Decent Wages in Bangladesh - August 2017 - Per month in BDT

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator calculates Living Wage for around 50 countries based on prices collected within the WageIndicator Cost of Living Survey. The Living Wage calculated by WageIndicator is composed of seven parts: food, housing, transport, health, education, tax and other costs.

WageIndicator presents Living Wages for several household types and working hours to respond to different demands for living wage information: Typical family Living Wage is a baseline estimate that respects the country specific conditions. Family includes two adults and the number of children is given by country specific fertility rate (2.2 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (68% in 2017). Standard family Living Wage is estimated for a family composed of two adults and two children. One parent is employed full-time and the second parent works 4 days a week it means family employment rate is 1.8. Single-adult Living Wage represents an acceptable standard of living for a single individual working full-time with no dependents.

Expenditure and Living Wage calculation (monthly rates in BDT)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 4880 6380 4640 6080 1160 1520
Housing 6000 7860 6000 7860 3000 3930
Transport 1000 2000 1000 2000 500 1000
Health 1000 1750 1000 1750 250 438
Education 1000 2000 1000 2000 0 0
Other costs 695 1000 680 985 245 345
Total Expenditure 14575 20990 14320 20675 5155 7233
Net Living Wage 8574 12347 7956 11486 5155 7233
Gross Living Wage 9431 13582 8751 12635 5671 7956

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in BDT)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of common household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 2.2 children, 1.7 working) 9430 13600
Standard family (two parents + 2 children, 1.8 working) 8750 12600
Two parents and two children, 2 working 7880 11400
Two parents and two children, 1.5 working 10500 15200
Two parents and two children, 1 working 15800 22800
Two parents and three children, 1.7 working 10100 14400
Two parents and four children, 1.7 working 10900 15500
Single-adult without children, 1 working 5670 7960

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in BDT)

Living Wages are presented in context with other wage indicators including minimum wage, poverty line, and various prevailing wages of workers. Table shows the development of income levels over two years.

7-12/20151-6/20167-12/20161-6/2017
  from to from to from to from to
Minimum wage 1500 . 1500 . 1500 . 1500 .
Living Wage - Typical Family 9700 14500 9850 14800 10100 15100 9430 13600
Living Wage - Single Adult 6270 9060 6360 9350 6410 9540 5670 7960
Real wage of low-skilled worker 3220 4640 3220 4640 3220 4640 3220 4640
Real wage of medium-skilled worker 3430 5330 3430 5330 3430 5330 3430 5330
Real wage of high-skilled worker 4810 8870 4810 8870 4810 8870 4810 8870

Note: Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web surveys on work and wages over the last 36 months. Results in the table are rounded.



Living Wage model diet and food prices in BDT

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food itemGrams per dayEnergy (kcal)Price per kilo fromto
Wheat, barley and cereals 42 132 40 70
Rice 411 1494 30 40
Meat (beef, pork, poultry) 11 17 140 380
Oils (soyabean, olive, palm) 15 134 85 90
Sugar (Raw Equivalent) 22 62 40 40
Maize and products 2 7 . .
Milk - Excluding Butter 52 32 52.5 60
Vegetables, Other 39 12 30 40
Potatoes and products 111 79 25 30
Butter, Ghee 1 7 700 800
Groundnuts (Shelled Eq) 2 4 100 120
Pulses, Other and products 9 31 100 120
Egg (price per 10 eggs) 5 8 1600 80
Fish products 46 30 200 250
Beans 1 3 30 40
Sweet potatoes 4 3 20 25
Bananas 11 7 . .
Soyabeans 1 5 . .
Apples and products 2 1 120 130
Tomatoes and products 4 1 70 100
Onions 22 9 40 45
Oranges, Mandarines 2 1 130 150
Peas 6 21 40 60
Roots, Other 0 0 20 30
Cream 0 0 120 150
Olives (including preserved) 0 0 30 30
Honey 0 0 300 400
Tea (including mate) 1 1 255 300

Data sources:

Living Wage FAQ.

WageIndicator Cost of Living Survey

World Bank Databank, Fertility rate – average births per woman in years 2010-2014

ILO, Estimated participation rate in 2017

FAO, Food balance sheet in 2013 

Cite this page: © WageIndicator 2017 - WageIndicator.org - Decent Wages in Bangladesh - August 2017 - Per month in BDT