According to Labor 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. Minimum wage rates are declared by the Government on an industry basis following recommendations by the Wages Board, a specialist tripartite board established under article 138 of the Labour Act 2006. In making its recommendation, the Wages Board takes into consideration the cost of living, the standard of living, cost of production, productivity, price of products, business capability, inflation rate, economic and social conditions of the country and of the locality concerned and other relevant factors.
The Minimum Wages Board (MWB) is obliged to revise its recommendations if any of the aforementioned criteria change (within one to three years). The minimum rates of wages for any industry may be refixed after every five years as may be directed 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: https://www.dhakatribune.com/business/2018/11/12/apparel-workers-in-bangladesh-still-the-lowest-paid-by-global-standards
The declaration of the new minimum wage was met by protests from workers groups, who feel that their demands and basic needs are not met. The new outlet Asia Times has written an interesting article showcasing the different reactions and perspectives on the minimum wage increase with quotes from trade union leaders, economists and the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
In September 2018 the Bangladeshi government announced a new minimum wage for garment workers, which has fixed the minimum monthly wage at 8,000 Tk (95 US Dollars). The new minimum wage structure which consists of seven wage grades has come into effect on December 1. An entry-level operator will now receive 4,100 Tk in basic salary, in addition to 2,050 Tk in house rent, 600 Tk medical allowance, 350 Tk transport allowance and 900 Tk food allowance. The total minimum wage of 8,000 Tk represents a 51 per cent increase compared to the last minimum wage set in December 2013 and will affect close to 4 million workers.
Labour inspectors are authorized to ensure the implementation of labour law including minimum wage provisions. A worker who is paid 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 determined on the basis of daily and weekly working hours which are 8 hours daily and 48 hours per week. Overtime remuneration is paid 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 calculated as 4.33 times if a weekly wage is defined. It is calculated as 4.33 times the standard hours per week if an hourly wage is given.
The term “Wages” means all economic benefits including salary, any bonus, remuneration for overtime work, holiday or leave, termination of employment or other additional 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 employed by a contractor are not paid by the contractor, the wages must be paid by the employer of the establishment. The maximum wage period is one month. The wages of every worker must be paid 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 updated in February 2020. For the most recent and updated text on Employment & Labour Legislation in Bangladesh in Bengali.
Where the employment of a worker is terminated by retirement or by the employer, whether by way of retrenchment, discharge, removal, dismissal or otherwise, the wages payable to him must be paid before the expiry of the 30th working day from the day on which his employment is so terminated. Wages have to be paid in legal tender, through cheque and in some cases (given the requirement of the workers) through an electronic transfer in favour of the bank account of the worker or through any other digital medium. Wages must be paid on a working day. No deduction can be made from the wages of a worker except those authorised by the Labour Act.
Source: §120-125 of the Labour Act 2006, amended in 2013