Minimum Wage in Bangladesh: Rates, Trends & Compliance

What Is the Minimum Wage in Bangladesh?

As of 2025, 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

Bangladesh's Minimum Wage Board, established in 1959, sets sector-specific minimum wages based on factors like job complexity and skill level. For example, as of 2025, the minimum wages for various industries differ as follows:

Ready-made garments: BDT 12,500 - BDT 15,035 p/month

Leather goods and footwear: BDT 7,100 - BDT 13,520 p/month

Tanneries: BDT 17,048 - BDT 34,168 p/month

Road Transport: BDT 10,100 - BDT 18,920 p/month

Rerolling mills: BDT 10,650 - BDT 20,400 p/month
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Average vs Reasonable vs Typical Minimum Wages

‍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 adjustments to its minimum wage over the years. In the garment sector, the wage was last adjusted in December 2023 with an increase of BDT 4,500, bringing the monthly wage to BDT 12,500. This represented a 56% increase from the previous rate of BDT 8,000, which had been in place since 2018.

Despite this increase, many workers argue that the wage is still insufficient to meet the rising costs of living, especially in urban areas. The Bangladesh Garment and Industrial Workers Federation (BGIWF) and other unions have called for a minimum wage of BDT 23,000 per month, citing the need for workers to afford basic necessities.

The government reviews the minimum wage periodically, typically every 2–3 years, based on economic conditions and inflation. The most recent increase, implemented in December 2023, includes a provision for automatic annual increases of 5% on the base wage until the next wage revision in 2028.

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:

 
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