LABOUR MARKET PROFILE
2016 Bangladesh
LO/FTF Council, Analytical Unit
Copenhagen, Denmark
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2016
Bangladesh 2016 Page ii
PREFACEThe LO/FTF Council presents this Labour Market Profile
as a yearly updated report that provides a
comprehensive overview of the labour market's
situation.
The report is divided in eleven thematic sections
including: trade unions, employers’ organizations,
tripartite structures, national labour legislation,
violations of trade union rights, working conditions,
situation of the workforce (with subsections such as
unemployment, sectoral employment, migration,
informal economy, child labour, gender, and youth),
education (with subsection vocational training), social
protection, general economic performance, and trade.
Additionally, Appendix presents data on trade union
federations; new approved labour market related
legislations; and status of ratification of International
labour Organization (ILO) Conventions.
Estimations are based on data from international
databanks (e.g. ILO’s Key Indicators of the Labour
Market (KILM) and NATLEX as well as the World Bank’s
World Development Indicators), national statistical
institutions and ministries. Other information is collected
from the International Trade Union Confederation
(ITUC) and U.S. Department of State’s Annual Country
Reports on Human Rights Practices. Facts are also
gathered from media sources (e.g. The Economist, the
British Broadcasting Corporation (BBC), LabourStart,
The Guardian, national news, etc.) along with trade
unions centers, employers’ organizations, NGOs, among
others.
Several indexes such as the Global Rights Index, the
Doing Business Index, the Governance Indicators, and
the Human Development Index are used as proxy
indicators of the labour market’s environment. The
indexes’ methodologies and the data quality can be
followed by the sources websites.
This report was published in April 2017.
ACKNOWLEDGMENT The LO/FTF Council is the Danish trade union council for
international development co-operation. It was
established, under a slightly different name, in 1987 by
the two largest Danish confederations, the Danish
Federation of Trade Unions (LO) and the Danish
Confederation of Salaried Employees and Civil
Servants (FTF). The organization activities are related
to: i) to support democratic development of the trade
union movements in Africa, Middle East, Asia and Latin
America; and ii) to contribute to democratic
development in the societies in which the unions operate.
This report is prepared by the LO/FTF Council’s
Analytical Unit in Copenhagen with support from our
Sub-Regional Office in the Philippines. The Bangladesh
Institute of Labour Studies (BILS) contributed with
updated data on trade union membership.
Other labour market profiles are available at our
website:
http://www.ulandssekretariatet.dk/content/landeanaly
ser
Should you have questions about the profiles you can
contact Kasper Andersen ([email protected]), Manager of
the Analytical Unit.
Cover Photo: Carsten Snejbjerg
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2016
Bangladesh 2016 Page 3
EXECUTIVE SUMMARY
he People's Republic of Bangladesh is experiencing
structural changes on the labour market. As an
example, many workers are leaving the agricultural
sector entering the service and industry sectors. A
majority of Bangladeshi workers are still working in the
informal economy characterized by inadequate
earnings, low productivity and difficult conditions.
Overall, it is cumbersome to doing business in the
country, including formalizing a business.
The country experienced high economic growth the last
two decades. It did not reduce working poor living
below US$3 a day significantly, which remains high at
86%. On the positive side, the near-poor segment of
the population started to increase in the 2010s, so far.
This is, among others, an impact of an upsurge of wage
and salaried workers in the formal sector.
Few national labour related legislation reforms were
approved during the last three years. Generally,
labour related legislations have flaws in terms of
protection workers’ rights, as an example, a draft of
the Bangladesh Export Processing Zone (EPZ) Labour
Law has disparities of the Labour Act. In addition,
enforcing the labour regulations reach the employed in
the formal sector not the workers from the informal
economy. And the government lack resources of
implementing the regulations effectively. Bangladesh
has a rock-bottom ranking on the Global Rights Index,
which is related to many cases of systematic violations
of trade union rights in recent years.
The country’s employment-to-population rate is higher
than the South Asia average, especially among women.
The labour force participation rate has been on a slow
declining rate. Total unemployment is low with a flat
growth, but youth unemployment is on a rise hovering
above the region average rate. It points towards an
impact of the urbanization and higher demand for
decent work in the formal sector.
Employment is dominated by men. Inactivity on the
labour market is frequent among women. Still one out
of two of the total employment works in the agricultural
sector with a relatively low Gross Domestic Product
(GDP) share per worker. While the labour productivity
is increasing, it remains on a lower rate and pace than
the South Asia average. As indicated, the youth labour
force participation rate is decreasing in Bangladesh.
This is not only related to a rise in enrolment in
secondary and tertiary education levels, but also a
worrisome increase in the proportion of young people
not in employment, education or training (NEET),
especially women.
Since the labour market is not offering sufficient decent
jobs many workers are seeking opportunities in other
countries. Today, personal remittances have turned an
important aspect of economic growth as well as
reduction of working poor. However, migrant labour
experiences vulnerable working conditions in terms of
temporary short-term contracts.
Child labour has dropped significantly, particularly in
the agricultural sector. In contrast, it grew in the
industrial sector and slightly in the service sector. The
general drop in child labour is associated to the just
mentioned urbanization and increasing enrolment in
secondary and tertiary education. The education system
in terms of vocational training was struggling with
stereotypical occupations. But, on the positive side,
large programs were recently launched to scale up the
enrolment in vocational training.
Another clear deficiency of the labour market in
Bangladesh is the extremely low coverage of social
protection both in health social protection and in
contribution to a pension scheme. Diverse labour market
programs have a high number of beneficiaries, but
targeting avoids large segment of the poorest
population. A National Social Protection Strategy was
launched in 2015 but its impact remains uncertain.
The number of trade unions and membership entered a
high upsurge in 2013 due to reforms of the Labour Act
in the aftermath of the dramatic collapse of the Rana
Plaza garment factory. The trade union density of the
wage workers increased from 17% in 2012 to 19% in
2015. But many union applications were rejected in the
period from 2013 to 2016.
A majority of central tripartite structures and social
dialogue are confronting challenges, e.g. the
readymade garment industry sector demonstrates many
industrial conflicts between employers’ organizations
and trade unions. By the same token, collective
bargaining agreements have a very low coverage
among wage and salaries workers. On the positive
side, as an impact of the Rana Plaza collapse and with
pressure from international stakeholders, there is a
higher attendance of occupational safety on the factory
level.
T
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2016
Bangladesh 2016 Page iv
COUNTRY MAP
Source: Google
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2016
Bangladesh 2016 Page v
TABLE OF CONTENTS
Preface........................................................................................................................................................................ ii
Acknowledgment ....................................................................................................................................................... ii
Executive Summary .................................................................................................................................................... 3
Table of Contents ........................................................................................................................................................ v
Trade Union ................................................................................................................................................................ 1
Employers’ Organisations .......................................................................................................................................... 2
Central Tripartite Structures ......................................................................................................................................... 3
Collective Bargaining Agreements ........................................................................................................................................................ 4
National Labour Legislation ........................................................................................................................................ 4
Observations on the labour legislation ................................................................................................................................................ 5
Ratified ILO Conventions ......................................................................................................................................................................... 5
Trade Union Rights Violations .................................................................................................................................... 5
ILO Complaints Procedure ...................................................................................................................................................................... 6
Working Conditions .................................................................................................................................................... 6
Workforce ................................................................................................................................................................... 7
Unemployment ........................................................................................................................................................................................... 8
Sectoral Employment ................................................................................................................................................................................ 9
Migration ..................................................................................................................................................................................................11
Informal Economy ....................................................................................................................................................................................12
Child Labour .............................................................................................................................................................................................13
Gender ......................................................................................................................................................................................................14
Youth ..........................................................................................................................................................................................................15
Education .................................................................................................................................................................. 16
Vocational Training.................................................................................................................................................................................16
Social Protection ....................................................................................................................................................... 17
General Economic Performance ................................................................................................................................ 19
Trade ........................................................................................................................................................................ 21
Trade Agreements ..................................................................................................................................................................................22
Export Processing Zones (EPZ) ..............................................................................................................................................................22
Appendix: Additional Data ....................................................................................................................................... 24
Trade Union Federations in Bangladesh, 2016 ...............................................................................................................................24
List of approved labour related legislations in Bangladesh, 2014-2016 .................................................................................25
Ratified ILO Conventions .......................................................................................................................................................................26
References ................................................................................................................................................................ 27
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2016
Bangladesh 2016 Page vi
Tables Table 1: Status of Trade Unions in Bangladesh ...................................................................................................................................................................... 1 Table 2 : Labour Disputes & Dispute Settlement, 2010-2015, Number of dispute cases................................................................................................ 3
Table 3: Status of Collective Bargaining Agreements in Bangladesh ................................................................................................................................. 4
Table 4: Number of approved national labour, social security and human rights related legislations in Bangladesh, 2014-2016 ........................ 4
Table 5: Global Rights Index, Bangladesh ranking, 2014-2016 ........................................................................................................................................ 5 Table 6: ILO Complaints Procedure ......................................................................................................................................................................................... 6
Table 7: Wages and Earnings .................................................................................................................................................................................................. 6
Table 8: Working Conditions in Bangladesh ........................................................................................................................................................................... 7 Table 9: Employment-to-population ratio, Age and Gender distribution, 2016 ............................................................................................................... 7
Table 10: Inactivity rate in Bangladesh, 2016 ....................................................................................................................................................................... 8
Table 11: Unemployment and Youth Unemployment Rate, 2016, % ................................................................................................................................. 8 Table 12: Employment sector share in Bangladesh, 2010 .................................................................................................................................................... 9
Table 13: GDP share by sector in % (2015) and GDP per worker (2010) in Bangladesh .......................................................................................... 10
Table 14: Skills Mismatches between Job Requirements & Qualifications in Bangladesh, 2013 ................................................................................. 10 Table 15: Migration Facts ........................................................................................................................................................................................................ 11
Table 16: Working Children Proportion of all Children...................................................................................................................................................... 13
Table 17: Statius of Vocational Training ............................................................................................................................................................................... 17
Table 18: Social protection facts in Bangladesh and Asia & the Pacific (AP), 2011, % ............................................................................................... 17 Table 19: Pension Benefits, Coverage and Contributions in Bangladesh and and Asia & the Pacific (AP), 2011, %............................................... 18
Table 20: Key Facts on General Economic Performance in Bangladesh, 2015 .............................................................................................................. 19
Table 21: Poverty and middle-class trends in Bangladesh, 2000-2010 ......................................................................................................................... 20 Table 22: Bangladesh’s Ease of Doing Business ................................................................................................................................................................... 20
Table 23: Bangladesh's Governance Indicators, 2010-2015 ............................................................................................................................................ 21
Table 24: Trade & Foreign Direct Investment (FDI) in Bangladesh, 2015 ........................................................................................................................ 21 Table 25: Trade Union Federations in Bangladesh, 2016 .................................................................................................................................................. 24
Table 26: List of approved labour related legislations in Bangladesh, 2014-2016 ..................................................................................................... 25
Table 27: Ratified ILO Conventions........................................................................................................................................................................................ 26
Figures Figure 1: Bangladesh Garment Sector Union Organizing Applied for the Joint Directorate of Labour, 2010-2016 ................................................ 1
Figure 2: Wage Trends in Bangladesh .................................................................................................................................................................................... 7 Figure 3: Labour force participation rate in Bangladesh and South Asia (SA).................................................................................................................. 8
Figure 4: Unemployment Trends, 2007-2016, % .................................................................................................................................................................. 8
Figure 5: Unemployment by level of educational attainment, 2005, % ............................................................................................................................. 9 Figure 6: Employment by aggregate sector, 1991-2010 .................................................................................................................................................... 9
Figure 7: Labour productivity, 2007-2016 ........................................................................................................................................................................... 10
Figure 8: Sector Structure of output in Bangladesh, 2006-2015, % of GDP .................................................................................................................. 11 Figure 9: Status in employment in Bangladesh, 1996-2011 .............................................................................................................................................. 11
Figure 10: Formal and informal employment in Bangladesh, 2013 .................................................................................................................................. 11
Figure 11: Ratio of net migration to total population in Bangladesh and South Asia, 1998-2012 ............................................................................. 12
Figure 12: Proportion of informal employment to total employment, 2002-2013, % ................................................................................................... 13 Figure 13: Working children aged 5-17 by broad industry, 2002/03-2013 ............................................................................................................... 14
Figure 14: Females in Management & Ownership, 2013 ................................................................................................................................................... 14
Figure 15: Labour force participation rate by sex, 1995-2016, Total and Youth, % ................................................................................................... 15 Figure 16: Unemployment by sex, 1995-2016, Total and Youth, % ................................................................................................................................ 15
Figure 17: Proportion of young people not in employment, education or training (NEET), 2005-2013, % ............................................................... 15
Figure 18: School Level and Enrolment in Bangladesh & South Asia, 2005-2014, Males and females, % ................................................................ 16 Figure 19: Ratio of Vocational Pupils in Secondary Education, 2004-2014, % ............................................................................................................. 17
Figure 20: Health-care Expenditure Not Financed by Private Household's Out-of-pocket Payments, 1995-2011 .................................................. 18
Figure 21: GDP growth per capita, 2006-2015, Bangladesh and South Asia, Annual % ............................................................................................ 19
Figure 22: GDP per capita, Purchasing Power Parity, US$ and Gini Index, 2005-2015 ............................................................................................. 19 Figure 23: Inflation in consumer prices trend ........................................................................................................................................................................ 20
Figure 24: Gross Fixed Capital Formation trend ................................................................................................................................................................. 20
Figure 25: Trade and Foreign Direct Investment trends, 2006-2015, % of GDP ........................................................................................................... 21 Figure 26: Bangladesh's Products Share of Exports, 2014 ................................................................................................................................................ 22
Figure 27: Bangladesh's Main Export Markets, 2015 ......................................................................................................................................................... 22
Figure 28: Employment in EPZ in Bangladesh, 2008-2013, numbers ............................................................................................................................... 23 Figure 29: Employment in EPZs in Bangladesh, 2013 Number of employees in EPZs and % of total ......................................................................... 23
Figure 30: Bangladesh Basic Wage in EPZs, 2010-2013 .................................................................................................................................................. 23
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2016
Bangladesh 2016 Page 1
TRADE UNION
The trade unions are divided into three categories: i)
enterprise level; ii) industrial level; and iii) national
level. According to Bangladesh Labour Act from 2006,
at least 30% of the total workers in an enterprise can
form a union. A maximum three unions can exist in an
enterprise. In practice, there are enterprises with more
than three unions. Members of the unions must be
workers of that enterprise level.
