According to Labour Act 2006, the monthly minimum wage is determined based on the working hours per week.  The term minimum wage is not defined by the Labour Act 2006 rather it sets a procedure for fixing industry-wise minimum wage rates. The government of Bangladesh declares minimum wage rates for industries based on recommendations made by the Wages Board. The Board takes into account factors such as the cost of living, productivity, business capability, and economic and social conditions when making its recommendations. This helps to ensure that minimum wage rates are fair and appropriate for workers and employers in different industries.

Wage in Bangladesh Labour

The Minimum Wages Board (MWB) is oblige to revise its recommendations if any of the aforemention criteria change (within one to three years). The minimum rates of wages for any industry may be refix after every five years as may be direct by the Government. Minimum wage rates are set on an industry basis and are binding on all employers concerned. Failure to pay workers the minimum wage is punishable. By imprisonment for up to one year, or by fine up to Tk. 5,000 or by both.

The Bangladeshi government had formed a wage board to review existing wages, as according to Bangladeshi Labour Law minimum wages shall be fixed every five years. While garment factory owners proposed a 6,000 TK, workers demanded up to 18,000 Tk as a minimum wage. Read the full articles in the Dhaka Tribune here:

Understanding the Bangladesh Labor Code

Workers’ groups protested the announcement of the increased minimum wage, claiming that their requests and fundamental necessities are not being satisfied. The new publication Asia Times has published an interesting story. That includes statements from trade union leaders, economists, and the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The Bangladeshi government announced a new minimum wage for garment workers in September 2018. Which came into effect on December 1 of that year. The new minimum wage consists of seven wage grades and provides an entry-level operator, with a basic salary of 4,100 Tk. In addition to other allowances, bringing the total minimum wage to 8,000 Tk per month. This represents a 51% increase from the previous minimum wage and will benefit around 4 million workers.

Labour inspectors are authorize to ensure the implementation of labour law including minimum wage provisions. A worker who is pay less than the minimum wage may apply to the Labour Court for recovery of the same within one year from the date on which the amount became due to the worker.


  • The minimum monthly wage is determine on the basis of daily and weekly working hours which are 8 hours daily and 48 hours per week. Overtime remuneration is pay at the rate of one and a half times or double the daily rate of wages.


Bonuses e.g. project, attendance, the festival will vary from company to company

House Rent Allowance: 50% of basic wages in divisional cities and 40% of basic wages in other areas

Wages per month are calculate as 4.33 times if a weekly wage is define. It is calculate as 4.33 times the standard hours per week if an hourly wage is give.

The term “Wages” means all economic benefits including salary, any bonus, remuneration for overtime work, holiday or leave, termination of employment or other. Additionally remuneration payable under the terms of employment. Every employer is responsible for the payment of wages to workers employed by him. In case where the wages of a worker employee by a contractor are not pay by the contractor. The wages must be pay by the employer of the establishment. The maximum wage period is one month. The wages of every worker must be pay before the expiry of the seventh working day after the last day of the wage period. In respect of which the wages are payable.  The text in this document was last update in February 2020. For the most recent and updated text on Employment & Labour Legislation in Bangladesh in Bengali.

When a worker’s employment is end by retirement or by the employer, whether by retrenchment, discharge, removal, dismissal. And otherwise, the wages owe to him must be pay before the 30th working day following. The day his employment is terminate. Wages must be pay in legal money, by check. In some situations (depending on the employees’ needs) via electronic transfer to the worker’s bank account or by any other digital means. Wages must be pay on a working day. No deduction can be make from the wages of a worker except those authoris by the Labour Act.

Source:  §120-125 of the Labour Act 2006, amended in 2013


The labor market in Bangladesh is complex and diverse, with a large and growing workforce that includes both formal and informal sector workers.

However, there are also opportunities for improvement in the Bangladesh labor market. The government has taken steps to increase the minimum wage, improve labor laws and regulations, and promote labor rights and social protection.

To ensure that the Bangladesh labor market continues to improve, addressing the challenges of informal sector work. Improving access to education and skills training, and promoting inclusive growth and job creation will be important.