The government on Tuesday issued a gazette notification regarding the annual hike in the increment of wages for the country’s readymade garment (RMG) sector.
According to this notification issued by the Ministry of Labour and Employment on January 5, in light of the recommendations of the “Minimum Wage Revaluation and Annual Increment” Committee formed on September 29 last year, the government recommended an increase of 9% in the annual increment of the garment industry sector by adding another 4% to the existing 5%.
However, the annual increment of 5% determined by the Minimum Wage Board, will continue in its current state, said the notification.
Moreover, the 4% additional hike in the annual increment recommended by the committee has been effective since December 1, 2024, which will be paid with the wages payable in January 2025.
According to the gazette, other benefits related to the Bangladesh Labour Act, 2006 (as last amended) will also be relevant along with the wage hike.
Moreover, this increment hike will continue until the government revalues it or the Minimum Wage Board announces the next minimum wage, the notification added.
Earlier, on December 9, Labour and Employment Adviser M Sakhawat Hussain announced Bangladesh’s readymade garment (RMG) workers will get a 9% increase in their wages.
The adviser said the increment will remain effective until the government or the Minimum Wage Board announces a new minimum wage, adding that the previously set 5% annual pay increment, fixed by the Minimum Wage Board, will remain in place.
He clarified that any worker who is supposed to get a yearly increment in December will enjoy the additional increase.
Those ineligible to get an increment in December will still get a 4% rise in their wages.
Earlier, at their fifth meeting, the capacity and implementation committee on minimum wage revision and annual increment recommended an annual 9% increment for the RMG sector.
At the meeting, the labour representatives proposed a 10% annual increment hike, emphasizing the rising cost of living. In response, the employer representatives proposed an 8% yearly increment due to financial constraints and an aggressively competitive global market.
Mohammad Khorshed Alam of Shromik Dol, Babul Akhtar of Bangladesh Garment and Industrial Workers Federation, and Kabir Ahmed of Bangladesh Sramik Kalyan Federation signed as labour representatives.
ANM Saifuddin, member of the BGMEA's assistance committee, and Fazlee Shamim Ehsan, executive president of the BKMEA, signed as employers’ representatives.
SM Enamul Haque, director of DoL; Md Hasibuzzaman, joint IG of DIFE; Raisa Afroz, secretary of the Minimum Wage Board; and Mohammad Masukur Shikdar, joint secretary of MoLE, signed as government representatives.
However, the manufacturers of the RMG sector of the country said that it would be difficult for them to pay the increment because the industry's capacity is not that high. Production costs have increased, but income has not increased in the same way.
They also said that, however, since this is a tripartite decision, there is no other way but to accept it, and they urged the government to provide the necessary policy support to overcome the pressure the manufacturers will face in implementing this decision.