A total of 7,659 basic unions are registered, among
others at least 507 unions in the garment sector, 16
unions in the shrimp sector and 13 unions in the leather
and tannery sector. Around 70% of the basic unions are
affiliated with national federations. Out of 111
industrial federations and 15 Garment Federations,
some are affiliated with national federations. At least
2.9 million members are in basic unions; there are more
than half a million members in industrial federations
and about 1.2 million members in national federations.1
Stated differently, they are mainly concentrated in the
formal sector, though some have started organizing
workers from the informal economy like construction,
rice processing, ship-breaking, among others. Available
data suggests that the trade union density of the
waged workers increased from 17% in 2012 to 19% in
2015 while it was estimated from 3.3% to 4.0%,
respectively, of the total labour force (Table 1).
Table 1: Status of Trade Unions in Bangladesh
Number of trade national union centres 32
Number of sectoral trade union federation 169
Number of basic unions 7,659
Members of trade unions 2.9 million
Trade union members share of labour force 4 %
Trade union members share of waged workers
19 % *
Women member share of trade unions 15 %
Affiliated trade unions from the informal economy
N/A
* This estimation does overestimate the real number of trade union
member share of waged workers since it includes affiliated members
from the informal economy.
Source: LO/FTF research and estimations from Status in employment -
ILO modeled estimates, Nov. 2016.
The Industrial Relations Ordinance which regulates
trade union activities permits workers to organize
themselves into trade unions. However, trade unions
rights are not adequately protected or enforced in
practice (see more on the section: National Labour
Legislation).
The labour intensive readymade garment industry
(RMG) has experience many industrial conflicts. And in
the period from 2010 to 2012 very few new trade
unions in this sector were registered by the Joint
Directorate of Labour (JDL). In recent years, there has
been a high increase in new approved unions in the
sector. This was related to amendments on the Labour
Act in July 2013 that changed the situation rapidly. This
was aftermath of the collapse of an eight-story
garment factory in Rana Plaza Dhaka in April 2013
that killed 1,134 people and injured hundreds of
others. In the period from 2013 to 2016, which peaked
in 2014, total 791 unions applied for registration to
JDL and 382 were approved, which equals 49%
(Figure 1).
Figure 1: Bangladesh Garment Sector Union Organizing Applied for the Joint Directorate of Labour, 2010-2016
Source: Solidarity Center
It is worth mentioning that a significant number of trade
unions in RMG sector become inactive due to factory
closures or alleged unfair labour practices on the part
of employers.
Sramik Karmachari Oikya Parishad (SKOP)
The SKOP is an alliance of the National Federation of
Trade Unions established in 1983 when the military
government of Bangladesh banned all trade union
activities in the country. SKOP was formed as a
platform of joint action on national issues concerning
labour market and trade unions as well as coordinate
demands for restoring workers’ rights during a time
when the country was under martial law. SKOP
represents as many as sixteen national centres of trade
unions and constitutes more than 90% of the workforce
organised by the national trade union movement.
1 1
84
182
61 55
1 7 5
44
155 148
43
0
20
40
60
80
100
120
140
160
180
200
2010 2011 2012 2013 2014 2015 2016
Number of unions approved
Number of unions rejected
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 2
Although the government hardly prioritize workers’
rights issues over the issue of industrial peace and
global competitiveness, the SKOP has given
opportunities for its affiliated unions to force the
government and the employers to listen to the ‘voices’
of the workers—both organized and unorganized.
In recent years SKOP supported several strikes and
rallies. For instance in 2016, the organization held a
rally in front of the National Press Club and also
protested the Bangladesh Power Development Board’s
decision to shift operational electricity of Rangpur and
Rajshahi zones to North-West Zone Power Distribution
Company Ltd.
The National Coordination Committee on Workers
Education (NCCWE)
An alliance of fourteen trade unions has joined into
NCCWE which has become a well-recognized and
credible body to engage in tripartite social dialogue.
The institution represents workers in various forums as
well as activities such as project development.
The Bangladesh Institute of Labour Studies (BILS)
BILS was established in 1995. Out of total 32
registered national trade union centres, 14 of them are
affiliated to this organization. BILS has active
representative in various worker related Government
Policy Intervention Committee. As a whole BILS has a
great access to the working class through its affiliated
national trade union centres and basic unions.2
The organization is the only labour research institution
of Bangladesh. It develops the capacity of the trade
union movement and brings trade unions with different
political views together in concrete co-operation in the
formulation of policy development; inputs and
recommendations.
As a joint institution for the labour movement, BILS has
no direct relation with the political parties in
Bangladesh and has a democratic constitution with
regularly free elections for offices at all levels. Policy
recommendations based on BILS research are being
brought forward to SKOP, which enters into negotiation
with government and political parties.
Aiming to achieve better result in employer-employee
relationship, BILS plays an important role to strengthen
the tripartite mechanism between the government,
employers and employees, in association with a wide
range of other national and international institutions,
e.g. ILO.
BILS regularly organize meetings and dialogues
amongst not only the member unions but beyond. BILS
research input cut across areas such as minimum wage in
garment, shrimp processing, construction and rice
processing sectors, labour law reform, decent work and
has been widely used by the trade unions and SKOP in
their policy advocacy and workers’ awareness
programs.
BILS has registered 20 out of the total 32 national
trade union federations. They have a total trade union
membership of 1.6 million workers in 2016 with a
growth of 7% on average in the period from 2012 to
2016. The largest trade union is Jatiyo Sramik League
with 535,000 members and a growth at 256% from
2012 to 2016 followed by Bangladesh Jatiyatabadi
Srakik Dal with 248,000 members (see more on Table
25).
EMPLOYERS’ ORGANISATIONS
Bangladesh Employers’ Federation (BEF)3
BEF was founded in 1998 and is the national employer
organization, representing 136 affiliates with around
90% of established employers in the private sector. BEF
is represented in most national bi- or tripartite bodies.
The Federation is also a member of the International
Organization of Employers (IOE) and participates in
International Labour Organization (ILO) activities,
representing the employers of Bangladesh. BEF
maintains close contact with employers’ organizations in
other countries and exchanges views and information on
current issues.
BEF provides advisory services on industrial relations,
productivity improvement assistance, labour
court assistance, minimum wages board representation
and inputs to national policy issues. The organization
also promotes programs such as the training program
on Performing Human Resources – Application of Best
Practices; the training program on Workplace Safety
and Compliance; and training and sharing good
practices on labor law and industrial relations.
In the organization, the garment sector has two very
active employers’ organisations: the Bangladesh
Garment Manufacture and Exporters Association
(BGMEA) and the Bangladesh Knitwear Manufactures &
Exporters Association (BKMEA).
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 3
CENTRAL TRIPARTITE STRUCTURES
In Bangladesh there are eight established tripartite
bodies that are installed, but, in practice, only two are
considered as reaching results in establishing
harmonious industrial relations, i.e. the Tripartite
Consultative Council (TCC) and the Minimum Wage
Board (MWB).4
Tripartite Consultative Council (TCC)
TCC is headed by the Ministry of Labour and
Employment (MOLE) and constitutes sixty members
(twenty each from the government, trade unions and
employer organizations). The institution hosts discussions
on a various issues such as formulation of labour
policies, amendments of labour laws, adoption of ILO
Conventions and Recommendations by the government,
among others. In recent years, the institution has
contributed to the amendments of the Labour Law from
2006 (Amendment in 2010 and 2013) along with
various policies, e.g. the National Labour Policy 2012.
This could be interpreted as improvements in the social
dialogue while it remains fragile in Bangladesh.
Minimum Wage Board (MWB)
The Government must establish a wage board consisting
of a Chairman, an independent member and a
representative each from workers and employers, all
appointed by the Government. The Board gives
recommendation to changes in the minimum wage, which
the government can either accept or send back to
review by the Board. The board must meet every five
years. A Wage board covering traditional unorganised
sectors has been established in shrimp processing, metal
and construction after pressure from trade union forums.
The minimum rates of wages for any industry may be
re-fixed after every five years as may be directed by
the Government in any time of the year. The latest
minimum wage readjustment was from 2013 (see also
the section: Working Conditions).
Labour Court
The Labor Act establishes mechanisms for conciliation,
arbitration, and dispute resolution by a labor court. The
Labor courts also have the power to order the
reinstatement of workers fired for union activities. Civil
servants and security forces are covered under
different terms and conditions of employment as well as
file cases in specified courts.
Data reveal that the Labour Court registered more than
100 dispute cases every year and a large majority
were settled in the period from 2010 to 2013. The
number of disputes fell sharply down to 28 cases in
2014 with an upsurge again in 2015 (Table 2). This
was related to many disputes and settlement was not
recorded if it was resolved bi-partite. Just after Rana
Plaza complex collapse in April 2013 there was a
period of higher attention of improved social dialogue
of resolving disputes between employers and
organized workers. The labour justice system in
Bangladesh is slow. Sometimes cases have to stay for
years in the backlog, and courts usually fail to provide
remedy for labour abuses. 5
Table 2 : Labour Disputes & Dispute Settlement, 2010-2015, Number of dispute cases
Year No. of
disputes
No. of settle
dispute
No. of
unsettle
dispute
2010 154 150 4
2011 100 93 7
2012 111 107 4
2013 116 113 3
2014 28 24 4
2015 (Jan-Aug)
53 47 6
Source: Labour Directorate under the Ministry of Labour &
Employment
Other sources show that the Bureau of Manpower,
Employment and Training (BMET) received about 6,000
complaints of salary disputes each year in 2015 and
2016. Around 50% were resolved without the cases
going to the Labour Court. Of 3,000 cases that went
before the Court, 1,000 were resolved through
mediation. According to BMET, the Labour Court
ordered employers to pay their workers in around
1,400 cases each year. However, the employers, in
about 350 cases, ignored the Labour Court's orders.6
Not to mention, in spite of the presence of institutional
mechanisms, workers suffer due to constant negligence
of labour rights and weak enforcement mechanism.
