Bangladesh labour representatives propose Tk 32,000 garment wage

Bangladesh labour representatives have proposed a Tk 32,000 ($260) monthly minimum wage for entry-level readymade garment workers, 156% above the Tk 12,500 ($101) rate set in December 2023.

The proposal was submitted to Bangladesh’s Minimum Wage Board at its second meeting in Dhaka. It remains a worker-side proposal, not an approved wage or an overseas buyer commitment, so factories and brands cannot yet treat Tk 32,000 as the gazetted statutory floor.

What does the proposal cover?

The proposed monthly package divides the entry-level amount into three components:

• Tk 19,200 in basic pay.
• Tk 9,600 for house rent.
• Tk 3,200 in other allowances.

It also proposes Tk 30,000 ($244) for apprentices and a 15% annual increment. The three entry-level components add up exactly to Tk 32,000, while apprentice pay would sit Tk 2,000 below that amount.

How broad was the labour consultation?

Babul Akhter, general secretary of the Bangladesh Garment and Industrial Workers Federation, said: “Over the past few days, we have discussed the wage proposal with 12 alliances of labour leaders, 60 federations and leaders of trade unions active at factory level.”

His account places the proposal within a factory-level labour network rather than a single union group. The consultation covered 12 alliances of labour leaders, 60 federations and leaders of unions active at factory level, according to Akhter.

Can the board proceed without an employer proposal?

Employer representatives asked for seven working days to submit their own proposal, but the board granted four. Chairman Syed Azad Subhani said: “If they fail to submit something, we will not wait for their proposal.”

The chair’s statement leaves open the possibility that the board would continue without an employer filing after the shorter deadline. The source records no final vote, approval date or new gazette notification.

Employer-side participants include ABM Shamsuddin of the Bangladesh Garment Manufacturers and Exporters Association and Asif Ayub of the Bangladesh Employers’ Federation. Their participation confirms employer representation at the board, but the source does not record either representative endorsing the worker proposal.

Why is the board reviewing the wage now?

The Ministry of Labour and Employment published the existing garments-sector minimum-wage gazette in December 2023, setting the Tk 12,500 monthly rate. The current review follows amendments to the Bangladesh Labour Act that reduced the review cycle from five years to three.

That legal change sets the timing for the new review, while the board process determines any replacement rate. Any replacement must clear that process and receive official notification before becoming the new compliance baseline.

What should brands and suppliers do now?

Keep the Tk 12,500 gazetted minimum as the base legal wage assumption, while tracking actual factory payroll separately. Model the Tk 32,000 proposal as a scenario: the difference is Tk 19,500 per entry-level worker each month, or 156%, with the basic-pay, housing and allowance mix affecting comparisons.

If the board adopts the proposal and the ministry publishes a new gazette, sourcing teams should refresh cost assumptions, supplier wage schedules and compliance checks. Until then, the sourcing decision is to monitor rather than reprice: keep the current gazetted floor in base cases and treat Tk 32,000 as a pending compliance scenario.