The Minimum Wage Board has proposed Tk 12,600 as the minimum monthly wage for workers in Bangladesh’s iron foundry and engineering workshops sector, marking the first revision in 15 years since the last wage was set at Tk 4,220 in 2010.

The board has also recommended a five per cent annual increment for all workers, along with a risk allowance for employees directly engaged in the sector.

The proposals were included in a gazette notification issued by the Ministry of Labour and Employment (MoLE) on December 25, which invited objections or recommendations within 14 days of publication.

According to the draft proposal, a grade four worker would receive a minimum monthly wage of Tk 12,600, including Tk 7,000 as basic pay.

Additional allowances would comprise a house rent allowance, medical allowance, transport allowance, and risk allowance.

Workers living in divisional cities would receive 50 per cent of the basic pay as house rent allowance, while those in other cities would get 40 per cent.

The medical, transport, and risk allowances are set at Tk 1,000, Tk 800, and Tk 1,000, respectively.

This brings the total minimum wage for grade four workers to Tk 13,300 in divisional cities and Tk 12,600 in other areas. Apprentice workers would receive a total monthly wage of Tk 10,000.

For higher-grade employees, the proposed wages are as follows: Grade three workers would earn Tk 17,320 in divisional cities and Tk 16,352 in other areas, with a basic pay of Tk 9,680.

Grade two workers would receive Tk 22,975 and Tk 21,630, with a basic pay of Tk 13,450, while grade one employees would earn Tk 31,045 and Tk 29,162, with Tk 18,830 as basic pay.

The notification further specifies total wages including allowances: grade three employees would receive Tk 13,098 and Tk 13,905, grade two employees Tk 16,864 and Tk 17,940, and grade one employees Tk 16,010 and Tk 24,396, depending on location.