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Limited data of minimum wage board hinders employee assessment: experts

It should also establish a dedicated research wing, they said 
Photo: Star

The Minimum Wage Board (MWB) operates with limited data, which complicates assessments of employers' ability to pay and broader productivity issues, especially without a dedicated research department, said Mostafiz Ahmed, associate professor of social work at Jagannath University.

He was speaking at an event titled "Wage Determination of Minimum Wage Board: Scope, Challenges and Way Forward", organised by the Bangladesh Institute of Labour Studies, at The Daily Star Centre in the capital today.

The MWB lacks a research wing and dedicated researchers, so they should establish one, he suggested during his keynote presentation.

"Without clear calculations and economic justifications, the wage-setting process may lack transparency and fairness, which could lead to dissatisfaction among both workers and employers," Ahmed stated.

The MWB, the statutory body responsible for setting private-sector wages under the Bangladesh Labour Act 2006, receives and reviews feedback on recommended wage rates, adjusting them when necessary.

He also highlighted that MWB workplace inspections lack a standardised format.

Without consistent guidelines, inspections may be less effective, and the data collected might not provide a reliable foundation for making decisions, he added.

Ahmed pointed out that among 42 sectors, 20 have not seen regular wage increases for periods ranging from 6 to 40 years.

He also recommended expanding the MWB's human resources to enable effective operations.

Ahmed emphasised that sectoral wages should be revised every five years.

However, two sectors have seen no revision in the past 35 years, while wage revisions in eight sectors have been overdue for 10–15 years, and in 10 sectors for 6–9 years.

He proposed several reforms, including establishing a national minimum wage, democratising MWB representative selection, setting criteria for independent members, and improving sectoral representation and accountability.

He also recommended regular wage reviews, fixed meeting schedules, and publishing proceedings on the MWB website to keep workers and stakeholders informed.

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Limited data of minimum wage board hinders employee assessment: experts

It should also establish a dedicated research wing, they said 
Photo: Star

The Minimum Wage Board (MWB) operates with limited data, which complicates assessments of employers' ability to pay and broader productivity issues, especially without a dedicated research department, said Mostafiz Ahmed, associate professor of social work at Jagannath University.

He was speaking at an event titled "Wage Determination of Minimum Wage Board: Scope, Challenges and Way Forward", organised by the Bangladesh Institute of Labour Studies, at The Daily Star Centre in the capital today.

The MWB lacks a research wing and dedicated researchers, so they should establish one, he suggested during his keynote presentation.

"Without clear calculations and economic justifications, the wage-setting process may lack transparency and fairness, which could lead to dissatisfaction among both workers and employers," Ahmed stated.

The MWB, the statutory body responsible for setting private-sector wages under the Bangladesh Labour Act 2006, receives and reviews feedback on recommended wage rates, adjusting them when necessary.

He also highlighted that MWB workplace inspections lack a standardised format.

Without consistent guidelines, inspections may be less effective, and the data collected might not provide a reliable foundation for making decisions, he added.

Ahmed pointed out that among 42 sectors, 20 have not seen regular wage increases for periods ranging from 6 to 40 years.

He also recommended expanding the MWB's human resources to enable effective operations.

Ahmed emphasised that sectoral wages should be revised every five years.

However, two sectors have seen no revision in the past 35 years, while wage revisions in eight sectors have been overdue for 10–15 years, and in 10 sectors for 6–9 years.

He proposed several reforms, including establishing a national minimum wage, democratising MWB representative selection, setting criteria for independent members, and improving sectoral representation and accountability.

He also recommended regular wage reviews, fixed meeting schedules, and publishing proceedings on the MWB website to keep workers and stakeholders informed.

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