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An assignment on:

Analysis of the Wage Fixation Structure under the

Bangladesh Labor Act, 2006
Course Title: Labor Law
Course Code: 401

Submitted to:
Dr. Mohammad Nazmuzzaman Bhuian
Associate Professor
Department of Law
University of Dhaka
Submitted by:
Group- 6
Roll No -76 to 90
4 th Year, LL.B. (Honors)
Department of Law
University of Dhaka

Submitted on: March 21, 2013

List of Contributors

Name

Roll

1. Assaduzzaman76
2. Md. Moinuddin Kadir77
3. Akramul Islam79
4. Mousumi Haque.80
5. Afsana Nusrat Sultana...83
6. Abu Salman Prodhan.84
7. Md. Tariq Hasan.85
8. Mohiuddin Shams Reefat..86
9. Avijit Kumar Das87
10.
Al Sadik...88
11.
Md. Abdullah.89
12.
Nurun Nazin..90

Contents
1. Introduction .....3
2. Legal Framework for Wage and Minimum Wages.....3
3. Payment of Wages..4
3.1 Mode of Payment of Wages...5
a. Undisbursed wages5
4. Structure of Determining Minimum Wages....5
4.1. Establishment of Minimum Wages Board6
4.2. Fixation of Minimum Rates of Wages..7
4.3 Wages Board for Newspaper Workers...7
4.4 Fixation of Minimum Rates of Wages for Newspaper Workers....7
4.5 Factors to be Considered in Wage Fixing......8
4.6 Scheduled Frequency of Adjustment..9
5. Role of Trade Union, Collective Bargaining Agent and
Employers Organization in Determining Minimum Wages......9
6. Deductions from the Wage......9
6.1 Deduction Which may be Made from Wages..10
6.2 Remedy for Undue Deduction or Non-Payment of Wages.11
7. Minimum Wages and Socio Economic Condition: The Existing Gap.....11
8. Wage Fixing Systems in Practice: Examples from Selected Asian Countries..........12
8.1 Indonesia.13
8.2 Malaysia..13
8.3 Singapore14
8.4 Sri Lanka.14
9. Conclusion by way of Recommendation...15

Bibliography ..16

1. Introduction

Earnings by way of work are the chief source of income and influence the quality of livelihood
and life structure of a worker. In terminology, this earning is called the salary, remuneration or
wages, whatever name, which is monetary in nature calculated on hourly, daily, weekly or
monthly basis. In every country the government set forth the mechanism of fixing the minimum
wage for workers of various sectors according to the various objectives, criteria and procedure
simultaneous to that sector for providing social safety net as protection against unduly low
wages. Bangladesh where over 56.7 million people accounted for labor forces, according to the
labor force survey-20071, in line with the other countries also formulated its own wage structure
to provide wage for workers by which they can meet their needs. The mechanism is generated
from the fundamental principle of state policy as encompasses in second part of the Constitution
which enshrined the right to guaranteed employment at reasonable wage having regard to the
quantity and quality of work. Keeping this in mind, laws and policy has been taken in various
times to ensure the minimum wages for the workers. But unfortunately there is no uniform
minimum wages declared for workers across the country yet also different wage structure
prevails in different industries that are relevant to the job pattern of the workers. Several Wage
Boards have been also set up at different times with aim to fix minimum wages for workers
employed in various enterprises- public and private. At last, in 2006, repealing the previous law a
consolidated new law namely Bangladesh Labor Act-2006 has been enacted which guide the
wage structure with the constitution of a minimum wage board; however the employer is free to
pay more wages than minimum if they wish. This paper aims to make a discussion on the
prevailing wage structure in Bangladesh, the existing legal mechanism, also the justification of
minimum wages with the socio economic condition and others relevant issues.

