Work and Wages

Minimum Wage

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 cost of living, 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 Minimuqm 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 re-fixed 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.

Labour inspectors are authorized to ensure 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. Moreover, an employer who pays his workers’ wages at a lower rate can be punished with imprisonment for a term which may extend to one year or a fine which may extend of 5,000 taka or both.

Source: §138-142, 148-149, 289(1) and 329 of the Labour Act 2006, amended in 2013

The current minimum wage rates can be found in the Minimum Wage section.

Regular Pay

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.

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 in its section 125.

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

Regulations on Work and Wages

  • বাংলাদেশ শ্রম আইন ২০০৬, সংশোধিত ২০১৩ / Bangladesh Labour Act 2006, amended in 2013

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