This study aims to assess the implementation status of the 2018 RMG minimum wage provisions and propose a revised minimum wage for RMG workers in 2023, grounded in indicators outlined in the Bangladesh Labour Act (BLA). These indicators encompass various factors such as cost of living, production costs, productivity, product pricing, inflation, work nature, risk, business capacity, and socio-economic conditions at both local and national levels. Data was gathered through a primary survey conducted across 76 RMG enterprises and involving 228 RMG workers. Additionally, Key Informant Interviews (KIIs) and Focus Group Discussions (FGDs) were conducted. Findings reveal discrepancies in adhering to the minimum wage set in 2018. Utilising the Anker method, the study determines that, for 2023, an RMG Grade 7 worker should receive a minimum wage of BDT 17,568 to cover living expenses. Another estimate suggests that implementing this wage would not detrimentally impact RMG employers’ profit margins, provided that brands can accommodate a 7-cent increase in product unit price. Alongside proposing a new minimum wage, the study recommends collaborative efforts among the government, brands/buyers, enterprises, and workers to ensure effective implementation of the revised minimum wage in the forthcoming years.
Authors: Khondaker Golam Moazzem, Tamim Ahmed and M M Fardeen Kabir
Publication Period: March 2024