Bepza to set up special fund to safeguard workers' wages in case of factory closures

The Bangladesh Export Processing Zones Authority (Bepza) has announced plans to establish a special fund to ensure the timely settlement of workers' dues if factories within the Export Processing Zones (EPZs) shut down or fail to pay wages.

Bepza Executive Chairman Maj Gen Abul Kalam Mohammad Ziaur Rahman said, "We are working to enhance facilities for EPZ workers. Often, factories shut down for various reasons or fail to pay wages, causing workers to suffer. To address this, we are creating a fund that will allow us to settle workers' arrears quickly. The wages that workers rightfully earn must not be withheld or delayed."

He made the remarks while speaking at the "Notices of Award Handover Ceremony under the Employment Injury Scheme (EIS) Pilot in Export Processing Zones" at Bepza headquarters in Dhaka today (14 September).

The Bepza executive chairman mentioned that workers in EPZs enjoy enhanced protections and benefits under dedicated EPZ laws and regulations, saying, "In fact, EPZ workers receive 30–40% higher wages compared to their counterparts outside the zones."

At the same event, Bepza formally launched the distribution of compensation under the Employment Injury Scheme (EIS) in collaboration with the International Labour Organization (ILO) and German development agency GIZ.

The first three Notices of Award were handed over—two to families of deceased workers from Dhaka and Chattogram EPZs, and one to a permanently disabled worker from Cumilla EPZ.

Photo: TBS

These awards will provide monthly financial support, similar to a pension, ensuring long-term assistance for affected families.

Max Tunon, country director (designated) of ILO Bangladesh, said, "While no financial support can replace a life, timely compensation provides families with the stability they need to rebuild. The ILO remains fully committed to working with Bepza and partners to expand and strengthen this scheme so more workers in Bangladesh may benefit."

Michael Klode, representative of GIZ, remarked, "This scheme reflects a shared responsibility for protecting workers and employers alike. GIZ is proud to support this important step towards a safer and more resilient labour system in Bangladesh."

Md Ashraful Kabir, member (investment promotion) of Bepza, delivered a welcome speech at the ceremony.

Funded by several international brands, the EIS project was formally launched in February 2025 with a Letter of Intent signed by Bepza, ILO, and GIZ.

An endorsement committee—comprising representatives from Bepza, investors, Workers' Welfare Associations (WWAs), ILO, and GIZ—approved the first awards during its second meeting today.

In addition to the EIS initiative, Bepza has introduced a wide range of worker welfare programmes, including free healthcare and medicines, nutritional support for pregnant women, daycare centres, women's dormitories, subsidised education, group insurance, and a 24/7 helpline.

Currently, Bepza operates eight EPZs across Bangladesh, along with the Bepza Economic Zone in Mirsharai, while two new zones are under development in Patuakhali and Jashore.

As of August 2025, Bepza hosts 454 enterprises employing around 550,000 workers, with total investments of $7.14 billion and cumulative exports worth $120.46 billion.

Despite occupying only 0.001% of Bangladesh's land area, Bepza's nine zones contributed 17.03% of the country's total exports in FY 2024–25.