2. Legal Framework for Wage and Minimum Wages

Payment and protection of wages and others related matters were previously regulated by the
Payment of Wages Act, 1936 which had a wide coverage. Workers employed in factories, shops,
industrial and commercial establishments like road transport, services, railways, dock, jetty,
inland steam vessel, mine, oil field, plantation or any other workshop have been brought within
the purview of this legislation. This Act has now been merged with the newly introduced Labor
Act, 2006 with some modification.
According to section 2[45] of the Act, Wages refer all remuneration capable of being expressed
in terms of money. It is payable to a worker if the terms of the contract of employment are
fulfilled. The tern wages includes any other additional remuneration of the nature aforesaid
which would be so payable but does not include the followinga. The value of any house accommodation, supply of light, water, medical attendance or
other amenity or of any service excluded by general or special order of the government
b. Any contribution paid by the employment to any pension fund or provident fund
1 Bangladesh Bureau of Statistics

c. Any travelling allowance or the value of any travelling concession

d. Any sum paid to the person employed to defray special expense entailed on him by the
nature of his employment.
With this section 120 the term wages shall include the following, namelya. Any bonus or other additional remuneration payable as per the terms of the employment
b. Any remuneration payable for holiday, stoppage or overtime works
c. Any remuneration payable for any order of the court or for any award or resolution
between the parties
d. Any money payable under any contract or the Labor Act for any removal from servicebe it under retrenchment, discharge, removal, resignation, retirement, dismissal
e. Money payable for lay-off or temporary dismissal.
The definition provided in this section is inclusive in its nature. It includes any bonus or other
additional remuneration, remuneration in respect of overtime, any award, any amount due to layoff, or any sum payable in the event of discharge, dismissal, retirement, retrenchment etc. within
the purview of its definition.
So the term wage means any remuneration paid to the employee in respect of his service
rendered to the employer including any bonus, any remuneration in respect of any overtime, any
sum payable in the event of dismissed, discharge, lay-off etc.
As mentioned in ILO Convention 131, the right to minimum wages must be ensured by law and
it cannot be left to anybodys discretion. Under our law the minimum rate of wages fixed by the
Government is final and cannot be questioned by any person in any manner in any court or
authority. The employer is bound to pay the wage at the rate declared by the government;
however, the law doesnt preclude employers from paying more than that has been prescribed.

3. Payment of Wages
The workers are to be paid all required wages by the employer employed by. The chief executive
officer, the manager or any other person responsible to the employer to supervision & control of
an establishment shall also be responsible.2Here, the term "employer" denotes not only the
person employed the employees directly, it also makes liable the persons, as employer, had the
most important power of an employer to dispense with the services of the employees.3

2 Sec.121
3 AIR 1955 Bom 431

In case of a worker employed by a contractor only the contractor or if the contractor does not pay
the wage, the employer shall be responsible for the payment and in respect of the later case the
paid amount shall be adjusted from the contractor.4

3.1.

Mode of Payment of Wages

Wages should be paid regularly except where the appropriate arrangements exist which ensure
the payment at regular intervals.5 Labor Act, 2006 directs the mode and circumstance of payment
of wage.

Wages and overtime allowance have to be paid within seven days of wage period as
fixed by the employee6,
Wage period shall be 30 days7
All wages have to be paid on working days8
Wages have to be paid in the existing currency in cash taka or cheque9

But where any worker is terminated by way of retrenchment, removal, discharge, dismissal or
otherwise by the employer that worker shall be paid within seven working days from the day of
his so termination.10

3.2.

Undisbursed Wages

In case of death or not knowing the whereabouts of a worker, his undisbursed wages, if any, shall
be paid to the person nominated by him. If no such nomination is made or for any other reason
the nominated person cannot be paid, the employer is to deposit the money to the Labor Court &
the Labor Court then shall deal with that money. After so deposition of the money to the Labor

4 Sec.121:Bangladesh Labor Act,2006

5 Art.6: ILO Protection of Wages Convention,1949(no.95)
6 Section-123 (1)
7 Section-122 (2)
8 Section-123 (3)
9 Section-124
10 Section-123 (2)

Court or giving them to the nominated person, by the worker, the employer shall be discharged
of his liability in regard of payment of those wages.11

