Bangladesh Raises Legal Minimum Wage

22-10-2018

The Minimum Wage Board finally announced in September that the minimum wage for Bangladeshi ready-made garment (RMG) workers will be raised by 51%.

The new minimum wage for the lowest category of workers, which stands at Taka 8000 (around 82 Euro) per month, will go into effect from December 2018. This is the first time the legal minimum wage has risen in Bangladesh in five years.

For many years, before this decision was taken, different expectations were put on the table and sometimes met with protest. amfori welcomes this development as it follows the association’s efforts and supports the government to move in this direction.

As a result, the minimum monthly wage will be raised for approximately 4.4 million garment workers. In the buying community, some speculate that there should not be much of a difference in their purchasing practices or expect higher prices for products; although, the effects of this decision will only be certain when it has been implemented and in practice.

Bangladesh is one of the top sourcing countries of amfori members. With over more than 2500 producers, the vast majority of these producers work in the RMG sector and may be impacted. 

Interested in getting involved? amfori plans to continue the discussion on linking the minimum wage to the rise in living expenses. The association strives to work towards a fair remuneration as one the 11 amfori BSCI principles. This issue as well as the Bangladesh Accord and women's empowerment will be key topics at a round table in Dhaka on 20 November.

 

Comments

Wages of workers is rising in Bangladesh but the price of making product is not increasing in comparison with the wages. Owners of the factory are worried about this. Many factory will be close as the immediate effect of wages increase. So, Brand should increase their price for making product.
Wages hikes/uprising is an attempt to adjustment of inflation of last 5 years. Thanks to all stakeholders including Bangladesh Govt. to make it happened peacefully. This wages rising will contribute to sustainable growth of the RMG sector and more need to be done including better business offers from buyers to producers to make the concept of sustainability sustainable.

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