On December 2023, the Bangladesh Minimum Wage Board revised the minimum wages for the ready-made garment (RMG) sector. Both EPZ and non-EPZ factories received a 56% nominal increase in minimum wages, as illustrated below:
• For non-EPZ factories, the monthly minimum wages were revised to BDT 12,500
(previously: BDT 8000)
• For EPZ factories, BEPZA also finalised a new monthly minimum wage of BDT 12,800
(previously: BDT 8200)
Industry observations have highlighted deviations in minimum wage implementation. Workers are reportedly less benefited, experiencing increased job stress and longer working hours, among other issues – especially women workers, who comprise 53.7% of the RMG workforce1. Brands and other organisations have been observed to be limited in providing support. Thus far, there has
been limited research on the implementation of the revised minimum wage and its impact on workers. It is, therefore, crucial to explore these findings and assess the implementation status of
the 2023 minimum wage revision, including its impacts on workers.
This research is a joint initiative between the STITCH Consortium in Bangladesh and BRAC University. The main objective(s) of this research were to
(I) assess the implementation status of the 2023 minimum wage
(II) analyse and examine the roles of different stakeholders e.g. government, brands, trade associations, on minimum wage
(III) uncover challenges in wage implementation and analyse its socio-economic impact on workers
(IV) identify loopholes in the current wage-setting system and, formulate a set of recommendations to strengthen the wage governance system in the Bangladesh RMG Sector. Data collection was conducted between September and October 2024.