My comparison of monthly wages, living wages, consumer prices, brand purchasing practices and hidden costs in Bangladesh.
When I look at a garment quotation, I want to understand what sits behind the price. Efficient production, large orders and good fabric sourcing can lower costs. Low wages, squeezed margins and expenses that emerge later as delays can also shape the quotation.
I compare Bangladesh, India, Pakistan, China, Vietnam, Cambodia and Myanmar. Bangladesh’s low wage floor can give buyers a price advantage, but a sustainable advantage also depends on fair purchasing, reliable delivery and cleaner public services.
Research checked on 4 November 2026. I show local wages beside US dollar equivalents using one reference date, and compare wage increases with inflation. The selected wage schedules have different effective dates.
What the wage figures actually mean
A minimum wage is a legal floor. A living wage estimates what a worker needs to support a decent life during normal working hours. Take home pay may include overtime and bonuses; the factory’s labour cost also includes benefits, supervision and other employment costs. These are different figures, so I do not use them interchangeably.
| Country and coverage | Published local wage | US$ equivalent | Effective rate |
|---|---|---|---|
| Bangladesh Non EPZ garments | BDT 12,500 / month | US$ 100.92 / month | December 2023 entry grade gross floor. [1] |
| India Karnataka Zone 1 | INR 13,253.91 / month | US$ 139.15 / month | April 2026 unskilled rate, including dearness allowance. [2] |
| Pakistan Punjab | PKR 40,000 / month | US$ 144.60 / month | 2025 notified unskilled rate; 26 working days. [3] |
| China Shanghai | CNY 2,740 / month | US$ 411.35 / month | July 2025 city floor; specified allowances and deductions additional. [4] |
| Vietnam Regions I / II / III / IV | VND 5.31m / 4.73m / 4.14m / 3.70m monthly | US$ 206 / 183 / 160 / 143 monthly | January 2026 regional floors. [5] |
| Cambodia Garments | US$ 210 / month Approx KHR 854,280 | US$ 210 / month | January 2026 regular workers; US$ 208 in probation. [6] |
| Myanmar Covered employers | MMK 202,800 / month 26 day equivalent | US$ 48.40 / month | October 2025 total with allowances, calculated for 26 paid days; employers with 10 or more workers. [7] |
All wages are monthly; Myanmar uses 26 paid days. These are selected legal floors, not average salaries or equivalent grades. US$ uses UN rates effective 1 November 2026. [8]
Comparing the wages in US dollars
For a quick international view, I translate the selected monthly amounts into US dollars. The chart uses Vietnam’s Region I rate and Karnataka’s unskilled rate. Where a source quotes a daily rate, I multiply by 26 paid days. This is a calculated equivalent, not a new statutory monthly rate; actual pay depends on days paid and other entitlements.
| Currency | Local currency units per US$ 1 | Reference date |
|---|---|---|
| BDT | 123.863 | 1 November 2026 |
| INR | 95.25 | 1 November 2026 |
| PKR | 276.625 | 1 November 2026 |
| CNY | 6.661 | 1 November 2026 |
| VND | 25,814 | 1 November 2026 |
| KHR | 4,068 | 1 November 2026 |
| MMK | 4,190 | 1 November 2026 |
| EUR | 0.898 | 1 November 2026 |
I use UN operational rates as a consistent translation reference. They are UN accounting rates; actual bank and transaction rates vary. US dollar conversion changes the unit of measurement, while local purchasing power still depends on local prices. [8] [9]
Myanmar illustrates why the conversion basis matters. MMK 202,800 translates to about US$ 48 at the UN rate of 4190. At the official reference rate of 2100 shown by Myanmar’s CSO, the same amount would be about US$ 97. The kyat wage itself has not changed. [10]
Bangladesh’s 9% annual increment for eligible workers, effective December 2024, is separate from the entry floor. Provincial, regional, skill and benefit rules also affect the other figures. [11]
India: the state and city change the wage
I would not quote one figure as “India’s garment wage.” West Bengal, Tamil Nadu, Uttar Pradesh, Delhi, Haryana and Karnataka have different schedules. Even within one state, location and job grade matter. The chart below compares selected helper or unskilled floors with the stated operator or skilled grade, all per month.
