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Citation Information

Type Journal Article - International Journal of Economics, Finance and Management
Title Determination of Minimum Wage for Garments Worker in Bangladesh Ensuring Firms Profitability
Author(s)
Volume 2
Issue 3
Publication (Day/Month/Year) 2013
Page numbers 250-255
URL http://www.ejournalofbusiness.org/archive/vol2no3/vol2no3_1.pdf
Abstract
This topic is related to the poor people or the subsistence peoples of Bangladesh. People who work as labor in the garments sector are the low income peoples. With the Government’s recent declaration of minimum wage as 3000 taka, the concern is whether this minimum wage is sufficient for them or not, having the profitability concern of the firms. For this reason it is necessary to take a basic consumption bundle (including food as well as nonfood items) and its market prices. Then fixed a wage which is minimum for the garments worker to maintain their life standard. After doing this we had to count the profitability of the firm at this wage. It is still possible for the firms to make profit with this increased minimum wage.
Without any profit the firm will not continue their production. So it is important that the firms make profit and maintain their production and the labor does not loose job. If $43 (tk3000) is fixed as the new minimum wage of a Bangladeshi RMG worker, he or she will still remain the lowest paid in the world. It is obvious that an entry level garments worker should get at least 5547.5 taka per month as wage which is the minimum wage. Lower than this would make the workers
unable to sustain.

Related studies

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Noman, Soeb Md Shoayeb. "Determination of Minimum Wage for Garments Worker in Bangladesh Ensuring Firms Profitability." International Journal of Economics, Finance and Management 2, no. 3 (2013): 250-255.
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