BMET formally investigated complaints of unfair union
discrimination. According to the Solidarity Center, the
Ministry only investigated 11 of 32 filed cases of
antiunion discrimination.
Few strikes follow the cumbersome legal requirements.
Instead strikes or walkouts often occur spontaneously,
especially at workplaces without unions.
Other Tripartite organs
National Industrial Health and Safety Council
Bangladesh Labour Welfare Foundation
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 4
National Skill Development Council
National Child Labour Welfare Council
National Wages and Productivity Commission
Collective Bargaining Agreements
Legally registered trade unions are entitled to bargain
collectively with employers as Collective Bargaining
Agent. However, historically there have been many
conflicts between employers and the organized workers
in Bangladesh which confronted the social dialogue.
Sources have reported that some companies’ workers
do not exercise their collective bargaining rights due to
their unions’ ability to address grievances with
management informally or due to fear of reprisal.7
Based on the limitations of data availability, the
application of Collective Bargaining Agreements (CBAs)
is very narrow. Albeit it is based on somewhat outdated
data, it can still be used as proxy indicator. Data
suggest the workers’ CBA coverage at 5.0% of the
wage and salaried workers in 2006 (Table 3). On the
positive side, in 2015, garment sector unions and their
management reached 22 CBAs in factories with active
unions. This could be interpreted as progress in the
social dialogue in Bangladesh. According to BILS, 18
CBAs were registered in 2016.
Table 3: Status of Collective Bargaining Agreements in Bangladesh
Number of CBAs (2016) 18
Workers covered by CBAs (2006) (wage & salaried earners)
5.0 %
Share of workers covered by CBA (2006) 1.1 %
Source: BILS; ILO, Social Dialogue Indicators, International Statistical Inquiry 2008-09, Technical Brief, 2011
NATIONAL LABOUR LEGISLATION
Constitution8
The constitution of Bangladesh was established in 1972,
and has been amended 15 times since then. The
Constitution prohibits forced labour and gives the right
to form associations or unions, to reasonable wages, to
social security and equal opportunity in employment.
Work is a right and duty, and local government are
encouraged to institute representation of workers.
Labour Act9
The Labour Act of 2006 consolidated 25 separate acts
into one labour code. It regulates employment relations,
working hours, wages, trade unions and industrial
relations. It sets maternity benefits, compensations for
injury and accidents, Occupational Safety and Health
Standards, the labour inspectorate and prohibits child
labour. It also establishes the Wage Board, the Labour
Court, the National Council for Industrial Health and
Safety, and the procedures for industrial disputes
including strikes and lockouts.
In response to the demand of national trade unions
movement as well as international pressure as part of
the disastrously Rana Plaza collapse, Bangladesh’s
Government amended the Labour Act in July 2013.10
Several provisions to improve workplace safety have
been included in the law. There have also been some
improvements in terms of Freedom of Association and
Collective Bargaining, e.g. allowing workers to call on
outside experts for advice during collective bargaining
and there is no longer a requirement that the names of
union leaders are provided to employers. In the public
industrial sector, workers are allowed to elect 10% of
their enterprise officers from outside the workplace,
although this right is not extended to workers in the
private sector. After much delay, the Bangladesh
Labour Rules 2015 in September 2015 was published
on the gazette.11
However, both the Bangladesh's trade union movement
and ILO have raised concerns in issues that were
excluded by the amendments.12 Among others, 30% of
the enterprises workforce still must vote for the
establishment of a union. Again, it did not extend
freedom of association and collective bargaining rights
to workers in export processing zones. It has also been
observed that some new provisions of the law, for
example with respect to the rights of workers who are
contracted for services. Furthermore, new exclusions
from coverage of the labour law of certain sectors may
raise additional concerns about conformity with ratified
conventions.
Other labour legislations
Several other labour related legislations exist to
regulate and set standards and restrictions for the
labour market. 13 ILO has registered a total 173
national labour, social security and human rights related
legislations. One legal piece was approved in 2014
while it increased to four pieces in 2015 and five in
2016 (Table 4). More information on the legislations is
available in Appendix Table 26).
Table 4: Number of approved national labour, social security and human rights related legislations in Bangladesh, 2014-2016
2014 2015 2016
Number of new legislations 1 4 5 Source: ILO, NATLEX, Bangladesh
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 5
Observations on the labour legislation
The International Trade Union Confederation (ITUC) has
a wide range of observations of the labour legislations
protection of trade union rights that, among others, are
related to:14
Power to refuse official registration on arbitrary,
unjustified or ambiguous grounds.
Formalities and/or requirements which excessively
delay or substantially impair the free establishment
of organizations.
Restrictions on trade unions’ right to establish
branches, federation and confederation or to
affiliate with national and international
organizations
Undue or excessive privileges granted to certain
organizations (such as privileges going beyond that
of priority in representation for such purposes as
collective bargaining or consultation by
governments.
Restrictions on the right to elect representatives and
self-administer in full freedom.
Restrictions on the right to freely organize activities
and formulate programs.
Administrative authorities’ power to unilaterally
dissolve, suspend or de-register trade union
organizations.
Farms of less than five workers are excluded from
the Bangladesh Labour Act.
Obligation to observe an excessive quorum or to
obtain an excessive majority in a ballot to call a
strike.
At the company level, strikes are not allowed in new
establishments for three years from the date they
begin commercial operations, where the factory is
newly built, owned by foreign investors or
established with foreign aid.
Authorities’ or employers’ power to unilaterally
prohibit, limit, suspend or cease a strike action.
Excessive civil or penal sanctions for workers and
unions involved in non-authorized strike actions.
Other sources have noted that the government does not
always enforce applicable law effectively or
consistently. Among others, and as previously
mentioned, the Labor Law establishes mechanisms for
conciliation, arbitration, and dispute resolution by a
labour court. Again, workers in a collective-bargaining
union have the right to strike in the event of a failure to
reach a settlement. But, in practice, few strikes followed
the cumbersome legal requirements, and strikes or
walkouts often occurred spontaneously. 15 Equally
important is that Export Processing Zones (EPZs)
currently do not allow trade union participation which is
a notable exception to the national labor law (see also
the sub-section: Export Processing Zones).
Ratified ILO Conventions
With reference to Bangladesh’s ratification of
international labour standards, a total 35 of
International Labour Organization's (ILO) Conventions
are ratified (see also Appendix Table 27):16
Fundamental Conventions: 7 of 8.
Governance Conventions (Priority): 2 of 4
Technical Conventions: 26 of 177.
Out of 35 Conventions ratified by Bangladesh, of
which 33 are in force, 2 Convention have been
denounced; none has been ratified in the past 12
months.
The latest Conventions are the Maritime Labour
Convention, 2006 (MLC, 2006) from November 2014
and the Seafarers' Identity Documents Convention
(Revised), 2003 (No. 185) from April 2014 (see also
Appendix Table 27).
TRADE UNION RIGHTS VIOLATIONS
Bangladesh was ranked 5 out of +5 of ITUC’s Global
Rights Index (Table 5) and classified with ‘no
guarantees of rights’. According to ITUC, this is
interpreted as one of the worst countries in the world to
work in. While the legislation may spell out certain
rights, workers have effectively no access to these rights
and are therefore exposed to autocratic regimes and
unfair labour practices.17
Table 5: Global Rights Index, Bangladesh ranking, 2014-
2016
2014 2015 2016
Ranking on the Global Rights Index
5 5 5
Note: Five clusters in total with ratings from 1 to 5. A country is assigned the rating 5+ by default, if the rule of law has completely broken down. Source: ITUC, Global Rights Index
ITUC registered 21 cases on the systematic violations of
trade union rights from 2015 to 2017 (March) which is
summarized below:18
Obstacles remain to the registration of trade
unions.
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 6
Arrests, suspensions and threats of prosecution
following garment workers’ strike.
Dismissed for forming a union.
Union registration refused at three Azim Group
clothing factories.
Union busting at garment factory.
Anti-union dismissals continue at Chevron.
Union busting and unfair dismissal at Telecom
Company.
Seven demonstrators injured while asking for the
truth about the recent death of among many
deaths in the Bangladeshi shipbreaking industry.
Nurses charged by police.
Multinational energy giant Chevron has fired
workers by text message in order to intimidate
them and discourage union organizing.
Chevron sacks union organizers.
Union busting and police violence against garment
workers.
Mobile phone company union denied recognition.
Forty workers hurt in clash with police.
No justice for murdered union leader three years
after death.
Workers dismissed after striking over safety
concerns.
Union leaders attacked and dismissed for raising
safety concerns.
Anti-union tactics rife in garment factories.
Workers beaten.
Anti-union discrimination against union leader.
Other sources have also registered several cases of
freedom of association and the right to collective
bargaining. Not to mention, some instances of bonded
labour and domestic service, predominately in rural
areas. Children and adults were forced into domestic
servitude and bonded labour that involved restricted
movement, non-payment of wages, threats, and
physical or sexual abuse.19
ILO Complaints Procedure
ILO has one confidential, active freedom of association
case with Bangladesh that was raised by ITUC in April
2016. There are no follow-up cases and with 15 closed
cases (Table 6).
Table 6: ILO Complaints Procedure Freedom of Association Cases, 2016
Type of case Number og cases
Active 1
Follow-up 0
Closed 15
Source: ILO, NORMLEX, International Labour Standards country profile,
Bangladesh
WORKING CONDITIONS
In principle, the National Minimum Wage Board
(NMWB) must meet at least every five years in a
tripartite forum to set wage structures and benefits
industry by industry. Currently the lowest minimum
monthly wage was set in December 2013 at 1,500
taka (US$19) for all economic sectors not covered by
industry-specific wages. The government also agreed in
November 2013 to raise the minimum monthly wage for
garment workers to 5,300 taka (US$67) per month, an
increase of 74%, after protests and strikes in the crisis-
hit industry. The minimum wages have not been adjusted
since then. Even so wages in the garment sector often
were higher than the minimum wage. Many others have
claimed that many garment factories are failing to pay
a new minimum wage.
Table 7: Wages and Earnings Monthly average, median and Legal Minimum Wages
Taka US$
Average wage (2013)
7,388 95
Minimum wage (garment industry) (2013-2016)
5,300 67
Minimum wage (lowest) (2013-2016)
1,500 19
Real average wage growth (2006-2016)
111 %
Real minimum wage growth (2006-2016)
220 %
Source: ILO, Global Wage Report 2016/17; and WageIndicator.org,
Bangladesh
The minimum wage is not indexed to inflation. The
Minimum Wage Board occasionally introduces cost-of-
living adjustments to wages in some sectors, though. The
minimum wage has gradually experienced a growing
gap between the nominal and real minimum wage. This
gap was estimated on a negative value at 7.6% on
average in the period from 2006 to 2016. This is
interpreted as an increasing negative affect on the
wage purchasing power due to the relatively high
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 7
inflation in consumer prices (see also Figure 23). On the
other hand, it was noted that the real wage grew by
3.0%, on average, in the period from 2006 to 2015
(Figure 2).
Figure 2: Wage Trends in Bangladesh 2006-2016, Taka and %
Source: Estimations based on ILO, Global Wage Report 2016/17; and
WageIndicator.org, Bangladesh
Sources have argued that the government does not
effectively enforce minimum wage, hours of work, and
occupational safety and health standards in all sectors.
Although increased focus on the garment industry
improved compliance in some garment factories,
resources, inspections, and remediation are generally
not adequate across sectors, and penalties for
violations are not sufficient to deter violations. 20
Especially the construction, ready-made garment, and
ship-recycling sectors are often singled out with respect
to low occupational safety and health standards due
the sectors growth and visibility, but it is a problem in
all sectors.
Bangladesh has a rising trend of precarious and casual
forms of employment and these wages are around two-
fifth of regular workers. 21 By the same token, the
women’s wages from the more informal economy are
only two-thirds of men’s earnings.
