Bangladesh’s garment workers are demanding a minimum monthly wage of 30,000 taka, more than double the current 12,500 taka. Factory owners say such an increase would make production uncompetitive, particularly against rivals in Vietnam, Cambodia and India.

The disagreement has triggered fresh rounds of industrial unrest.

On Monday, workers blocked major highways in Gazipur, while police used tear gas to disperse demonstrations in Dhaka’s Mirpur and Ashulia. Ten platoons of Border Guard Bangladesh were deployed in Gazipur. 

The protests continued despite the government's announcement of a new wage board. Now the question is whether 30,000 taka represents a realistic minimum wage, given Bangladesh’s living costs, inflation and the garment industry's financial position.

How much have workers lost to inflation?

Bangladesh last revised garment wages in November 2023, raising the monthly minimum from 8,000 taka to 12,500 taka, effective that December. The 56% increase fell short of the 20,000–25,000 taka sought by labour organisations.

Since then, persistent inflation has eroded purchasing power.

According to the Bangladesh Bureau of Statistics, annual inflation reached 8.34% in September 2026, while economy-wide wage growth stood at 7.90%. It was the 56th consecutive month in which inflation exceeded wage growth.

The figures indicate a prolonged decline in real wages across the economy, although they do not directly measure the earnings of garment workers.

Employers argue that garment workers have received annual increments, reportedly raised to 9% under arrangements introduced after the 2023 wage settlement.

However, annual increments for existing employees do not necessarily raise the statutory minimum for new recruits. Their impact on total earnings also depends on whether increases apply to basic wages or other components of compensation.

The statutory minimum has therefore remained at 12,500 taka even as household expenses have increased.

What does it cost to live in Bangladesh?

The Global Living Wage Coalition provides a benchmark for assessing whether the current minimum is adequate.

Using the Anker methodology, its November 2025 estimates put the monthly living wage at 30,459 taka in Dhaka and 25,166 taka in surrounding industrial cities.

The calculations cover food, housing, healthcare, education, transport and other essential expenses, including a modest allowance for unexpected costs.

They assume a family of four supported by 1.58 full-time-equivalent earners.

The estimated monthly cost of maintaining such a household was 48,022 taka in Dhaka and 39,762 taka in surrounding industrial areas.

A living wage is the amount an individual full-time worker needs to earn to contribute an appropriate share of these household expenses, accounting for income from other earners.

On that basis, the current statutory minimum represents about 41% of the Dhaka living-wage benchmark and 50% of the estimate for surrounding industrial cities.

Even the workers’ proposed 30,000 taka minimum would only approximately match the 2025 Dhaka benchmark.

Further inflation during 2026 would have increased the cost of the same standard of living.

The evidence suggests a living-wage range of approximately 27,000–33,000 taka a month, depending on location and subsequent price increases.

This is an indicative range rather than an official wage recommendation. It also does not establish what individual factories can afford.

A national minimum of 30,000 taka would fall within that range, although it would represent a 140% increase over the current statutory floor.

How does Bangladesh compare with competitors?

Bangladesh remains among the lowest-paying major garment-producing economies in Asia when statutory minimum wages are compared in US dollars.

At an exchange rate of approximately 123 taka to the dollar, its 12,500 taka minimum is equivalent to $102 a month.

Cambodia's garment-sector minimum stands at $210 in 2026, with an increase to $212 scheduled for January 2027.

Vietnam, which applies regional rather than garment-specific minimum wages, has monthly floors ranging from approximately $141 to $210 following a 7.2% increase at the beginning of 2026.

A 30,000 taka minimum would place Bangladesh above the current statutory wage floors in Cambodia and Vietnam in nominal dollar terms.

However, direct comparisons have limitations.

Minimum wages differ in coverage, working hours and additional benefits. Labour productivity, exchange rates, infrastructure and the types of garments produced also affect competitiveness.

Vietnam has a more diversified manufacturing base, relatively developed infrastructure and stronger integration into international supply chains.

Bangladesh has advantages in production scale, established buyer relationships and specialisation in high-volume garments.

Higher statutory wages would increase labour costs, but the effect on export competitiveness would depend on productivity and the share of wages in total production costs.

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