What the new minimum wage means for textile workers in Bangladesh

On Tuesday, November 8, 2023, the government of Bangladesh announced the new minimum wage for clothing and textile workers: 12,500 taka (around 106 euros, 114 US dollars) from December instead of the previous 8,000 taka (68 euros). ) receive.

At first glance, the increase does not seem to be a bad thing, as it is an increase of 56 percent. However, if you compare the monthly minimum wage in Bangladesh with that of other clothing producing countries, you can see that Bangladesh is lagging behind – even after the increase:

  • Cambodia – $200
  • Vietnam – $192
  • India – $165
  • China – $161
  • Bangladesh – 114 US dollars
  • Pakistan – 110 US dollars

This decision came a week after the original date of November 1st, after weeks of sometimes violent protests in which two garment workers died. They and the unions that represent them are calling for a new minimum wage of 23,000 taka ($209, 196 euros), which would catapult Bangladesh to the top of the list.

However, this amount was not calculated with other clothing producing countries in mind, but rather based on the social and economic situation in the country: this is how much clothing workers need to cover the costs of basic needs such as food, school expenses, rent and medicine. Even with the increased amount, it will be difficult for them to rise out of poverty, which forces them to take out loans or send their children from school to child labor.

As a result of the protests, dozens of factories were temporarily closed. Labor Minister Monnujan Sufian called on factory owners on Tuesday to reopen their factories and for workers to return to work.

Bangladesh is the second largest exporter of readymade garments (RMGs) after China and employs more than 4.4 million workers, 70 percent of whom are women. The RMG sector accounts for over 80 percent of the country’s total export earnings and contributes more than 11 percent to the gross domestic product.

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