Bangladesh fixes wages for footwear- leather goods sector

Dhaka recently fixed Tk 7,100 as the minimum monthly wages for footwear and leather goods workers, according to a September 8 gazette notification by the ministry of labour and employment. A wage board was formed in September 2019 to review the same. For the first time, a provision for an annual increment of 5 per cent of the basic pay has been incorporated.

The last minimum wages for the sector was set at Tk 3,652.50 in 2013. The government has categorised workers and employees of the leather goods and footwear sector in six and four grades respectively.

According to the notification, the government has fixed 50 per cent of the basic as house rent for factories located in divisional cities and 40 per cent as house rent for mills located at other cities.

The basic payment of a grade six worker has been fixed at Tk 3,500 and house rent at Tk 1,750.

A medical allowance of Tk 600 for all grades of workers has been fixed while Tk 350 and Tk 900 have been fixed as transport and food allowances respectively, according to Bangla media reports.

An apprentice would receive a total of Tk 5,500 as monthly wage. A worker’s apprentice period would be three months and additional three months could be extended if his or her performance is not satisfactory.

The minimum monthly wages for a grade one worker has been fixed at Tk 13,520 with Tk 7,780 as basic pay.

A grade one employee will receive Tk 8,525 as monthly minimum wage with Tk 4,450 as basic and Tk 2,225 as house rent. The other allowances would be same as the other workers.

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