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Minimum Wage in the RMG Sector of Bangladesh: Definition, Determination Method and Levels

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  • Khondaker Golam Moazzem
  • Saifa Raz

Abstract

Minimum wage in the RMG sector of Bangladesh is a debated issue, mainly due to lack of operational definition and method for calculation. This study is undertaken to come up with a definition and method for calculation of the minimum wage based on the ILO Minimum Wage Fixing Convention, 1970 (No. 131). The underlying principle of this definition is that minimum wage should be sufficient enough to meet the basic needs of workers and their families, and should provide some discretionary income. Based on the definition, the minimum wage has been estimated under three scenarios – poverty line, actual expenditure and aspirational diet. Considering the industry’s capacity, the study proposed a phase-wise implementation of the minimum wage under which about 80 per cent of the proposed wage (Tk. 8,200) equivalent to Tk. 6,500 could be provided in the first phase.

Suggested Citation

  • Khondaker Golam Moazzem & Saifa Raz, 2014. "Minimum Wage in the RMG Sector of Bangladesh: Definition, Determination Method and Levels," CPD Working Paper 106, Centre for Policy Dialogue (CPD).
    • Handle: RePEc:pdb:opaper:106
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    File URL: https://cpd.org.bd/wp-content/uploads/2014/03/WP-106.pdf
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    References listed on IDEAS

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    1. Mohammad Ismail Bhuiyan, 2013. "Reasonable Wages for Workers to Eliminate Unrest in Bangladesh's Ready-made Garments (RMG) Sector," Bangladesh Development Research Working Paper Series (BDRWPS) BDRWPS No. 17, Bangladesh Development Research Center (BDRC).
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    Cited by:

    1. Khondaker Golam Moazzem & Md. Arfanuzzaman, 2018. "Livelihood Challenges of RMG Workers: Exploring Scopes within the Structure of Minimum Wages and Beyond," CPD Working Paper 122, Centre for Policy Dialogue (CPD).

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