What is Wages & Hours Policy in Bangladesh?

The Wages and Hours Policy for the Garments Industry in Bangladesh is governed by the Bangladesh Labor Act, 2006, and subsequent amendments. The law sets standards for working hours, overtime, and wages to protect the rights of workers. 

Here are the key aspects:

1. Minimum Wage

• The minimum wage for garment workers is set by the government through the Minimum Wage Board.
• The most recent revision (2024) established a minimum monthly wage for entry-level garment workers (Grade 7) at 12,000 BDT (Bangladeshi Taka), which includes basic salary, housing allowance, and medical benefits.
• Wages are typically divided into:
  • Basic salary
  • House rent allowance (usually 40-50% of the basic wage)
  • Medical allowance
  • Conveyance allowance (sometimes included)
  • Food allowance (sometimes included)

2. Working Hours

• The standard working hours are 8 hours per day and 48 hours per week.
• Workers are allowed to work up to 10 hours per day, including 2 hours of overtime.

3. Overtime

• Overtime work is allowed but must not exceed 12 hours per week.
• Overtime pay is calculated at twice the regular hourly wage (double rate). This applies to any work done beyond the standard 8 hours per day.

4. Weekly Holiday

• Workers are entitled to at least one day off per week (usually Friday in Bangladesh).
• If a worker is required to work on the weekly holiday, they must be compensated with a substitute day off or additional pay.

5. Rest and Meal Breaks

• Workers are entitled to:
  • A 30-minute break if they work for more than 5 hours.
  • A 1-hour break if they work more than 8 hours.
• The break times are usually scheduled based on shifts.

6. Festival Bonuses

• Workers are entitled to two festival bonuses a year (commonly for Eid-ul-Fitr and Eid-ul-Adha).
• The amount is generally equivalent to one month's basic salary for each festival.

7. Leave Entitlements

• Casual leave: 10 days per year.
• Sick leave: 14 days per year (paid at half the basic wage).
• Annual leave: 1 day of leave for every 18 days worked, or around 15 days annually.
• Maternity leave: 16 weeks of paid leave (8 weeks before and 8 weeks after childbirth) for female workers, with the employer covering the wages.

8. Payment of Wages

• Wages must be paid within seven working days after the last day of the wage period.
• For workers paid on a monthly basis, wages must be disbursed by the seventh day of the following month.

9. Grievances and Dispute Resolution

• Workers can raise wage disputes through the wage board or labor courts if they believe they are being underpaid or mistreated.
• Grievance redressal mechanisms and unions play a role in ensuring fair wage practices.

10. Deductions from Wages

• Deductions are allowed only for specific reasons, such as:
  • Absence from work.
  • Advances or loans taken by the employee.
  • Fines for damaging property.
• Deductions must not exceed 50% of the total wage in any wage period.

Conclusion:

These policies aim to balance the interests of both employers and workers in the garments industry, ensuring fair treatment and protection under labor law.