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Statement on need for transparent and data-driven wage setting in Bangladesh

Issues Advocacy Fair Compensation

The Fair Labor Association (FLA) calls on the Government of Bangladesh to prioritize transparency and accurate data in the minimum wage setting process. Recent protests over wages and working conditions have highlighted the need to adjust wages to maintain purchasing power and achieve a living wage for workers.  

Since the current minimum wage of BDT 12,500 took effect in December 2023, consumer prices have risen by approximately 29%. To preserve its original purchasing power, a new minimum wage would need to be approximately BDT 16,125. Research indicates the gap between existing statutory wages and the cost of a decent standard of living is wider still. The Anker Research Institute calculated the monthly living wage at approximately  

BDT 25,166 in Dhaka’s satellite cities and BDT 30,459 in Dhaka city.  

The garment industry is the backbone of Bangladesh’s economy, generating more than 80% of the country’s export earnings. Garment workers play an essential role in this success. Their contribution should be recognized, and they should be treated fairly. We urge the Minimum Wage Board to deliver a transparent, evidence-based increase that reflects a living wage.  

As the minimum wage discussions move forward, we also urge the Government of Bangladesh to address other demands from workers, including protection from police violence, protection from blacklisting of organizers and participants in protests, and reinstatement of workers who may have been dismissed unfairly. 

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