Bangladesh sets timeline for new garment wages

Bangladesh’s garment industry wage board has agreed to implement a revised wage structure for workers from December, with employees set to receive their first salaries under the new pay scale in January. The agreement was reached as part of efforts to address growing labour unrest in the country’s key export sector, where protests over wages have continued for several days.

Representatives of both workers and employers on the six-member Minimum Wage Board confirmed that the new wage structure would be finalised by December. They said workers would then be paid under the revised rates from January, aligning with demands that any increase take effect in time for the new year’s pay cycle.

The government formed the six-member Minimum Wage Board on November 1 to revise wages for workers in the readymade garment industry. The board includes a chairman, representatives of employers and workers, and an independent member, and is tasked with reviewing and recommending a new pay structure for the sector.

At its first meeting in Dhaka, all six members were present and focused discussions on the ongoing protests, workers’ wage demands and the need to complete the wage-setting process quickly. The chairman said a second meeting would be held the following week, when representatives of workers and employers are expected to submit written demands and proposals on the new wage structure for review.

Officials involved in the process have said they will not allow the wage-setting procedure to drag on as it has in the past, and that the board will seek to reach a decision promptly. They indicated that any recommendations would take into account workers’ entitlements and the overall condition of the industry, but the exact minimum wage figure has yet to be decided.

The wage board’s decision comes after at least five days of protests by garment workers in major industrial centres including Savar, Gazipur, Mirpur and Narayanganj. Demonstrations have involved road blockades and efforts to mobilise more workers to join strikes, while police have used tear gas and sound grenades in some locations to disperse crowds.

Workers are demanding that the monthly minimum wage be raised to 30,000 taka from 12,500 taka, citing rising food, housing, transport and healthcare costs that have eroded their purchasing power. Protesters have blocked roads and highways, and in some areas vandalised factories, leading to clashes and chases between workers and law enforcement agencies.

The unrest has disrupted production at numerous garment factories, with hundreds of facilities reported shut during a crucial period for spring and summer export orders. This has raised concerns about shipment delays and delivery risks for international buyers reliant on Bangladesh’s apparel supply.

Bangladesh is the world’s second-largest garment exporter after China, and the sector employs about 4 million workers. The industry generates more than 80% of the country’s export earnings, supplying major global brands and contributing significantly to the national economy.

Economists have noted that the wage board faces the challenge of balancing workers’ demands for higher pay with the need to maintain the industry’s competitiveness. They argue that Bangladesh could absorb a significant wage increase without necessarily losing its edge if factories improve productivity and move toward higher-value products.

Analysts have also warned that prolonged labour unrest may pose a greater threat to the garment sector than higher wages, as it undermines delivery reliability and buyer confidence. They emphasise that wage revisions should reflect inflation, living costs and factories’ ability to pay, and that international retailers have a role in supporting higher labour standards through fairer purchasing practices.