Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged its member factories to implement a 9% annual wage increment for garment workers, effective January 2025. This follows a government decision announced on December 9, 2024, increasing the annual increment from 5% to 9%, applicable retroactively from December 1, 2024.
The increment comprises the existing 5% and an additional 4% of workers’ basic pay. Workers are entitled to this increment after one year of service, as outlined in a gazette notification by the Minimum Wages Board. This decision stems from efforts to address labor unrest and fulfill commitments from an 18-point demand agreed upon by stakeholders.
Apparel workers had initially demanded a 15% annual increment, later revising it down to 10%. Factory owners initially proposed 6%, raising it to 8% before agreeing to the finalized 9%. This resolution aims to sustain harmonious relations between factory owners and workers.
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