Nearly all RMG factories clear February wages, Eid bonuses: BGMEA

Nearly all readymade garment (RMG) factories in Bangladesh have cleared February salaries and Eid bonuses ahead of the upcoming Eid-ul-Fitr, the Bangladesh Garment Manufacturers and Exporters Association announced today (18 March).

Speaking at a press briefing in Dhaka, BGMEA President Mahmud Hasan Khan confirmed that 99.91% of member factories have paid February wages, with only two factories currently in the process of finishing payments.

Regarding Eid bonuses, 99.81% of units have completed disbursements, with only four factories remaining, he said. 

Additionally, although not legally required, 64.03% of factories have paid partial advance salaries for March to support workers during the festive season, said the BGMEA chief.

To ease congestion during the Eid rush, factories have staggering holidays. As of Tuesday, around half had already announced leave schedules, with the remainder expected to do so shortly.

The BGMEA confirmed that there are no unresolved issues regarding February wage payments among its listed factories.

It also acknowledged government support, including special loan facilities and the disbursement of Tk2,500 crore in cash assistance, which helped ease liquidity constraints.

To address recurring pre-Eid wage pressures, Mahmud said the association is planning to establish a permanent fund.

"We do not want to resort to firefighting every year. We want a lasting solution," he said, adding that proposals would be presented to the government.

The association said its member factories currently employ around 37 to 38 lakh workers, with 1,785 units located in Dhaka and 342 in Chattogram.

However, the sector continues to face significant economic headwinds in the 2025-26 fiscal year. Export earnings declined by 3.73% in the first eight months, while back-to-back letters of credit (LCs) for raw material imports fell by 6.79%. The average unit price of garments also dropped by 1.76% over the same period.

The situation has been further strained by a global economic slowdown, geopolitical tensions, rising competition in international markets, and volatility in energy and transport costs.

Domestically, the sector is grappling with a 286% increase in gas prices and a 33% rise in electricity costs over the past five years, alongside high interest rates and liquidity shortages in the banking sector.

Despite these challenges, factory owners ensured timely payment of wages and bonuses, in some cases by arranging funds independently, the association said.

On reports of worker layoffs in some factories, he said such decisions are part of a normal business process if carried out in accordance with labour laws and with proper compensation, particularly when orders decline.

Highlighting broader challenges, Mahmud identified energy shortages, high bank interest rates and infrastructural constraints as key concerns. He said the BGMEA has already submitted proposals to the finance ministry aimed at easing business operations and reducing costs.

These proposals include ensuring a stable energy supply, lowering lending rates, improving port efficiency and upgrading road infrastructure, which are expected to be raised in the upcoming budget.

The association also urged authorities to strengthen highway monitoring during the Eid travel period to prevent accidents and ensure passenger safety.

Responding to a question regarding the newly appointed Bangladesh Bank governor, Md Mostaqur Rahman, Mahmud said it would be unfair to criticise any individual or institution immediately after taking office.

Referring to remarks by Transparency International Bangladesh, he said assessments should be based on performance over time, adding that an individual's association with BGMEA does not reflect the organisation's official position.

Industrial Police data

Meanwhile, as of 4pm today, more than 1,660 factories – representing over 12% of the 10,100 units under the jurisdiction of the Industrial Police – had yet to disburse Eid bonuses, according to official data. 

Furthermore, over 800 factories have failed to clear February wages, despite a government directive issued two weeks ago to pay bonuses by 12 March, said the Industrial Police.

The figures encompass all types of manufacturing units, including the RMG sector. Under existing labour laws, wages for a given month must be settled within seven working days of the following month.

With Eid-ul-Fitr expected to fall on either Friday or Saturday, depending on the sighting of the moon, the window for payment is rapidly closing.

Despite the high number of factories with outstanding dues, no major labour unrest has been reported across the industrial belts. 

A senior Industrial Police official, speaking to The Business Standard on condition of anonymity, noted that a minor disruption occurred in Ashulia on Wednesday morning over wage and bonus disputes, but the issue was swiftly resolved. No further incidents have been recorded.