Minimum Wage in Bangladesh

Bangladesh: Minimum wage and average salary

The minimum wage in Bangladesh is currently around 1,500 Bangladeshi Taka ($16). In this article, we will examine the average annual increase rate for each industry in Bangladesh and the impact of protests on workers on minimum wages. Additionally, we will explore the impact of the minimum wage on gender-based violence and protests. We will also discuss the future of the minimum wage in Bangladesh. While the minimum wage is expected to rise in the near future, many observers believe that the government will intervene in the current dispute.

1,500 Bangladeshi Taka (16 Dollars)

The minimum wage in the country is set at industry levels. For example, a sweeper earning 15,250 taka ($163) would be earning $180 per month. The minimum wage is set by the Minimum Wage Board, which comprises representatives from employers, government, and trade unions. Shamsunnahar Bhuiyan represents workers. She was appointed by the government and represents workers’ interests. The minimum wage in Bangladesh is not the only factor that determines whether workers earn more or less than what they are paid.

The minimum wage in Bangladesh is different for each industry. While garment workers are entitled to Tk 8,500 per month, workers in unrelated industries are only paid Tk 1500. In December 2016, the government repressed large-scale protests and thousands of garment workers lost their jobs due to escalating tensions. Trade unions plan to negotiate with the government and take more drastic action if the government fails to reconsider the situation.

A recent protest by garment workers in front of the National Press Club demonstrated against the government’s proposal to raise the minimum wage. While the minimum wage in Bangladesh is significantly higher, many factory owners argue that it is not enough and should not be raised. Even though the government has accepted the petition, the proposed minimum wage is still half of what workers demand. However, these workers are not satisfied with the situation and are threatening to sue.


Despite the protest, the government is determined to implement the minimum wage. After the protest, the government’s Rapid Action Battalion (RAB) deployed over 100 rubber bullets and tear gas canisters on the workers. In addition to this, workers began pelting stones at police and destroying property. The police warned that the violence would continue. The government union and the opposition unions accused the protesters of stirring trouble in the industrial sector.

The minimum wage is low, but there are several things that can be done to raise it. Most importantly, Bangladeshi garment workers are entitled to short-term leaves for personal reasons. The country’s bank system is still underdeveloped and can’t handle the volume of corporate transactions. However, the country’s financial institutions are evolving, and the country’s banks have begun online banking services. However, in order to do this, workers must have a bank account in Bangladesh.

Average annual increase rates for each industry in Bangladesh

In recent years, the economy of Bangladesh has experienced mixed performance, with its banking sector showing mixed results. Several industry experts have pointed to the increase in risky assets. However, the government is attempting to increase credit quality by regulating private industrial projects, branch/liaison/representative offices, and work permits for foreign nationals. Although the government has been implementing a number of measures to improve business conditions, these measures have not resulted in increased investment levels.

Global executives are increasingly reducing the amount of goods and services they purchase from Bangladesh. They see risks in supply chains, lack of competitiveness, and dependence on local suppliers. But, larger advanced Bangladesh suppliers may benefit from innovations, flexibility, and sustainability. In addition, Bangladesh has considerable limestone and natural gas reserves. These resources have the potential to improve the country’s economy, increase its GDP, and boost employment and production in a range of industries.

The RMG industry has seen growth over the past decade, but its export share fell to a relatively low percentage in 2020 due to COVID. The garment industry, which accounts for about half of the country’s GDP, suffered a significant decline in exports of apparel products in FY 2020. Because of the economic slowdown, demand for apparel products in the world declined, and exports dropped 18 percent year-over-year.

According to World Bank statistics, Bangladesh’s GDP has increased 2.7 percent annually in the past five years. The country is on the verge of passing India as the fastest-growing economy in South Asia. However, it is important to remember that the country’s per capita income is still significantly lower than that of India, which grew by 7.3 percent annually. Despite these issues, the economy of Bangladesh has continued to grow at a steady pace, and the country is now considered a rising star in the region.

Impact of protests on living standards for workers on minimum wage

In 2015, the Rana Plaza tragedy brought about the most drastic changes in the lives of workers on a minimum wage in Bangladesh. While the state’s response to the strike was harsh, mass mobilizations, marches and human chains in Ashulia helped bring about significant changes in the living conditions of workers. In 2016, these struggles will continue. This report summarizes key findings from the study.

The emergence of a national campaign for workers’ rights and better wages sparked the strikes in Bangladesh. Protesters smashed vehicles and attacked factories. In Dhaka, around 4,000 mostly female factory workers blocked a major road. Protesters accused factory owners of not implementing an increase in wages. In the process, they broke large glass windows. Traffic in a busy area of Dhaka was disrupted and factory owners suspended troublemakers en masse.

As a result, the United States suspended its Generalized System of Preferences policy with Bangladesh, saving the nation $34.7 million a year. During the same period, Bangladesh passed a law to promote trade union development. Previously, factory owners had to obtain signatures from at least 30 factory workers to form a union. In some cases, they violently repressed union members. The new law changed that policy by making it difficult for factory owners to access signatures. However, the law failed to address the wage increases demanded by workers.

The latest round of negotiations over minimum wage levels in Bangladesh has led to the formation of a new board of experts. The board consists of representatives of the government, employers and national trade union federations. Despite this, the new minimum wage level of Tk 8,000 (US$ 5.300) does not meet the living wage calculations in Bangladesh. The trade unions plan to engage in talks with government officials and take more serious actions if the government does not reconsider the proposal.

In January 2019, garment workers in Bangladesh took to the streets and were met with violence, rubber bullets, and water cannons. The demonstrations were finally halted after the government revised the national living wage. While some companies forced suppliers to pay back wages and re-employ their employees, hundreds of workers continue to face criminal charges and have their employment cancelled. These incidents have highlighted the dire living conditions of garment workers in Bangladesh.

Impact of rising minimum wage on gender based violence

The government in Bangladesh is working to make gender-based violence against women and girls a thing of the past. The nation is marking the anniversaries of several landmark legislation and entering the final phase of its national plan with the goal of eliminating this form of violence by 2025. However, the government response to these incidents remains inadequate and barriers to reporting assault are often insurmountable. The report argues that the rising minimum wage will help women and girls in Bangladesh receive a more just justice system.

The government’s 2013-2025 National Action Plan has resulted in important services being launched. However, much work remains to be done to implement these services, including making them available to survivors and witnesses. In addition, the government has yet to take robust steps to protect victims of violence and make it safe for women to leave abusive relationships. This is one reason why many women in Bangladesh are afraid to leave abusive partners, as it can be dangerous to do so.

One study found that women who were unemployed at one visit were more likely to experience violence than those who had stable employment. Working women had a lower risk of violence than women who were unemployed. However, women whose husbands were in stable employment had increased their odds of violence by 1.7 times. This finding highlights the complexity of the issue of preventing violence and the need for gender transformative approaches.

Rising minimum wages increase the total earnings of workers, but this creates winners and losers. Some workers benefit from higher wages, while others are forced out of the labor force and into lower-paying jobs in the informal sector. As a result, the minimum wage may have an adverse impact on these women and their families. The consequences of this policy will be detrimental to women’s lives and well-being.

The government of Bangladesh recently raised the minimum wage for garment workers in grade seven and eight by 51 percent. The rise in wage will reach 95 taka per month in January. However, many garment workers complained that their raises were smaller than those of their higher-paying counterparts. The government’s minimum wage board responded by raising higher salaries to address this issue, including grade one to six. Workers do not receive appointment letters when they are hired, and therefore are not aware of their grade.


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