Noida and Greater Noida belong to Gautam Buddha Nagar in Uttar Pradesh’s Category I, together with Ghaziabad. Gurugram follows Haryana; Bengaluru follows Karnataka Zone 1. They are useful sourcing locations to compare, but they do not each have an independent state wage law.
This also changes how I describe Bangladesh’s position. Its selected wage is low, but it is not the lowest in every comparison. Myanmar’s calculated monthly amount is lower at the common UN exchange rate, while some Indian entry floors are close to Bangladesh’s. Exchange rates and grades affect that ranking.
India monthly wage table: local currency and US dollars
| State / location | Helper or unskilled INR (US$) / month | Specified qualified grade INR (US$) / month | Coverage and date |
|---|---|---|---|
| West Bengal · Zone A | INR 10,558.00 (US$ 110.85) | INR 12,777.00 (US$ 134.14) | Garments: helper / skilled lock stitch operator. Jul–Dec 2026. [12] |
| West Bengal · Zone B | INR 9,760.00 (US$ 102.47) | INR 11,807.00 (US$ 123.96) | Garments: helper / skilled lock stitch operator. Jul–Dec 2026. [12] |
| Tamil Nadu · Zone A | INR 12,055.00 (US$ 126.56) | INR 12,622.00 (US$ 132.51) | Export garments: helper / Grade I tailor. Apr 2026–Mar 2027. [13] [14] |
| Tamil Nadu · Zone B | INR 11,865.00 (US$ 124.57) | INR 12,432.00 (US$ 130.52) | Export garments: helper / Grade I tailor. Apr 2026–Mar 2027. [13] [14] |
| Tamil Nadu · Zone C | INR 11,676.00 (US$ 122.58) | INR 12,243.00 (US$ 128.54) | Export garments: helper / Grade I tailor. Apr 2026–Mar 2027. [13] [14] |
| UP · Noida / Ghaziabad | INR 13,883.59 (US$ 145.76) | INR 17,106.39 (US$ 179.59) | Category I: unskilled / skilled. Oct 2026–Mar 2027. [15] |
| UP · Category II | INR 13,189.68 (US$ 138.47) | INR 16,250.86 (US$ 170.61) | Other municipal corporation districts: unskilled / skilled. Oct 2026–Mar 2027. [15] |
| UP · Category III | INR 12,530.25 (US$ 131.55) | INR 15,438.42 (US$ 162.08) | Remaining districts: unskilled / skilled. Oct 2026–Mar 2027. [15] |
| Delhi | INR 18,456.00 (US$ 193.76) | INR 22,411.00 (US$ 235.29) | Unskilled / skilled. Latest rate on official page: Apr 2025. [16] |
| Gurugram · Haryana | INR 15,220.71 (US$ 159.80) | INR 18,500.81 (US$ 194.23) | All employments: unskilled / skilled. Apr 2026 notification. [17] |
| Bengaluru · Karnataka Zone 1 | INR 13,253.91 (US$ 139.15) | INR 13,788.85 (US$ 144.76) | Garments: unskilled / skilled tailor Grade I. Apr 2026–Mar 2027. [2] |
West Bengal’s garment schedule distinguishes a semi skilled machine operator from a skilled lock stitch operator; the right column uses the latter. Tamil Nadu uses export garment Grade I tailors. The other right column entries use the skilled category specified in the source. These distinctions prevent a helper’s floor being presented as a trained sewing operator’s wage.
Tamil Nadu’s Zone A covers municipal corporations, including workplaces within Tiruppur, Chennai and Coimbatore corporation limits; Zone B covers municipalities and Zone C other areas. Its 2026 monthly DA is INR 4,276 (US$ 44.89), added to basic wages: a Zone A helper totals INR 12,055 and a Grade I tailor INR 12,622. Actual factory coverage and any higher existing or agreed wages still matter. [13] [14]
Delhi’s official register, checked on 4 November 2026, still lists the April 2025 rate as its newest wage revision. I retain that effective date rather than relabelling the amount as a new 2026 notification. [18]
Consumer T shirt and polo prices in four markets
I want to compare a garment worker’s full monthly wage with the price a consumer sees for one T shirt or polo. I use two matching H&M product codes across the USA, Germany, Japan and South Korea: white cotton T shirt 0685816001 and black cotton piqué polo 1209183001. Germany represents one EU market, rather than an EU average.
