The Minimum Wage Board (MWB) of the Ministry of Labor and Employment (MOL) of Bangladesh is responsible for proposing and setting minimum wages for workers employed in different sectors.

Under Section 139 of the Bangladesh Labor Act, 2006, the MWB must initially submit a proposal to the MOL with a proposed fixed minimum rate for basic salary, rent allowances, medical allowances, and travelling allowances (all of which are considered “wages”). If approved, the MOL will publish an official gazette notifying the approved new wages, which then become applicable to all relevant sector workers.

In 2018, the MOL published the following four approved gazette notifications related to minimum wages. These relate to workers employed under different grades in the tannery industry, tailoring factories, ship breaking, and the cotton textile industry. The following is a summarized overview of these gazette notifications:

Tannery Industry

Under S.R.O. No. 64/2018, dated February 27, 2018, the minimum wage ranges from BDT 13,500 to a maximum of BDT 25,400 for tannery activities situated within divisional districts of Bangladesh. The minimum prescribed rate for tannery activities situated within other locations ranges from BDT 12,800 to BDT 24,000.

Tailoring Factory

Under S.R.O. No. 90/2018, dated March 24, 2018, the minimum wage for workers in a tailoring factory located at any divisional district ranges from BDT 5,000 to BDT 13,680. The minimum wage for factories located in districts and subdistricts ranges from BDT 4,850 to BDT 13,220.

Ship Breaking Industry

Under S.R.O. No. 52/2018, dated February 11, 2018, the minimum wage for workers working in the ship breaking industry ranges from BDT 16,000 to BDT 31,750.

Cotton Textile Industry

Under S.R.O. No. 116/2018, dated May 3, 2018, the minimum wage has been categorized into three parts, based upon the location of the relevant industry, divisional district, district, subdistrict, and other locations. There are two schedules. For schedule A divisional districts, the minimum wage is between BDT 7,170 and a maximum of BDT 11,284. For districts, the minimum wage ranges from BDT 5,990 to BDT 9,378. Moreover, for subdistricts and other locations, the minimum wage ranges from BDT 5,710 to BDT 8,977. For schedule B divisional districts, the minimum wage is between BDT 7,170 to BDT 14,820. For districts, the minimum wage is between BDT 5,990 and BDT 12,290. Finally, for subdistricts and other locations, the minimum wage ranges from BDT 5,710 to BDT 11,785.

Similar to the above, the government has prescribed minimum wages with a detailed breakdown for all workers of all grades. In addition, the MWB has submitted its proposed minimum wage for workers in the following sector(s): automobile workshops; bakeries and biscuits and confectionary manufacturing; and the aluminum and enamel industries, subject to approval from the MOL.

Written by Abu Naser of DFDL and Roger James of Ogletree Deakins