Exporters allowed to pay foreign staff from ERQ accounts

Staff Correspondent | Published: 23:44, Sep 15,2020


The Bangladesh Bank on Tuesday allowed exporters and employers to pay up to 75 per cent of their foreign employees’ net monthly income from their exporter’s retention quota accounts to the workers’ foreign currency accounts.

The amount that would be transferred to the foreign employees’ FC accounts must be equivalent to 75 per cent of their monthly income.

A BB circular issued in this regard on Tuesday also asked the banks to verify whether the foreign workers or employees have valid work permits of the government’s competent authority.

As per the existing rules, foreign nationals residing in Bangladesh and earning an income here are allowed to send their earnings to countries where their family members live besides the country of their domicile.

The BB in April 2013, raised the limit on remittance for foreign nationals to 75 per cent of their net incomes from 50 per cent.

More than 2.5 lakh foreigners from 44 countries are reported to be working in Bangladesh.

As per a Transparency International Bangladesh study, most of these foreigners are working in Bangladesh illegally.

Foreigners employed here in both regular and irregular jobs siphon off about Tk 26,400 crore a year, which deprives the government of Tk 12,000 crore in revenues, prompting the central bank to stress on assessing the authenticity of the work permits held by these employees.

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