A Report on Minimum Wages Implementation of Bangladesh Garments Sector.

Topics: Minimum wage, Wage, Employment compensation Pages: 24 (7303 words) Published: August 25, 2013

Prepared by:

‘’SUNBEAM’’ Group
4 th Year, 1st Semester
Dept. of Accounting & Information Systems
Begum Rokeya University, Rangpur

Prepared for:

Md. Harun-Or-Rosid
Dept. of Accounting & Information Systems
Begum Rokeya University, Rangpur.

Date of Submission: 25 August, 2013.

SL. No.| Name| ID| Signature|
01| Zakea Afrose (Leader)| 00906061| |
02| Md. Abu Islam| 00906016| |
03| Md. Fahad Mahamud| 00906018| |
04| Md. Hashibul Hashan| 00906020| |
05| Md. Al- Amin| 00906045| |
06| Most. Rokeya Begum| 00906046| |
07| M.A Sayeed Miah| 00906053| |

Letter of Transmittal
25 August, 20
Md. Harun-Or-Rosid
Dept. of Accounting & Information Systems,
Begum Rokeya University, Rangpur.

Subject: Prayer for accepting Report.

We are the members of group “SUNBEAM”, writing an application to you for submission our Report on “Minimum Wage Implementation in Bangladesh’s Garment Sector”.

We therefore, pray and hope that you would take our report and give us permission to present it.

Yours sincerely
4 th Year, 1st Semester
Dept. of Accounting and Information Systems,
Begum Rokeya University, Rangpur.


The realization and completion of this study involved a number of people. First and foremost, we remain grateful to Almighty who through His infinite mercies made it possible for us to finish the work. We have been fortunate enough to interact with a range of people involved in poverty alleviation and gender issues in the Garments’ sector of Bangladesh. Our thanks go to our honorable course teacher Md. Harun-Or-Rosid for his cordial supervising. We are grateful to Mr. Appel Mahmud, Assistant Professor, Dept. of Accounting & Information Systems, Begum Rokeya University, Rangpur, who imparted knowledge to us during our studies. We are also thankful to the respondents without whom participation the study was not quit possible.


This paper explores the relationship between the actual wages payment and required to pay a minimum wage payment in garments sector in Bangladesh. This paper tries to find out causes fostering the obstacles to ensure the minimum wages for the garment sector employees in Bangladesh. Though many scholars emphasis on the smart wage package for the garment sector employees. But this is not being implemented due date and this study tries to find out the relevant cause consequences of that variable.

The first question looks into how wages are determined in the export-oriented garment industry in Bangladesh. The second question concerns the corporations’ responsibility for their workers.

The third and last question addresses how cultural dimensions influence the corporations and how wages are set. In the conducted study all workers were paid the minimum wage in coherence with the law. This wage was however much lower than what the definition of a living wage declares. Therefore many workers did over-time in order to reach a higher standard of living.

More than 78% of Bangladesh’s export earnings come from the garment industry. The ready-made garments (RMG) sector has a greater potential than any other sector in terms of employment and foreign exchange earnings to reduce poverty and make a contribution to the national economy. However working conditions in this vital sector are poor. Bangladesh’s RMG factories fall short on 'social compliance1'. That is, they do not comply with labor practices that ensure the social welfare of their employees. This article reviews the literature on working conditions in Bangladesh's RMG sector and the failure of its existing labor laws. It proposes that impediments to establishing social compliance in the sector can be...

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