How to pay foreign contractors in Bangladesh

October 26, 2021

Bangladesh foreign investment is common these days and the highest paying software companies in Bangladesh are CISIN, Enosis Solutions, and PIISTECH. Teams of Bangladesh software development has been significantly increased and the freelancer statistics in Bangladesh is 650,000 out of which 500,000 are actively working throughout the country. An independent contractor agreement sample in Bangladesh is developed for people working remotely from Bangladesh for a US company tax. It defines the procedures of hiring independent contractors in Bangladesh and salary to foreign employees in Bangladesh.

Payments to foreign contractors for services and payments to foreign contractors for services tax are sent through various remittance services such as Remitly, money gram, and PayPal. These remittance services charge fees for sending payments to overseas contractors. The remittance services are comparatively cheaper than bank transfers and thus, these services have eased the process of paying wages to overseas employees in Bangladesh. Working remotely from Bangladesh for a US company tax depends on the freelancer statistics in Bangladesh.

Working as an independent contractor in Bangladesh for a US company:

Overseas contractor services in Bangladesh involve web designing, search engine optimization, and freelancers of the software industry in Bangladesh. Hiring independent contractors in Bangladesh is done according to legal and tax liabilities in Bangladesh. The IRS of the US design the laws for working as an independent contractor in Bangladesh for US company and an independent contractor agreement sample in Bangladesh is developed according to it.

Language and currency of Bangladesh:

The national language of Bangladesh is Bengali which is the primary language of Bangladesh. English is usually an official language used for hiring independent contractors in Bangladesh and sending payments to foreign contractors for services tax. The currency of Bangladesh is Bangladeshi Taka which is used for paying wages to overseas employees in Bangladesh. The exchange rate of Bangladeshi Taka in USD is 85.73. 

Benefits Bangladesh will receive if foreigners invest in Bangladesh:

The average salary of a software developer in Bangladesh is 40,000 BDT. However, the average salaries in Bangladesh are expected to reach 15100.00 BDT per month. The United States has the highest investment in Bangladesh that is increased by 996.0 USD in March 2021 according to FDI. If foreigners invest in Bangladesh the software developers of Bangladesh will enjoy various benefits such as retirement benefits and full repatriation of their savings. Also, if foreigners invest their retained savings it would be called a new investment.

Remittance services available in Bangladesh:

Sonali Bank Limited is the best bank for remittance in Bangladesh. Other services such as PayPal are also available in Bangladesh through which people can open an account and send Payments to foreign contractors for services in Bangladesh. Another service called Google Pay is also available in the country for paying wages to overseas employees in Bangladesh. Opening a foreign currency account in Bangladesh is also possible for some authorized Bangladesh individuals with Authorized Dealer Branches of AB Bank Limited. People have to fill a prescribed form and submit personal documents for opening a foreign currency account. A Visa card is also available in the country.

Following are the remittance services to send payments to foreign contractors in Bangladesh:

  1. Remitly:

Remitly is a cost-effective, and safe method of sending foreign independent contractor pays in Bangladesh. It also provides transfers over $1000 without a fee. Economy transfer service deposits contractor pays within 3-5 days. However, Express transfer supports instant delivery. The fee for transfers is $2.99 and a 3% remittance fee is charged on card payments in Bangladesh. The company also provides promotional packages for new customers. A 2% cashback incentive is also provided to the recipient.

  1. RIA:

RIA is easy to use in Bangladesh, offers a $10 welcome bonus, and provides free transfers through banks. The contractor pays are delivered in almost 3 days with good customer service. The service is safe for money transfers and provides 1-month of free debit card transfers. However, credit card payments are relatively expensive. RIA has an extensive security check which takes up to one month. Therefore, RIA is not recommended for emergency transfers.

  1. Xoom:

Xoom in Bangladesh is available through banks such as Sonali bank, Janata, Agrani, and Rupali bank in Bangladesh. Xoom is a user-friendly service based in California for fast money transfers without a fee. The process of signing in and paying contractor salaries is convenient if compared to other remittance services. Xoom also provides free transfers over $1000 if banks are used as the sending medium. Furthermore, the remittance cost is very low in locked-in exchange rates.

  1. Transfast:

Transfast offers faster transactions with competitive exchange rates. The transfer fee is impressively low along with a high degree of safety and security. The deposits occur instantly to major banks of India such as Sonali, Rupali, and Janata. It also offers a transfer of over $1000 without a fee if sent through a bank account. The application is available for both Android and IOS with good customer service. Cash pickups are also available throughout the country along with promotional packages to the new customers. 

