Provident fund in Bangladesh: 7-8% of basic from you and the employer, with interest
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 17 Oct 2026.Under section 264 of the Bangladesh Labour Act, a permanent worker pays 7% to 8% of the monthly basic wage into the provident fund after one year of service, and the employer pays the same. On a 20,000 taka basic at 8%, that is 1,600 taka from each side, 38,400 taka a year before interest.
2026 · Rates and rules read from the sources listed on this page (the earliest on 17 Oct 2026); they may have changed since.
Type your monthly basic wage, or tap an example.
Set your contribution rate (7% or 8% under the Act) and whether your employer matches it.
Type the fund’s yearly interest rate and the number of years.
Read your own contributions, the employer’s, the interest and the balance, year by year.
This calculator projects a private-sector provident fund (ভবিষ্য তহবিল) under section 264 of the Bangladesh Labour Act 2006, as amended in 2026. Type the basic wage, the rate and the fund's interest rate, and see your contributions, the employer's, the interest and the balance year by year.
How much goes in. Section 264(9) says that once a permanent worker has completed one year of service, the worker pays each month at least 7% and at most 8% of the monthly basic wage, unless another rate has been agreed, and the employer pays at the same rate. Only the basic wage counts. A worker who has just joined pays nothing in the first year; tick "I joined this year" to see that.
Interest. The Act sets no interest rate. A board of trustees with equal numbers of employer and worker representatives runs the fund and declares its return. The calculator uses your rate, works interest on each month's closing balance at the yearly rate divided by 12 and adds it at the end of each year, the usual method; your fund's rules may differ slightly.
When the fund is compulsory. Since 2026, an employer with at least 100 permanent workers must set up a fund if two-thirds of them ask in writing, unless it enrols them in the government's universal pension scheme Progoti, paid 50% by the employer and 50% by the worker.
Leaving the job. The fund's rules decide how much of the employer's share a leaver takes. Section 29 says a member cannot lose the benefit due under those rules because of retrenchment, discharge, dismissal, retirement, removal, termination or death, and section 270 protects the balance from creditors and passes it to the nominee.
An example. On a 20,000 taka basic at 8% with the employer matching, 12 months put 38,400 taka in the fund. At an 8% return the first year's interest is 1,664 taka, giving 40,064 taka.
For take-home pay and tax, use the Bangladesh Salary Calculator; for what is owed when a job ends, the Bangladesh Gratuity Calculator.
Section 264(9) of the Labour Act sets the worker's contribution at not less than 7% and not more than 8% of the monthly basic wage, unless another rate has been agreed, and the employer pays at the same rate. House rent and other allowances are not counted in the wage.
A permanent worker starts paying into the provident fund after completing one year of service in the establishment, under section 264(9). For the first year nothing is deducted and nothing is added by the employer, so a ten-year projection for a new joiner has nine years of contributions.
The Labour Act sets no rate: the fund's board of trustees declares one each year. Most fund rules pay interest on each month's closing balance at the yearly rate divided by 12 and credit it at the end of the year, which is what this calculator does with the rate you type.
How much of the employer's share a leaver receives depends on the fund's own rules. Section 29 of the Labour Act says a member cannot be denied the benefits due under those rules, employer's contribution included, because of retrenchment, discharge, dismissal, retirement, removal, termination or death.
Since the 2026 amendment, an employer with at least 100 permanent workers must set up a provident fund when two-thirds of them ask for one in writing. The employer is excused if it enrols interested workers in the universal pension scheme Progoti, paying 50% of the contribution while the worker pays 50%.
On a 20,000 taka basic at 8% with the employer matching, 38,400 taka goes in each year. Over 10 years that is 384,000 taka of contributions; at an 8% return credited yearly the balance comes to about 5.8 lakh taka. Use the calculator with your fund's own rate.
Rates and rules change; check the source before you rely on a figure.
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