This research is a joint initiative of the Sustainable Textile Initiative: Together for Change (STITCH) Consortium in Bangladesh, consisting of Ethical Trading Initiative Bangladesh, Mondiaal FNV, Fair Wear Foundation, in partnership with BRAC University. The study is supported by the Ministry of Foreign Affairs of the Netherlands.
Background Context
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 follows:
- 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 (CPD, 2024). Workers are reportedly less benefited, experiencing increased job stress and longer working hours, among other issues – especially women workers, who comprise 53.7% (ETI-BRACU-GIZ, 2023) of the RMG workforce. 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.
Accordingly, the main objective(s) of the study were to:
- Assess the implementation status of the 2023 minimum wage
- Analyse and examine the roles of different stakeholders e.g. government, brands, trade associations, on minimum wage
- Uncover challenges in wage implementation and analyse its socio-economic impact on workers
- 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.