The labour market has confronted insufficient number of
labour inspectors. As of April 2016, the Ministry of
Labour and Employment (MOLE) had 277 active
inspectors of which 235 had been hired after Rana
Plaza collapse. Based on the ratio of inspectors to total
labour force was estimated of 1 per 307,000 workers
while a ratio to employees was 1 per 66,000 workers.
The ILO recommends 1 per 40,000 workers in less
developed countries. 22 The ministry is in progress of
hiring an additional 169 inspectors and strengthening
the Directorate of Labour to the Department of Labour.
Inspections were supposed to be unannounced, but
inspectors sometimes notify factory owners of coming
inspections. Table 8 below provides an overview of the
working conditions in Bangladesh.
Table 8: Working Conditions in Bangladesh23
Normal Weekly Hour Limit 48
Overtime Limit 2 hours per day and 12
hours per week
Max. Weekly Hours Limit 60
Min. Mandatory Overtime premium/time off in Lieu of Overtime Wages
Overtime work must be paid at twice a worker’s
ordinary basic wage
Min. Annual Leave 10 Days
Duration of Maternity Leave Benefits
16 Weeks *
Amount of Maternity Leave Benefits
100%
Source of Maternity Leave Benefits
Employer
* This covers the private sector (the public sector has 24 weeks). Source: ILO, Working Conditions Law Report 2012
WORKFORCE
Bangladesh is one of the world’s most populous and
densely populated countries with a total population of
156.2 million people. The country has a labour force of
72 million workers. Job creation creates by around 1.8
million people entering the labour market every year.
The employment-to-population ratio is slightly higher
than the South Asia average on all levels, and
especially among women. Close to three out of five
(59%) are estimated in the total employment in
Bangladesh in 2016 but still with a deep gap of 37
percentiles between men (78%) and women (41%) –
see Table 9 below.
Table 9: Employment-to-population ratio, Age and Gender distribution, 2016
Sex Age Bangladesh South Asia
Men & Women
Total 15+ 59 % 52 %
Youth 15-24 40 % 33 %
Adult 25+ 67 % 59 %
Men
Total 15+ 78 % 76 %
Youth 15-24 51 % 48 %
Adult 25+ 88 % 87 %
Women
Total 15+ 41 % 27 %
Youth 15-24 29 % 18 %
Adult 25+ 46 % 30 %
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.
0% -1%
3%
13%
-1% -1%
5% 6%
2% 2%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
1000
2000
3000
4000
5000
6000
Minimum wage
Real minimum wage
Real wage growth (%)
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 8
Labour force participation rate has experienced slightly
declining trend during the last decade on both total and
youth levels. These trends are similar with the South Asia
average trend (Figure 3). This change has been related
to the upsurge of the enrolment in schooling on all levels
in the country. It is worth mentioning that these labour
force participation rate estimations are somewhat
higher than the Bangladesh Bureau of Statistics report
on Labour Force Survey (LFS) from 2015 that measured
a total labour force participation rate at 57% in
2013.24
Figure 3: Labour force participation rate in Bangladesh and South Asia (SA) 2007-2016, Total & youth, %
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.
Inactivity on the labour market
In contrast, close to two out of five (38%) of the
working age population (WAP, 15+) and one out of
two (54%) of the youth population (15-24 years old)
remain inactive on the labour market; with significant
gaps between men and women (Table 10). It is also
noteworthy to mention that the inactivity rate has been
on a rise, 3 percentiles by WAP and 7 percentiles by
youth in the last decade.
Table 10: Inactivity rate in Bangladesh, 2016
Total Men Women
Inactivity Rate 38 % 19 % 57 %
Inactivity Rate, youth 54 % 42 % 67 %
Note: Inactivity is measured as the proportion of a country’s working-
age population that is not engaged actively in the labour market, either
by working or looking for work.
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.
Unemployment
An estimated 3.2 million people are unemployed in
Bangladesh in 2016, which equals 4.4% of the labour
force. Around 1.7 million youth are unemployed with a
youth unemployment rate that is almost three times
higher at 12%. There are very limited gender gaps.
Overall, the unemployment rates are only slightly
higher than the South Asia averages (Table 11). The
estimation of the total unemployment rate in
Bangladesh is quite close with the Bangladesh Bureau
of Statistics’ LFS from 2015 that measured a total
unemployment at 4.3% in 2013. Although the LFS
measured youth unemployment rate at 8.1 in 2013 that
has been on an increase (see also Figure 4).25
Table 11: Unemployment and Youth Unemployment Rate, 2016, %
Bangladesh South
Asia
Unemployment
Total 4.4 % 3.8 %
Men 4.2 % 3.5 %
Women 4.9 % 4.5 %
Youth
Unemployment
(15-24 years
old)
Total 12 % 10 %
Men 12 % 10 %
Women 12 % 11 %
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.
According to the collected data, the unemployment rate
has been on a stable trend since 2009 and stayed
slightly higher than the region average. On the other
hand, and as just mentioned, the youth unemployment
went on a rise in 2012 and superseding the regions
average in 2013 (Figure 4).
Figure 4: Unemployment Trends, 2007-2016, %
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition The main causes of unemployment in Bangladesh are
related to the rapidly increasing population of around
2.0 million new job-seekers every year. The reason for
this trend can be associated to an employment
dominating backward method of agricultural
30
35
40
45
50
55
60
65
70
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Bangladesh - Total Bangladesh - YouthSA - Total SA - Youth
0
2
4
6
8
10
12
14
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Bangladesh - Total Bangladesh - Youth
Southern Asia - Total Southern Asia - Youth
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 9
production; the educational system is not job-oriented,
but rather a more degree-oriented and also a lack of
skilled workers for industries.
Underemployment is widespread. For instance, the
Labour Force Survey from 2010 indicated that 20%
are underemployed, whereas other sources estimated
as many as 40% who work less than 35 hours per
week. Women underemployment was more than double
as high in comparison with men, 34% versus 14%,
respectively. Also rural areas are more affected at
23% compared with 12% in the urban areas.
Other data of the unemployment per educational
attainment illustrated that women have lower
unemployment rates than men on the higher levels of
education (secondary and tertiary) while it is in contrast
on the lower education levels (less than one year and
primary). On the primary education level, the gender
gap is quite low (Figure 5).
Figure 5: Unemployment by level of educational attainment, 2005, %
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition
Sectoral Employment
Overall, the employment by aggregate sector has
demonstrated changes particularly a drop from 60% in
1991 to 48% in 2010. In contrast, the industry sector
increased from 13% to 18% while the service sector
from 16% to 35%, respectively (Figure 6)-
Figure 6: Employment by aggregate sector, 1991-2010
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition
Based on the latest available data, the total
employment absorbs 54.4 million workers in 2010
which is very dominated by men on all sector and a
total of 70%. As just mentioned, the employment in the
agricultural sector remains the largest sector which
covers 25.7 million workers. The next dominating sectors
are the trade, restaurants & hotels sector of 8.4 million
workers of 15% of the total employment followed by
the manufacturing sector by 6.7 million workers of 12%,
respectively. The sector with the lowest employment
gender gap is in the ‘other sector’ and the agricultural
sector where women present 46% and 41% of the
workers, respectively (see more details on Table 12).
Table 12: Employment sector share in Bangladesh, 2010
Sector Total sector employment
Employment share
Ratio of men in sector
employment
Agriculture 25,679,000 48 % 59 %
Mining & quarrying 109,000 0.2 % 85 %
Manufacturing 6,731,000 12 % 72 %
Electricity, gas & water
123,000 0.2 % 93 %
Construction 2,617,000 4.8 % 91 %
Trade, restaurants & hotels
8,371,000 15 % 87 %
Transport, storage & communication
4,038,000 7.4 % 94 %
Finance, real estate & business services
399,000 0.7 % 87 %
Public administration, education and health
2,856,000 5.3 % 79 %
Other sources 3,435,000 6.3 % 54 %
Total 54,358,000 100 % 70 %
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition
0
5
10
15
20
25
30
35
40
Less thanprimary
Primary Secondary Tertiary
Men Women
66 62
48
13 10
18
16 24
35
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1991 2000 2010Agriculture Industry Services
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 10
It is worth mentioning that the informal economy is
dominated by agriculture, mining, construction and
private household (see also the sub-section: Informal
Economy).26
The labour productivity has been relatively low in
Bangladesh. For example, the agricultural sector
contributes 15% of the Gross Domestic Product (GDP)
with an estimation of US$758 share per workers per
year. This is a signal that a vast majority of agricultural
workers lack a qualified education and access to
capital. The trade and hotel & restaurant sector
represent 14% of the total GDP and a share of
US$1,827 per year, which is also relatively low.
Several compelling estimations show that the mining &
quarrying sector contributes very little to toatal
employment of 0.2% of the total employment and
contributes 1.6% of the GDP, close to US$17,000 per
worker per year. Also ‘public sector’ (i.e. community,
social and personal services) has a relatively high GDP
share by sector per worker of almost US$810,900 per
worker per year (see more details on Table 13).
Table 13: GDP share by sector in % (2015) and GDP per worker (2010) in Bangladesh
Sector GDP share
by sector, %
GDP share by
sector per
worker, US$
Agriculture 15 % 758
Mining & quarrying 1.6 % 16,643
Manufacturing 17 % 2,740
Electricity, gas & water 1.3 % 9,734
Construction 7.2 % 2,712
Trade, restaurants &
hotels 14 % 1,827
Transport, storage &
communication 9.9 % 2,858
Finance, real estate &
business services 11 % 8,431
Community, social and
personal services 7.8 % 10,858
Note: GDP share by sector per worker is calculated by the total GDP
(current US$) divided by GDP share per sector origin which then is
divided in number of workers per sector from 2010.
The total GDP share by sector diverges from 100% due to lack of data
of other services in 2010.
Source: Estimations based on data from ILO, Key Indicators of the
Labour Market (KILM), 9th Edition and ADB, Key Indicators for Asia
and the Pacific, Bangladesh.
As already mentioned, Bangladesh has a lower labour
productivity in comparison with the South Asia average
and far below the world average. Not to mention, the
country’s labour productivity is not following as fast as
the region average (Figure 7).
Figure 7: Labour productivity, 2007-2016
Note: Labour productivity is defined as output per worker (i.e. GDP
constant 2011 international US$ in Purchasing Power Parity (PPP)); and
indexed year 2000 (=100).
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition
This relatively lower labour productivity in Bangladesh
is also a result of labour skill mismatches that is mainly
affected by under-education (60%). Men have a
slightly higher incidence (61%) than women (57%).
Over-education is not considered a critical issue in
Bangladesh (Table 14).
Table 14: Skills Mismatches between Job Requirements & Qualifications in Bangladesh, 2013 By Sexes & Age Group 15-29 years old, %
Total Men Women
Incidence of over-education
2.4 % 2.8 % 0.9 %
Incidence of under-education
60 % 61 % 57 %
Source: ADB, Key Indicators for Asia and the Pacific, Bangladesh.
As outlined above, the employment in the agricultural
sector has been on a fall which has also been reflected
in the sector’s declining sector structure from 19% of
GDP in 2006 to 16% on 2015. The increase has mainly
been in the industry sector while the service sector
growth was basically flat (Figure 8). The rising labor
costs in China and India moved labor-intensive industries
towards a country like Bangladesh, which has some
comparative cost advantages, such as lower wages.
136 142
151 158
165 173
180 187
195 204
0
50
100
150
200
250
0
5000
10000
15000
20000
25000
30000
35000
40000
Bangladesh
Southern Asia
World
Bangladesh - year 2000 (=100) (right)
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
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Figure 8: Sector Structure of output in Bangladesh, 2006-2015, % of GDP
Source: ADB, Key Indicators for Asia and the Pacific, Bangladesh.
It has been observed on the labour market that the
wage and salaried workers have been on a rise along
with employers in recent years. The segments of own-
account workers and contributing family workers are
dropping; albeit the former appears to rebound in the
period from 2010 to 2011. These two latter segments
are representing ‘vulnerable workers’ and this signals
that this group fell from 69% in 1996 to 58% in 2011
(Figure 9).
