What Is the Minimum Wage in Bangladesh?
As of 2026, the national minimum wage in Bangladesh is set at BDT 12,500 per month for workers in the ready-made garment (RMG) sector, the country's largest employer. This wage is approximately USD 133 per month based on the current exchange rate. Additionally, workers in these sectors may receive other benefits such as transportation and food allowances. While the wage is enough for basic living expenses in rural areas, it falls short of covering the cost of living in urban areas, particularly Dhaka.
Minimum Wage in Bangladesh Based on Sector
In Bangladesh, minimum wages are set by the Minimum Wage Board, which has been in place since 1959. Rather than having one national rate, the country uses sector-specific minimum wages that can vary based on the type of work, skill level, and job grade.
As of 2026, the most clearly established and up-to-date minimum wage applies to the ready-made garments (RMG) sector, while wage figures for other industries are based on earlier wage board decisions and may not have been formally updated in recent years.
Typical monthly minimum wage references include:
- Ready-made garments: BDT 12,500 per month for entry-level roles, with higher grades earning more
- Leather goods and footwear: figures often cited between BDT 7,100 and BDT 13,520 per month, based on older wage board rates
- Tanneries: commonly referenced at around BDT 17,000+ per month, with higher amounts for skilled or senior roles
- Road transport: estimates typically range from BDT 10,100 to BDT 18,920 per month depending on role
- Rerolling mills: commonly cited ranges fall between BDT 10,650 and BDT 20,400 per month
While these figures are frequently used in payroll guides and industry references, not all sectors have had recent official wage board revisions. As a result, some amounts should be treated as indicative rather than newly confirmed 2026 statutory rates.
Average vs Reasonable vs Typical Minimum Wages
When discussing wages in Bangladesh, it’s important to distinguish between what is legally required, what is commonly paid, and what workers actually need to live on. Terms like average, reasonable, and typical minimum wage are often used interchangeably, but they describe very different realities. The breakdown below helps clarify these differences and highlights the ongoing gap between statutory minimum wages and the cost of meeting basic living needs – especially in urban areas.
Average Minimum Wage: The average minimum wage is calculated across various sectors. In the garment industry, for example, it is around BDT 12,500 per month. However, workers in other industries like agriculture or leather production earn less.
Reasonable Minimum Wage: A reasonable minimum wage in Bangladesh should allow workers to meet their basic needs, including housing, food, and healthcare. In urban areas like Dhaka, the estimated living wage for a family of four is BDT 27,900 per month. This suggests that the current minimum wage falls short of providing a reasonable standard of living, particularly in urban centers.
Typical Minimum Wage: The typical minimum wage varies by industry and region. In the garment sector, the minimum wage is BDT 12,500 per month. In the leather goods and footwear sector, the minimum wage is BDT 7,100 per month. In rural areas, particularly in agriculture, wages are often lower, and workers may not receive a fixed monthly wage but are paid daily, which can be inconsistent and insufficient to cover basic needs .
How Does Minimum Wage Apply to Different Workers in Bangladesh?
The minimum wage in Bangladesh applies differently to various categories of workers, including full-time employees, part-time workers, interns, trainees, and expatriates. Below, we explain how each category is affected by the minimum wage law.
Full-Time Employee Wages
Full-time employees in Bangladesh, particularly in industries like garments, are entitled to the statutory minimum wage of BDT 12,500 per month. Some employers may offer additional allowances such as transportation or food benefits. Full-time workers in other sectors, such as agriculture, typically earn lower wages.
Part-Time Employee Wages
Part-time employees are generally paid proportionately based on the number of hours they work. For example, if a full-time employee's monthly wage is BDT 8,000, a part-time worker in the same role will earn a percentage of that wage based on the hours worked. These workers receive the same benefits as full-time employees but in smaller amounts corresponding to their reduced work hours.
Interns and Trainees
Interns and trainees in Bangladesh are often not paid the statutory minimum wage, especially if they are undergoing internships as part of their academic programs. Some companies may provide stipends to cover basic expenses, but unpaid internships are common, particularly in sectors like education, media, and non-profits.