4. Structure of Determining Minimum Wages

The Ministry of Labor and Employment is in charge of setting minimum wage in Bangladesh.
The process of determining minimum wage rates involves consultation among the key
stakeholders (the government, workers representatives and employers representatives). A
committee offers recommendation on minimum wages and there is no national minimum wage
rate in our country, instead minimum wage rates are distinguished by sectors and zones.
Determinations of minimum wages are made by the Minimum Wage Board Constituted under
the Labor Act 2006. The main object of Wages Board is to fix the minimum wages in certain
employments to prevent economic exploitation of the workers. The present Act contains almost
all the provisions of the Minimum Wages Ordinance, 1961 as amended. Before this Ordinance,
there was Minimum Wages Act, 1957 which was repealed in 1961.12 Since the minimum
wages ordinance 1961 inter alia has been consolidated with the Labor Act, the erstwhile
Minimum Wage Board is now operative under the Act. Role and function of the Board are
determined by the Government. Under the Act the Government shall establish a Board to be
called the Minimum Wages Board under Section 138 and it may also constitute a separate Board,
to be called the Newspaper Workers Wage Board under Section 143 for fixing rates of wages of
newspaper workers.
So, there are two types of Wages Board:
1. Wages Board under Section 138, and
2. Newspaper workers Wage Board under Section 143.

4.1.

Establishment of Minimum Wages Board:

The composition of Minimum Wages Under section 138 will be the following
1.
2.
3.
4.

Chairman
One independent member
One member to represent the employers and
One member to represent the workers.13

11 Section-131
12 Dhar, Nirmmalendu labor and industrial law of Bangladesh, Remisi Publication,
2007 P-213
13 Sec. 138(2) ; Bangladesh labor Act,2006

Members will be appointed by the Government. The Chairman and the independent member of
the Wage Board shall be appointed on the basis of following criteria

Who have adequate knowledge of industrial labor and economic conditions of the
country, and
Who are not connected with any industry or associated with any trade union of workers
or employers.14

To be a representative of the employers, it is enough that such members are intimately connected
and are aware of the particular scheduled employment.15

4.2.

Fixation of Minimum Rates of Wages

To fix the minimum rates of wages, at first the Government directs the Wages Board to
recommend the minimum rates of wages16 and then the Government declares that the minimum
rates of wages recommended by the Wages Board for the various workers shall be the minimum
rates of wages for such workers.
This declaration shall be final and shall not be questioned in any matter by any person in any
Court or before any authority.17 The Government shall make the declaration by notification in the
official Gazette and it is mandatory, otherwise persons who are likely to be affected will be
deprived of opportunity to raise any objection or give any suggestions to the proposed
recommendation.18

14 Sec. 138(5); of the Bangladesh labor Act,2006

15 Ministry of labor and Rehabilitation and another Vs. Tiffins Barytes Asbestos &
Paints ltd. (1985) 2 lab LJ 412(SC)
16 Sec. 139 of The Labor Act, 2006
17 Sec. 140
18 New Age Garments ltd. & others Vs. Govt. of Bangladesh & others; 22 BLD 2002
(HCD)

The Wages Board makes such recommendation after making equitable enquiries within a period
of six months.19 The Wages Board shall periodically review its recommendations and the
minimum rates of wages may be re-fixed after every five years.20

4.3.

Wages Board for Newspaper Workers

The minimum wage rates procedure does not apply to the categories of workers excluded from
the coverage of the Labor Act 2006. Separate provision is made in Chapter IX of the Labor Act,
2006 for a wages board and minimum wage rates process specific to newspaper workers. As per
the provision of section 143, the Government may constitute a separate Board for fixing rates of
wages of newspaper workers to be called the Newspaper Workers Wages Board. Such Board
shall consists of

a Chairman, and
An equal number of members to represent the employers in relation to newspaper
establishment and newspaper workers.

4.4.

Fixation of Minimum Rates of Wages for Newspaper Workers

The newspaper wage board may fix the rates of wages after considering the relevant issues and
making certain enquiries.21 The Government shall examine the decision and publish it within
three months by notification in the official The Newspaper Wage Board may fix the rates of
wages after considering Gazette.22 If any dispute arises relating to classification or reclassification of a newspaper or a newspaper establishment out of any decision of the board,
published u/s 145(2), appeal can be preferred against any such decision by any aggrieved person
to the labor court.

