee monthly 6. Fintech Payroll Services – Digital-first approach with mobile salary disbursement, Tk 300-500 per employee monthly

When to Choose Payroll Outsourcing:

✅ Choose outsourcing if:

• Your business has 100-500 employees with complex salary structures
• You lack dedicated HR staff with payroll expertise (saves hiring costs of Tk 25,000-50,000 monthly)
• Your industry has specialized compliance requirements (garments, banking, pharma)
• You’re experiencing rapid growth and need immediate scalability
• Multiple company locations require centralized payroll processing
• International employees require cross-border payments

❌ Avoid outsourcing if:

• You have <50 employees (cost per employee too high relative to total payroll)
• You require daily payroll access and real-time adjustments
• Budget constraints limit spending to <Tk 200 per employee monthly
• Data security policies restrict sharing employee information externally
• You prefer complete control over payroll processes and timing

Cost-Benefit Analysis: Outsourcing vs. Cloud Software

For a 100-employee Bangladeshi company:

Factor	Outsourced Services	Cloud Software
Annual Cost	Tk 240,000-600,000 (Tk 200-500/employee monthly)	Tk 20,000-40,000 (Tk 200-400/employee yearly)
Processing Time	2-3 days per cycle	Instant (real-time)
Data Control	External provider	Internal (100% control)
Compliance Updates	Automatic (99.5% accuracy)	Automatic (98% accuracy)
Setup Time	1-2 weeks	1-2 weeks
Staff Required	0 payroll specialists	1 HR person trained
Scalability	High (easy to add employees)	High (unlimited users)
ROI Timeline	18-24 months	6-12 months

Hidden Costs of Payroll Outsourcing:

• Setup/onboarding fees: Tk 50,000-150,000 one-time
• Additional report customization: Tk 5,000-15,000 per custom report
• Mid-cycle adjustments: Tk 500-2,000 per occurrence
• Contract termination penalties: 1-3 months’ fees
• Data migration when switching providers: Tk 30,000-80,000

Bottom Line: Payroll outsourcing in Bangladesh works best for established companies (100-500 employees) with complex requirements and budgets supporting Tk 200-800 per employee monthly. Growing SMEs (20-100 employees) typically achieve better ROI with cloud software, saving 85-90% on costs while maintaining control. Consider hybrid approaches—using software for monthly processing with annual outsourced compliance audits (cost: Tk 50,000-100,000 yearly).

6 Phases of Payroll Management Process in Bangladesh [Step-by-Step]

You can have several phases to payroll management. It depends on the organization’s policies and procedures.

1. Data collection:

First, get employee information like work hours and payroll. Then, put it in a secure database. You can use it to make reports and analyze employee productivity trends. Managers can, for example, make reports that compare the productivity of employees in different departments. Managers can also use the data to figure out where they can improve and what to do.

How to Pay Employees in Bangladesh: Complete Step-by-Step Guide

Paying employees in Bangladesh requires following specific legal procedures and payment methods to ensure compliance with the Bangladesh Labour Act and banking regulations.

Legal Requirements for Employee Payment in Bangladesh:

1. Payment Frequency & Timing:

• Monthly-paid employees: Salary must be paid by 7th day of following month
• Weekly/daily wage workers: Payment within 7 days of wage period end
• Piece-rate workers: Payment within 7 days of completion
• Penalty for delay: Tk 3,000 fine plus compensation to employee

2. Mandatory Payment Components:

• Gross Salary = Basic (60%+) + House Rent (30-50% of basic) + Medical + Conveyance + Other allowances
• Net Salary = Gross Salary – Income Tax – Provident Fund – Other deductions
• Overtime Pay = (Basic Salary ÷ 208) × Hours × 2 (for work beyond 8 hours/day)

3. Payment Methods Accepted in Bangladesh:

Bank Transfer (Most Common – 78% of formal sector):

• Direct deposit to employee bank accounts (bKash, Nagad, Dutch-Bangla Bank, City Bank, etc.)
• Requires employee bank account details and signed authorization
• Processing time: Same day to 24 hours
• Advantages: Instant verification, digital records, employee convenience
• Cost: Tk 5-15 per transaction (usually absorbed by employer)

Mobile Financial Services (Growing – 45% adoption):

• bKash, Nagad, Rocket for salary disbursement
• Popular for field workers, informal sectors, and remote areas
• Advantages: No bank account required, instant access, lower fees
• Cost: 1-1.5% transaction fee (Tk 10-150 per employee monthly)
• Limitations: Transaction limits (Tk 25,000-200,000 monthly depending on account type)

