A joint research initiative by the STITCH Consortium, in collaboration with Brac University, has revealed that 68% of Bangladesh’s ready-made garment (RMG) factories have implemented the 2023 minimum wage structure as off September 2024. Key findings were presented at a multi-stakeholder event in Dhaka on 29 April 2025.
The research, titled "The Implementation Status of the Minimum Wage 2023 & Its Impact on RMG Workers," gathered data from a statistically representative sample of 385 factories and 1,113 workers across Dhaka, Chittagong, Gazipur, Mymensingh, Comilla, and Narayanganj.
Led by Dr. Shahidur Rahman, Professor of Sociology at Brac University, the study found that all sampled Export Processing Zone (EPZ) factories and large factories had fully implemented the revised wages. The non-compliant 32% were non-EPZ factories. Among the non-compliant factories 22% factories implemented partial wage increase.
Abil Bin Amin, Executive Director of ETI Bangladesh, opened the event, setting the tone for dialogue among industry stakeholders. Ruben Korevaar, Policy Adviser at Mondiaal FNV, provided an overview of the STITCH consortium and the rationale behind the study.
The event brought together 140 representatives from government, worker federations, business associations, factory representatives, brands, and labour rights organisations.
Mamunur Rashid, Chairman (Senior District Judge) of the Bangladesh Minimum Wage Board, attended the event as the chief guest. Special guests included Syed Sultan Ahmed, Chairman of the Labour Reform Commission and Executive Director, BILS; Mr. A.N.M Saif Uddin, Member of the Support Committee, BGMEA, and Member of the Labour Reform Commission; and Imran Kader Turjo, Director, BKMEA and Managing Director of Southern Knitwear Ltd.
The panel session on the research findings featured prominent representatives, including Kazy Mohammad Iqbal Hossain, South Asia Regional Sustainability Manager, Lindex; Taslima Akhter, President, Bangladesh Garment Sramik Samhati and member, Labour Reform Commission; Babul Akter, Executive Member, Bangladesh Garments & Industrial Workers Federation (BGIWF); and Lt. Col Hasan Mahmud (Retired), Executive Director, Bitopi Group.
Speakers emphasised the need for comprehensive, multi-stakeholder action to reform wage practices in Bangladesh’s ready-made garment (RMG) sector. Key recommendations included strengthening the Minimum Wage Board’s capacity to ensure minimum wage structure in a more democratic, inclusive way, including its proper implementation.
For brands and buyers, recommendations were given on ethical purchasing practices, such as adopting shared-responsibility pricing models, transparent costing mechanisms, and providing direct support to factories during wage adjustments.
The role of the BGMEA and BKMEA was emphasised, with recommendations for them to facilitate price negotiations with buyers, provide compliance mentoring to non-member and small factories, and introduce sector-wide wage-monitoring dashboards to promote transparency.
Factories were recommended to improve operational efficiency, maintain clear wage structures, and prepare in advance for wage revisions. They also agreed to review their operations to identify and resolve any gender wage gaps.
Civil society organisations were advised to enhance unions’ negotiation skills, educate workers on their rights, and strengthen compliance monitoring.
The event concluded with a consensus that systemic change demands collective commitment from all stakeholders in the sector.
Bablur Rahman, Country Manager of Fair Wear Foundation, delivered the closing remarks on behalf of the STITCH Consortium.
