Longstanding structural weaknesses in the Bangladesh labour market — including the absence of a national minimum wage standard and a persistently large informal sector — continue to undermine worker rights and economic security.
Despite steady economic growth over the past decade, working conditions for a majority of workers remain precarious, with policy fragmentation and enforcement gaps leaving crores outside formal protection mechanisms.
According to the Labour Force Survey 2024, conducted by the Bangladesh Bureau of Statistics, the country’s total labour force stood at 6.91crore, of which over 5.8 crore — around 84 per cent — were engaged in informal employment.
These workers, ranging from day labourers and transport workers to domestic employees and small traders, typically lack having written contracts, social security, and legal safeguards.
Syed Sultan Uddin Ahmed, executive director of the Bangladesh Institute of Labour Studies, told New Age on Monday that a significant proportion of the workforce remains in the informal sector, where workers lack both wage standards and legal protection.
‘The absence of a national minimum wage benchmark continues to create uncertainties across the labour market. Even in sectors where wages are set, the lack of a national baseline leaves workers vulnerable and wage levels inconsistent,’ he said.
Despite their contribution to the economy, most informal workers remain outside formal recognition, legal protection, and social security schemes.
According to the definition issued by the 15th International Conference of Labour Statisticians, informal enterprises are private, unincorporated entities that are not legally separate from their owners and do not maintain complete financial accounts.
They are typically small-scale operations with fewer than five paid employees.
BBS data show that 95.96 per cent of the female workers and 78.08 per cent of the male workers are employed in the informal sector.
Of the total informal workforce, 1.322 crore are in urban areas, while 4.482 crore are based in rural places.
Informality is most prevalent in agriculture, where about 97 per cent of the workers are informal, followed by industry at 89 per cent and services at 67 per cent.
Income inequality has also widened over time, with the Gini coefficient rising to 0.4999 in 2022 from 0.482 in 2016 and 0.458 in 2010.
Babul Akhter, general secretary of the Bangladesh Garment and Industrial Workers Federation, said that the government could have established a national minimum wage framework if there was sufficient political will.
Many countries, he said, operate national or region-based minimum wage systems, suggesting that Bangladesh could have adopted a similar approach, at least at the divisional level.
‘We have long demanded this. A national minimum wage would have a broad impact across both formal and informal sectors,’ he observed.
Sultan said that a national wage floor would provide a reference point for employers and workers, enabling more rational and equitable wage determination.
He added that although labour law reforms had been introduced, significant gaps remained, including the exclusion of mid-level employees and a limited coverage of domestic and agricultural workers.
He emphasised the need to strengthen social dialogue, expand collective bargaining and institutionalise labour representation.
‘A national minimum wage framework, expanded social protection and the inclusion of informal workers within a legal structure are essential for building a more equitable society,’ he said.
He also called for a centralised database to bring informal workers under a structured framework, along with mechanisms for lodging complaints and accessing remedies.
Babul Akhter further said that Bangladesh could at least introduce a monthly minimum-wage benchmark, while hourly-wage systems were not feasible at this stage.
‘This would help ensure fairness across permanent, temporary, and casual workers,’ he said, adding that even self-employed workers would benefit from a reference wage level.
Sultan stressed that informal workers should be brought under social protection schemes to ensure income security during unemployment, illness, or old age.
Currently, Bangladesh does not have a unified minimum wage structure, with different industries setting their own standards, resulting in significant disparities.
According to the Minimum Wages Board, 47 industrial sectors have separate wage structures (44 are operational), often with wide variations.
While wages in sectors such as readymade garments are revised more regularly, those in many others remain unchanged for years, raising concerns over both adequacy and implementation.
There is no separate wage board for agriculture — the country’s largest employer — nor for many informal occupations such as day labourers and transport workers.
Sections 138–142 of the Bangladesh Labour Act 2006 outline the composition and functions of the Minimum Wages Board, including wage-setting criteria and timelines.
Data from the board show significant disparities across sectors.
The minimum wage for RMG workers is Tk 12,500 per month, set in 2023, while workers in privately owned jute mills receive Tk 8,000, fixed in 2022.
In the tannery sector, the minimum wage is Tk 17,048, set in 2024.
Workers in the shoe and leather goods industry receive Tk 7,100 a month, while those in the plastic sector receive Tk 8,000 — both fixed in 2022.
In the construction and wood sectors, the minimum wage stands at Tk 16,240, set in 2021, while sawmill workers receive Tk 17,900, fixed in 2022.
Minimum wages in the pharmaceuticals and tea-packaging sectors were set in 2017 at Tk 8,050 and Tk 7,080 per month respectively.
Some sectors still operate under outdated wage structures, with minimum wages in type foundry and petrol pump services last fixed in 1983 and 1987 respectively, while those in engineering workshops and oil mills were set in 2010 and match industries in 2013.
Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue, said that the country should introduce a digitalised national database for all workers, along with a unique worker identification system.
‘Such a database would enable the government to deliver social protection schemes, workplace insurance, and unemployment benefits more effectively,’ he observed.
He noted that Bangladesh’s graduation from the least-developed-country status in November 2026 would make labour market formalisation essential.
‘Some sectors already maintain databases, but what is needed is a comprehensive national system,’ he added.
He also suggested seeking technical assistance from the International Labour Organisation, the United Nations, and other development partners in this regard.
He, too, urged the government to prioritise recognition of the informal sector and establish a national minimum wage framework to ensure equitable and sustainable labour market development.
