Apparel Exports Grow but Wages Trail Competitors; Bangladesh Garment Workers Demand 30,000 Taka Minimum

Bangladesh continues to expand its ready-made garment exports despite sustained economic and political challenges. World Trade Organization figures place Bangladesh as the second largest exporter globally with a 6.76 percent market share, trailing only China. The sector benefits from substantial government assistance, including duty-free raw material imports through bonded warehouse facilities and reduced corporate tax rates of 10 to 12 percent. Yet, this commercial expansion stands in contrast to worker compensation, with domestic wage levels trailing those of competitors.

Data compiled by global buyer H&M indicates that apparel workers in China, Cambodia, Indonesia, Vietnam, Pakistan, and India earn higher minimum wages than those in Bangladesh. Domestically, minimum wage benchmarks for tannery, shipbreaking, and construction sectors also exceed apparel levels. Following recent currency devaluation from 110.50 to 124 taka per dollar, the monthly minimum wage set in December 2023 has effectively fallen from 113 dollars to approximately 101 dollars.

Under the current five-grade wage structure, floor-level operators earn a base wage of 12,500 taka, while the highest technical grade stands at 14,750 taka. High living expenses have eroded these earnings, with household expenditure in metropolitan areas averaging over 46,000 taka per month. Labor representatives note that rising food prices have forced families into cutting daily rations and accumulating debt.

In response, workers in industrial hubs including Mirpur and Gazipur took to the streets demanding a revision of the entry wage to 30,000 taka, resulting in scattered highway blockades and clashes with police. To address the unrest, the Ministry of Labor formed a six-member minimum wage board. Labor and Employment Minister Ariful Haque Choudhury stated that the board will assess operational variables and recommend an updated pay scale under amended labor legislation. While factory owners cite low worker productivity and price constraints, labor economists stress that any viable framework must account for living standards and consumer inflation.