  1. Western Union:

Western Union is another method for money transfers, bill orders, and bank transfers. Price Estimator Tool of Western Union helps to calculate remittance fees. Foreign contractor salaries can be received in minutes to days through Western Union. Similar to Xoom the application helps in the simplification of money transfers. Agents are present all over the country that makes cash payments and pickups convenient.

  1. Direct deposit:

Paying independent contractors through direct deposit is another frequently used method. After choosing the bank checks are required to process Pay to the Order of drop-down arrow. After selecting the option for independent contractors transfer date is entered. The amount is entered and the Pay Online method is verified.

  1. Wise International Payment:

It is the least expensive method to send money to Bangladesh. Fast transfers in up to 2 days of contractor pays can be done through the channel along with low remittance cost i.e. 1,29 GBP+ 0.58% of the amount converted. The service provides a high level of security and accepts credit and debit cards. The tool called Wise Batch Payment helps foreign countries to pay multiple salaries in Bangladesh in one go.

  1. World Remit:

World Remit charges the lowest contractor pay transfer fee. The exchange rate is better than its competitor Xoom i.e. 1 GBP=112.73035. The company provides services of Cash pickup, bank transfer, mobile money, and airtime top-up for sending money through phones instantly in Bangladesh. An account is signed up for free and the payment options are Credit, Debit, bank account, Poli, and Google pay. For example, World Remit charges $3.99 when the independent contractor's salary is $50. World Remit provides instant payments with a transaction limit of $5,000 from the U.S via credit or debit card.

  1. Azimo:

Payments to overseas contractors are also sent through Aximo. Instant one-hour delivery is available in 80+ countries including Bangladesh in 30 minutes. The company provides the first two transfers free of cost. The company also has anti-fraud and encryption technology due to which it is trusted by more than 1 million customers. Like Xoom, the employers make an account through which they can transfer the contractor payments. The remittance cost depends upon where the amount has to be sent. The company claims to save 90% of the remittance costs when compared to other remittance services.


How to pay foreign contractors in Bangladesh

Payments to foreign contractors for services and payments to foreign contractors for services tax are sent through various remittance services such as Remitly, money gram, and PayPal.

find your workspace

Bangladesh foreign investment is common these days and the highest paying software companies in Bangladesh are CISIN, Enosis Solutions, and PIISTECH. Teams of Bangladesh software development has been significantly increased and the freelancer statistics in Bangladesh is 650,000 out of which 500,000 are actively working throughout the country. An independent contractor agreement sample in Bangladesh is developed for people working remotely from Bangladesh for a US company tax. It defines the procedures of hiring independent contractors in Bangladesh and salary to foreign employees in Bangladesh.

Payments to foreign contractors for services and payments to foreign contractors for services tax are sent through various remittance services such as Remitly, money gram, and PayPal. These remittance services charge fees for sending payments to overseas contractors. The remittance services are comparatively cheaper than bank transfers and thus, these services have eased the process of paying wages to overseas employees in Bangladesh. Working remotely from Bangladesh for a US company tax depends on the freelancer statistics in Bangladesh.

Working as an independent contractor in Bangladesh for a US company:

Overseas contractor services in Bangladesh involve web designing, search engine optimization, and freelancers of the software industry in Bangladesh. Hiring independent contractors in Bangladesh is done according to legal and tax liabilities in Bangladesh. The IRS of the US design the laws for working as an independent contractor in Bangladesh for US company and an independent contractor agreement sample in Bangladesh is developed according to it.

Language and currency of Bangladesh:

The national language of Bangladesh is Bengali which is the primary language of Bangladesh. English is usually an official language used for hiring independent contractors in Bangladesh and sending payments to foreign contractors for services tax. The currency of Bangladesh is Bangladeshi Taka which is used for paying wages to overseas employees in Bangladesh. The exchange rate of Bangladeshi Taka in USD is 85.73. 

Benefits Bangladesh will receive if foreigners invest in Bangladesh:

The average salary of a software developer in Bangladesh is 40,000 BDT. However, the average salaries in Bangladesh are expected to reach 15100.00 BDT per month. The United States has the highest investment in Bangladesh that is increased by 996.0 USD in March 2021 according to FDI. If foreigners invest in Bangladesh the software developers of Bangladesh will enjoy various benefits such as retirement benefits and full repatriation of their savings. Also, if foreigners invest their retained savings it would be called a new investment.

