Minimum wage of Tk12,800 finalised for EPZ workers
The current minimum gross wage, except food and transport allowance, of an EPZ worker is Tk8,200 which was fixed in 2018
The Bangladesh Export Processing Zone Authority (BEPZA) has finalised a new minimum monthly wage of Tk12,800 for workers in Export Processing Zones (EPZs).
The decision was made yesterday during the fifth and final meeting of the Wage Board, marking a significant boost for the labour force, says a press release.
Under this new wage structure, EPZ workers will benefit from a minimum monthly wage of Tk12,800, inclusive of a basic salary of Tk6,950. Additionally, 50% of the basic salary (Tk3,475) has been allocated for house rent, and Tk2,375 for medical allowances.
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Workers will continue to enjoy supplementary benefits such as food or food allowance and transport or transport allowance, maintaining the current structure.
The decision was prompted by Section 65 of the 'Bangladesh EPZ Labour Act 2019,' which required the government to establish a Wage Board on 9 November.
Comprising 11 members from key governmental entities, including the Prime Minister's Office, the Ministry of Labour, the Ministry of Finance, and representatives of EPZ enterprise owners and workers, the board was led by the executive chairman of BEPZA.
In the inaugural meeting, an additional seven members, three owners' representatives, and three workers' representatives, were co-opted.
After a series of four meetings, the Wage Board unanimously recommended the minimum wage of Tk12,800. The draft wage was officially published in a gazette notification on 7 December, and after considering feedback from various stakeholders within the stipulated 14-day period, the final wage was determined in the recent meeting.
The proposal is now slated for approval by the prime minister.
The revised wage will take effect from 1 December 2023, impacting around 500,000 EPZ workers who will receive their wages according to the new structure from January 2024.
This marks a considerable increase from the current minimum gross wage (excluding food and transport allowance) of Tk8,200, established in 2018, reflecting a substantial 56.25% raise for EPZ workers.
Currently, eight EPZs house 450 operational industries across various parts of the country, including the BEPZA Economic Zone at Bangabandhu Sheikh Mujib Shilpa Nagar, Mirsharai, Chattogram.
Notably, investors from 37 countries have contributed a total investment of $6.6 billion, with goods worth $107 billion exported from the EPZs until November.
