Exporter\'s Retention Quota
Employers may pay up to 75pc of wages to foreign staff in forex
Exporter's Retention QuotaThe Bangladesh Bank (BB) on Tuesday allowed exporters and employers to pay up to 75 per cent of their foreign employees' net monthly salary and benefits from exporter's retention quota (ERQ) accounts to workers' foreign currency (FC) accounts.
The amount must be equivalent to 75 per cent of their monthly income.
A BB circular issued on Tuesday also asked banks to verify whether the foreign workers or employees have valid work permits from the government's competent authority.
As per existing rules, foreign nationals staying in Bangladesh and earning income here are allowed to send their earnings to countries where their family members live, besides spending in 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 foreign workers from 44 countries are reportedly working in Bangladesh.
As per Transparency International Bangladesh study, most of these foreigners are illegally working. They are sending money in regular channel and irregular channels and siphon off about Tk 26,400 crore a year.
It deprives the government of Tk 12,000 crore in revenues, prompting the central bank to recently stress on assessing the authenticity of the work permits held by these employees.