| Consumer market | One T shirt: regular price Local currency (US$) | One polo: regular price Local currency (US$) |
|---|---|---|
| USA | USD 7.99 (US$ 7.99) | USD 14.99 (US$ 14.99) |
| Germany (EU example) | EUR 6.99 (US$ 7.78) | EUR 12.99 (US$ 14.47) |
| Japan | JPY 799 (US$ 5.06) | JPY 1,799 (US$ 11.39) |
| South Korea | KRW 7,900 (US$ 5.90) | KRW 17,900 (US$ 13.37) |
Sources: the retailer’s regional pages, retrieved 4 November 2026. South Korea’s matching white T shirt code and regular price are also confirmed in H&M’s official seller catalogue on SSG. Listed prices and availability can change by colour, size, store and promotion. [19] [20] [21] [22] [23] [24] [25] [26] [27]
I use regular prices for the main comparison and show markdowns separately. The US polo page also lists a sale price of US$ 5.49; the South Korean polo lists KRW 10,900 (US$ 8.14) against its regular KRW 17,900. A consumer who qualifies for or finds a promotion can pay less. [24] [27]
Germany’s displayed prices include VAT and Japan’s include consumption tax; US sales tax depends on the delivery address. I use the South Korean displayed consumer prices without adjusting their tax component. Shipping is excluded throughout. The figures compare listed consumer prices, with their stated tax treatment, rather than tax free brand revenue. Conversions use JPY 157.9 and KRW 1,338.5 per US$ 1, alongside the common UN rates above. [28] [29] [30] [8]
How many consumer garments equal a full monthly wage?
I divide the full monthly wage by one garment’s regular retail price, using US dollars for both. Bangladesh’s BDT 12,500 monthly entry floor (US$ 100.92) equals 12.6 US T shirt prices or 6.7 US polo prices. Every row uses the whole monthly amount before deductions or spending. These are selected legal floors or monthly equivalents, rather than average actual earnings.
| Worker location | Monthly wage US$ | USA T shirts / polos | Germany (EU) T shirts / polos | Japan T shirts / polos | South Korea T shirts / polos |
|---|---|---|---|---|---|
| Bangladesh | 100.92 | 12.6 / 6.7 | 13.0 / 7.0 | 19.9 / 8.9 | 17.1 / 7.5 |
| India | 139.15 | 17.4 / 9.3 | 17.9 / 9.6 | 27.5 / 12.2 | 23.6 / 10.4 |
| Pakistan | 144.60 | 18.1 / 9.6 | 18.6 / 10.0 | 28.6 / 12.7 | 24.5 / 10.8 |
| China | 411.35 | 51.5 / 27.4 | 52.8 / 28.4 | 81.3 / 36.1 | 69.7 / 30.8 |
| Vietnam | 205.70 | 25.7 / 13.7 | 26.4 / 14.2 | 40.7 / 18.1 | 34.9 / 15.4 |
| Cambodia | 210.00 | 26.3 / 14.0 | 27.0 / 14.5 | 41.5 / 18.4 | 35.6 / 15.7 |
| Myanmar | 48.40 | 6.1 / 3.2 | 6.2 / 3.3 | 9.6 / 4.2 | 8.2 / 3.6 |
How much of a monthly salary does one consumer polo represent?
I can also turn the calculation around: one polo’s consumer price divided by the worker’s full monthly wage, multiplied by 100. This shows the share of a month’s salary represented by a single purchase, using the same regular prices and wage coverage.
| Worker location | USA polo % of salary | Germany polo % of salary | Japan polo % of salary | South Korea polo % of salary |
|---|---|---|---|---|
| Bangladesh | 14.9% | 14.3% | 11.3% | 13.3% |
| India | 10.8% | 10.4% | 8.2% | 9.6% |
| Pakistan | 10.4% | 10.0% | 7.9% | 9.2% |
| China | 3.6% | 3.5% | 2.8% | 3.3% |
| Vietnam | 7.3% | 7.0% | 5.5% | 6.5% |
| Cambodia | 7.1% | 6.9% | 5.4% | 6.4% |
| Myanmar | 31.0% | 29.9% | 23.5% | 27.6% |
For Bangladesh, one regular priced US polo represents roughly 14.9% of the full monthly wage. In Germany it is about 14.3%, Japan 11.3% and South Korea 13.3%. At the separately listed sale prices, the US polo represents 5.4% and the South Korean polo about 8.1%. This difference is why I identify both the product and the price basis instead of treating “the price of a polo” as one fixed number.