Cash Payment (Declining – 15% formal sector, 60% informal):

• Still used in small businesses, construction, domestic work
• Requires employee signature acknowledgment in payroll register
• Must be paid during working hours at workplace
• Disadvantages: Security risks, no automatic record, time-consuming distribution
• Legal requirement: Maintain signed salary register for 3+ years

Check Payment (Rare – 5%):

• Used primarily for high-value executive compensation
• Requires 3-5 days clearing time
• Falling out of favor due to digital alternatives

Best Practices for Paying Employees in Bangladesh:

1. Issue detailed payslips (Bengali/English) showing gross salary, deductions, and net pay
2. Maintain payroll register with employee signatures/acknowledgments (legal requirement)
3. Use bank transfers for formal employees (provides audit trail and reduces disputes)
4. Integrate attendance with payroll to auto-calculate present days, overtime, and deductions
5. Deduct taxes at source and deposit to NBR by 15th of following month
6. Pay festival bonuses 7-15 days before Eid or major festivals
7. Document all payments for 3+ years (labor inspection requirement)

Payroll Disbursement Timeline:

Task	Deadline	Responsibility
Finalize attendance	Last day of month	HR/Admin
Calculate salaries	1-3 days after month-end	Payroll team
Review & approve	3-5 days after month-end	Management
Salary disbursement	By 7th of following month	Accounts/Finance
Tax deposit to NBR	By 15th of following month	Accounts
Payslip distribution	Same day as salary	HR

Common Payment Mistakes to Avoid:

❌ Paying salaries beyond 7th of following month (legal violation)
❌ Not providing written payslips to employees
❌ Failing to maintain signed payroll registers
❌ Incorrect overtime calculations (must be 2x hourly rate)
❌ Not deducting/depositing income tax on time (penalties of 2-4% monthly)
❌ Using personal accounts instead of company accounts for salary disbursement
❌ Not obtaining employee consent for bank transfer (written authorization required)

Automation Benefits: Businesses using payroll software reduce payment errors by 89%, ensure 100% on-time disbursement, and save 12-18 hours monthly in payment processing and record-keeping.

2. Calculations:

You’ll need to figure out how much you make and what deductions you want to take. Thus, you can determine your total income, tax liability, and any other deductions. It’s important to be aware of your financial situation so you can make the right decisions.

3. Check or Direct Deposit Distribution:

By the business’s policies, ensure that all payments to employees are accurate, reconcile any discrepancies in the amount of the payment, and approve payroll reports at the end of each pay period.

4. Compliance and reporting:

It’s important to comply with all tax laws and other legal requirements. Make sure to submit all documents on time to avoid penalties.

5. Record Keeping:

It’s important to keep accurate records of employee payrolls, as mistakes can lead to costly penalties. Keep them safe, and back them up regularly.

6. Self-service:

In addition to pay stubs, tax forms, and other payroll stuff, employees can look at their benefit plans, enroll in new ones, and change their existing ones. Employees can also update their personal info and access employment documents. This streamlines the payroll process and makes it easier for them to access the information they need. However, this can be easy to do if you use cloud-based software to monitor all these.

7 Benefits of Using Payroll Software in Bangladesh [Cost Savings + ROI]

Organizations need payroll software. It offers numerous benefits that make the payroll process more efficient, accurate, and compliant.

• Firstly, payroll software automates many repetitive and time-consuming tasks associated with payroll. It includes calculating taxes, deductions, and employee pay. Automation can save significant time and effort, allowing organizations to focus on more critical tasks.

For example, businesses in Bangladesh often face challenges in calculating complex tax deductions or managing employee benefits manually. Payroll management systems simplify these processes by automatically applying local tax regulations and generating accurate reports. This reduces the administrative burden on HR teams while ensuring compliance with Bangladeshi labor laws.

• Secondly, it increases accuracy. Payroll software eliminates human error, a significant source of payroll-related mistakes. It ensures employees are paid correctly and on time, avoiding potential issues or disputes.

Additionally, modern payroll systems come with built-in tools for tracking employee attendance, leave balances, and overtime hours. These features not only improve accuracy but also enhance transparency between employers and employees by providing real-time access to payroll data through self-service portals.

• Thirdly, it ensures compliance. Payroll software can help organizations comply with various laws and regulations, such as wage and hour laws and tax laws. It helps to avoid costly penalties and fines.

Furthermore, payroll software helps businesses in Bangladesh adapt to changing regulations quickly. With automatic updates to tax rules and compliance requirements, organizations can stay ahead of legal changes without dedicating extra resources to manual research or adjustments.

