Bonikbarta Exclusive

With a bare minimum salary of just Tk 4,000, Rabiul (not real name) often struggles to make ends meet. He works at an upbeat restaurant in Mirpur Benarasi Palli. This 35-year-old young man’s ability to send money home monthly depends on the tips he receives from the restaurant’s customers. 

The story is almost the same for hotel and restaurant workers all over the country. In the private sector, hotel and restaurant workers have the lowest wages. The government has set its minimum wage at Tk 3,710, equivalent to 31 dollars and 44 cents (118 Taka per dollar). According to the Ministry of Labour and Employment, this minimum wage for hotel and restaurant workers was set by a government-formed board and announced in March 2017. Since then, there have been no efforts to review or reassess their wages and allowances.

Based on the government-set wage, a hotel and restaurant worker’s minimum annual salary stands at Tk 44,520, equivalent to 377 dollars and 29 cents at the current exchange rate. In line with the World Bank’s 2022 criteria, anyone earning less than 2 dollars and 15 cents a day is considered living below the poverty line. The minimum daily wage for hotel and restaurant workers in Bangladesh, based on the set minimum wage, amounts to approximately 1 dollar and 3 cents.

According to the Ministry of Labour and Employment, based on the Labour Act 2006, the government can declare a minimum wage for various sectors every five years. The ministry has set and revised minimum wage rates in 43 industrial sectors to date, with 33 wage structures announced in the past 10 years. Experts say these wage structures are outdated considering the country’s inflation rate. Workers in various sectors are struggling with their livelihoods, facing uncertainties about their families and future due to these wages.

Currently, the highest minimum monthly wage is set for sawmills, and the lowest for the hotel and restaurant sector. In June 2022, the minimum wage for sawmill workers was set at Tk 17,900, equivalent to 151 dollars and 69 cents.

Rajat Biswas, the general secretary of the Bangladesh Saw Mill Workers Federation, told Bonik Barta, "The new wage structure for the sawmill sector was announced in 2022. However, considering current prices and inflation, it is very low. We are discussing allowances to adjust for inflation. The announced wage structure is not implemented everywhere. It is effective in major cities like Dhaka but not in rural areas. Workers face significant insecurity in their workplaces, with 60 percent suffering from various injuries and losses."

After Rajat Biswas, we talked to Matiur Rahman, a sawmill worker in Sreemangal. He currently works for Tk 13,000 per month, although his salary should be Tk 17,900 according to the government-set wage structure.

Matiur Rahman told Bonik Barta, "The owner pays me Tk 13,000 a month. Sometimes, the company provides snacks, and I receive some tips. However, I am not receiving the government-set wage. We are in discussions with the mill owner to increase the salary."

After sawmills, the next highest minimum wage in the private sector is for construction and woodworkers, set at Tk 16,240 (137 dollars and 62 cents). In the shipbreaking industry, the minimum wage for workers is Tk 16,000 (135 dollars and 60 cents), while employees receive Tk 15,100 (about 128 dollars).

Tapan Dutta, the convener of the Shipbreaking Workers Trade Union, told Bonik Barta, "When the Bangladesh Wage Board set the minimum wage for the shipbreaking industry at Tk 16,000 for 8 hours, it was not too low. There was also a law for a maximum of 12 hours of overtime per week. But yard owners did not implement the wage or follow the labor laws."

According to the Ministry of Labour and Employment, among the sectors with the highest minimum wages, rubber industry workers and employees have a set minimum wage of Tk 12,910. In the garment industry, the minimum wage for workers is Tk 12,500, while for employees it is Tk 12,800.

International Labour Organization (ILO) in their latest report said, Bangladesh has the lowest minimum wage in the Asia-Pacific region. Additionally, it is the only country in the region where sector-specific minimum wages are below the international poverty line.

Among sectors with the lowest minimum wages, after hotels and restaurants, are tailoring factories, match factories, automobile workshops, bakeries, biscuits, and confectionery industries. Workers and employees in tailoring factories receive Tk 4,850, equivalent to 41 dollars and 10 cents. Match factory workers receive Tk 4,560 (38 dollars and 64 cents). Automobile workshop workers and employees receive Tk 5,930 (50 dollars and 25 cents) and Tk 7,610 (64 dollars and 49 cents), respectively. Workers and employees in bakeries, biscuits, and confectionery industries receive Tk 5,940 (50 dollars and 33 cents) and Tk 6,500 (55 dollars and 8 cents), respectively.

Additionally, in the bidi industry, workers are paid Tk 45 per thousand regular bidis and Tk 90 for filter bidis. Tea garden workers are paid daily, with a minimum daily wage of Tk 170 (1 dollar and 44 cents). Employees in tea gardens receive a monthly wage, with a minimum set at Tk 10,020 (84 dollars and 91 cents).

Labor leaders argue that neither the highest nor the lowest wages in the private sector are sufficient for workers to lead a dignified life. This wage structure does not meet the needs of workers and employees. There is an urgent need for a national minimum wage structure.

Taslima Akhter, president of the Garment Workers Solidarity, told Bonik Barta, "Although Bangladesh has transitioned from a low-middle-income country to a middle-income country, ordinary people are not benefiting from it. The most deprived are the workers and employees. Yet these workers are contributing daily to the development of Bangladesh. The main obstacle here is the wage structure. The wages mentioned in this structure do not allow a worker to lead a dignified life. Despite the sustainable sector created by garment workers’ labor, they are not receiving dignified wages. The wages of other sectors are also not satisfactory. Meanwhile, the government continues to increase the salaries of public officials. A national minimum wage structure is urgently needed, and we must work collectively to achieve it."

When asked about the overall situation, State Minister for Labour and Employment Md. Nazrul Islam Chowdhury told Bonik Barta, "We are gradually making changes to the entire labor law. We will pass the amended labor law in the next parliamentary session, hopefully. We will make necessary changes to the labor wage structure after careful consideration."