Figure 9: Status in employment in Bangladesh, 1996-2011
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition
Another important issue of employment in Bangladesh is
that the labour market is divided into formal sector and
informal economy. The former is a marginalized sector
that to a large degree covers business, finance and
public administration in the service sector (Figure 10).
Data have revealed that only a total 13% operate in
the formal sector while 87% in the informal economy
(see also the sub-section: Informal Economy). At the
national level, 10% of women were engaged in formal
sector employment and it was 14% for men; just as
8.3% of formal employment was in rural areas and
26% in urban zones.27 Taking into consideration that the
wages and other labour regulations are more
effectively applied in the formal sector, it remains a
narrow aspect of the labour force.
Figure 10: Formal and informal employment in Bangladesh, 2013
Source: Bangladesh Bureau of Statistics, Labour Force Survey (LFS),
2015
As already described on Figure 9, the employment in
the wage and salaried workers - which could be
interpreted as a proxy of the formal sector employment
- suggests that some improvements of formalizing the
employment has happened in recent years.
Migration
Bangladesh has experienced massive migration flows
during the last decades estimated at 5 to 7 million
migrants abroad. This could also be interpreted as a
massive export of the labour force that contributes to
an inflow of personal remittance at 9.1% of GDP. In
contrast, the personal remittance in South Asia average
was estimated at 4.6% of GDP (Table 15).
Table 15: Migration Facts
Net migration (2008-2012)
Bangladesh -2,226,481
Net migration to average population per year (2008-2012)
Bangladesh - 1 : 341
inhabitants
South Asia - 1 : 1,297 Inhabitants
Personal transfers i.e. remittances received, % of GDP (average, 2012-2015)
Bangladesh 9.1 %
South Asia 4.6 %
Note: Net migration rate is the difference of immigrants and emigrants
in a period of time. A positive value represents more people entering the
country than leaving it, while a negative value means more people
leaving than entering it.
Source: World Bank, World Development Indicators
The ratio of net migration to the average population
per year equals a negative value of 1 out of 341
0
10
20
30
40
50
60
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Agriculture Industry Services
0
10
20
30
40
50
60
70
1996 2000 2003 2005 2010 2011
Wage & salaried workers
Employers
Own-account workers
Contributing family workers
3% 9%
30%
97% 91%
71%
0%
20%
40%
60%
80%
100%
Agriculture Industry ServiceFormal Informal
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
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Bangladeshi’s population left the country per year. It is
worth mentioning that this ratio dropped from its peak
of a negative value of 1 out of 200 in the period from
2003 to 2007. Overall this ratio is not declining as fast
as the region average (Table 15 & Figure 11).
Figure 11: Ratio of net migration to total population in Bangladesh and South Asia, 1998-2012
Note. The net migration trend is estimated as the net migration rate
divided by the total inhabitants. Net migration rate is the difference of
immigrants and emigrants in a period of time. A positive value
represents more people entering the country than leaving it, while a
negative value means more people leaving than entering it.
Source: World Bank, World Development Indicators
Most of these migrant workers temporarily migrate to
work in Middle East and Southeast Asia. Factors leading
to this large migration are overpopulation, an
agricultural sector that is often unable to sustain the
livelihood; the jobs are not created in the more stable
formal sector with coverage of the labour regulations,
such as the minimum wage, just as the social protection
is very weak. Better paid jobs opportunities are
abroad. However, some recent trends on the
Bangladeshi migration are related to a growth of
temporary short-term contract. This creates more
vulnerability in the employment. Be that as it may,
short-term labour migration is one of the core foreign
currency earning sectors in Bangladesh due to t
personal remittances. These are mainly used to
purchase consumptions goods, with few making it into
investment. The Government has set up a financial
institution, the Probashi Kallyan Bank, to address this
issue.
Among the migrant workers from Bangladesh, 2.2% are
professional; 32% are skilled; 14% are semi-skilled;
and 52% are less-skilled. Unregulated migrants are
also at higher risks of exploitation.28 It has been noted
that many migrant workers assume debt to pay high
recruitment fees, imposed legally by recruitment
agencies belonging to the Bangladesh Association of
International Recruiting Agencies (BAIRA) and illegally
by unlicensed sub-agents.29
Unskilled women were banned from migrating abroad
until 2006, increasing unregulated migration. Migration
of unguarded women is still frowned upon.30 But, the
number of women labour migration is rising from 0.9%
of women among the total number of migrated segment
in 2003 to 13% in 2013. The top destination countries
for Bangladeshi women migrant workers are Lebanon,
the United Arab Emirates, Jordan, and Saudi Arabia.
According to sources, the women migrants, compared to
that of men, is more vulnerable due to socio-cultural
practices, traditional gender role divisions and gender
discrimination in laws affecting labour force.31
The country has also experienced changes on the
internal migration in terms of the rural-urban pattern,
which was reflected by urbanization within and
between districts. This was most driven by economic
factors such as livelihoods and job opportunities.32
Informal Economy
The labour market and the employment in Bangladesh
are characterized by a dominated informal economy.
As already demonstrated on Figure 10 above, close to
nine out of ten in employment are in the informal
economy, which equals 50.5 million workers in 2013. In
the agricultural sector at least 97% are informal
workers, 91% in the industry sector and 71% in the
service sector. Even close to 30% of the workers in the
public administration and defence, financial sector and
education operate in the informal employment
arrangements. Not to mention, the informal economy
contributes to around 43% of GDP.
According to the national Labour Force Surveys, the
proportion of informal employment to total employment
was on a rise from 78% in 2002 to 87% in 2010 and it
stayed flat in the 2010s, so far. There is a gender gap
of 4 percentiles between men and women in 2013
(Figure 12). It is more prevalent in the rural areas than
in the urban areas. The latest survey from 2013 also
demonstrated a linkage between education level and
informal work; a higher level of education is more likely
to result in employment in the formal sector: 93% of
workers in the informal economy have primary
education, 88% in secondary education and 56% in
tertiary education level.
-386
-200
-341
-1299
-763
-1297 -1400
-1200
-1000
-800
-600
-400
-200
0
1998-2002 2003-2007 2008-2012
Bangladesh South Asia
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 13
Figure 12: Proportion of informal employment to total employment, 2002-2013, %
Source: Bangladesh Bureau of Statistics report on Labour Force Survey
(LFS), Bangladesh 2013, 2015
A key issue is that characterize the informal economy
are the difficulties to enforce labour laws in the ‘sector’.
As an example, workers from the informal economy
receive, on average, at least 35% lower wages than in
the formal sector. With reference to the social
protection coverage, workers from the informal
economy receive less than formal workers.
The Labour Force Surveys have also shown that the
labour productivity of a typical worker in the informal
enterprises is only one-sixth (17%) of the productivity of
their counterpart in the formal sector. The main reasons
for engagement in informal activities are family
traditions (39%) and due to knowledge of the activity
(37%).33
Few trade unions operate in the informal economy.
However, a number of non-traditional groups have
promoted union activities. For example, women’s
organizations have set up cooperative structures for
their members and have taken a series of initiatives in
the areas of adult education, mother and child care and
productive work. In addition, the Labour at Informal
Economy (LIE) is a membership-based organization that
represents 2,865 workers who work as street vendors,
waste pickers, home-based workers and agricultural
workers in Bangladesh.34 LIE is nationally affiliated to
the Bangladesh Free Trade Union Congress (BFTUC).
Child Labour
The minimum age for work is 14, and the minimum age
for hazardous work is 18. The law allows for certain
exceptions, permitting children who are ages 12 or 13
to perform restricted forms of light work. Minors can
work up to five hours per day and 30 hours per week
in factories or up to seven hours per day and 42 per
week in other types of workplaces. By law every child
must attend school through fifth grade. According to
sources, MOLE’s enforcement mechanisms are insufficient
for the large, urban informal economy, and there was
little enforcement of child labour laws outside the
export-garment and shrimp-processing sectors. In
general, resources, inspections, and remedial action are
inadequate. Agriculture and other informal sectors that
had no government oversight employed large numbers
of children.35
On the positive side, Bangladesh has experienced a
drop of 7.4 million working children (18%) in 2002/03
to 3.5 million (8.7%) in 2013. This has been related to
a rising enrolment in school on all levels, a declining
child population as well as the previously mentioned
urbanization trend (see also the section: Education).
These changes have been reflected by a growth of
total working children from 43% to 49% in the
mentioned period. However, according to survey results,
the country has a lower child labour than the Asia and
the Pacific average (Table 16).
Table 16: Working Children Proportion of all Children
Region Year Type Proportion
Bangladesh (age 5-17)
2013
Working children 8.7 %
Child labourers 4.3 %
Hazardous work 3.2 %
Asia & the Pacific (age 5-17)
2012
Children in employment
16 %
Child labourers 9.3 %
Hazardous work 4.1 % Note: Working children classifies as children helping their parents
around the home, assisting in a family business or earning pocket money
outside school hours and during school holidays.
Source: Bangladesh Bureau of Statistics and ILO, Child Labour Survey
2013 and ILO, Marking progress against child labour, Global estimates
and trends 2000-2012
Data reflect that the working children in the agricultural
sector fell from 56% in 2002/03 to 37% in 2013 while
the industry sector increased from 18% to 33%,
respectively. The service sector registered a lower
increase from 26% to 31% (Figure 13). This explains
to some extent that the average monthly income age 5-
17 years old has increased significantly, i.e. higher
wages in the industrial sector than the agricultural and
service sector. Even the average weekly hours increased
from 28.5 in 2002/03 to 39 hours in 2013. Also the
ratio of children in hazardous work to the number of
working children escalated fast from 17% to 37% in
the mentioned period, according to the national Child
Labour Survey from 2013. Children working in such
70%
75%
80%
85%
90%
95%
2002-03 2005-06 2010 2013
Men Women Total
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 14
hazardous activities are often in stone and brick
breaking, dyeing operations, blacksmith assistance, and
construction.
Figure 13: Working children aged 5-17 by broad industry, 2002/03-2013
Source: Bangladesh Bureau of Statistics & ILO, Child Labour Survey,
2013
In the light of the dominating informal economy, it is
likewise reflected among the working children.
Available data suggest that around 95% of working
children operate in the informal economy while 5% in
the formal sector.
Poverty is the main reason for child labour in
Bangladesh, with poor households having to make their
children work to sustain themselves. A recent survey
from 2016 found that 15% of six- to 14-year-olds
livings in the poorest households work an average of 64
hours a week.36 This, in turn, increases the labour supply
and likely keeps the wages lower in the industries. It
also decreases the children’s future earnings due to lack
of education and their increased risk of occupational
disability.
Child labour is popular among employers because
children are docile and submissive and above all either
not paid at all or very low paid. They can be tasked
with duties that adults would not undertake and as they
are free or very cheap labour they can perform job
functions with a very low margin of return on the
employer’s investment. Children frequently join small
businesses as apprentices. It is often the only option to
get an education since the country only has around 100
vocational training schools (see also the sub-section:
Vocational Training). On a positive note, the apprentice
system ensures the children receive some kind of
education but it also keeps them illiterate and poor as
they get no salary for years.
Gender
Bangladesh has made some progress on gender
equality. New legislations have been introduced,
including laws on violence against women, equal pay,
maternity leave, and parliamentary quotas. It has also
been observed that the female literacy rate has
increased. But, the gender gaps remain in employment
as well as weak enforcement of employment laws.37
The readymade garment industry employs roughly 60%
of women, and it is the main employment option for
women outside agriculture (see also Table 12). These
women, on an average are 19 years of age, usually
unmarried, and with little education, hence prone to
exploitation, sexual harassment, and discrimination.
They earn 60% less of what their men colleagues’ earn,
and are exposed to low occupational safety and health
standards.38 Only 1.8% of them are members of union
in this sector (overall only about 15% of trade union
members are women). Be that as it may, this industry
has provided millions of jobs, increased the women’s
real earnings and economic freedom. It has also shown
that fertility rate has decreased and a study suggests
that opening of a garment factory within a village’s
commuting distance, increases schooling of girls in the
village.39
Although women represent a majority of total workers
in the readymade garment industry, women are
generally underrepresented in supervisory and
management positions. A recent Enterprise Survey from
2013 reported that 13% of firms had women
participation in firm ownership compared to the South
Asia average of 17%; and that 16% of full time
employees were women, more than 13% in South Asia
average (Figure 14). It shows that women in
Bangladesh have a both lower ownership participation
and full time employment in comparison with the
Enterprise Survey from 2007.