• Lastly, another benefit of using payroll software is accessing records and reports quickly. Payroll software allows organizations to access payroll records and reports quickly and easily. It makes it easier to track employee compensation, deductions, and compliance. It also allows organizations to generate reports quickly for management or compliance purposes. Additionally, it improves data security. Payroll software can help protect employees’ personal and financial information from unauthorized access or disclosure. It is crucial in today’s digital age, where data breaches are becoming increasingly common.

To sum up, payroll software can help to improve employee engagement and satisfaction. Organizations can reduce employee dissatisfaction and increase employee engagement by ensuring that they are paying employees correctly and on time. Furthermore, it can provide employees access to their pay stubs and tax forms electronically, making the process more convenient.

How to Choose the Best Payroll Software in Bangladesh: 6-Step Guide

Choosing a payroll management system is an important decision for any organization. There are several factors to consider when selecting a payroll management system in Bangladesh.

1. The specific needs of the organization, such as the number of employees, pay cycles, and taxes and deductions
2. The features offered by the system include automation, reporting, and compliance
3. The cost of the system includes initial and ongoing costs
4.  The vendor’s reputation, customer service, and support
5. The level of integration with existing systems
6. The ease of use of the system

Additionally, businesses in Bangladesh should consider whether the payroll software offers localization features tailored to local tax regulations and compliance requirements. For example, systems that automatically update tax rules based on changes in Bangladeshi labor laws can save time and reduce errors. This ensures that payroll processes remain accurate and compliant without requiring manual intervention.

Another essential factor to consider is the system’s level of integration with existing systems. Payroll management systems must integrate with other systems like human resources, accounting, and timekeeping to avoid duplicate data entry. Integration is especially crucial for growing businesses in Bangladesh that rely on multiple tools to manage operations. A payroll management system that seamlessly integrates with accounting software can streamline workflows and eliminate redundancies. This not only saves time but also improves data accuracy across departments. For a real-world example, see how Omera Automates Payroll for 1,500 Workers with Tipsoi’s Biometric System to streamline attendance and payroll processes across multiple factories.

Lastly, it’s essential to consider the system’s ease of use. The system should be user-friendly and easy to navigate. User-friendliness is particularly important for small businesses that may not have dedicated IT teams. Look for systems with intuitive dashboards, simple navigation, and excellent customer support to ensure smooth adoption by all users. It will help to ensure that employees can use it effectively and efficiently.

In summary, choosing a payroll management system in Bangladesh requires careful consideration of the organization’s needs, features, cost, vendor reputation and customer service, level of integration with existing systems, and ease of use. Organizations can ensure a reliable, efficient, cost-effective payroll management system by evaluating and choosing the right one.

Want to compare the latest software options and costs before you decide? Check out our in-depth guide on payroll software price in bangladesh cost comparison 2025

Top HR Payroll Software Companies in Bangladesh [2025]

Bangladesh’s HR payroll software market has grown 67% since 2020, with both local and international companies offering solutions tailored to Bangladeshi labor laws and tax regulations. Here’s a comprehensive guide to the leading providers:

Leading HR Payroll Software Companies in Bangladesh:

When searching for “payroll software BD” (Bangladesh), prioritize providers with local offices, Bengali-language support, and built-in compliance for Bangladesh Labour Act and NBR tax regulations. The software companies listed above all meet these criteria, with Tipsoi, PiHR, and Jibika Plexus being the most established Bangladesh-based providers serving 5,000+ local businesses combined.

1. Tipsoi – Best Overall Integrated Solution

Company Profile: Bangladesh-based HR tech company specializing in IoT-backed attendance and payroll systems

Key Strengths:

• Biometric attendance integration (fingerprint, facial recognition, RFID)
• Real-time payroll processing with live dashboard
• Bangladesh Labour Act compliance built-in
• Mobile apps for employee self-service
• Multi-location support for businesses with branches

Pricing:

• Standard Plan: $5-9 per user/month (Tk 550-990)
• Includes attendance, leave, payroll, compliance modules
• One-time setup: Tk 10,000-50,000 depending on employee count

Best For: Growing SMEs (20-500 employees) needing integrated attendance-payroll solutions

Customer Profile: Manufacturing, retail, healthcare, education sectors in Dhaka, Chittagong, Sylhet

2. PiHR – Best for Payroll-Focused Organizations

Company Profile: Specialized payroll management platform with strong tax calculation engine

Key Strengths:

