Govt issues gazette on 9% yearly wage increment hike for RMG workers

The government has issued a gazette fixing the annual increment for the readymade garment (RMG) workers at 9%.

The government has recommended an increase of 9% in the annual increment of the garment industry sector by adding another 4% hike to the existing 5%, reads the notification issued by the Ministry of Labour and Employment on 5 January.

The gazette comes following an announcement by Adviser M Sakhawat Hussain on 9 December, where he said, "RMG workers will receive a 9% salary increase starting this month."

He clarified that any worker who is supposed to get a yearly increment in December will enjoy the additional increase. Those not supposed to get an increment in December will still get a 4% rise in their wages.

The ministry issued the gazette in light of the recommendations of the Minimum Wage Revaluation and Annual Increment Committee formed on 29 September 2024.

The 4% additional hike in the annual increment recommended by the committee has been effective from 1 December 2024, which will be paid with the wages payable in January 2025.

According to the gazette, other benefits related to the Bangladesh Labour Act, 2006 (as last amended) will also be relevant along with the wage hike.

This increment hike will continue until the government revalues it or the Minimum Wage Board announces the next minimum wage, the notification added. 

However, the manufacturers of the RMG sector of the country said that it would be difficult for them to pay the increment because the industry's capacity is not that high. Production costs have increased, but income has not increased in the same way.

They, however, stated that since this is a tripartite decision made by the government, labour leaders and factory owners, there is no other way but to accept it. 

They urged the government to provide the necessary policy support to overcome the pressure the manufacturers will face in implementing this decision.