Figure 14: Females in Management & Ownership, 2013
Source: The World Bank, Bangladesh Enterprises surveys, 2013
56%
18%
26%
37% 33%
31%
0%
10%
20%
30%
40%
50%
60%
Agriculture Industry Service
2002/03 2013
0%
5%
10%
15%
20%
25%
30%
35%
Firms with female top manager Firms with female participationin ownershipBangladesh South Asia Low income
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 15
As already mentioned in this report, the total labour
force participation has been on a declining trend, and it
is for both men and women with a widening gender
gap from 31 percentage points in 1995 to to 38
percentage points in 2016. During the same period the
gender gap grew from 20 to 25 percentage points
among youth (Figure 15). On the other hand, the
gender gap in the unemployment rate has experienced
a declining trend among the total and youth segments
(Figure 16).
Another reflection of the labour market’s challenges in
terms of the gender egalitarianisms is that large gaps
in earnings between women and men remain very
present with a wage gender gap for women at 21%
less per hour than men. One reason is that women’s
employment is most dominated in the sectors with the
lowest average wages (e.g. education, health & social
work and hotels & restaurants industries) as well as in
the informal sector. More girls enrol in primary and
secondary education than boys; the latter is also four
times more likely to be engaged in child labour.
Figure 15: Labour force participation rate by sex, 1995-2016, Total and Youth, %
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.
Figure 16: Unemployment by sex, 1995-2016, Total and Youth, %
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition.
Youth
According to the Bangladesh Bureau of Statistics (BBS),
the current youth population in Bangladesh is about 52
million, more than 33% of the total population. The
youth labour force on the age group 15-24 years old is
estimated at 12.7 million youth in employment in 2016
which equals 40% of the employment-to-population
ratio. This segment is confronting multifarious challenges
mainly rooted from social structure and economic
conditions.
Due to the rapid growth in population, the country fails
to create adequate opportunities for the youth in
accordance with their educational qualifications. For
example, educated youth are facing problems entering
the formal job market, primarily because of the lack of
access to information related to job and training.
Stated differently, the education system is not adjusted
to the needs of the labour market (see also the section:
Education). Many students are doing well in their studies
and passing out with good grades but often their
qualifications do not fit with the existing market
demand and it causes the youth’s unemployment rate to
increase.40 This trend is demonstrated by the increase in
the proportion of young people not in employment,
education or training (NEET) (Figure 17).
Figure 17: Proportion of young people not in employment, education or training (NEET), 2005-2013, %
Note: NEET for persons aged 15 to 24.
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition The Government published a National Youth Policy in
2003. It is outdated and the government launched a
revision of the youth policy in 2010 to link it up with the
political manifesto of the Bangladesh Awami League
Party's Vision 2021.41 It appears that the government
has placed higher attention on youth empowerment and
increasing finance on this area. So far, a draft national
youth policy has been debated in forums during the last
couple of years and a revised draft policy was reached
in 2016. On the other hand, the policy has lacked
concrete steps for achieving goals and its
0
20
40
60
80
100
1995 2000 2005 2010 2016Men - Total Women - Total
0
2
4
6
8
10
12
14
1995 2000 2005 2010 2016
Men - Total Women - Total
Men - Youth Women - Youth
0%
10%
20%
30%
40%
50%
60%
70%
Total Men Women
2005 2013
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 16
implementation has been uncertain. Also a review and
revising of the policy have not been clear.42
EDUCATION
Primary education is free and compulsory until the age
of 10, but many children are drop out of school and
work as working children to help support the household.
In reality many are still not receiving education: 38% of
men with more than 25 years old have no schooling at
all and it is higher among women at 47%. This is
especially for children from poorer households in rural
areas.
Based on the limitations of data availability, females
have a higher net enrolment in school than males in
Bangladesh as well as hovering above the South Asia
average. Bangladeshi males in net enrolment in school
are on the region average. It is interesting to observe
that the net enrolment in secondary education is on a
fast increase for both males and females. The latter
remains on a higher enrolment rate than the former.
Both are below the region average, though. Not to
mention, males are more enrolled in tertiary education
than females and the enrolment has been stalled in
recent years (see more on Figure 18).
Figure 18: School Level and Enrolment in Bangladesh & South Asia, 2005-2014, Males and females, %
Note: Net enrolment is the ratio of children of official school age, who
are enrolled in school to the population of the corresponding official
school age. Gross enrolment is the ratio of total enrolment, regardless
of age, to the population of the corresponding official school age.
Gross primary enrolment is therefore sometimes higher than 100%.
Source: World Bank, Education Statistics
The education has several deficiencies. This is indicated
by the minimum international standard for teacher-
student ratio of 1:30 but in Bangladesh there is one
teacher for every 53 students. Sources have argued
that the lack of qualified teachers and poor school
facilities in terms of the number of schools, classrooms,
libraries and playgrounds are responsible for poor
quality education at primary schools. In addition,
around 70% of children are unable to read or write
properly, or perform basic mathematical calculations
even after five years at primary school. By the same
token, teachers feel uncomfortable in adopting
innovative educational approaches as they fear that
using other approaches may result in poor
performances in examinations. Not to mention, the
secondary and higher secondary curriculum appears not
reflect the labour market demand or job-oriented
education.43
Vocational Training
The number of vocational students has steadily
increased from 367,000 in 2009 to 430,000 in 2013
which equals a growth of 17%. It is noteworthy to
mention that females have a relatively high enrolment in
vocational training in comparison with the South Asia
average at 33% and 25%, respectively. Equally
important the ratio of pupils in vocational student to all
pupils in secondary education is relatively high at 3.4%
and is hovering above the region average. The
teacher- student ratio is estimated at 1:20 (see more on
Table 17).
75
80
85
90
95
100Net enrolment in primary school
Bangladesh,
Male
Bangladesh,
Females
South Asia,
Male
South Asia,
Women
30
35
40
45
50
55
60
65Net enrolment in secondary school
Bangladesh,
Male
Bangladesh,
Females
South Asia,
Male
South Asia,
Women
0
5
10
15
20
25Gross enrolment in terciary school
Bangladesh,
Male
Bangladesh,
Females
South Asia,
Male
South Asia,
Women
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 17
Table 17: Statius of Vocational Training
Bangladesh 2009 2013
Pupils in Vocational Training 367,409 429,558
Enrolment in secondary
vocational, females 109,742 142,991
Teachers in secondary
vocational education 17,442 21,040
Comparative estimations Country/region %
Secondary education,
vocational pupils (% women)
(2013)
Bangladesh 33 %
South Asia 25 %
Ratio of pupils in vocational
student to all pupils in
secondary education (2010-
2013)
Bangladesh 3.4 %
South Asia 1.6 %
Ratio of pupils in vocational
training out of 15-24 year
olds (2010-2013)
Bangladesh 1.2 %
South Asia 0.7 %
Source: World Bank, Education Statistics
Other sources have argued that women’s participation
in TVET in Bangladesh is quite low from 9% to 13% in
public institutions. This is significantly lower than the
estimation on Table 17, which diverge from the private
sector TVET pupils’ participation. Notwithstanding, these
relatively low percentages of public TVET is related to
stereotypical occupations irrespective of market
demand.
Other data reveals that the growth of the pupils in
vocational training in Bangladesh has kept a faster
pace than the South Asia average during the last
decade (Figure 19).
Figure 19: Ratio of Vocational Pupils in Secondary Education, 2004-2014, %
Source: World Bank, Education Statistics
Traditionally vocational training has not had a strong
links to industry and the government’s Technical
Vocational Education and Training (TVET) went through
an overhaul in 2006. It produced a National Technical
Vocational Qualification Framework (NTVQF) in 2009
and a National Skill Development Policy (NSDF) in
2011. Still the country has only around 100 vocational
training schools, which make it difficult for most of the
poorer younger people to get vocational training.
NSDF aims at a future growth of skills development with
clear, ambitious targets, including:
TVET students shall comprise 20% of all secondary
students (currently 3.5%).
Total enrolment in TVET should increase by 50%.
Women’s enrolment should increase by 60%.44
Among others, a program was launched in October
2015 to scale up the support to strengthen technical
and vocational education in Bangladesh. This financing
will enable 200,000 poor students to complete
vocational training and diploma courses.
SOCIAL PROTECTION
Few contributory social protection schemes exist in
Bangladesh, and most forms of social protection are
through non-contributory social assistance. The latter
operate with around 140 programs that cut across 20
ministries, which give rise to duplication in program
objectives and beneficiaries. 45 In addition, many
programs are donor funded.46 Overall, Bangladesh has
extremely low health social protection coverage at
1.4% of the population while the region average was
estimated at 58%. By the same token, the social
protection expenditure is quite low at 2.7% of GDP
(Table 18).
Table 18: Social protection facts in Bangladesh and Asia & the Pacific (AP), 2011, %
Indicator Measure Bangladesh AP
Total social protection expenditure
% of GDP 2.7 % 4.6 %
Public health care expenditure
% of GDP 1.1 % 1.5 %
Health social protection coverage
% of total population
1.4 % 58 %
Trends in government expenditure in health
% change per year
8.6 % N/a
Source: ILO, Social Protection, Statistics and indicators
In the light of health-care expenditure not financed by
private household's out-of-pocket payments it has also
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
4,0%
Bangladesh South Asia
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 18
been estimated relatively low at 40% and stayed on a
flat growth during the 2000s (Figure 20).
Figure 20: Health-care Expenditure Not Financed by Private Household's Out-of-pocket Payments, 1995-2011 Selected Asian countries, %
Source: ILO, Addressing the Global Health Crisis: Universal Health
Protection Policies, Social Protection Policy Papers, Paper 13, 2014
Data also show other divergences: first, the proportion
of pensionable age receiving an old age pension is
40%, which is more in line with the region average that
is assessed at 47%. Second, Bangladesh has basically
no active contributors to a pension scheme. Thirdly,
formal sector workers currently enjoy some social
protection, but informal sector workers and casual
workers do not have access to such benefits (see more
on Table 19).47
Table 19: Pension Benefits, Coverage and Contributions in Bangladesh and and Asia & the Pacific (AP), 2011, %
Theme Measure Bangladesh AP
Social benefits for
active age % of GDP 0.5 % 0.4 %
Pensionable age
receiving an old age
pension (age 65+,
62+ for OA
allowances for
women)
Proportion
of total 40 % 47 %
Active contributors to
a pension scheme 15+ 0.0 % 34 %
Active contributors to
a pension scheme
15-64
years 0.0 % 27 %
Source: ILO, Social Protection, Statistics and indicators
A publicly paid Old Age Allowance programme
operates for persons who had an annual income less
3,000 taka per year (US$40), providing a 250 taka
per month (US$3.4).48 It has 2 million beneficiaries and
covers 7% (US$81 million) of the total social protection
programs expenditures. The system is valuable for the
country’s vulnerable older people, yet holds a weakness
in the form of means testing, low benefits and not
effectively reaching its target population because of
power abuse and corruption.49
The retirement pensions or benefits for government
employees and family members of retired persons have
currently 325,000 beneficiaries. It is less than 1% of the
total social protection beneficiaries. On the other hand,
it is the single largest expenditure of all social
protection programs covering 19% (US$227 million).
Employers are required to provide a termination
benefit. Permanent employees receive half their
average wage for 120 days, causal workers and
temporary workers for 60 days. 50 Employees in the
formal sector are entitled to disability and survivor
benefits, for accidents in employment. Employers bear
the full cost. Disagreements on compensation can be
settled at the Labour Court.51
There are five major labour market programs and they
cover 35% of the total social protection expenditure.
They have 10.2 million beneficiaries, which is a quite
large number of total social protection beneficiaries, i.e.
36%.52
Some key challenges of the social protection schemes in
Bangladesh are related to the targeting of the services.
