Employee Compensation

Post-employment Employees
Share-based
/ Retirement Participation in
Compensation
Benefits Companies’ Profit

Retirement benefits
Examples of share-
include pensions and Examples include
based compensation
other post-employment WPPF and Welfare
are stock options and
benefits, such as health Fund
stock grants.
insurance.
Post-employment / Retirement Benefits in Bangladesh
Gratuity
“In Bangladesh, the provision for gratuity is
contained in the Bangladesh Labour Act
2006 (2006 Act) and is defined under
section 2(10) as wages of at least 30 (thirty)
days for every completed year of service
and such wages shall be at the rate of the
wages the worker received last and where
any worker has served for more than 10
years, he shall be paid wages of 45 (forty-
five) days. It is worth noting that completion
of more than 06 (six) months of service will
be deemed as 1 (one) year.” – Yasir, 2020,
The Financial Express
Provident Fund
“Every permanent worker shall, after the
completion of his one year of service in the
establishment constituting the provident
fund, subscribe to the fund, every month, a
sum, unless otherwise mutually agreed, not
less than seven per cent and not more than
eight per cent of his monthly basic wages
and the employer shall contribute to it an
equal amount.” – Bangladesh Labor Act
2006
 Share-based Compensation
Stock Grants
Stock grants are designed to keep
employees working for the company for
a set period of time. For example, a
company might grant a new employee
100 shares of stock vested over two
years. This means that the employee will
retain the stock only after two years of
working there.
Stock Options
Stock options are a form of
compensation. Companies can grant
them to employees, contractors,
consultants and investors.
These options, which are contracts,
give an employee the right to buy or
exercise a set number of shares of the
company stock at a pre-set price, also
known as the grant price.
 Employees Participation in Companies’ Profit
Applicable for only industrial undertakings
“5% of the Net Profit be distributed to Participation Fund, Welfare Fund
and Bangladesh Workers’ Welfare Foundation Fund in the ratio of
80:10:10.”
Workers Profit Participation Fund (WPPF)
 “The amount allocated or accruing to the participant in fund shall be available to the company for its
business operation.” – Bangladesh Labor Act 2006

 “The company shall pay to the participation fund in respect of the amount in the participation fund
available to it for its business operations as aforesaid interest at the rate of two and a half percent
above the bank rate or seventy five percent of the rate at which dividend is declared on its ordinary
shares, whichever is higher.” – Bangladesh Labor Act 2006

 “Of the total amount deposited in the participation fund every year, two-thirds shall be distributed in
equal proportion to all workers in cash and one-third shall be invested in accordance with the provisions
to all workers.” – Bangladesh Labor Act 2006
Welfare Fund
 “The amounts deposited in the welfare fund shall be utilized for such purposes and in such manner ass
the board may decide and the board shall inform the government of such decision.” – Bangladesh
Labor Act 2006