Remittance services available in Bangladesh:

Sonali Bank Limited is the best bank for remittance in Bangladesh. Other services such as PayPal are also available in Bangladesh through which people can open an account and send Payments to foreign contractors for services in Bangladesh. Another service called Google Pay is also available in the country for paying wages to overseas employees in Bangladesh. Opening a foreign currency account in Bangladesh is also possible for some authorized Bangladesh individuals with Authorized Dealer Branches of AB Bank Limited. People have to fill a prescribed form and submit personal documents for opening a foreign currency account. A Visa card is also available in the country.

Following are the remittance services to send payments to foreign contractors in Bangladesh:

  1. Remitly:

Remitly is a cost-effective, and safe method of sending foreign independent contractor pays in Bangladesh. It also provides transfers over $1000 without a fee. Economy transfer service deposits contractor pays within 3-5 days. However, Express transfer supports instant delivery. The fee for transfers is $2.99 and a 3% remittance fee is charged on card payments in Bangladesh. The company also provides promotional packages for new customers. A 2% cashback incentive is also provided to the recipient.

  1. RIA:

RIA is easy to use in Bangladesh, offers a $10 welcome bonus, and provides free transfers through banks. The contractor pays are delivered in almost 3 days with good customer service. The service is safe for money transfers and provides 1-month of free debit card transfers. However, credit card payments are relatively expensive. RIA has an extensive security check which takes up to one month. Therefore, RIA is not recommended for emergency transfers.

  1. Xoom:

Xoom in Bangladesh is available through banks such as Sonali bank, Janata, Agrani, and Rupali bank in Bangladesh. Xoom is a user-friendly service based in California for fast money transfers without a fee. The process of signing in and paying contractor salaries is convenient if compared to other remittance services. Xoom also provides free transfers over $1000 if banks are used as the sending medium. Furthermore, the remittance cost is very low in locked-in exchange rates.

  1. Transfast:

Transfast offers faster transactions with competitive exchange rates. The transfer fee is impressively low along with a high degree of safety and security. The deposits occur instantly to major banks of India such as Sonali, Rupali, and Janata. It also offers a transfer of over $1000 without a fee if sent through a bank account. The application is available for both Android and IOS with good customer service. Cash pickups are also available throughout the country along with promotional packages to the new customers. 

  1. Western Union:

Western Union is another method for money transfers, bill orders, and bank transfers. Price Estimator Tool of Western Union helps to calculate remittance fees. Foreign contractor salaries can be received in minutes to days through Western Union. Similar to Xoom the application helps in the simplification of money transfers. Agents are present all over the country that makes cash payments and pickups convenient.

  1. Direct deposit:

Paying independent contractors through direct deposit is another frequently used method. After choosing the bank checks are required to process Pay to the Order of drop-down arrow. After selecting the option for independent contractors transfer date is entered. The amount is entered and the Pay Online method is verified.

  1. Wise International Payment:

It is the least expensive method to send money to Bangladesh. Fast transfers in up to 2 days of contractor pays can be done through the channel along with low remittance cost i.e. 1,29 GBP+ 0.58% of the amount converted. The service provides a high level of security and accepts credit and debit cards. The tool called Wise Batch Payment helps foreign countries to pay multiple salaries in Bangladesh in one go.

  1. World Remit:

World Remit charges the lowest contractor pay transfer fee. The exchange rate is better than its competitor Xoom i.e. 1 GBP=112.73035. The company provides services of Cash pickup, bank transfer, mobile money, and airtime top-up for sending money through phones instantly in Bangladesh. An account is signed up for free and the payment options are Credit, Debit, bank account, Poli, and Google pay. For example, World Remit charges $3.99 when the independent contractor's salary is $50. World Remit provides instant payments with a transaction limit of $5,000 from the U.S via credit or debit card.

  1. Azimo:

Payments to overseas contractors are also sent through Aximo. Instant one-hour delivery is available in 80+ countries including Bangladesh in 30 minutes. The company provides the first two transfers free of cost. The company also has anti-fraud and encryption technology due to which it is trusted by more than 1 million customers. Like Xoom, the employers make an account through which they can transfer the contractor payments. The remittance cost depends upon where the amount has to be sent. The company claims to save 90% of the remittance costs when compared to other remittance services.


If you have enough space at home, it is better to convert it into a separate work space. So the very first thing for you to work remotely is to find a workspace that is dedicated for you to work instead of sitting in the living room or bedroom. Find the best place at home that can serve as your work setup. Some workers that are new to remote work often struggle with the kids, pets, roommates, and some distractions at home.