First, almost 60% of recipients were non-poor, i.e. a
large share of resources does not reach the target
groups such as children under five years and the
elderly. Second, a majority of the programs are most
addressing the rural poor and not confronting the
internal migration movement from rural to urban zones
that are in progress.
After several years of drafting and debating a
National Social Protection Strategy was finally enacted
in 2015. It aims towards a social protection system that
is inclusive, better mitigates lifecycle risks and prioritizes
the poorest and most vulnerable. It is too early to assess
the impact of this policy.
Although informal sector workers are not entitled for
any forms of social protection, in November 2013, the
government introduced a five-year group insurance
scheme for the construction workers. The annual
premium per worker has been set at Tk 1,300
(US$16.6) out of which each worker has to deposit
Tk 450 (US$5.8) and the ministry Tk 850 (US$10.9).
BILS was actively involved in the whole process of
insurance.
5%
15%
25%
35%
45%
55%
65%
1995 2000 2005 2006 2007 2008 2009 2010 2011Bangladesh CambodiaMyanmar NepalPakistan Philippines
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 19
GENERAL ECONOMIC PERFORMANCE
The economy experienced a real growth at 6.2%, on
average, during the last decade (Table 20). Although
the country has gone through a labour market structural
transformation, the Gross Domestic Product (GDP) sector
shares have been on a relatively lower change, e.g. the
service sector stayed on a flat growth at 56% of GDP
during the last decade; with a lower growth on the
labour productivity rate than the region average, as
already described. Be that as it may, Bangladesh
aspires to be a middle-income country by 2021.
Table 20: Key Facts on General Economic Performance in Bangladesh, 2015
GDP 195 billion US$
GDP real growth (2006-2015, av.)
6.2 %
Doing Business * (2017) +2 change in rank
176 of 190 countries
Human Development Index ** +2 in rank
139 of 188 countries
Gini Index *** (2010) 32.1
110 of 145 countries * A high ranking on the Ease of Doing Business Index means the
regulatory environment is more conducive to the start-up and operation
of a local firm.53 Doing Business ranking change is in the period 2016-
2017.
** The Human Development Index (HDI) measures the average of a
long and healthy life, access to knowledge, and a decent standard of
living. HDI ranking change is in the period 2010-2015.
*** A Gini coefficient of 1 (or 100 percent) expresses maximal
inequality among values. This Gini Index ranks the first country with the
highest inequality while the number 145 has the highest equality.
Source: CIA, The World Factbook, Bangladesh; World Bank, World
Development Indicators; World Bank & IFC, Ease of Doing Business
2016/2017 in Bangladesh; and UNDP, Human Development Index
trends
On average, the GDP per capita growth was slightly
below the region average during the last decade. The
fast downturn in 2008 was related to the global
financial crisis (Figure 21).
Figure 21: GDP growth per capita, 2006-2015, Bangladesh and South Asia, Annual %
Source:World Bank, World Development Indicators;
On a different view, Bangladesh’s GDP per capita
measured in Purchasing Power Parity (PPP) is below the
South Asia average and with a ranking 177 out of 230
countries (1 is highest). The country’s economic growth is
not keeping the tempo to curb the regional gap. On the
other hand, the country has a relatively high level of
income equality which is estimated at 110 out of 145
countries, ranking next to Croatia and Canada. It
indicates that the economic growth is spreading more
evenly in Bangladesh. However, data point toward a
very limited reduction on the inequality in the
distribution of family income from 33% in 2005 to 32%
in 2010 (Figure 22).
Figure 22: GDP per capita, Purchasing Power Parity, US$ and Gini Index, 2005-2015
Note: The comparison of the inequality in the distribution of family
income (Gini Index) should be interpreted with some reservations due to
diverging sources, but can still be applied as proxy indicators.
Source:World Bank, World Development Indicators;
According to the Human Development Index (HDI),
Bangladesh has created some improvements and
reached a ranking 139 out of 189 countries in 2015 (1
is highest) (Table 20). Despite the relatively low
inequality in the income distribution, the poverty
actually remains very critical. The latest measurements
of working poor from 2010 showed that 74% of the
population was extremely poor living with less than
US$1.9 per day and 13% were moderately poor living
between US$1.9 and US$3 per day. Stated
differently, 86% of the population lives below US$3
per day. To point out, the number of extremely poor
fell by 9% percentiles from 2000 to 2010 while the
moderately poor’s grew by 5%. An evolution of a
middle-class, which was registered as the near poor
and the developing middle-class segments, increased
only slightly in the same periods, i.e. 2% and 1%,
respectively (Table 21). Factually, Bangladesh has still
a much higher poverty and a lower middle-class in
comparison with the South Asia averages: 31% of the
population was extremely poor, 34% was moderate
poor, 23% was near poor and 12% was development
0
1
2
3
4
5
6
7
8
2005 2006 207 2008 2009 2010 2011 2012 2013 2014 2015
Bangladesh South Asia
33,2
32,1
31,5
32
32,5
33
33,5
0
1000
2000
3000
4000
5000
6000
Bangladesh South Asia Bangladesh - Gini Index (left)
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 20
middle-class. As demonstrated on Figure 9, the wage
and salaried worker segment is on a fast growth and it
suggests that the poverty reduction during the 2010s, so
far, is on a declining trend, but it has not yet been
registered in the statistical accounts.
Table 21: Poverty and middle-class trends in Bangladesh, 2000-2010
Estimated poverty line 2000 2010 Growth
Percentile 2000-2010
Extremely poor (<US$1.9 a day)
81 % 74 % - 9 %
Moderately poor (≥US$1.9 & <US$3 a day)
8 % 13 % 5 %
Near poor (≥ US$3 & <US$5 a day)
5 % 7 % 2 %
Developing middle class (≥US$5 & <US$13 a day)
5 % 6 % 1 %
Note: The poverty l ine i s based on headcount , i .e. % of
population on living in households with consumption or income per
person below the set poverty line.
Source: ILO, Key Indicators of the Labour Market (KILM), 9th Edition
The inflation in consumer prices has following the region
average trend and staying slightly above 6% during
the last decade. The country’s inflation peaked of 11%
in 2011 decelerated afterwards standing at around
6% in 2015 (Figure 23). As demonstrated on Figure 2
the inflation created a significant gap between the
nominal minimal wage and the real minimum wage since
2013.
Figure 23: Inflation in consumer prices trend 2006-2015, Bangladesh and South Asia, %
Source:World Bank, World Development Indicators;
Bangladesh’s capital formation increased during the
2010s, so far; and superseded the South Asia average
since 2014 (Figure 24). This trend point towards how
much of the new value added in the economy is
invested rather than consumed; thus, the country is on a
positive side in terms of strengthening its economy and
increasing the productivity.
Figure 24: Gross Fixed Capital Formation trend 2006-2015, Bangladesh and South Asia, % of GDP
Source:World Bank, World Development Indicators;
The Doing Business indexed Bangladesh as 176 out of
190 countries in 2017 improved from a 178 ranking in
2016. Not to mention, the country is scoring lower than
the South Asia average as well as countries such as
Pakistan (144) and India (130). Out of ten indicators,
the country still scores extremely low on enforcing
contracts (189), getting electricity (187) and registering
property (185). Especially starting a business drooped
from 115 to 122 and getting credit from 152 to 157
(see more on Table 22).
Based on this Index indicators’ rankings could be
interpreted that doing business in Bangladesh is not
easy and with many deficiencies to move towards a
more formalized labour market.
Table 22: Bangladesh’s Ease of Doing Business
Topics 2017 2016 Change
Starting a Business 122 115 7
Dealing with Construction Permits 138 138 No change
Getting Electricity 187 187 No change
Registering Property 185 186 1
Getting Credit 157 152 5
Protecting Minority Investors 70 69 1
Paying Taxes 151 148 3
Trading Across Borders 173 173 No change
Enforcing Contracts 189 189 No change
Resolving Insolvency 151 153 2
Note: Ease of doing business index (1=most business-friendly
regulations). Doing Business 2016/17 indicators are ranking from 1
(top) to 190 (bottom) among other countries. The rankings tell much
about the business environment, but do not measure all aspects of the
business surroundings that matter to firms and investors or that affects
the competitiveness of the economy. Still, a high ranking does mean that
0
2
4
6
8
10
12
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Bangladesh South Asia
20
22
24
26
28
30
32
34
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Bangladesh South Asia
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 21
the government has created a regulatory environment conducive to
operating a business.
Note: This Doing Business Index has been controversial due to flawed
data in some sections, e.g. undervalued paying taxes.54 However, the
table above can still be used as indicative measurement with
reservations.
Source: World Bank & IFC, Ease of Doing Business 2016/2017 in Bangladesh The governance environment in Bangladesh has
experienced limited improvements during the period
from 2010 to 2015, basically only in terms of control of
corruption and this indicator remains on a low score.
Especially the voice and accountability and the
regulatory quality dropped significantly down on the
scoring (see more on Table 23). This is exemplified by
strikes, including a nationwide transportation blockade
implemented by the political opposition during the first
several months of 2015.
In general, these indicators have also a signal that the
labour market is facing huge challenges to improving a
sound environment for workers, central tripartite
structures and curb the rampant rights violations.
Table 23: Bangladesh's Governance Indicators, 2010-2015 Score, Percentiles and Change
Year Voice &
Accountability
Political
Stability
Government
Effectiveness
2010 -0.28/37%
-1.40/10%
-0.75 / 26%
2015 -0.49/31% -1.15/11% -0.73 / 24%
Year Regulatory
Quality Rule of Law
Control of
Corruption
2010 -0.83/23%
-0.79/ 26%
-1.02 / 15%
2015 -0.93/17% -0.70/ 27% -0.88 / 18%
Note: The Governance Indicators score from ‐2.5 to 2.5 while the
percentiles rank from 0 (lowest) to 100 (highest).55
Source: World Bank, Worldwide Governance Indicators
TRADE
Steady garment export growth combined with
remittances from overseas Bangladeshis is the largest
contributors to Bangladesh's economic growth. The
export sector is especially dominated by labour
intensive textile production, accounted for more than
80% of total exports and surpassed US$25 billion in
2015 (see also Figure 26). The textile sector continues
to grow and has often attracted international attention
for its poor working conditions and use of child labour.
It is noteworthy to mention that both import and export
have experienced a declining trend which is similar with
the region average (Figure 25).
To point out, the country has a significant trade gap
between the import and the export in terms of the GDP
by 25% and 17%, respectively (Table 24). The foreign
direct investment (FDI) flow has been very low but has
been on a rise in recent years peaking at 1.7% of GDP
in 2015, and reaching the region average (see more on
Table 24 & Figure 25)
Table 24: Trade & Foreign Direct Investment (FDI) in Bangladesh, 2015
Exports US$34 billion
17 % of GDP
Imports US$48 billion
25 % of GDP
FDI Flow US$3.1 million
1.7 % of GDP
FDI Stock * US$13 billion
5.8 % of GDP
* Year 2016 estimation.
Source: World Bank, World Development Indicators;
Figure 25: Trade and Foreign Direct Investment trends, 2006-2015, % of GDP
Source:World Bank, World Development Indicators
Due to increased labour costs in China, the world’s
textile production is still moving South to countries like
Pakistan, India, and Indonesia; and especially where
labour cost remains very low.56
0
5
10
15
20
25
30
35
2006 2007 2008 2009 2010 2011 2012 2013 2015 2015
Export - Bangladesh Import - Bangladesh
FDI - Bangladesh Export - SA
Import - SA FDI - SA
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 22
Figure 26: Bangladesh's Products Share of Exports, 2014
Source: MIT, Alexander Simoes, The Observatory of Economic complexity, What does Bangladesh export?
The main export markets for Bangladesh is mainly the
European Union (47%) and the United States (14%)-
see Figure 27 below.
