The Minimum Wage Board (MWB) operates with limited data, complicating assessments of employers’ ability to pay and broader productivity issues, particularly without a dedicated research department, said Mostafiz Ahmed, associate professor of social work at Jagannath University.

He was speaking at an event titled ‘Wage Determination of Minimum Wage Board: Scope, Challenges and Way Forward’, organized by the Bangladesh Institute of Labor Studies, at the Daily Star Center in the capital today.

The MWB lacks a research wing and dedicated researchers, so it should create one, he suggested during his keynote presentation.

“Without clear calculations and economic justifications, the wage-setting process risks lacking transparency and fairness, which could lead to discontent among workers and employers,” Ahmed said.

The MWB, the statutory body responsible for setting private sector wages under the Bangladesh Labor Act 2006, receives and reviews feedback on recommended wage rates, adjusting them as necessary.

He also pointed out that MWB workplace inspections do not have a standardized format.

Without consistent guidelines, inspections may be less effective and the data collected may not provide a reliable basis for making decisions, he added.

Ahmed pointed out that among 42 sectors, 20 have not seen regular salary increases for periods ranging from 6 to 40 years.

He also recommended expanding the human resources of the MWB to enable efficient operations.

Ahmed stressed that sectoral salaries should be reviewed every five years.

However, two sectors have not seen any revisions in the last 35 years, while salary revisions in eight sectors were overdue for 10-15 years and in 10 sectors for 6-9 years.

He proposed several reforms, including establishing a national minimum wage, democratizing the selection of MWB representatives, setting criteria for independent members, and improving sectoral representation and accountability.

It also recommended regular salary reviews, fixed meeting schedules and publication of proceedings on the MWB website to keep workers and stakeholders informed.