The worker’s monthly salary and the consumer’s payment belong to different parts of the supply chain. A retail price also supports distribution, stores, tax and other costs. It does not establish the factory’s FOB price or how much of that particular sale reaches a worker. I would need matched buyer orders and payroll evidence to answer those questions.
The full monthly salary comparison across India
I apply the same comparison to each Indian helper or unskilled monthly floor. Every pair below means T shirts / polos at the regular retail prices shown earlier. No household expense is deducted from the salary.
| Indian location | Monthly entry wage US$ | USA T / P | Germany (EU) T / P | Japan T / P | South Korea T / P |
|---|---|---|---|---|---|
| West Bengal · Zone A | 110.85 | 13.9 / 7.4 | 14.2 / 7.7 | 21.9 / 9.7 | 18.8 / 8.3 |
| West Bengal · Zone B | 102.47 | 12.8 / 6.8 | 13.2 / 7.1 | 20.2 / 9.0 | 17.4 / 7.7 |
| Tamil Nadu · Zone A | 126.56 | 15.8 / 8.4 | 16.3 / 8.7 | 25.0 / 11.1 | 21.4 / 9.5 |
| Tamil Nadu · Zone B | 124.57 | 15.6 / 8.3 | 16.0 / 8.6 | 24.6 / 10.9 | 21.1 / 9.3 |
| Tamil Nadu · Zone C | 122.58 | 15.3 / 8.2 | 15.7 / 8.5 | 24.2 / 10.8 | 20.8 / 9.2 |
| UP · Noida / Ghaziabad | 145.76 | 18.2 / 9.7 | 18.7 / 10.1 | 28.8 / 12.8 | 24.7 / 10.9 |
| UP · Category II | 138.47 | 17.3 / 9.2 | 17.8 / 9.6 | 27.4 / 12.2 | 23.5 / 10.4 |
| UP · Category III | 131.55 | 16.5 / 8.8 | 16.9 / 9.1 | 26.0 / 11.5 | 22.3 / 9.8 |
| Delhi | 193.76 | 24.3 / 12.9 | 24.9 / 13.4 | 38.3 / 17.0 | 32.8 / 14.5 |
| Gurugram · Haryana | 159.80 | 20.0 / 10.7 | 20.5 / 11.0 | 31.6 / 14.0 | 27.1 / 11.9 |
| Bengaluru · Karnataka Zone 1 | 139.15 | 17.4 / 9.3 | 17.9 / 9.6 | 27.5 / 12.2 | 23.6 / 10.4 |
T / P means the number of retail T shirt prices / polo prices equal to one full monthly salary. For example, the West Bengal Zone A helper floor equals about 13.9 US T shirts or 7.4 US polos, while Delhi’s unskilled floor equals about 24.3 US T shirts or 12.9 US polos. These follow the state schedules and dates in the detailed India table, not a single national Indian wage.
The qualified operator and skilled wages remain in the earlier India table. Their retail equivalents can be calculated in the same way. I keep the grade visible because a helper’s minimum and an experienced sewing operator’s actual salary can differ substantially.