4.5.

Factors to be Considered in Wage Fixing

In both public and private sectors wages are determined under rules set forth by the government.
Article 3 of the ILO Convention 131 [ regarding minimum wages] states that the minimum wage
fixing authorities should consider living standard of laborers and their family, their needs, social
and other facilities and also the standard of living of their society. Apart from these wage are also
directly associated with productivity and the employer is to consider the workers producing
19 Sec. 139(1) , (2)
20 Sec. 139(6)
21 Sec. 141
22 Sec. 145

capability before fixing wages. But it is also true that, productivity does not depend on the
physical and mental labor of workers alone, it is also affected by the kind management in an
organization, raw materials, energy and machineries are related to it 23 According to Section 141
and 144 of the Labor Act, 2006 while fixing minimum wages for general workers and newspaper
workers respectively, the Board will consider the following1.
2.
3.
4.
5.
6.
7.
8.
9.

Cost of living
Standard of living
Production cost
Price of products
Business capacity
The prevalent rates of wages of comparable employments
Nature, risk and standard of work
Socio-economic conditions of the country and
Others related matter

The minimum rate of wages declared by the government is binding on all employers concerned
and the workers, both newspaper and others, will be entitled to such wages as declared and the
said minimum wages could not be varied or reduced to the disadvantage of a worker by any
agreement whatsoever between the management and collective bargaining agent.24
The workers also have the right to receive wages at a rate higher than the minimum rate declared
and is entitled to enjoy such amenities and other advantages as are customary for such worker to
enjoy.25

4.6.

Scheduled Frequency of Adjustment

Fixation of minimum wages is subject to periodical review. The minimum rates of wages for any
industry may be re-fixed after every five years as may be directed by the Government.
The Wages Board shall review its recommendations if a change in the factors relevant to a
recommendation so demand, and recommend to the Government any amendment, modification
or revision of the minimum wage rates declared by the Government. However, no
recommendation shall be reviewed earlier than one year from the date on which it was made,
23 Faruque, Abdullah Al, Current Status and Evolution of Industrial Relation System
in Bangladesh, International Labor Organization, 2009, P-44
24 Kazi Giasuddin & another Vs. First labor Court, Dhaka & another (1994) DLR
359= 13 BLD, 266
25 Sec. 149(2) of the Bangladesh Labor Act, 2006

10

unless the special circumstances of a case so require or any later than three years from such
date26.

5. Role of Trade Union, Collective Bargaining Agent and Employers

Organization in Determining Minimum Wages
Periodic review is necessary to determine minimum wage to remain in tune with the changing
socio economic condition of the country. The government can dot this through consultation with
the representative of employers and workers organization.27 Therefore, the representative plays
a vital role to affirm the rights of the workers as they are the only via through which the workers
can send their message to the authority. Although wage and related fringe benefits of workers are
determined by the government through recommendation of the minimum wage board, collective
barraging for wages is not generally permissible on issues which are covered by the commission
recommendation. However, the wage commission takes into consideration the views of the
representative, the economic viability of the industries, interest of the workers, price catalogue
and others relevant factors while drafting the recommendation. Trade union representative who
are part of negotiations with the wage commission and wage board also play a key role in wage
fixing and usually concern about the interest of the workers. It is mentionable that, although not
permitted in law, in practice, sectoral collective bargaining authority is gaining popularity among
the stake holders to solve their problem. Example can be made to the fixation of minimum wages
for RMG sectors, Tea, Leather, Tannery, Newspaper sectors primarily relies on sectoral
bargaining.28

6. Deductions from the Wages

An employer can make deduction from wage fixed for the workers. There is no indication in the
present law about what we understand by deductions from wages, but under Explanation to
Section7 (1) of The Payment of Wages Act 1936 (Repealed) every payment made by the
employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be
a deduction from wages. An employer cannot make any deductions, except those expressly
authorized by law; this is a restriction of the general law for the benefit of the employee who is
presumed to be less advantageously placed. [Manager, Hindustan Journals Pvt. Ltd., Indore vs.
Govind Ram Swami Ram of Indore29
26 Section-139(6) and 142
27 Faruque, Abdullah Al, Current Status and Evolution of Industrial Relation System
in Bangladesh, International Labor Organization, 2009, P-49
28 Ibid, P-50

11

6.1.

