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The government has taken a policy decision to form a minimum wage board to review and reset wages for garment workers following demands from labour organisations. Officials at the Ministry of Labour and Employment indicated that the board could be constituted this month.
A decision to initiate the process was reached at a meeting held at the Secretariat last week involving Labour and Employment Minister Ariful Haque Chowdhury, Labour Secretary Md Abdur Rahman Tarfder, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem.
Labour Secretary Md Abdur Rahman Tarfder confirmed the development to Prothom Alo, saying the ministry had begun the process of forming the wage board. The government will first seek nominations from both employers and workers before issuing an official gazette notification.
He said the board would be formed this month once the names of representatives from both sides are received.
The government has recently amended the labour law, reducing the interval for reviewing workers’ wages from five years to three years.
The latest minimum wage for garment workers was announced in November 2023 and came into effect in December that year. The three-year period will expire in November.
However, employers and workers differ over when the three-year period should be counted.
Labour leaders argue that the revised law requires a new wage structure to be introduced this year, while employers maintain that the three-year period should be calculated from the date the amended law came into force.
Asked about the issue, Labour Secretary Tarfder said a government-industry technical committee comprising representatives of employers, workers and the government would make the final determination. If no consensus is reached there, the matter could be referred to the National Tripartite Consultative Council (TCC). If necessary, the government’s higher authorities would take the final decision.
In 2023, the minimum monthly wage for garment workers was raised from Tk 8,000 to Tk 12,500, representing a 56.25% increase. The wage structure was also streamlined from seven grades to five.
BKMEA President Mohammad Hatem said workers’ demand for higher wages was understandable amid elevated inflation. At the same time, he said the industry’s capacity to absorb additional wage costs should also be taken into consideration.
He warned that many factories had already struggled to remain operational under the existing wage structure and that further wage increases could put additional pressure on the sector.