How far the minimum wage is from a living wage
For Bangladesh, Anker’s 2025 estimates are BDT 30,459 a month in Dhaka (US$ 246) and BDT 25,166 in the surrounding satellite cities (US$ 203). These benchmarks account for a family and an expected number of earners. The US dollar figures here translate those dated benchmarks at the common November 2026 reference rates. [31] [32]
For a broader view, I also show the Asia Floor Wage Alliance’s 2024 benchmarks below. AFWA uses a regional family consumption approach and purchasing power parity. Its assumptions differ from Anker’s, so the two sets of estimates should remain separate.
| Country | AFWA 2024 monthly benchmark | US$ equivalent |
|---|---|---|
| Bangladesh | BDT 53,829 | US$ 435 |
| India | INR 34,170 | US$ 359 |
| Pakistan | PKR 103,772 | US$ 375 |
| China | CNY 6,389 | US$ 959 |
| Vietnam | VND 12,453,836 | US$ 482 |
| Cambodia | KHR 2,641,891 | US$ 649 |
| Myanmar | MMK 874,743 | US$ 209 |
Source: AFWA 2024 release, rounded. China and Pakistan used PPP conversion without a local consumption survey in that round. The final column translates local benchmarks at November 2026 UN rates; it does not update their purchasing power. AFWA’s underlying PPP units are different from these US dollar equivalents. [33] [8]
What has improved over the last two decades
There has been substantial progress in the money printed on wage schedules. In Bangladesh, the entry floor rose from BDT 1,662.50 in 2006 to BDT 3,000 in 2010, BDT 5,300 in 2013, BDT 8,000 in 2018 and BDT 12,500 in 2023. That is about 7.5 times the 2006 amount, before inflation. [34] [35]
The other countries show different paths. Cambodia moved from USD 50 in January 2007 to USD 210 in 2026. Shanghai moved from CNY 750 in September 2006 to CNY 2,740 in July 2025. Pakistan’s historical unskilled floor was PKR 4,000 in 2006; Punjab’s selected 2025 floor is PKR 40,000. These are nominal changes within the stated legal coverage, not a ranking of improvements in living standards. [36] [6] [37] [4] [38] [3]
Vietnam’s 2006 floor for foreign invested employers in inner Hanoi and Ho Chi Minh City was VND 870,000. Region I reached VND 5.31 million in 2026, although ownership rules and regional boundaries changed. For India’s historical comparison, I use a skilled tailor in Bengaluru: INR 2,463.76 per month in the 2006 government schedule reproduced by Rajasekhar and colleagues, converted using 26 paid days, compared with the notified INR 13,788.85 monthly amount in the 2026 Karnataka Zone 1 schedule. This is a different grade from the unskilled entry rate in the opening table. [39] [5] [40] [2]
Myanmar’s first national floor in September 2015 is equivalent to MMK 93,600 per month using 26 paid days. Later increases brought the covered monthly equivalent to MMK 202,800, including allowances, on the same calculation basis. Yet a 2025 UNDP study based on 667 interviews in Yangon and Bago found most surveyed workers still below subsistence levels. The ILO’s wider Asian garment research also finds that higher real wages have coexisted with poor working conditions. My test of progress is therefore purchasing power, normal hours, safety and worker voice, as well as the wage number. [41] [7] [42] [43]
Minimum wage increases across all seven countries
Each panel puts an earlier published rate beside the latest selected rate. The percentages show nominal increases within each panel. The periods, locations and legal coverage differ, so they should not be read as a league table of improvements in living standards.
Inflation across the seven garment producing countries
A wage increase only improves buying power to the extent that it stays ahead of prices. I therefore place inflation beside the wage discussion. The IMF series below measures average consumer price inflation in each country’s reporting year. Its country year conventions can differ, so this is broader context rather than a matched calendar year payroll calculation. [44]
| Country | 2024 % | 2025 % | 2026 forecast % |
|---|---|---|---|
| Bangladesh | 9.7 | 10.0 | 8.7 |
| India | 4.6 | 2.0 | 5.0 |
| Pakistan | 23.4 | 4.5 | 7.1 |
| China | 0.2 | 0.0 | 1.0 |
| Vietnam | 3.6 | 3.3 | 4.7 |
| Cambodia | 0.8 | 2.5 | 5.6 |
| Myanmar | 29.6 | 21.1 | 20.0 |
The contrast matters for wage negotiations. In this IMF snapshot, Myanmar has the highest 2025 inflation of the seven, at 21.1%, while China is at 0.0%. Bangladesh is at 10.0% and Pakistan at 4.5% in their respective reporting years. These annual averages differ from a particular month’s year on year inflation rate. [45]
A falling inflation rate means that prices are rising more slowly. It does not, by itself, bring food, rent or transport costs back to their earlier levels. I would compare a proposed wage increase with the relevant local price trend and the worker’s normal hours earnings.
