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With a vibrant workforce, Bangladesh is quick turning into one in all Asia’s most tasty outsourcing locations.
The common wage in Bangladesh is 312,000 BDT (Bangladeshi Taka) per yr. That’s round 3,034.56 USD per yr as per the December 2022 alternate charges.
For those who’re seeking to outsource to Bangladesh and want to grasp the nation’s wage construction and economic system, we’ve received you coated.
On this article, we’ll study the common wage in Bangladesh and attention-grabbing features just like the minimal wage, wage increments, and 4 the reason why it’s the proper outsourcing vacation spot.
Lastly, we’ll additionally discover the 4 thriving industries of Bangladesh.
Let’s soar proper in!
What’s the common wage in Bangladesh?
The common wage in Bangladesh is round 26,000 BDT (249.55 USD) per thirty days, which incorporates advantages comparable to hire and transportation.
This determine is way decrease than the common month-to-month wage in western international locations comparable to the USA (7,900 USD) and the UK (7,189 USD).
Let’s take a more in-depth have a look at some attention-grabbing features of Bangladeshi labor statistics to see if it’s the best outsourcing vacation spot for your enterprise.
1. Common wage vary
The common wage in Bangladesh ranges from 6,580 BDT (61.87 USD) to 116,000 BDT (1,090.73 USD) per thirty days.
Be aware: The figures above solely signify the bottom common salaries and highest common salaries. The precise most wage and minimal wage could also be totally different.
2. Median wage
The median wage differs from the common wage.
How?
- The common wage provides the salaries within the pattern, then divides by the variety of contributors.
- The median wage considers a number of salaries and experiences the center worth in a selected set of salaries.
For instance, declare adjusters (individuals who examine insurance coverage claims) earn 9,660 BDT, administration analysts earn 29,100 BDT, and compliance officers make 21,300 BDT.
Right here, the common month-to-month and median wage are as follows:
- The common month-to-month wage might be 20,020 BDT (9,660 + 21,300+ 29,100/3)
- The median wage might be 21,300 BDT(center worth of the three salaries in consideration).
The median wage in Bangladesh is 28,100 BDT (264.22 USD) per thirty days. This worth signifies that half of the Bangladeshi inhabitants earns greater than 28,100 BDT whereas the opposite half earns lower than 28,100 BDT.
3. Common annual wage increment fee
Workers in Bangladesh usually obtain a wage increment of 5% each 28 months.
However wage increment charges rely closely on components comparable to an worker’s efficiency, trade, and expertise degree.
Let’s study them intimately:
A. Business
Listed here are the increment charges of every trade:
| Business | Increment Charge |
| Banking | 9% |
| Vitality | 9% |
| Data Know-how | 9% |
| Healthcare | 9% |
| Development | 9% |
| Journey | 9% |
Supply: salaryexplorer.com
B. Expertise degree
The expertise degree of an worker additionally influences the increment fee they obtain.
Let’s check out some examples:
| Expertise Degree | Improve Charge |
| High Administration | 15% – 20% |
| Senior Degree | 10% – 15% |
| Mid-Profession | 6% – 9% |
| Junior Degree | 3% – 5% |
Supply: salaryexplorer.com
4. Common hourly wage
The common hourly wage in Bangladesh is round 150 BDT (1.41 USD). It signifies that staff usually earn 150 BDT for each hour labored.
This wage fee is considerably decrease than its Asian counterparts, comparable to Malaysia (8.56 USD) and India (2.17 USD).
5. Minimal wage
Minimal wage charges are declared by the Authorities on an trade foundation following suggestions by the Wages Board underneath the Labour Act of 2006.
The minimal wage in Bangladesh is roughly 1,500 BDT(14.57 USD) per thirty days.
Now let’s carefully discover the variables that have an effect on salaries in Bangladesh.
5 key components that affect salaries in Bangladesh
Listed here are some components that affect the common wage distribution in Bangladesh:
1. Expertise
An worker’s expertise degree drastically influences their incomes potential.
Right here’s how an worker’s wage will increase in accordance with their work expertise:
- Workers with 2-5 years of expertise earn about 32% greater than their much less skilled counterparts.