Deduction Which may be Made from Wages

Section 125 to 130 of The Labour Act 2006 deals with the deductions made from the wages of
the workers. Deductions from the wages of a worker shall be made only in accordance with the
provisions of this Act, and may be of the following kinds only, namely-

a. Fines imposed under Section 25; however, the section restricts the imposition of fine
more than one tenth of the total wages receivables by a worker in a particular wage
periods and fine for the worker aged below 15.
b. Deduction for absent or refusal to attend in work, although present, in pursuance of a
stay-in-strike or for any other cause not reasonable in the circumstance.30
c. Deduction for damage or loss of goods entrusted upon the worker in his custody. The
principle of natural justice should be taken into consideration in proving the guilty.31
d. Deductions for house-accommodation, amenities and services supplied by the employer
e. Deductions for recovery of advances or loans of whatever nature or adjustment of overpayments of wages32
f. Deductions of income-tax payable by the worker33
g. Deductions required to be made by order of a court or other authority competent to make
such order34
h. Deductions for subscriptions to, and for repayment of advances from any provident fund35
i. Deductions for payments to any co-operative societies approved by the Government or to
a scheme of insurance maintained by any Government Insurance Company or
Bangladesh postal Department36
29 AIR 1963 MP 25
30 Section-126
31 Section-127
32 Section-129
33 Section- 125[2][g]
34 Section- 125[2][h]
35 Section- 125[2][i]
36 Section- 125[2][j]

12

j.

Deductions for the contribution to any fund framed by the employer, approved by
Government, for the welfare of the workers or the members of their families or both37 and
k. Deduction of subscription for the CBA union through check-off system38
But Deductions under section 125 (2) (j) (k) and (l) is subject to such conditions as the
Government may impose.
6.2.
Remedy for Undue Deduction or Non-Payment of Wages
In case unlawful deduction of wages or delays payment of wages or gratuity or provident
application may be made either by the workers or his legal representative, in case of his death, to
the labor court for recovery of such amount. The application has to be filed within twelve month
of the claim. The Court may direct the responsible person to pay twenty five percent of the
wages as compensation subject to the consideration of some factors like bonafide error,
emergency or exceptional circumstance.39 The application may be made either by individual
worker himself or on behalf of a group of unpaid workers. Appeal can be preferred also within
thirty days of the order before the appellate tribunal.
When minimum wages are not paid to the workers the employee shall be punished with the
imprisonment for a term of one year or a fine with up to five thousand taka or both. The
employer will also be ordered to pay the affected worker(s) the difference between the
remuneration due and amount paid40.

7. Minimum Wages and Socio Economic Condition: The Existing Gap

Decent wage is one of an important factor to achieve the objective of decent work. Right to
receive fair minimum wage is one of a human rights for all working men and women at
workplaces. It is also important to note that the UN Millennium Development Goal or poverty
reduction strategy of Bangladesh would not success without having any minimum wage standard
for the workers. But the reality is, in Bangladesh there is no uniform minimum wages for
workers across all sectors and also any homogeneity between minimum wages fixed for different
sectors and industries is also absent. The enforcement machinery has little capacity to enforce
and ensure the appropriate payment of minimum wages to various industries in formal and
informal sector.
37 Section- 125[2][k]
38 Section- 125[2][l]
39 Section-132
40 Section- 289

13

The wage structure determined by the Minimum Wages Board or Wage Commission or the Pay
Commission is not based on minimum daily life requirement of a worker. For that reason, there
is a huge gap between income and expenditure level of a worker and employees forced to live
below the poverty line. Over 56.7 million people account for labor force in Bangladesh among
over 39.5 million are male and over 17.2 million are female 41. In formal sector the number of
labor force is over 6.8 million and in informal sector the number is over 47.3 million. The
average wages paid to both sectors are not parallel with the living condition of a worker. The
following statistics will reveal the truth-