Figure 27: Bangladesh's Main Export Markets, 2015
Source: European Commission, DG TRADE, Bilateral Relations, Statistics
Trade Agreements
Bangladesh ratified the Trade Facilitation Agreement
(TFA) in September 2016, becoming the 94th member
of the WTO and 12th least developed country (LDC) to
do so. The TFA contains provisions for expediting the
movement, release and clearance of goods, including
goods in transit.57
Bangladesh has several bilateral Trade Agreements,
including Pakistan, India and Sri Lanka. With the latter,
a free trade agreement (FTA) was discussed in March
2017 to boost the bilateral trade and the countries aim
to sign the agreement in near future. An agreement was
signed with Russia in February 2017 to strengthen
bilateral relations in trade.
The country also associated with several regional trade
agreements, including:58
Bangladesh benefits from the United States’
Generalised System of Preferences (GSP). These
are unilateral trade benefits from the U.S.
government, allowing duty and quota free access
for some products. Since 2007 the American
Federation of Labour and Congress of Industrial
Organizations called the United States' government
suspending trade preferences to Bangladesh under
the GSP, unless the government took steps to ensure
respect for the rights of workers. The disaster in
Rana Plaza in 2013 triggered a decision and the
United States imposed trade sanctions in June
2013 due to the recurring failure to respect
fundamental workers’ rights.
Bangladesh also benefits from the EU’s unilateral
Generalised System of Preferences, Everything but
Arms (EBA), which allows duty and quota free
access for all products except arms. The EU is also
in the process of reviewing to suspend trade
preferences to Bangladesh. During February 2017
the global trade union movement promoted
campaigns to make EU initiate investigations into
serious and systematic violations of fundamental
workers’ rights in Bangladesh as provided under
the EBA trade scheme. The call follows the
arbitrary arrest and detention of workers and
union leaders, the closure of union offices, mass
dismissals and ongoing threats and intimidation of
union activists.59
Export Processing Zones (EPZ)
In July 2014 the government approved, in principle, the
draft of the Bangladesh Export Processing Zone (EPZ)
Labour Law to ensure the welfare of the EPZ workers
by allowing them in constitution of organizations. The
draft EPZ law was approved by the Cabinet in
February 2016, but it has not yet been submitted to
Parliament for approval. The draft law has been
submitted to a review of comparable practices in
neighboring countries. In practice, it is observed that
EPZ factory officials interpret EPZ regulations and
applicable law narrowly and claim they are exempted
from broader Labour Act. This has made trade unions
and ILO raise concerns of disparities between the draft
EPZ law and the existing Labour Rights Act.60 By the
same token, the U.S. GSP Action Plan outlined that EPZ
laws should be in line with international labour
standards and workers inside and outside the zones
enjoy the same labour rights.
It has also been observed that the law provides for
strict limits on the right to strike, which includes discretion
of the BEPZA’s chairman to ban any strike based on
Non-knit men's suits;
16%
Knit T-shirts; 16%
Knit Sweaters;
13% Non-knit women's
suits; 10%
Non-knit men's shirts;
7%
Non-knit women's
shirts; 4%
Others; 34%
EU 28; 47%
USA; 14% Canada; 3%
China; 2%
Japan; 2%
Turkey; 2%
Others; 30%
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 23
his/her views as prejudicial to the public interest. There
were no registered legal strikes in the EPZs.
Bangladesh has had eight EPZs since the 1980s run by
the Bangladesh Export Processing Zone Authority
(BEPZA). According to BEPZA, the EPZs are expanding
from 406 enterprises in 2011/12 to 419 in 2012/13.
In the same period, the employment in the EPZs
increased from 340,000 to 374,000 EPZ workers, which
equals a growth of 10%. Around 64% of workers in the
EPZ are women. In contrast, the EPZ workers constitute
0.6% of the total labour force and 2.7% of the wage
and salaried workers. With reference to the latest
data, the number of employment peaked in 2010/11
by 43,666 workers than dropped down to close to
34,000 in the period 2011/12 and 2012/13 (Figure
28). Other sources have estimated that in the EPZs,
where approximately 458,000 Bangladeshis workers in
2015.61
Figure 28: Employment in EPZ in Bangladesh, 2008-2013, numbers
Source: BEPZA. Annual Report 2012-13
One out of two EPZ workers (50%) are operating in the
Chittagong EPZ followed by Dhaka EPZ and Karnaphuli
EPZ with 24% and 10% of the EPZ workers,
respectively (see more on Figure 29).
Figure 29: Employment in EPZs in Bangladesh, 2013 Number of employees in EPZs and % of total
Source: BEPZA. Annual Report 2012-13
As illustrated in Table 7, BEPZA raised Basic Wage
2013 for Garment Workers within EPZs in December
2013 by 10%. Apart from this yearly increment against
the 5% yearly increment on basic wage for non-EPZ
factories, the EPZ Basic Wage 2013 increased actually
relatively higher in comparison with the wage increase
of those in non-EPZ garment factories (Figure 30).
Figure 30: Bangladesh Basic Wage in EPZs, 2010-2013 Taka and % of relative Basic Wage Increases
Source: RISE Society, Minimum Wage 2013 for Bangladesh Export
Processiing Zones, December 26, 2013
A large majority of the EZP enterprises produce textile
items (garments, garment accessories, textile products,
footwear, etc.) and are from Bangladesh, South Korea,
China, Taiwan, Hong Kong, Japan, and India.
Collective bargaining is virtually non-existent in the EPZs
and BEPZA is not promoting CBAs in these zones. 62
Special legislation prohibits workers from joining unions
in EPZs. Instead they can form Workers’ Welfare
Associations (WWAs) elected by the workers, such as
the rights to bargain collectively and represent their
members in disputes. According to BEPZA, 231 WWAs
were formed as of September 2016 and they are
prohibited from establishing any connection to outside
political parties, unions, federations, or NGOs.
However, with the exception of limitations on the right
of association and worker protections in the EPZs,
national labor law prohibits antiunion discrimination.
16394
28064
43666
33598 33987
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
2008/09 2009/10 2010/11 2011/12 2012/13
Chittagong EPZ;
185006; 50% Dhaka EPZ;
88033; 24%
Karnaphuli EPZ; 39070;
10%
Adamjee EPZ; 30874;
8%
Comilla EPZ; 14713; 4%
Uttara EPZ; 8679; 2%
Ishwardi EPZ;
6071; 2%
Mongla EPZ; 1562; 0%
33%
32%
31%
30%
29%
27%
28%
29%
30%
31%
32%
33%
34%
0
1000
2000
3000
4000
5000
6000
7000
8000
Apprentice Helper JuniorOperator
Operator SeniorOperator
High SkilledWorker
Basic Wage 2010Basic Wage 2013Increases Basic Wage 2013 vs Minimum Wage
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
Bangladesh 2016 Page 24
APPENDIX: ADDITIONAL DATA
Table 25: Trade Union Federations in Bangladesh, 2016 Total members, growth in membership and women participation in percent
National Trade Union Federations of Bangladesh Total members Growth, 2012-2016 Women
BFTUC - Bangladesh Free Trade Union Congress 97,540 15 % 26 %
BJSD - Bangladesh Jatyatabadi Sramik Dal * 247,454 37 % 10 %
BJSF - Bangladesh Jatiya Sramik Federation 23,055 129 % 25 %
BJSJ - Bangladesh Jatiya Sramik Jote 15,009 -82 % 10 %
BLF - Bangladesh Labour Federation * 180,044 77 % 30 %
BMSF - Bangladesh Mukto Sramik Federation * 132,301 -35 % 35 %
BSSF - Bangladesh Sanjukta Sramik Federation * 132,301 -23 % 9 %
BSF - Bangladesh Sramik Federation 3,639 -39 % 5 %
BTUF - Bangladesh Trade Union Federation 1,648 0 % 5 %
BTUK - Bangladesh Trade Union Kendra 50,180 -38 % 18 %
BTUS - Bangladesh Trade Union Sangha 19,303 -87 % 2 %
JSF - Jatiya Sramik Federation 19,101 -50 % 25 %
JSFB - Jatiyo Sramik Federation Bangladesh 16,367 3 % 6 %
JSJ - Jatiyo Sramik Jote 2,260 0 % 30 %
JSJB - Jatiya Sramik Jote Bangladesh 7,130 -89 % 15 %
JSL - Jatiyo Sramik League * 534,463 256 % 15 %
JSP - Jatiya Sramik Party 70,640 -36 % 16 %
NTUF - National Trade Union Federation 1,798 0 % N/a
NWF - National Workers' Federation 10,467 0 % 12 %
SSF - Samajtantrik Sramik Front 22,850 0 % 10 %
Total 1,574,345 7 % N/a
* Affiliated to the International Trade Union Confederation (ITUC).
Note: This table registered 20 of the total 32 national trade union federations of Bangladesh.
Sources: BILS, ITUC, List of Affiliated Organisations, 2012; www.younionize.info
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
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Table 26: List of approved labour related legislations in Bangladesh, 2014-2016
Type of legislation Legislation
2014
Education, vocational guidance and training Non-Formal Education Act, 2014
2015
Elimination of child labour, protection of
children and young persons Youth Organizations (Registration and Management) Act, 2015
Occupational safety and health Formalin Control Act, 2015
Occupational safety and health Nuclear Power Plant Act, 2015 (No. 19 of 2015).
Specific categories of workers Public Servants (Marriage with Foreign Nationals) Act, 2015 (Act No. 19 of 2015).
2016
Elimination of child labour, protection of children and young persons / Employment policy, promotion of employment and employment services
Youth Welfare Fund Act, 2016 (No. 33 of 2016).
Social security (general standards) Bangladesh Tea Workers Welfare Fund Act,2016 (No. 1 of 2016).
Specific categories of workers
The Surplus Public Servants Absorption Act, 2016 (No. 3 of 2016).
Railway Security Force Act, 2016 (No. 2 of 2016)
Bangladesh Tea Workers Welfare Fund Act,2016 (No. 1 of 2016).
Note: ILO NATLEX has not registered the Bangladesh Labour Rules 2015 per March 2017. Source: ILO, NATLEX, Country Profile Bangladesh, Basic Laws
Danish Trade Council for International Development and Cooperation Labour Market Profile 2016
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Table 27: Ratified ILO Conventions63
Subject and/or right Convention Ratification date
Fundamental Conventions
Freedom of association and collective bargaining
C087 - Freedom of Association and Protection of the Right to Organise, 1948 1972
C098 - Right to Organise and Collective Bargaining Convention, 1949 1972
Elimination of all forms of forced labour
C029 - Forced Labour Convention, 1930 1972
C105 - Abolition of Forced Labour Convention, 1957 1972
Effective abolition of child labour
C138 - Minimum Age Convention, 1973 Not ratified
C182 - Worst Forms of Child Labour Convention, 1999 2001
Elimination of discrimination in employment
C100 - Equal Remuneration Convention, 1951 1998
C111 - Discrimination (Employment and Occupation) Convention, 1958 1972
Governance Conventions
Labour inspection C081 - Labour Inspection Convention, 1947 1972
C129 - Labour Inspection (Agriculture) Convention, 1969 Not ratified
Employment policy C122 - Employment Policy Convention, 1964 Not ratified
Tripartism C144 - Tripartite Consultation (International Labour Standards) Convention, 1976 1979
Up-to-date Conventions
Working time C014 - Weekly Rest (Industry) Convention, 1921 1972
C106 - Weekly Rest (Commerce and Offices) Convention, 1957 1972
Social Security C118 - Equality of Treatment (Social Security) Convention, 1962 1972
Specific categories of workers C149 - Nursing Personnel Convention, 1977 1972
Seafarers C185 - Seafarers' Identity Documents Convention, 2003 2014
MLC - Maritime Labour Convention, 2006 * 2014
Note: Fundamental Conventions are the eight most important ILO conventions that cover four fundamental principles and rights at work. Equivalent to basic human rights at work.
Governance Conventions are four conventions that the ILO has designated as important to building national institutions and capacities that serve to promote employment. In other words, conventions that promotes a well-regulated and well-functioning labour market.
In addition, there are 71 conventions, which ILO considers “up-to-date" and actively promotes.
* In accordance with Standard A4.5 (2) and (10), the Government has specified the following branches of social security: medical care; sickness benefit and employment injury benefit. There were Amendments of 2014 and 2016 to the MLC (2006) but they are not yet in force (March 2017).
Source: ILO, NORMLEX, Country Profiles
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