Anyone earning less than Tk 7,869 a month, according to the Labour Reform Commission's recent report, is officially living below the poverty line by international standards. Labour leaders said this means those workers cannot afford even the bare necessities.
"We used an internationally recognised method to calculate this threshold," said Syed Sultan Uddin Ahmed, head of the commission, adding, "It's based on the World Bank's $2.15 per day benchmark, adjusted using the 2017 Purchasing Power Parity."
Purchasing Power Parity is an economic metric that compares the price of a standard basket of goods across countries, helping determine the relative value of different currencies and what people can realistically afford.
The Bangladesh Minimum Wages Board, the statutory body operating under the Labour Law, 2006, is responsible for setting private-sector wages. It reviews and recommends wage rates for 47 sectors. Of these, the Labour Reform Commission has reviewed 39 -- and found that over half had minimum wages below the poverty line.
"Proper education for their children and access to healthcare have become distant dreams for many workers -- even though they toil hard to keep the wheels of the economy running," said Sultan Uddin, who also serves as executive director of the Bangladesh Institute of Labour Studies. "Eventually, their productivity declines, and that affects the industries they work in."
The 22 sectors where the officially declared minimum wage is below Tk 7,869 include type foundries (Tk 521), petrol pumps (Tk 792), privately owned industrial establishments (Tk 3,000), hotel and restaurant (Tk 3,710), iron foundries and engineering workshops (Tk 4,240), ayurvedic factories (Tk 4,350), match industry (Tk 4,560), jute press and belling (Tk 4,850), tailoring factories (Tk 4,850), cotton textiles (Tk 5,710), and bakery, biscuit and confectionery (Tk 5,940).
(A foundry is a place where things are made by melting or shaping materials like metal or printing type.)
On the other hand, the industries that are paying above the poverty line include pharmaceuticals (Tk 8,050), private jute mills and the plastic industry (Tk 8,000), printing press (Tk 8,150), glass and silicate (Tk 8,500), aluminium and enamel (Tk 8,700), security services (Tk 9,140), fishing industry (Tk 10,520), privately-owned road transport (Tk 10,100), re-rolling mills (Tk 10,650), homeopathic factories (Tk 11,500), garments (Tk 12,500), tanneries (Tk 12,800), and saw mills (Tk 17,900).
Meanwhile, according to the law, these minimum wages are to be revised every five years. But labour leaders say the board has failed to update the wages in at least 18 sectors, with some left untouched for as long as 42 years.
The last revision for type foundry workers was in 1983, while petrol pump workers haven't had an update since 1987. Ayurvedic factory wages were last set in 2009. Iron foundry, oil mill, and vegetable product workers' wages were last fixed in 2010, salt crushing workers in 2011, unskilled adult and adolescent labourers in 2012, match industry workers in 2013, jute press workers in 2014, and hotel and restaurant workers in 2016.
Anwar Hossain, general secretary of the Bangladesh Hotel, Restaurant, Sweetmeat Federation, highlighted the struggles faced by workers, saying that they work 12 to 13 hours a day but receive only a meager wage.
"The money we earn barely allows us to survive and return to work the next day. How can we possibly support a family on just Tk 3,000 or 4,000? Covering our children's education and healthcare expenses is extremely difficult."
Demanding a fair minimum wage, Hossain insisted it be set between Tk 25,000 and 30,000. "With any amount lower than that, we simply won't be able to get by, especially as the cost of essential goods continues to rise."
The Labour Reform Commission submitted its report to Chief Adviser Prof Yunus on April 21. It recommended the introduction of a national minimum wage -- one that would apply to all workers, regardless of sector or job type.
The proposal aims to create a single wage floor for both formal and informal sectors, for government and private jobs, foreign organisations, and even self-employed individuals. The commission also proposed that both national and sectoral wages be revised every three years, taking into account inflation and living costs.
The report added that sector-specific and professional minimum wages must never be lower than the national minimum wage, and should instead be equal or higher.
Economist and former Jahangirnagar University Professor Anu Muhammad said wages below the poverty line is "simply irrational".
"When setting minimum wages, it's crucial to ensure that no worker's income falls below the poverty line."
He emphasised that wage decisions should be based on what is necessary for a worker to support a family of at least four and meet their basic monthly needs.
"The minimum wage should be at least Tk 20,000," Prof Anu said.
He added that the effects of low pay on workers are significant. "It impacts them personally and their families. If their reproduction is affected, it creates health risks. The women who work so hard and do not get adequate nutrition may have weaker future generations. When workers' productivity decreases, national productivity also declines, leading to a national loss."
Sources in the minimum wage board and labour ministry said that work is currently underway to revise wages for workers in several sectors, including pharmaceuticals, ship breaking, paint and chemical, bakery and confectionery, battery, and automobile. The board has also issued a draft gazette for minimum wages in the poultry and tea packaging sectors.
Razekuzzaman Ratan, president of Samajtantrik Sramik Front, noted that stakeholders are typically invited to provide feedback on the draft gazettes. However, he added, "Some sectors still fail to implement the wages officially declared by the board."
Contacted, Labour and Employment Adviser Brig Gen (Retd) Sakhawat Hussain said a committee has been formed to review the commission's recommendations. "We will take the necessary steps after the committee reviews the [labour reform commission's] report."