Sign up to our newsletter to get the latest on living wage and income  
Need help?

Bangladesh

World bank, 2022
Poverty headcount ratio at $3.65 a day (2017 PPP) (% of population)
30%
Population below international poverty line

Equivalent to 8,000 Bangladeshi taka per worker per month.
WageIndicator Foundation, 2024

66
per month
National minimum wage

Anker Benchmark study. Equivalent to 21,091 Bangladeshi taka per worker per month (Dhaka city).
Global Living Wage Coalition, 2023

193
per month
Rural living wage

Anker Benchmark study. Equivalent to 25,497 Bangladeshi taka per worker per month (Dhaka city).
Global Living Wage Coalition, 2023

 

233
per month
Urban living wage
World bank, 2022
Employment in agriculture (% of total employment) (modeled ILO estimate)
37%
Agricultural workforce
World bank, 2022
Agriculture, forestry, and fishing, value added (% of GDP)
11%
Agriculture share of GDP

ITUC Global Rights Index, 2023
No guarantee of rights

5
very high
Risk to workers' rights

Context

Bangladesh has a population of over 171 million people,[1] with nearly 60% of inhabitants living in rural areas.[2] Approximately 37%[3] of the population is employed in the agricultural sector, which accounts for nearly 11% of the nation’s GDP.[4]

Agriculture supports the majority of the population, with many smallholder households operating in the informal economy.[5] Smallholders make up the majority of farmers in Bangladesh, a group that has a disproportionately high poverty rate compared to the national average. Bangladesh and its farmers are particularly vulnerable to climate change as most of the nation is less than 5 meters above sea level, which significantly predisposes them to flooding.[6]

Rice is the largest commodity in production in Bangladesh, followed by potatoes, maize, sugar cane and fresh milk.[7] In terms of export, the top commodities are jute, non-alcoholic beverages, vegetable oil, soya beans and potatoes.[8]

Footnotes
  1. ^ World Bank. (2022). https://data.worldbank.org/indicator/SP.POP.TOTL?locations=BD
  2. ^ World Bank. (2022). https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=BD
  3. ^ World Bank. (2022). https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=BD
  4. ^ World Bank. (2022). https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=BD
  5. ^ CGAP. (2016). National Survey and Segmentation of Smallholder Households in Bangladesh. https://www.cgap.org/sites/default/files/researches/documents/Working-Paper-Smallholder-National-Survey-Bangladesh-May-2017.pdf
  6. ^ IFAD. (2018). Smallholder Agriculture Competitiveness Project (SACP). https://webapps.ifad.org/members/eb/123/docs/EB-2018-123-R-13-Project-Design-Report.pdf
  7. ^ FAOSTAT. (2022). http://www.fao.org/faostat/en/#rankings/commodities_by_country
  8. ^ FAOSTAT. (2022). http://www.fao.org/faostat/en/#rankings/commodities_by_country_exports

Wages

Minimum wage

The minimum wage in Bangladesh varies by sector and skill level. The minimum wage for general workers is 8,000 Bangladeshi taka (66 EUR) per month, value implemented in 2013.[1] The garment industry is a significant contributor to the nation’s economic growth,[2] therefore, in many regions it's common to have a minimum wage for the sector. In Dhaka, for example, it's 12,500 Bangladeshi taka (102 EUR)[1]. Yet, many workers in Bangladesh are still employed informally and minimum wage regulations and labour laws are not always ensured.[3] In 2023, Bangladesh was featured among the world’s 10 worst countries for workers[4]

Living Wage

The Global Living Wage Coalition has developed 2 Living Wage Benchmarks for urban Bangladesh based on the Anker methodology. One estimate is for Dhaka city, and the other for Dhaka's surrounding satellite cities and districts, while both focus on garment workers.

In Bangladesh, the garment industry employs over 4 million workers, an estimated 65% of whom are women.[5] The living wage for workers living in Dhaka city is 25,497 Bangladeshi taka (233 EUR) per month[2], while the estimated living wage for satellite cities surrounding Dhaka is 21,091 Bangladeshi taka (193 EUR) per month. Both benchmarks are based on a family of 4 with 1.58 workers.[6] These living wage estimates are more than twice the minimum wage designated for the garment industry in the Dhaka region, for example.

Footnotes
  1. a, b WageIndicator Foundation. (2024). https://wageindicator.org/salary/minimum-wage/bangladesh
  2. a, b Global Living Wage Coalition. (2023). https://www.globallivingwage.org/living-wage-benchmarks/urban-bangladesh/
  3. ^ U.S. Department of State (2023). https://www.state.gov/reports/2023-country-reports-on-human-rights-practices/bangladesh/
  4. ^ ITUC Global Rights Index, 2023: No guarantee of rights. 
  5. ^ U.S. Department of State. (2023). https://www.state.gov/reports/2023-country-reports-on-human-rights-practices/bangladesh/
  6. ^ Global Living Wage Coalition (2023). Dhaka Satellite Cities. https://www.globallivingwage.org/living-wage-benchmarks/urban-bangladesh-surrounding-dhaka/

Living income

The Living Wage Benchmarks included a Living Income report, estimating the living income in both Dhaka City, as well as Satellite Cities and Districts Surrounding Dhaka. For Dhaka City, a living income was estimated at 40,228 Bangladeshi taka (368 EUR) per month[1] . For the surrounding areas, the value was estimated at 33,309 Bangladeshi taka (305 EUR) per month[2]. This is the net income a typical family of 4 with 1.58 workers needs monthly to afford a basic but decent living in both areas.

Footnotes
  1. ^ Living Wage for Dhaka City, Bangladesh. Urban Bangladesh. (2023). https://www.globallivingwage.org/living-wage-benchmarks/urban-bangladesh/
  2. ^ Living Wage for Satellite Cities and Districts Surrounding Dhaka, Bangladesh. Urban Bangladesh. (2023). https://www.globallivingwage.org/living-wage-benchmarks/urban-bangladesh-surrounding-dhaka/

What's happening

initiative

Country study in the garment industry

Country study report looking at labour law and labour conditions in the garment industry in Bangladesh. Fair Wear Foundation, 2018.

initiative

The economic lives of smallholder farmers

An analysis of smallholder farmer incomes based on household data from nine countries. FAO, 2015.

resource

Living Wage Benchmark, Urban Bangladesh

Living wage estimates for Dhaka city and for the satellite cities and districts surrounding Dhaka, in urban Bangladesh, with context on the garment industry.

resource

Living Wage for Satellite Cities and Districts Surrounding Dhaka, Bangladesh

This report estimates living wages for areas of Dhaka with large concentrations of garment factories.

initiative

Fair Wear Foundation Wage Ladder

The Fair Wear Foundation Wage Ladder is an easy-to-use online tool that allows the wages paid at any factory to be compared against a range of wage benchmarks.

initiative

Labour Minute Costing Calculators

Fair Wear’s Labour Minute Costing Calculators allow brands and factories to calculate labour costs based on a transparent methodology for costing/pricing of goods.

Learned enough?