Minimum Wage
In Bangladesh, minimum wages are set industry-wise by the government based on recommendations from the Wages Board, considering economic factors. Employers failing to comply face fines or imprisonment.
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 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 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.
There is a separate EPZ Minimum Wages Board with representation from all parties including workers, employers and government. While the Board recommends the minimum rates of wages for workers, the EPZ Authority has the power to declare such rates.
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; §65-72 of the Bangladesh EPZ Labour Act, 2019
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
Employers in Bangladesh must pay workers' wages monthly, no later than the seventh working day after the wage period ends. Wage payments must be timely, in legal tender or digital means, with a mandatory annual increase.
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. Similar provisions are found in the EPZ Labour Act 2019.
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.
The 2022 Amendment in 2015 Rules includes a requirement for the mandatory yearly increment of wages at the rate of at least 5% of the basic wages. But the Government of Bangladesh has recently announced a 9% annual wage increase for RMG workers, effective from December 1, 2024.
Source: §120-125 of the Labour Act 2006; SRO No. 284- Law/2022, “Amendment of Bangladesh Labour Rule 2015”; §26 of the Bangladesh EPZ Labour Act, 2019; Revision of Minimum Wage and Yearly Increment, Gazette Published on January 5, 2025 (Gazette No-40.00.0000.016.009.24-207)