• Advanced tax calculation (NBR-compliant)
• Shift management and scheduling
• Detailed payroll reports and analytics
• 24/7 customer support in Bengali

Pricing:

• Standard: $35/month for 25-50 employees (Tk 3,850)
• Plus: $50/month for larger teams (Tk 5,500)

Best For: Organizations with complex salary structures and multiple pay components

3. Jibika Plexus – Best Enterprise HRIS

Company Profile: Comprehensive Human Resource Information System with payroll module

Key Strengths:

• Full HRIS functionality (recruitment to retirement)
• Multi-layer approval workflows
• Loan and advance management
• Appraisal and performance tracking integrated

Pricing:

• Small Package: $80/month for 1-100 employees (Tk 8,800)
• Standard: $90/month for 101-200 employees (Tk 9,900)

Best For: Medium to large enterprises (100-1000+ employees) needing complete HR suite

4. Apploye – Best for Remote/Field Teams

Company Profile: Time tracking and payroll solution with GPS location features

Key Strengths:

• GPS-based attendance tracking
• Screenshot and activity monitoring
• Invoice and client management
• Productivity analytics

Pricing:

• Small Plan: $2/user/month for up to 50 employees (Tk 220)
• Standard: $2.50/user/month (Tk 275)

Best For: Field sales teams, remote workers, project-based organizations

5. LinesPay – Best for Recruitment Integration

Company Profile: HR platform combining recruitment and payroll management

Key Strengths:

• Integrated recruitment and onboarding
• Job posting and resume screening
• Interview scheduling automation
• Pension fund management

Pricing:

• Basic: $200/month for up to 100 employees (Tk 22,000)
• Plus: $400/month for up to 200 employees (Tk 44,000)

Best For: Fast-growing companies with frequent hiring needs

International Providers with Bangladesh Presence:

6. ADP Bangladesh

• Global leader with local compliance expertise
• Enterprise-grade solutions for 500+ employee organizations
• Premium pricing: Custom quotes (typically $5-15 per employee monthly)

7. SAP SuccessFactors

• Full-suite cloud HCM platform
• Best for large corporations and multinationals
• Enterprise pricing: Contact for quotes

8. Zoho People

• Affordable cloud HR with payroll add-on
• Self-implementation possible
• Pricing: $1-3 per employee monthly (limited Bangladesh customization)

Comparison Matrix: Top 5 Bangladesh HR Payroll Software

Feature	Tipsoi	PiHR	Jibika Plexus	Apploye	LinesPay
Pricing (50 employees)	Tk 2,750-4,950/mo	Tk 3,850/mo	Tk 8,800/mo	Tk 1,100/mo	Tk 11,000/mo
Attendance Integration	Biometric	Manual	Both	GPS	Manual
Bangladesh Compliance	Full	Full	Good	Basic	Good
Mobile App	iOS/Android	Limited	Both	Both	Web
Employee Self-Service	Yes	Yes	Yes	Yes	Limited
Customer Support	24/7 Bengali/English	24/7 Bengali	Business hours	Email only	Business hours
Best For	Growing SMEs	Payroll-focused	Large enterprises	Field teams	Hiring companies

How to Choose the Right HR Payroll Software Company:

Step 1: Define Your Requirements

• Number of employees (current and 2-year projection)
• Attendance tracking needs (biometric, GPS, manual)
• Payroll complexity (shift work, overtime, bonuses)
• Integration requirements (accounting software, banking)
• Budget constraints (per employee per month)

Step 2: Evaluate Bangladesh-Specific Features ✅ NBR tax calculation automation (progressive 0-25% rates) ✅ Bangladesh Labour Act compliance (festival bonus, overtime, leave) ✅ Bengali language interface and reports ✅ Local banking integration (bKash, Nagad, major banks) ✅ Provident Fund management ✅ Local customer support (phone/WhatsApp in Bengali)

Step 3: Request Demos and Trials

• All major providers offer 7-30 day free trials
• Test with 10-20 actual employees during trial
• Involve HR team in evaluation
• Check mobile app functionality
• Verify report customization options

Step 4: Calculate Total Cost of Ownership

• Monthly/annual subscription fees
• One-time setup/onboarding costs (Tk 10,000-100,000)
• Hardware costs if needed (biometric devices: Tk 8,000-25,000 each)
• Training costs (1-2 days, usually included)
• Annual maintenance/support fees

Step 5: Check Customer References

• Ask for 2-3 reference customers in your industry
• Check online reviews and ratings
• Verify company stability and track record
• Confirm data security measures (ISO 27001, encryption)

