Minimum Wages in Bangladesh - Frequently Asked Questions
Is there a separate legislation relating to minimum wages in Bangladesh?
According to the Minimum Wage Board there is no specific Minimum Wage Act, however there is a specific labour act which is known as Bangladesh Labour (Amendment) Act 2013. The Minimum Wage board was established in 1959 under the Ministry of Labour & Employment, Bangladesh, to govern and fix minimum wages.
Do one or more minimum wages exist that is/are determined by law?
More than one minimum wage exists in Bangladesh.
At what level are these minimum wages determined?
Bangladesh has national minimum wage and industry specific minimum wages. 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.
On what basis is minimum wage calculated?
According to Section 122 of Labour Act 2006, minimum wage has is fixed on monthly basis.
In case of weekly/monthly minimum age, are they based on any fixed number of hours?
Monthly wage are fixed on the basis of number of working hours per day and per week which is 8 hours per day and 40 hours per week. According to Bangladesh Labour Act 2006, monthly minimum wage is determined by working hours per week. The normal working hours are 08 hours a day and 48 hours a week.
Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?
Minimum wage rates are declared by the Government on an industry basis following recommendations by the Wages Board, a specialist tripartite board established under Chapter IX of the Labour Act 2006. The members of the Minimum Wages Board shall be appointed by the Government and shall include a chairman, one independent member as well as one representative each for the employers and workers and one representative each of employer and workers engaged in the industry concerned.
How are upratings (adjustments) of minimum wage/s decided upon?
The upratings of minimum wages are decided jointly by government, employer and trade union representatives.
Which are the components of minimum wage in Bangladesh?
Bangladesh has fixed and variable components of minimum wages.
How frequently is the fixed component of minimum wage updated?
Fixed component of minimum wages is updated in more than 2 years.
How frequently are the variable components of minimum wage updated?
Variable components of minimum wages are updated in more than one year.
What is/are the yardstick/s on which minimum wage upratings are based?
Wages Board takes into consideration cost of living, needs of workers and their families, cost of production, productivity, price of products, capacity of employers to pay, economic and social conditions of the country, inflation rate, etc. (Wage indexation, consumer price indexation & (decent living standard).
What is National Poverty line?
How is minimum wages compliance regulated?
According to section 317 and 318 Bangladesh Government may, by notification in the official Gazette, appoint certain person as it thinks fit for the purposes of this act and define the local limits within which they shall exercise their functions. Trade Unions / Employers/ Special Organization may also be involved in compliance process.
Which legal sanctions can be applied in compliance is lacking?
In case of non compliance, employer shall be punishable with a fine of up to 5000 Taka, or up to one year imprisonment, or both. The employer may also be ordered to pay the affected worker(s) the difference between the remuneration due and amount paid.
Are sanctions often being applied?
Sanctions are sometimes applied.
Are employer and/or trade union representatives involved in compliance procedures?
In case of the compliance procedure, trade union under specific industry or labour union representatives are involved in compliance procedures.
To whom/Where can individuals complain, if they think they are earning less than minimum wage?
In case of individuals, if they think they are earning less than minimum wage, they can complain to labour inspectorate coordinates / trade unions coordinates.
Which month of the year is minimum wage rate revised in Bangladesh?
The minimum rates of wages for any industry may be re-fixed after every five years as may be directed by the Government in any time of the year.