Bangladesh Wage Board Agrees to Implement New Garment Pay Scale from December

Bangladesh's garment wage board agreed on November 4 that a revised pay structure will take effect in December. Workers will receive their first salaries under the new scale in January. The board has not yet set the amount of the increase.

Babul Akter, the workers' representative on the six-member board, said after the first meeting that both sides had agreed on the December start date. ABM Shamsuddin of the Bangladesh Garment Manufacturers and Exporters Association confirmed the understanding. The board chairman, Syed Azad Subhani, a district and sessions judge, presided.

Workers have demanded that the monthly minimum wage rise from 12,500 taka to 30,000 taka. That would be a 140 percent increase. They cite rising costs for food, housing, transport and health care in a country where inflation has run near 8 percent. The current minimum was set in 2023, raising the previous floor of 8,000 taka.

Protests have continued for five days in industrial areas including Savar, Ashulia, Gazipur and Narayanganj. Workers have blocked roads and, in some places, clashed with police. Factories have suspended operations at hundreds of sites. The sector employs about 4 million people and accounts for more than 80 percent of Bangladesh's export earnings.

The government formed the wage board on November 1 after the demonstrations began. The panel includes representatives of workers and factory owners. It is responsible for reviewing pay in the readymade garment industry, which supplies brands including H&M, Zara and Walmart.

Akter urged workers to return to factories while negotiations continue. He said the board would complete its work by December so the new rates can be paid in January. Factory owners have not publicly stated what increase they are prepared to accept. Separate proposals from both sides are expected at the next meeting.

The unrest has disrupted production at a time when the industry is recovering from earlier labor actions and the effects of global demand shifts. Export earnings from garments have reached as high as $38 billion in recent years. Any prolonged stoppage affects both workers' incomes and the country's foreign exchange earnings.

Police have used tear gas in several locations to disperse crowds. Some demonstrators have thrown bricks and set up barricades. Local officials have deployed additional forces, including Border Guard Bangladesh personnel in some areas. The home minister has alleged outside instigation of the protests.

The agreement on timing does not resolve the core dispute over the wage level. Workers say 12,500 taka no longer covers basic needs. Employers argue that a large jump would raise costs and affect competitiveness with other exporting countries. The board has no fixed deadline beyond the stated intention to finish in December.

Previous wage revisions in the sector have followed similar cycles of protest and negotiation. The 2023 increase of 56 percent came after earlier demonstrations. That scale is now due to expire. The new board is the eighth formed for the industry.

The outcome will affect millions of households that depend on garment wages. It will also shape the cost structure for factories that sell to international buyers. Those buyers have not commented publicly on the current talks. The board's next meeting has not yet been scheduled.