How much prices have risen since 2006
For the longer view, I set each country’s 2006 consumer price level to 100 and compound the IMF annual inflation rates from 2007 through 2025. A reading of 300 means a typical national consumer basket costs about three times its 2006 level. It is an index of price change within each country, not a comparison of the price of the same basket across countries.
| Country | 2025 price index 2006 = 100 | Cumulative price increase |
|---|---|---|
| Bangladesh | 377.8 | 277.8% |
| India | 319.8 | 219.8% |
| Pakistan | 664.6 | 564.6% |
| China | 150.7 | 50.7% |
| Vietnam | 308.0 | 208.0% |
| Cambodia | 212.6 | 112.6% |
| Myanmar | 879.1 | 779.1% |
This is why I keep nominal wage growth and inflation separate. A larger number on a wage schedule can still leave workers facing pressure from rent, food and other essentials. To calculate a precise real wage change, I would match the wage dates, geography and CPI period rather than subtracting an unrelated inflation percentage from the nominal increase.
How different brands buy and why it matters
The buyer influences more than the final price. Order forecasts, late design changes, delivery demands, cancellation rules and payment dates all affect whether a factory can plan work and pay people properly.
An Aberdeen and Transform Trade study surveyed 1,000 Bangladeshi factories about pandemic period purchasing. Suppliers reported that 70% of brands and retailers were still buying at similar prices in December 2021 to March 2020 from at least some suppliers, despite rising costs. More than half of factories reported at least one of four unfair practices, including cancellations, price reductions, refusal to pay for goods and delayed payment. These are historical supplier reports, not a current verdict on every named buyer. [46]
| Brand or group | What its published approach says | What I would check on a live order |
|---|---|---|
| H&M Group | Itemises labour and treats it separately from product price negotiation; shares forecasts and participates in ACT. [47] | Does the agreed labour allowance rise when wages rise, and do planning changes receive enough time and funding? |
| Inditex Including Zara | Its 2024 statement describes ACT purchasing commitments, including fair payment conditions and respect for agreed payment periods. [48] | Do actual payment dates and order revisions match those commitments? |
| Primark | Commits to pursue a living wage by 2030; reports wage data collection and ACT related purchasing improvements. [49] [50] | Is there a funded wage improvement plan, with worker outcomes measured against a clear benchmark? |
| Fast Retailing Including UNIQLO | Policy requires capacity based planning, supplier consent for quantity or delivery changes, and consideration of rising wage and material costs. [51] | Does the costing recognise those increases, and are changes agreed before production is disrupted? |
These are company commitments, not proof that every supplier worker receives a living wage. I would compare them with confidential supplier feedback, payroll records, worker interviews and order level payment evidence. A cheap purchase price alone tells me very little about responsible buying.
Why a brand may pay less in Bangladesh for the same garment
A comparison starts with the same technical specification, fabric, weight, colour, order quantity, quality standard, delivery date and payment terms. It must also use the same price basis. FOB means free on board at the named shipment port; it does not include the buyer’s international freight, import duties or retail margin.
Bangladesh can be attractive for repeat, large volume basics when a factory combines low labour cost with production experience, efficient lines and competitive material sourcing. India or Vietnam may win a particular order through fabric availability, product capability, speed or lower rejection risk. These are sourcing considerations to check at factory level, rather than fixed advantages that apply to every product.
This example shows why a large wage difference does not become the same percentage difference in the whole garment price. Fabric and trims take the largest share of this particular cost sheet. Labour is 8.6% of FOB here; another style or factory can have a very different share.
I also separate the worker’s wage from labour cost per good piece. A higher monthly wage can be partly offset by more output per paid hour, less rework or better capacity use. That is why dividing one country’s minimum wage by another’s does not tell me the correct FOB discount.