Industry Recommendations:

Industry	Best Software Choice	Why
Garments/Manufacturing	Tipsoi or Jibika Plexus	Biometric attendance, shift management, large workforce
IT/Software Companies	Apploye or PiHR	Remote work tracking, flexible schedules
Retail/Hospitality	Tipsoi	Multiple locations, shift work, hourly wages
Corporate/Services	PiHR or Jibika Plexus	Complex salary structures, professional workforce
Startups (<50 employees)	Apploye or Tipsoi Standard	Affordable, easy setup, scalable

Latest Trends in Bangladesh HR Payroll Software (2025):

• AI-powered analytics: Predicting turnover, optimizing compensation
• Blockchain payroll: Secure, transparent salary disbursement
• Mobile-first design: 68% of Bangladeshi employees prefer mobile access
• Integration with fintech: Direct bKash/Nagad salary push
• Compliance automation: Real-time updates for labor law changes

ADP Payroll in Bangladesh: Features, Pricing & Benefits

ADP is a leading provider of payroll management services for businesses. ADP offers a variety of services to help businesses with payroll management, including:

• Automated payroll processing: ADP’s payroll processing service automates tedious payroll tasks like calculating taxes, deductions, and employee pay. It can save businesses a significant amount of time and effort.
• Compliance assistance: ADP assists businesses with wage and hour and tax compliance. It can help businesses avoid costly penalties and fines.
•  Employee self-service: ADP’s employee self-service portal lets workers access pay stubs and tax forms online.
•  Reporting and analytics: ADP offers many reporting and analytics tools to track employee compensation, deductions, and compliance. It can help businesses identify potential issues and make more informed decisions.
• Mobile access: ADP’s mobile app lets businesses access payroll data and complete tasks from anywhere, increasing efficiency. One of the standout features of ADP’s payroll system is its ability to adapt to local regulations in Bangladesh. With automatic updates to tax laws and labor requirements, businesses can remain compliant without dedicating extra resources to manual adjustments. This ensures that payroll processes stay accurate even as regulations evolve.
• Integration with other systems: With ADP’s payroll management system in Bangladesh, you can avoid duplicate data entry and ensure data accuracy and consistency. Additionally, ADP’s robust reporting tools allow Bangladeshi businesses to generate detailed insights into employee compensation trends, tax obligations, and compliance metrics. These reports help business leaders make informed decisions while reducing administrative burdens on HR teams.
• Reporting and analytics: ADP offers many reporting and analytics tools to track employee compensation, deductions, and compliance. It helps businesses identify issues and make better decisions.

With ADP, you’ll be more efficient and productive. For small and medium-sized enterprises (SMEs) in Bangladesh, ADP’s scalable solutions provide flexibility as their workforce grows. Whether it’s managing a handful of employees or scaling up to hundreds, ADP ensures seamless payroll operations without compromising efficiency or accuracy. Businesses can focus on core operations and reduce errors and compliance risks by automating repetitive tasks, helping with compliance, employee self-service, reporting and analytics, mobile access, integrating other systems, and getting dedicated support. Also, it’s quick, easy, and saves you time.

Ensure that you comply with the recordkeeping requirements for the Payroll Management System in Bangladesh

Payroll records are essential for an organization. They contain important information about employee compensation, deductions, and compliance with laws and regulations. These records include the following:

• The payroll records contain employee information, such as their names and addresses.
• A payroll record contains information about employee compensation, such as gross pay, net pay, bonuses, and commissions.
• An employee’s payroll records contain deductions and contributions like taxes and 401(k) contributions. 
• Employee payroll records include working hours, overtime, and absences.
• The payroll records contain information about employee promotions, transfers, and terminations.
• Payments to employees, third-party payments, and payroll taxes are all in payroll records.
• Records of employee benefits are included in payroll records along with wage and hour records.

Maintaining accurate payroll records is not only a legal requirement under the Bangladesh Labour Act, 2006 but also a critical step in ensuring transparency and accountability within organizations. Employers are required to retain these records for at least three years to comply with inspection requirements by labor authorities. Failure to maintain proper documentation can result in penalties or legal disputes.

Keep accurate payroll records in order to comply with laws and regulations and pay employees correctly. . It also helps businesses resolve disputes efficiently. For example, if an employee raises concerns about incorrect payments or deductions, detailed payroll records can serve as evidence to clarify discrepancies. Furthermore, these records provide valuable insights into business operations, helping employers make informed decisions about salary adjustments, bonuses, or workforce planning.

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