The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set up a Tk 100-million BGMEA Members Welfare Fund to provide emergency assistance and financial protection to apparel entrepreneurs.
The fund is expected to formally begin operations on August 15.
BGMEA President Mahmud Hasan Khan disclosed the information in a letter sent to members on August 2.
In the letter, he said, "The board has always accorded the highest priority to the welfare of the members, emergency assistance, and ensuring financial protection for the members and their families in times of unexpected disasters or hardship."
The current BGMEA board took office on June 16, 2025.
It subsequently took the initiative to establish an institutional welfare fund for members.
At its eighth emergency meeting on May 13, the board decided to establish the fund.
A special committee was also formed to determine the feasibility, structure, and operational procedures of the fund.
The committee later prepared a draft proposal.
When it was placed before the board's ninth emergency meeting on June 8, the proposal to establish the BGMEA Members Welfare Fund was unanimously approved.
In his letter, Mahmud said, "The board has made a landmark decision to launch the fund's operations quickly and effectively."
According to the BGMEA decision, the organisation will provide Tk 100 million as an interest-bearing loan as the initial capital of the fund.
The money will be provided for three years.
BGMEA members will receive up to Tk 2.5 million in death-related assistance from the fund.
In cases of partial disability, they will receive up to Tk 1.0 million, while up to Tk 500,000 will be provided for treatment of critical illnesses.
For critical illnesses, however, the amount of assistance will be determined based on the actual hospital bills.
Members will have to make contributions at specified rates to receive benefits from the fund.
An additional Tk 100 will be contributed for each UD (Utilisation Declaration) issued, while an additional Tk 75 will be charged for each UD amendment.
Members who do not use the UD facility will have to make a one-time contribution of Tk 25,000.
New members will have to make a one-time contribution of Tk 10,000 upon joining the association.
For joint venture companies, the contribution upon membership will be Tk 50,000, while foreign or foreign-owned companies will have to contribute Tk 100,000.
In addition, members using the UD facility will have to pay an extra Tk 2,000 when paying their annual renewal fee.
Members who have already renewed their membership for 2026 will also have to make the prescribed one-time contribution to come under the fund.
Member companies will have to nominate beneficiaries to receive benefits from the fund.
Limited companies and partnership firms can nominate up to two beneficiaries, while proprietorship firms can nominate one beneficiary.
The beneficiary's name can subsequently be amended or changed if necessary.
However, to receive any benefit under the fund, the company concerned must have an up-to-date annual membership renewal fee or subscription with BGMEA.
Members with lapsed memberships will not be eligible for benefits from the fund.
BGMEA said detailed rules and regulations of the fund, the application procedure, and other conditions for receiving assistance would be announced later.
In the letter, Mahmud said effective financial support and participation from members would be necessary to build "a well-organised, transparent and sustainable welfare framework" for members.
Talking to the FE, Masud Kabir, chairman of the BGMEA standing committee on media and public relations, said the committee had taken the initiative, which would help strengthen its commitment to members.
In response to a question, he said the board had already reduced all its fees by 20 per cent, and the additional contributions for the welfare fund would not place any significant burden on members.