Expats
Expatriates working in Bangladesh generally earn higher salaries compared to local employees due to their specialized skills. Although expatriates are not always directly impacted by the minimum wage law, they may still be subject to regulations in certain industries, such as textiles and manufacturing, if they perform similar roles to local workers.
Minimum Wage for Top Paying Roles in Bangladesh?
- IT Professionals: Senior IT professionals in Bangladesh, such as software engineers or developers, earn significantly more than the minimum wage, with salaries typically ranging from BDT 50,000 to BDT 100,000 per month.
- Engineering Roles: Engineers working in industries like infrastructure, construction, or manufacturing earn between BDT 30,000 to BDT 70,000 per month, far above the minimum wage for lower-skilled workers.
- Doctors: Medical professionals, including doctors, earn salaries ranging from BDT 30,000 to BDT 80,000 per month, depending on their specialization and experience.
Factors Influencing Minimum Wage in Bangladesh
The minimum wage in Bangladesh is influenced by various factors, including industry-specific variations, economic conditions, and government policies. Below, we explore how each factor contributes to wage determination.
Industry-Specific Variations
Minimum wage rates in Bangladesh vary significantly across different industries. For instance, the garment sector has a minimum wage of BDT 12,500, while workers in the leather goods industry earn lower wages, starting from BDT 7,100. The disparity reflects the profitability and demand for labor in each sector.
Economic Conditions
Economic factors, including inflation rates, employment levels, and the cost of living, strongly influence the minimum wage in Bangladesh. The government typically adjusts the minimum wage in response to inflation and rising living costs, but the increases have not always kept pace with the cost of living in urban areas.
Government Policies and Legislation
The government of Bangladesh plays a crucial role in setting and adjusting the minimum wage. Periodic reviews are conducted to adjust the wage rates, especially in sectors like garments, where workers' wages are most visible to the public. Despite these efforts, many argue that these adjustments still fall short of meeting the basic needs of workers, particularly in cities with high living costs.
Tax Implications of Minimum Wage
For employees earning the minimum wage, income tax is applicable only if their annual income exceeds the personal exemption limit of BDT 350,000 (approximately USD 2,864). Workers earning the minimum wage typically fall below this threshold, meaning they are exempt from income tax. However, employers are required to contribute to social security and other employee benefits, which increase the overall cost of employing workers.
Minimum Wage History and Trends in Bangladesh
Bangladesh has made gradual but infrequent adjustments to its minimum wage over time, with changes typically driven by economic conditions, inflation, and labour negotiations rather than automatic indexation. In the ready-made garment sector, the most recent major revision took effect in December 2023, when the monthly minimum wage was increased by BDT 4,500, rising from BDT 8,000 to BDT 12,500. This represented an increase of approximately 56 percent and marked the first adjustment since the previous wage structure introduced in 2018.
Despite this increase, many workers and labour organisations continue to argue that the current minimum wage remains insufficient to keep pace with rising living costs, particularly in urban areas such as Dhaka. Trade unions, including the Bangladesh Garment and Industrial Workers Federation, have called for a higher minimum wage, often cited at around BDT 23,000 per month, as a level more closely aligned with basic living expenses.
Minimum wages in Bangladesh are reviewed by the Minimum Wage Board on a sector-by-sector basis and typically at multi-year intervals rather than on a fixed annual schedule. As of 2026, no new statutory minimum wage revision has formally replaced the December 2023 rates, although discussions around further adjustments and cost-of-living relief have continued following the change in government in late 2024.
How To Stay Compliant When Hiring in Bangladesh With Playroll
Expanding your business internationally is exciting, but it comes with the challenge of understanding complex legal and payroll requirements. One of the hurdles is ensuring you comply with local minimum wage laws. Playroll makes this process easier by acting as your trusted Employer of Record:
- Scale Your Global Team: Legally hire and onboard employees in 180+ regions, ensuring full compliance with local labor laws, tax regulations, and statutory benefits.
- Pay Your Team Accurately: Your global workforce is always paid on time, and we ensure continuous compliance with local minimum wage and tax laws.
- Guaranteed Legal Compliance: Our comprehensive compliance checks and expertly crafted contracts guarantee your agreements meet local legal standards, including minimum wage laws, tax regulations, and benefits. This way, you can focus on growing your business without worrying about compliance risks.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.


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