Sector
by
profession Average
[formal]
Income [tk.]
Bakery Products Machine
4187
Man/Foreman
Oil Mill Labor

2474

Shrimp Processing Labor

3004

Rice/Wheat Mill Labor

2237

Spices Mill Labor

2019

Bidi/Tobacco

2215

Textile Mill

4105

Leather Products

3650

Wood Works

3648

Textile Mill

4105

Pharmaceuticals

3857

RMG

3888

Railway

6247

Restaurant

3630

Construction Labor

3466

Monthly

41 Labor Force Survey-2010, Bangladesh Bureau of Statistics

14

Postal Communication

3401

Road Transport Labor

4219

Water Transport

3909

Source- Wage Survey-2007; Bangladesh Bureau of Statistics

It is easily, therefore, understandable from the above statistics that the wages that is paid to a
worker is not any way sufficient to maintain his/her livelihood. It is necessary to reaffix the wage
rate from time to time considering the socio economic condition of the country but the reality is
totally different. The authority hardly concern with this issue. Another thing is important to
mention that wage structure in public and private sector is quite different and informal sector
workers who form the largest section of the total workforce have not been brought within the
legal framework of minimum wages. In some sector the workers are still being paid under the
decades old wages structure. As for example, wage for agriculture workers were last determined
in 1984. Again wage rate in rural area compared to the urban area is found to be less and for
gender discrimination female workers paid fewer amounts compared to her male counterpart.
The average monthly income of men is about to double than that of woman. Therefore, the
minimum wage rate fixed by the authority dose not reflects the actual living cost requirement of
a worker.

8. Wage Fixing Systems in Practice: Examples from Selected Asian Countries

Across these countries, the cost of living serves as the common foundation for determining the
minimum wage. Determinants such as general economic conditions, productivity and wage
levels vary by country. Across these countries, the cost of living serves as the common
foundation for determining the minimum wage. Determinants such as general economic
conditions, productivity and wage levels vary by country. An attempt has been made to discuss
the general concept of minimum wages and fixing mechanism with reference to four Asian
Countries- Indonesia, Malaysia, Singapore and Sri Lanka.

8.1 Indonesia
There is no national minimum wage in Indonesia; instead, separate regional minimum wages are
set up for the 26 provinces that take into account the regional specific conditions such as the
different labor market situations and cost of living. In some cases, the minimum wage also
differs between sectors in the province.
Specifically, determinants for setting the minimum wage in Indonesia are as following:
1. Minimum subsistence needs (or KHM)
2. The cost of living based on CPI
3. The capacity and sustainability of companies

15

4.Employment opportunities
5.Existing market wage rates
6. Labor market conditions to growth
7. Economic and income per capita growth
8. Development plans of country

8.2 Malaysia
At present, minimum wages in Malaysia is sectoral. For setting the minimum wage, the
following key determinants are used.

Fixed Components:
This includes the basic wage, annual increment, and contractual bonus, where applicable. Fixed
wage components should reflect the value of the job and annual increment paid in recognition of
the employees length of service and experience.

Variable Components:
This includes wage increase for the year based on productivity and profit sharing formula. The
variable components of wages could be determined in relation to the productivity and
performance of the individual, work group or organization. The National Labor Advisory
Council (NLAC) has defined a set of guidelines on reforming the wage system.

How Minimum Wages is Set

The Wages Council Act 1947 states that the government may establish Wages Councils for
certain non-unionized sectors of the workforce. These Councils play a role in recommending
minimum wage rates to the government for enacting a Wage Regulation Order. Presently,
minimum wage rates are set for workers in the catering and hotel sector, and for stevedores,
cinema workers, and shop assistants. For sectors not covered by the minimum wage, collective
bargaining between the employer and trade union can be used for setting a minimum rate.

8.3 Singapore
Singapore has no minimum wage laws or regulations. Wages are set through collective
bargaining based on recommendations from the National Wage Council (NWC). According to
the Employment Act, the NWC recommendations are "gazetted", which are used by negotiating
parties during the setting of wages.

