13 Key Sectors Face Mandatory Minimum Wage Hike Next Year as Review Cycle Shortens

DHAKA, BANGLADESH—Workers in 13 major industrial sectors across Bangladesh will see a mandatory minimum wage review by next year. This is because a significant amendment to the national labor law has taken effect. The new law consequently shortened the mandatory review cycle for minimum wages from five years to just three years.

A government ordinance implemented this crucial change. Therefore, sectors that have completed three years since their last wage hike (or will hit that mark within the coming year) must begin the new wage-restructuring process. This move aims to give workers timely financial relief against rising inflation and a higher cost of living.

• Key Sectors Affected: The 13 sectors include major employers such as the Readymade Garment (RMG) industry, tea gardens, private jute mills, and security services. Moreover, the list also covers sawmills, printing presses, shrimp and fish-catching trawlers, rubber industries, homeopathic factories, bidi, cinema halls, and hosiery.

• Industry Reaction: Labour leaders applauded the change they long advocated for. However, employers’ associations, including the powerful RMG sector, expressed concern. They argue that frequent wage revisions often cause labour unrest. Furthermore, they stressed the need for international buyers to pay fairer prices to keep factories viable.

• Next Steps: The Minimum Wage Board, which falls under the Ministry of Labour, must now manage this accelerated review process. Significantly, this process coincides with other recent reforms, including longer maternity leave and easier formation of trade unions. Labour activists expect the process to be highly contentious; worker representation on the wage board remains a crucial focal point.