Bangladesh raises minimum wage for garment workers

The monthly minimum wage for entry-level workers in garment factories in Bangladesh is being raised by 51%, to 8,000 taka ($95), from December, the government announced. “I hope the workers and trade unions will accept the new wage structure,” the state minister for labour and employment, Mujibul Haque, told reporters in Dhaka yesterday. The 51-per-cent hike was agreed by representatives sent by owners,

the trade union and government officials, the junior minister said.

The existing minimum wage was 5,300 taka, which was fixed in December 2013. According to the announcement, the basic monthly pay is now 4,100 taka, house rent 2,050 taka and other allowances 1,850 taka. Trade unions had been asking the government and factory owners to hike the minimum salary to 16,000 taka, while factory owners pushed for an increase to only 6,360 taka.

The garment sector in Bangladesh, the second-largest apparel producer in the world after China, contributes nearly 80% of the country’s total export earnings. The South Asian country was harshly criticised over the poor safety conditions of its factories after the deadly collapse of Rana Plaza building in April 2013 that killed more than 1,100 people.

The situation has improved after international brands came in to resolve the safety issues after the industrial disaster. Bangladesh employs nearly 4mn workers, mostly women, in the garment sector.