To mitigate these challenges, the best way is to find a dedicated place for yourself where you could easily balance your work life and entertainment life. It is also important to focus on your core tasks and not end up giving extra time to complete them at the end of the day.

Try to avoid deciding on a workplace where people often walk around and congregate in the TV area and kitchen. One of the home office setup ideas is that you find a peaceful place where you have less distractions and sufficient privacy to attend your zoom meetings and calls without any background noise. Doesn't matter even if you have a very small space, you can even have the best desk setup for two monitors for you that increases your work productivity and isolation to focus.

Lighting that Increases your Work Productivity

It is always important to focus on the lighting of the room you are working in. You are supposed to spend some 8 to 9 hours in one light and that should be comfortable for your eyes and mind. Natural light is the best option to have when you are working from home. When it comes to increasing productivity at work, natural light helps you decrease drowsiness. If you don't have access to natural light, you can set your desk light to a natural one. This is your responsibility to have the best home office setup for productivity.

Keep Your
Workspace Clean
and Organized

Your workplace productivity is often affected due to the cluttered desk. One of the important things to remember to have the best desk setup for home office
is that the more organized your setup is, the more your work productivity will be.

When the desk is cluttered, it becomes very difficult to find the things and arrange them when you need them. And it becomes very difficult to have them when you need them immediately and you look here and there to get them, but it tends to waste so much of your time. To avoid this inconvenience, it is always better to organize your desk before you get started on the work.

It is one of the best tips to work from home.

A neat and clean workspace always motivates you to work without any distraction and makes access easy to each and everything that is present and
is actually required to be on your desk.

When a workspace is clean, it also helps you reduce anxiety and stress. It is therefore important to know how you can arrange your desk and declutter your workspace. The very first thing is that you reduce the use of paper. And instead of physical material like papers, you can use high-end home office productivity tools, such as Evernote or Google Drive, etc, to keep all your notes organized, as well as saved on the drive.

You can access the documents with one click. For this, you do not need to run here or there or waste your time finding the document you want immediately. All the documents whether it would be a Word file, a Google sheet, a spreadsheet, or any folder, you can easily access on your computer and make edits without any delay. This saves much of your time, as well as keeps your workspace neat and clean.

Secondly, always keep the things you need regularly while working. The stuff such as your mouse, your charger, your mobile phone, notepads, and headphones, etc. could be kept organized on your desk.

Colors and Greenery

Colors always play a vital role in freshening your mood. Similarly, when it comes to your work productivity, it is very important that you have the colors around you that could impact your mood and work productivity. Surround yourself with the greens and blues that could help you increase your productivity and help you work peacefully. We are always motivated towards work when the stuff around us calms us. It actually has a major role in giving you more hands at work. So make sure that your workspace is giving you the good vibes that can actually help you to work happily in a remote environment.

Place some green plants around your desk or table, put some photo frames and colorful pieces of art that you have made. Choose the best home office layout for productivity and make a setup in your house that serves the purpose of ultimate work culture and vibe. It will not only help you focus on core activities and tasks but also motivate the team members with your energy level. Make your work from home more exciting and productive with these simple yet affordable ideas.

Drink Plenty of Water

While working remotely, you are constantly sitting in one place and so it is important to keep yourself very hydrated. Even mild dehydration can affect your work. In men, it results in a decrease in cognitive performance whereas, in women, it degrades your mood. So make sure to java a water bottle with you all the time you are working and drink it often.

You have to find a bottle in which your water remains hot or cool accordingly and you do not have to visit the kitchen again and again to have it. Put one big bottle on your table to use throughout the day. You can also add some fruits or vegetables to it to make it a refreshing drink for yourself.

Focus on your Ergonomics

Remote workers usually spend more time and work for longer hours. Amid so, at least 6 to 9 hours are spent every day. During excessive work and sitting, it is important to focus on your ergonomics as well. Sitting for hours on a desk and table can affect the muscles of your back, neck, and shoulders so make sure that you keep yourself physically fit during remote work.

It is important for you to have a suitable setup. Choose the best chair and table for yourself where you are supposed to spend a significant amount of time on a daily basis. Choose a chair that has solid lumbar support and the desk is also according to your height. Your chair should be adjustable in height so that you could balance it according to your desk height.

Adjust your mouse and laptop in such a way that you could naturally see forward. Your neck should not bend while working, sit straight to keep your back straight all the time. You can go and choose the best work from home essentials. Not only this, you need to have some home office productivity tools that could help you work seamlessly and automatically in certain activities.

This article gives an answer to a very common question, how to make home office more productive? So set up a home office for remote work now by following the given guidelines.