BANGLADESH LIVING WAGE ACADEMY

Living wage, in plain language

What is a living wage?

A living wage is pay for normal working hours that is enough for a worker and their family to afford a decent standard of living in their local circumstances. The costs include food, housing, healthcare, education and other necessities. The ILO’s 2024 agreement connects an estimate of needs with established wage-setting processes; an estimate alone does not set a legal wage.

সহজ ভাষায়
একজন শ্রমিক স্বাভাবিক কর্মঘণ্টায় যে মজুরি পান, তা দিয়ে তাঁর পরিবার স্থানীয় পরিস্থিতিতে সম্মানজনকভাবে জীবনযাপন করতে পারে কি না—এটাই জীবিকার উপযোগী মজুরির মূল প্রশ্ন।

Three figures to keep separate

Minimum wage

The legally applicable wage floor for the worker and sector concerned. Check the current official wage gazette.

Prevailing wage

The amount a worker actually receives. State the period, normal hours, pay components and deductions.

Living wage estimate

A needs-based reference for a defined place and time. It should publish its family, costs and earner assumptions.

How to read a wage gap

Compare an estimate and a wage on the same location, month, normal-hours and gross or net basis. The shortfall is the estimate minus comparable pay, with a floor of zero. Divide the shortfall by the estimate to express a percentage. Overtime earnings should be kept separate.

Teaching example only৳25,000 estimate − ৳18,000 comparable pay = ৳7,000 gap (28%)These figures are fictional and are not a Bangladesh wage benchmark.

Questions to ask about a payslip

  1. Which amount is base pay for normal working hours?
  2. Which allowances are regular, and which payments depend on attendance or targets?
  3. How much is overtime pay? Keep it outside the normal-hours comparison.
  4. What deductions reduce take-home pay, and are they lawful?
  5. Does the amount match the current sector wage floor and any collective agreement?

How progress can happen

Workers and unions can use evidence in bargaining. Employers can review wage structures and agree improvement plans. Buyers can adjust pricing and purchasing terms. Government can consider workers’ needs and economic factors through its wage institutions. Social protection and public services matter too. None of these actions removes an employer’s existing legal obligations.

Who must be heard?

Women, young workers, persons with disabilities, migrant workers, home-based workers and people in informal work may face distinct barriers. Participation should be accessible and safe; employers should not choose worker representatives. For a self-employed person, living income may be the appropriate concept rather than an employee wage.

Further reading: ILO living wages · ILO needs methodology (2025).