Economy
10 months ago

RMG sector

Minimum wage for workers gazetted

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The government has finally issued a gazette notification keeping the monthly minimum wage unchanged at Tk 12,500 for ready-made garment workers amid local and global pressure to review the same.

Labour and employment ministry gazetted the wage grades on Wednesday and announced that the new structure took effect retrospectively from 01 December 2023.

The pay grades now stand at four. The 2018 structure had seven grades.

Previous grades three, four, five and seven have been supplanted by grades one, two, three and four respectively.

Grade six has been merged with grade three.

According to the notification, an entry-level worker at grade four will get Tk 12,500, a 56-per cent rise, from Tk 8,000 set for grade-seven workers in 2018.

The basic pay for entry-level worker has been set at Tk 6,700 with 50-per cent basic or Tk 3,350 as house rent.

Medical, transport and food allowances have been set at Tk 750, Tk 450 and Tk 1,250 respectively.

On the other hand, a grade-three worker will get Tk 13,550 with Tk 7,400 as basic pay.

Similarly, workers under grade two will receive Tk 14,273 and grade one Tk 15,035 respectively.

House rent, medical, transportation and food allowances for all grades are same.

An apprentice worker will get Tk 9,875 as monthly wage.

According to the notification, an employee under grade four will receive Tk 12,800 as minimum wage with Tk 6,900 as basic pay.

The monthly wage for employees under grade three, two and one will get Tk 15,200, Tk 15,950 and Tk 18,800 respectively.

The same for an apprentice has set at Tk 9,950 with Tk 5,000 as basic pay.

On November 26, the wage board for the key export industry finalised minimum wage for garment workers at Tk 12,500 amid violence for a further hike to cushion high inflation.

In the meantime, rights groups, including Garment Workers' Movement for Increasing Wages of Workers, demanded Tk 25,000 as minimum wage for an entry-level worker.

The sector witnessed more than two-week protests since October 23 demanding a wage rise to Tk 23,000 through rejecting the government-set Tk 12,500 on November 07.

At least four garment workers lost their lives while hundreds were injured and cases filed against thousands, a hundred arrested and jailed in connection with the garment violence.

On December 15, eight US lawmakers in a letter urged the American Apparel and Footwear Association to strongly support fairer wages and labour rights in Bangladesh's garment industry by leveraging brands' sourcing influence.

They termed the Bangladesh authorities' reluctance to support a living wage of Tk 23,000, or around $208, per month "not only disheartening but shameful".

The lawmakers also for improving the wage-setting process and accepting workers' minimum demand for $208 per month with an eye to aligning with the real cost of living.

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