Employee Fund Management in Bangladesh

Managing employee funds responsibly requires both technical expertise and strict regulatory compliance. We provide professional advice to organisational management and fund trustees, identify profitable and prudent investment opportunities, and organise trustee meetings in line with the requirements of the governing trust deed.

We also administer ongoing compliance for these funds and prepare documentation, offering clarification and support during external audits.

Employee funds in Bangladesh are governed by a body of legislation including the Provident Funds Act, 1924 (which defines a provident fund at Section 2(e)), the Bangladesh Labour Act, 2006 (as amended in 2013) and the Bank Company Act, 1991.

Under the Labour Act, companies are required to allocate five per cent of pre-expense profits to eligible employees through the Workers' Profit Participation Fund within the stipulated timeframes. Only government-authorised provident funds attract tax benefits, and employees are taxed on amounts received from recognised funds at the point of distribution.

Organisations increasingly invest employee funds in the share market, government bonds and fixed deposits to generate returns for members. Where the fund rules permit, employees may also borrow against their accumulated balances, repaying the amount with interest.