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Factory Salary Calculator — Bangladesh RMG Worker Pay
Calculate monthly net salary for Bangladesh garment factory workers. Pre-loaded with the December 2023 minimum wage gazette (Grades 1–7), including basic salary, HRA, medical, transport and food allowances. Computes OT at 2× rate, absent deductions and advance deductions. No account needed — numbers update as you type.
Salary components and grade structures are based on the Bangladesh Gazette Notification, 13 December 2023 (RMG minimum wage). Some factories pay above minimum — use Custom Salary mode for those. Confirm final payroll with your HR team; this tool is for planning and estimation only.
Step By Step
How to Use This Calculator
8 steps
- Choose Grade Scale mode to use the official minimum wage structure for Grades 1–7 from the December 2023 gazette, or Custom Salary for above-minimum packages.
- In Grade Scale mode, select the worker's grade: Grade 7 is unskilled/helper; Grade 1 covers managers and IE officers.
- Enter the number of working days in the month (standard = 26 for RMG).
- Enter absent days — the tool deducts an equal share of gross salary per absent day.
- Enter overtime hours for the month — OT is paid at 2× basic hourly rate per Section 108 of the Bangladesh Labour Act 2006.
- Enter any salary advance already paid (deducted from net pay).
- Enter bonus as a percentage of basic salary if applicable (festival bonus is typically 100% of basic).
- The pay slip shows all earnings, deductions and net salary.
Worked Example
Worked example — Grade 5 operator, November pay month
Use this sample to sanity-check your inputs and understand what the final result represents.
- 1Grade 5 package: Basic BDT 8,470 + HRA BDT 3,565 + Medical BDT 600 + Transport BDT 450 + Food BDT 900 = Gross BDT 13,985
- 2Working days: 26 · Absent: 1 day · OT: 8 hours at 2× basic rate
- 3OT pay: (8,470 ÷ 12,480 min/month × 60) × 2 × 8 = BDT 648.88
- 4Absent deduction: 13,985 ÷ 26 × 1 = BDT 538.27
Final Result
Gross: BDT 14,633.88 · Deductions: BDT 538.27 · Net salary: BDT 14,095.61.
Methodology
Factory Salary Formula — Bangladesh Labour Act 2006 + Wage Gazette Dec 2023
This section explains the calculation logic, assumptions, and source material used to make the result more trustworthy and easier to verify.
Gross Salary = Basic + HRA + Medical + Transport + Food + OT Pay + Bonus. OT Pay = (Basic ÷ Monthly Minutes) × 60 × 2 × OT Hours. Monthly Minutes = Working Days × 480 minutes. Absent Deduction = (Gross Salary ÷ Working Days) × Absent Days. Net Salary = Gross Salary − Absent Deduction − Advance. Festival Bonus = Basic Salary × 100% (per occurrence). Sources: Bangladesh Labour Act 2006 (Sections 108, 123); Bangladesh Gazette Extraordinary 13 December 2023, RMG Worker Minimum Wage 2023; BGMEA HR Compliance Guidelines.
Practical Guidance
Payroll accuracy — what compliance auditors check
- 1Pay wages by the 7th of the following month — Section 123 of the Bangladesh Labour Act; delays are the most commonly cited payroll finding in SEDEX SMETA and BSCI audits
- 2Maintain individual worker pay registers with worker ID, date of joining, grade, all salary components and deductions — this is mandatory under the Labour Act and required for buyer audits
- 3Festival bonus (Eid bonus) is typically one month's basic salary per festival, paid twice per year — this is customary in Bangladesh RMG and expected by workers even when not legally mandated
- 4Wage theft (systematic underpayment) is a critical audit finding — cross-check your payroll software output against manual calculations for a random sample of workers monthly
- 5Legal deductions from salary are limited: absent day deduction, salary advance repayment, court-ordered deduction — deducting for damage, quality issues or machine misuse without following due process is illegal
- 6Keep payroll records for at least 5 years — the Bangladesh Labour Act requires records to be available for inspection by labour authorities
Frequently Asked Questions
What is the current minimum wage for garment workers in Bangladesh?+
The current RMG minimum wage was set by Bangladesh Gazette Notification on 13 December 2023, effective from that date. Grade 7 (unskilled/helper) total package: BDT 12,500/month — comprising basic salary BDT 7,150, house rent allowance (HRA) BDT 3,013, medical BDT 600, transport BDT 450 and food BDT 900. Higher grades receive proportionally more. The previous minimum was BDT 8,000/month (set in 2018). This represents the legal floor — many factories, especially those supplying major international brands, pay above minimum wage.
What are the five salary components in Bangladesh RMG?+
The Bangladesh RMG minimum wage structure has five components per the December 2023 gazette: (1) Basic Salary — the foundation for overtime, provident fund and festival bonus calculations; (2) House Rent Allowance (HRA) — set at approximately 42% of basic per the gazette; (3) Medical Allowance — fixed at BDT 600/month for all grades; (4) Transport Allowance — fixed at BDT 450/month; (5) Food Allowance — fixed at BDT 900/month. Some factories add attendance bonus or skill allowance above this structure as incentives.
When must workers be paid their monthly salary?+
Section 123 of the Bangladesh Labour Act 2006 requires wages to be paid within 7 working days of the close of the wage period. For monthly-paid RMG workers, this means by the 7th day of the following month. Late payment is a civil offence under the Act and one of the most frequently documented findings in factory compliance assessments by SEDEX, BSCI, and buyer CSR teams. Electronic wage disbursement (mobile banking via bKash or Nagad, or direct bank transfer) is increasingly required by buyers to create an auditable payment trail.
How is festival (Eid) bonus calculated for RMG workers?+
Festival bonus in Bangladesh RMG is customarily one month's basic salary per festival, paid on two major occasions per year (Eid-ul-Fitr and Eid-ul-Adha). For a Grade 5 worker with BDT 8,470 basic salary, annual bonus = 2 × 8,470 = BDT 16,940. Workers with less than 12 months of service typically receive bonus proportional to their months of service. Festival bonus is distinct from the annual or performance bonus some factories pay. While not mandated by law for all workers, it is so universal in RMG that withholding it triggers significant labour unrest.
What deductions are legally permitted from a worker's salary?+
The Bangladesh Labour Act 2006 (Part V, Sections 125–131) limits permissible deductions to: (1) absence deduction for days not worked; (2) repayment of salary advance; (3) provident fund contribution if applicable; and (4) any deduction ordered by a court. Fines for lateness, poor quality or safety violations can only be imposed after a formal disciplinary process per Section 23, and total fines cannot exceed 1/10th of monthly wages. Deductions for machine damage require proof that the damage was due to the worker's wilful negligence — blanket quality-penalty deductions are illegal and a major audit finding.