How Wages are Set

The NWC, established in 1972, is the principal machinery for determining wage guidelines,
which is a tripartite body consisting of 10 union leaders, 10 government officials, and 10 heads
of business associations.
The main role of the NWC is to recommend wage adjustments that are consistent with long-term
economic development plans. Annual recommendations are based on the prevailing state of the

16

economy. Collective bargaining in Singapore is conducted directly between employers and

employees within a framework that allows the Singaporean Government to set guidelines with
respect to the determination of wages. The Government also plays a role in the conciliation of
disputes between employers and employees through the Commissioner of Labor, an office within
the Department of Manpower.
8.4. Sri Lanka
Minimum wages are sectoral in Sri Lanka. Wage Boards must take into account the cost of living
index when determining minimum wage levels and in adjusting rates. There are usually time lags
in the adjustments of the minimum wage levels. The Sri Lankan government established a wage
fixing mechanism in the early 1970s, when wages were increased across the board.

How Minimum Wages is Set

Minimum wage is set through Wage Boards. At present, there are 37 Wage Boards. Procedures
are tripartite, and include representatives of employees, the employers, and the government. In
practice, decisions are usually made on based on the budget requirement or government
directives.
There are two laws addressing minimum wage in Sri Lanka. One is the Wages Boards
Ordinance, which regulates wages and working conditions for specific trades. The ordinance
allows for the establishment of "Wage Boards", which have the authority to make regulations on
wages and other labor terms and conditions with respects to particular trades. The Wage Boards
also have the power to set minimum wages. Two, the Shop and Office Employees Act of 1954
sets regulation of employment, hours of work and remuneration of persons employed in shops
and offices, overtime rates, holidays, and also covers matters such as leave, maternity benefits,
working condition and manner of payment of remuneration etc. Generally, wages are determined
irrespective of the countrys international competitiveness.

9. Conclusion by Way Recommendation

The wage system of Bangladesh under the prevailing law can be marked by the nature of
confrontational rather than cooperative to the beneficiary. Labor law of Bangladesh lays down
some distinctive provisions for the wage system for employees and workers of installments and
industries but there are some shortcomings which might cause injustice to the workers. To
eradicate such chances of injustice, some new initiative can be introduced for the betterment.
Moreover, some new rules might have to be produced by the government. By the way of detailed
study of the provisions of national and international laws on wages, we found some
recommendation for the concerned authority in this regard.

17

The current wage system in Bangladesh is not a uniform wage system. For better justice
to both the employer and employee, it is necessary to establish a uniform minimum wage
system for the whole of Bangladesh rather than sectoral difference..
New provision for partial payment of wages in a wage period can be introduced. It would
be more practical if wages can be redeemed by the employee through two or three
installments within a wage period. This provision might be introduced in our Act subject
to conditions like urgent need, family situation, disasters etc.
The reviews of the wage system of installments are needed to be held with more
seriousness and irregularities must to be controlled in strict manner. A strong wage board
is a precondition in this regard. Periodical review needs to be regular.
Discriminations between the formal and informal wages of the workers must be removed.
To establish complete justice the informal wages should be included in the area of action
of our law.
The process for paying wages is currency notes, bank transfer and cheques. But it would
be a flexible process if it could be extended to some more modes of money transfers
Provision for challenging the minimum wage fixed by the government should be
introduced and the opinion of the representative of workers must be taken into
consideration with more importance.
Trade union activism must be enhanced for keeping important role in settling dispute
between workers and management by way of collective barraging.
The last not least the improvement of implementation mechanism of minimum wages
fixed by the government should be ensured.

Bibliography
1.
2.
3.
4.

The Bangladesh Labor Act-2006

Dhar, Nirmalendu; "Labor and Industrial Laws of Bangladesh" [2007], Remisi Publication .
Halim,Md. Abdul; Labor and Industrial Law of Bangladesh [2011] CCB Foundation.
Faruque, Abdullah Al, Current Status and Evolution of Industrial Relation System in
Bangladesh, International Labor Organization, 2009

18
5. Labor Force Survey-2010, Bangladesh Bureau of Statistics.
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