April 17, 2024
Industry

Clothing Brands Commit To Hike Rates To Offset Wage Increase

Several global clothing brands have formally committed to increasing rates for their Bangladeshi garment suppliers to offset the hike in worker wages which comes into effect from January 1.

“It’s quite encouraging that we have received formal letters from a few brands confirming their position to pay a price that absorbs the increase in wages,” BGMEA President Faruque Hassan said.

Hassan further said that these brands and retailers have provided assurances of their support to the factories in implementing the new wage rate.

As per the gazette notification, the new wage has come into effect from December 1, 2023 and the workers will start drawing the new wages beginning from January 1, 2024.

Earlier, BGMEA had constantly urged buyers to increase the rate for all orders being negotiated from December 1, 2023.

He also urged BGMEA members to communicate with their buyers so that the rate covers the additional cost caused by the wage increase and told them to show his letter as reference to the buyers.

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