35 Organisations Demand Minimum Wage of Tk 37,125 for Garment Workers

Thirty-five workers' organisations have demanded that the minimum wage for ready-made garment workers be set at Tk 37,125. In dollar terms that is about $300. The current minimum wage is Tk 12,500; if the demand is met, the wage would rise almost threefold.

The demand was made at a press conference on Monday (October 26) at the Shafiqul Kabir auditorium of Dhaka Reporters Unity in the capital's Segunbagicha. Four alliances jointly organised the press conference: Garments Sramik Karmachari Oikya Parishad (G-Skop), Bangladesh Garments Sramik O Shilpa Rokkha Jatiya Mancha, Garments Sramik Parishad and the Asia Floor Wage Alliance.

The organisations also demanded the quick formation of a minimum wage board for the three years from 2026 to 2029. They also called for genuine workers' representatives to be nominated to the board.

The organisations proposed a wage structure of four grades. The lowest, grade four, covers assistant operators, assistant cuttermen, needlemen, scissormen and assistant quality inspectors. For this grade a basic wage of Tk 20,750 was proposed, plus house rent at 50 percent of the basic, i.e. Tk 10,375, a medical allowance of Tk 2,000, transport and food allowances of Tk 1,500 each and an education support allowance of Tk 1,000 — Tk 37,125 in total.

On the same basis, a total wage of Tk 43,500 was proposed for grade three, Tk 51,000 for grade two and Tk 58,500 for grade one. The basic wage for grade one was set at Tk 35,000; that grade covers senior operators, senior cutters and senior quality inspectors.

Other demands include an annual increment of 15 percent of the basic wage, effective from the joining date from the first year; abolition of the apprentice system and its separate wage; and payment of the grade-two basic wage to production- or piece-rate workers when they cannot be given work.

The organisations' main argument is the cost of living. By their calculation, food for a four-member family maintaining minimum nutrition costs Tk 35,580 a month; with house rent, transport, medical care, education, clothing and savings, total monthly spending stands at Tk 63,660. Even if the family's main earner earns 60 percent of the total spending, their wage should be about Tk 38,000, they said.

They also cited government survey data. The organisations said the Bangladesh Bureau of Statistics (BBS) conducted a special survey last year to prepare the pay scale; according to it, a family's average monthly spending in a city corporation area is at least Tk 46,778, in other cities Tk 37,344 and in villages Tk 32,532. A three-month study by the Asia Floor Wage Alliance found a family's minimum monthly spending to be Tk 62,417.

The organisations also compared government job pay. They said the lowest basic pay in the government's new pay scale is Tk 20,000 and, with allowances, the lowest pay in Dhaka stands at about Tk 37,650; government employees also receive benefits such as a New Year allowance, pension and gratuity, which garment workers do not get.

They also cited wage data from competing countries. By their calculation, the minimum wage for garment workers in China is $350 to $450 depending on the province, $227 in Cambodia and $200 to $250 in Vietnam.

A written statement said more than 80 percent of the country's export earnings come from the garment sector and exports have risen over the past 10 years even as the number of factories and workers has fallen. The last minimum wage for garment workers was announced in November 2023 and took effect that December, when the wage was raised from Tk 8,000 to Tk 12,500, a 56 percent increase. This time the organisations are seeking an increase of about 197 percent.

After an amendment to the labour law, wages are now to be reset every three years; previously the period was five years. At the start of this month the government decided to form a new wage board, and on October 15 the Ministry of Labour and Employment wrote seeking the names of owner and worker representatives for the board. The organisations said wages for workers in all sectors, not just garments, should be set taking their benchmark into account; alongside cash wages they also demanded ration, housing, medical care, day care and compensation equal to lifetime earnings for workers killed or injured in accidents.