- Professionals with 5 or extra years of expertise earn round 36% greater than their juniors.
- Workers with 10 or extra years of expertise earn roughly 21% greater than these with 5 years of labor expertise.
- Professionals with 15 years or extra earn round 14% greater than these with 10 years of expertise.
2. Schooling
Let’s take a look at how academic {qualifications} have an effect on salaries:
- Workers with a certificates or diploma make round 17% greater than their counterparts who solely graduated highschool.
- Workers who maintain a Bachelor’s diploma earn roughly 24% greater than these with certificates and diplomas.
- Professionals with a Grasp’s diploma make round 29% greater than these with a Bachelor’s diploma.
- Lastly, these with PhDs earn about 23% greater than these with a Grasp’s diploma.
3. Authorities vs non-public sector
Workers who maintain positions within the public sector earn round 25% greater than those that have a job within the non-public sector.
Right here is the common wage of each public and private-sector workers.
| Sector | Common Wage (Month-to-month) |
| Public | 28,900 BDT(280.68 USD) |
| Non-public | 23,200 BDT(225.32 USD) |
Supply: salaryexplorer.com
4. Job title
The common wage in Bangladesh differs in accordance with the worker’s occupation. Jobs in profitable industries provide the best wage.
Let’s study the common annual wage obtained by some professionals:
| Job title | Common Month-to-month Wage |
| Normal supervisor | 48,000 BDT (466.18 USD) |
| Gross sales Supervisor | 45,200 BDT (438.99 USD) |
| Product Supervisor | 39,700 BDT (385.57 USD) |
| Accounting Supervisor | 38,700 BDT (375.86 USD) |
| Mortgage Officer | 33,500 BDT (325.35 USD) |
| Undertaking Supervisor | 33,000 BDT (320.50 USD) |
| Electrical Engineer | 26,300 BDT (255.43 USD) |
| Mechanical Engineer | 25,700 BDT (249.60 USD) |
| Software program Engineer | 25,600 BDT (248,63 USD) |
| Chartered Accountant | 23,600 BDT (229.20 USD) |
| Workplace Supervisor | 23,600 BDT (229.20 USD) |
| Net Developer | 22,600 BDT(219.49 USD) |
| Actual Property Agent | 22,600 BDT (219.49 USD) |
| Human Useful resource Specialist | 17,400 BDT (168.99 USD) |
| Monetary Analyst | 13,700 BDT (133.06 USD) |
| Occasion Planner | 12,700 BDT(123.34 USD) |
| Claims Adjuster | 9,660 BDT (93.82 USD) |
Supply: salaryexplorer.com
5. Metropolis
Town an worker resides in dramatically influences the common wage charges employers pay. This variation is especially as a result of these cities’ various prices of dwelling.
Listed here are some common wage figures from totally different Bangladeshi cities.
| Metropolis | Common Month-to-month Wage |
| Dhaka | 29,100 BDT(282.62 USD) |
| Chittagong | 28,600 BDT(277.77 USD) |
| Bogra | 27,300 BDT(265.14 USD) |
| Coxs Bazar | 25,000 BDT(242.80 USD) |
| Jamalpur | 24,500 BDT(237.95 USD) |
| Chandpur | 23,900 BDT(232.12 USD) |
Supply: salaryexplorer.com
The common month-to-month wage in Bangladeshi cities is way decrease than in North American cities like:
Common month-to-month wage in Bangladesh vs the world
As we noticed earlier, the common wage in Bangladesh is round 26,000 BDT (249.55 USD).
In line with the World Financial institution, Bangladesh has a GDP per capita progress fee of 6.4%. The regular improve in common revenue has contributed to a exceptional drop in poverty ranges.
Right here’s how Bangladesh compares to different fashionable outsourcing international locations around the globe.
Supply: salaryexplorer.com
Be aware: This text’s wage and wage estimates are simply pointers based mostly on wage surveys. Particular salaries and wages can differ based mostly on location, years of expertise, training, job title, and different mitigating components.
Now that we’ve totally examined the labor statistics in Bangladesh, let’s discover why the nation is gaining a popularity as an outsourcing hotbed.
