The payment of wages and bonuses to garment workers ahead of Eid has long been a recurring issue in Bangladesh’s ready-made garment (RMG) sector. While most factory owners usually settle workers’ dues on time, delays or unpaid wages and benefits in some factories often trigger labour unrest. With a new government now in power, a key question is how the situation will unfold this year.
Government directives and initiatives
Ahead of the upcoming Eid-ul-Fitr, the Ministry of Labour and Employment set strict deadlines, directing factories to pay February wages by March 9 and Eid bonuses by March 12.
At the same time, Bangladesh Bank issued a circular offering special loans equivalent to one month’s salary for export-oriented factories to help ensure workers receive their dues on time.
However, the government-set deadlines for payment have already passed.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan told Dhaka Tribune that Bangladesh Bank is providing special loan facilities to support operational factories directly involved in export activities in paying wages and bonuses.
He noted that many factories are not directly involved in exports but operate through subcontracting arrangements. BGMEA, he said, is also monitoring the situation of these factories and considering support where necessary.
Mahmud Hasan Khan added that although the government’s deadline has passed, most garment factories will remain open until Wednesday before Eid. Factory owners are working to ensure that workers receive their wages and festival allowances within this period.
He expressed optimism that through coordinated efforts of all stakeholders, workers in 100% of factories will receive their wages and bonuses before Eid.
Factories still at risk
Despite these assurances, data from the Industrial Police indicates that around 180 garment factories are still at risk of failing to pay wages and bonuses. Earlier, more than 300 factories had also failed to pay January wages.
This suggests that issuing directives alone is not sufficient. The government must maintain regular communication and monitoring with factory owners and business associations to ensure workers receive their rightful payments.
Financial support and loan facilities
Although factory owners often cite the global economic slowdown, declining export earnings and liquidity shortages as reasons for delayed payments, the availability of special loan facilities is expected to reduce such constraints.
Under the government’s arrangement, loan funds will be transferred directly to workers’ bank or mobile banking accounts, a measure intended to minimize intermediary complications and improve transparency.
Bangladesh Bank recently announced that export-oriented industries will receive special loans to pay February wages. Factories exporting at least 80% of their production will qualify for the facility.
The loan amount will not exceed the average salary payments made by the factory over the previous three months. Loans will be issued at prevailing market interest rates and must be repaid within one year through monthly or quarterly installments without additional charges or fees.
Factories seeking this facility must obtain certification from BGMEA or the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Workers’ humanitarian demands
Beyond financial concerns, workers have raised several humanitarian demands, including extending maternity leave to six months and providing support through family cards.
However, the immediate priority for both the government and factory owners remains the timely payment of wages and Eid bonuses to avoid unrest in the sector.
BGMEA and labour leaders’ initiatives
BGMEA recently organized an iftar and prayer gathering for labour leaders at its complex, hosted by President Mahmud Hasan Khan. Leaders from several labour federations attended the event.
During the program, BGMEA leaders said the government has given the garment sector the highest priority, stressing that close cooperation between factory owners and workers’ organizations is essential to maintain a stable labour environment.
Labour leaders also noted that the export-oriented garment sector is facing significant challenges due to declining purchase orders, energy shortages and global economic pressures.
The unpaid dues of workers from closed factories remain another major concern. In some large industrial groups’ closed factories, nearly 75% of workers’ service benefits are still unpaid.
Industrial Police observations
According to the Industrial Police, out of 9,403 factories nationwide, 287 failed to pay outstanding wages during last year’s Eid-ul-Adha.This year, 180 factories are again at risk of failing to pay wages and bonuses.
A total of 747 factories could not pay January wages, including 357 garment factories. Additionally, 149 factories still have outstanding wages from November and December.
Authorities warn that the risk of labour unrest is increasing. Reports indicate that 87 factories have been identified as “high risk.”
If wages and bonuses are not paid, workers in these factories may stage protests, road blockades or factory sieges. Unrest in one factory could quickly spread to others, potentially destabilizing entire industrial zones.
Government recommendations and measures
To prevent such unrest, intelligence reports have recommended nine key measures, including: Ensuring full payment of February wages and Eid bonuses, Increasing monitoring of high-risk factories, Keeping limited banking services open, Avoiding layoffs or factory closures, Resolving disputes through tripartite discussions among workers, owners and the government, Strengthening security in industrial areas, Taking measures to prevent traffic congestion, theft, extortion and excessive transport fares for workers
Industrial Police officials said the situation is being closely monitored and that coordination among factory owners, business organizations and government authorities is ongoing.
Workers’ needs and future challenges
Workers may also press for February wages, Eid bonuses and at least half of March wages in advance. Demands for at least 10 days of Eid holidays may also emerge.
Meanwhile, political and financial pressures have affected some factory owners. Some have reportedly gone into hiding, while small and subcontracting factories are facing financial hardship.
There are also concerns that some unregistered factory owners could shut down operations and flee without paying workers.
For this reason, coordinated efforts among the government, factory owners and labour organizations remain essential to ensure workers can celebrate Eid while maintaining stability in the garment sector.
At present, it remains uncertain whether all garment workers will receive their wages and bonuses before Eid this year. However, initiatives by the government, Bangladesh Bank and BGMEA are seen as positive steps toward ensuring timely payment.
If coordination among workers, owners and authorities continues and loan facilities are implemented effectively, most workers are likely to receive their dues before Eid. Without regular monitoring of high-risk factories, however, the possibility of labour unrest cannot be ruled out—potentially destabilizing the country’s vital garment industry.