RMG Wage Revision Set for December, First Pay Expected in January
Garment workers’ revised wage structure is set to take effect in December, with workers expected to receive the new pay in January 2027. The timeline was agreed at the wage board’s first meeting on November 4, as workers continue to demand a Tk30,000 monthly minimum wage. No new wage amount has been agreed yet.
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In a Nutshell
- The six-member Minimum Wage Board held its first meeting on Wednesday, November 4, amid continuing garment-worker protests. The next step is to review proposals from worker, employer and neutral representatives.
- Worker and employer representatives agreed to work towards implementing the new wage structure from December. Workers are expected to receive the revised pay with their January salaries.
- Board Chairman Syed Azad Subhani said worker and employer representatives would submit separate wage proposals at the next meeting. The board’s neutral member is also expected to submit a proposal.
- Workers are demanding a minimum monthly wage of Tk30,000, up from the current Tk12,500. The board was formed on November 1 after protests and clashes over pay, living costs and other workplace grievances.
Context
The wage board’s first meeting marks a move from forming the panel to beginning the wage-setting process. The current Tk12,500 minimum was set in 2023, and workers have been pressing for Tk30,000 amid rising living costs.
Before Wednesday’s meeting, worker representatives called for a quick decision and implementation in January, while some manufacturers raised concerns about the time required to negotiate higher prices with international buyers. The board has yet to set a new wage figure. The next step is to review proposals from worker, employer and neutral representatives.
Why It Matters
Workers are now demanding Tk30,000, citing the pressure of rising living costs. Previously, Bangladesh’s garment minimum wage rose from Tk8,000, set in 2018, to Tk12,500 in December 2023, an increase of Tk4,500, or 56.25%. That settlement was well below the Tk23,000 sought by labour organisations at the time.
What We Think
The December timeline addresses when workers may receive a revision, but not the central question of how much they will be paid. It is going to be interesting to see whether negotiations move towards workers’ Tk30,000 demand or produce another settlement substantially below it, as happened in 2023. That earlier revision was a sizable percentage increase, but still fell short of what labour organisations considered necessary.