4 compelling causes for outsourcing to Bangladesh
Aside from the decrease wage charges, a number of different components make Bangladesh a superb outsourcing vacation spot.
Listed here are the highest causes it is best to take into account outsourcing in Bangladesh.
1. Low labor prices
Bangladesh has decrease wage charges that rival a number of the high outsourcing hotspots on this planet like, India and South Africa.
For instance, the common month-to-month wage in South Africa is 1,800 USD, whereas the common month-to-month wage in Bangladesh is 249.55 USD.
The best common pay within the Bangladeshi engineering trade is about 438.80 USD per thirty days. In distinction, the best common pay in the identical trade in a special nation, just like the UK, is 124,864.32 USD per thirty days.
This notion could also be why giants like Unilever, Nestle, and P&G have arrange their workplaces in Bangladesh.
2. High quality service
The nation continues to supply dependable, high quality providers throughout sectors comparable to IT, human assets, and manufacturing.
The principle motive for that is Bangladesh’s ever-improving digital infrastructure. In 2021, about 70% of the inhabitants had entry to the web.
Moreover, the rising entry to cell community service and electrical energy ensures that extra individuals can ship items and providers effectively.
3. Ready and expert workforce
The workforce in Bangladesh is constantly creating their abilities and rising their preparedness to supply wonderful service.
There have been fruitful collaborations between the World Financial institution and the Bangladeshi authorities.
For instance, the Talent and Coaching Enhancement undertaking undertaken by the World Financial institution has outfitted greater than 29,700 unskilled garment staff with higher abilities.
As well as, applications just like the Major Schooling Improvement and Secondary Schooling Sector Funding have helped improve the literacy fee to 74%.
4. Favorable authorities schemes
The Bangladeshi authorities has persistently dedicated to introducing insurance policies and initiatives that entice international funding.
In 2021, the federal government launched a income tax exemption for Data Know-how-enabled providers extending till 2024.
As well as, the federal government’s Entry to Data program boosts individuals’s financial and social growth by utilizing IT to enhance numerous sectors comparable to agriculture and training.
By means of the initiative, the federal government has opened 5,400 digital centres to make sure that an individual can ship high quality providers and develop their talent.
Subsequent, let’s check out a number of fashionable outsourcing industries.
High 4 industries that generally outsource to Bangladesh
Listed here are a number of the main sectors that recurrently outsource to Bangladesh.
1. Digital advertising
With the rise of smartphones, web connectivity and social networking in Bangladesh, the digital advertising trade is gaining momentum.
Many firms are enlisting the Bangladeshi workforce to advertise their items and providers.
In line with Statista, the digital promoting market in Bangladesh is projected to develop by 5.81% (2022-2027), leading to a market quantity of 404.60 million USD in 2027.
2. Data know-how
In line with a research by the Oxford Web Institute, Bangladesh has over 500,000 freelancers who present software program growth and numerous IT-related providers to the worldwide market.
Many multinational IT firms, like IBM, and Sony, outsource their software program growth to the nation.
The Bangladesh ICT division has just lately reported that the nation is barely 2nd to India as an exterior service supplier whereas catering to 16% of the worldwide market.
3. Garment manufacturing
Bangladesh is the 2nd largest garment exporter on this planet, with the RMG sector accounting for 84% of Bangladesh’s exports.
In line with the Bangladesh Export Promotion Bureau, Bangladesh exports about 31.45 billion USD price of attire.
Annual income from the garment trade has grown from 19 billion USD to 34 billion USD within the final 7 years.
4. Enterprise course of outsourcing (BPO)
The BPO trade in Bangladesh started in 2009 and has continued to develop.
There are presently over 40,000 workers within the nation, providing numerous BPO providers comparable to buyer help, accounting providers, and telemarketing.
In 2021, the nation generated roughly 85 Million USD price of BPO-related income.
Wrapping Up
With low labor prices, nice service supply, and a business-friendly surroundings, Bangladesh is undoubtedly a number one outsourcing vacation spot in South East Asia.
Unsurprisingly, Bangladesh is starting to rival main outsourcing areas such because the Philippines, and Brazil.
When contemplating your outsourcing areas, use this information to gauge whether or not Bangladesh is the vacation spot that may take your organization to the following degree.