A controlled comparison for Bangladesh India and Vietnam
To make the price mechanism easy to follow, I use one hypothetical order: 50,000 plain cotton crew neck T shirts, 180 GSM, with the same construction, colour mix and quality requirements. I hold material costs, overhead, profit and all other commercial terms constant. Only the assumed labour cost per piece changes.
| Assumed USD per piece | Bangladesh | India | Vietnam |
|---|---|---|---|
| Materials and trims | 2.50 | 2.50 | 2.50 |
| Labour | 0.30 | 0.45 | 0.60 |
| Overhead | 0.50 | 0.50 | 0.50 |
| Factory profit | 0.20 | 0.20 | 0.20 |
| FOB total | 3.50 | 3.65 | 3.80 |
Under these assumptions, Bangladesh is USD 0.15 below India and USD 0.30 below Vietnam, or about 4.1% and 7.9% lower respectively. If the modelled Bangladesh labour cost doubled, FOB would rise from USD 3.50 to USD 3.80, an 8.6% increase, assuming every other cost and productivity measure stayed fixed.
Public customs unit values do not establish what the same brand pays for an identical style: product mix, quality, materials and order size differ. I have therefore not presented a country average as proof of an identical product price gap. A verified comparison would need matched purchase orders and cost sheets from the buyer or suppliers.
How corruption adds to Bangladesh garment costs
Low labour cost can coexist with an expensive operating environment. An unofficial payment raises cash expenditure. A file held back, an unpredictable approval or an obstructed shipment can also create storage bills, idle capacity and financing costs.
There is evidence of worsening corruption exposure in public services. TIB’s National Household Survey 2025, released in June 2026, reported corruption exposure for 81.6% of households, compared with 70.9% in its 2023 comparison, and an estimated total value of bribes 15.9% higher in nominal terms. The 2025 survey refers to November 2024 through October 2025. This is household evidence; I do not treat those percentages as the corruption rate of garment factories or as a surcharge on FOB. [52]
Garment specific evidence is older but relevant to the mechanisms. TIB’s 2013 study identified payments for clearances and services from public institutions, fake audit records and conflicts of interest. A September 2025 report on a Chattogram customs arrest described an allegation that clearance was held up to demand money, with the importer reporting demurrage. That case concerned an importer, not a measured sample of garment orders, and an arrest is not a conviction. [53] [54]
| Where a problem occurs | How it can affect garment cost and timing |
|---|---|
| Customs and bonded inputs | An unjustified hold can delay fabric release, interrupt the production plan and add storage or detention charges. |
| Permits and utility approvals | Discretionary processing and repeated follow up can delay factory readiness and add administrative expense. |
| Transport and local services | Coercive unofficial demands, where they occur, can increase charges and make shipment planning less predictable. |
| Oversight and documentation | Collusive or unreliable records can create repeat checks, corrective work and uncertainty for buyers. |
The cost pathways above are my supply chain analysis of the documented problems, not measured national averages. I could not establish a reliable current figure for corruption cost per garment or a garment sector time series proving its increase. Legitimate port charges, electricity shortages, congestion and lawful inspections also cause costs and delays. The IMF separately identifies transport and power weaknesses as constraints on Bangladesh’s cost and lead time. [55]
How a small disruption can erase a price advantage
I return to the same 50,000 piece order. Suppose a clearance related disruption produces USD 9,000 of extra expense: USD 1,500 in unofficial demands, USD 2,000 in additional storage, USD 1,000 in financing, USD 1,500 in replanning and USD 3,000 in expediting. These are invented amounts for a scenario; they are not reported bribe rates or an allowance I would recommend paying.
That USD 0.18 absorbs 60% of the model’s USD 0.30 price advantage over Vietnam. It also exceeds the model’s USD 0.15 gap with India. This demonstrates sensitivity to extra costs; it does not assume other countries have no corruption or disruption.
The delivery problem is uncertainty as well as elapsed time. If I cannot predict when fabric will be released, I have to plan more buffer. If the order misses a vessel, a short administrative hold can turn into a much larger delivery slip. Any switch to air freight or buyer markdown would need its own calculation; neither is automatically caused by every delay.
What I would change in the buying and costing conversation
For brands, I would start with itemised labour costs, timely payment and agreed funding for wage increases. I would also ask buyers to own the costs of late changes and make order forecasts useful enough for factories to plan normal working hours. A living wage promise needs a benchmark, a timetable and evidence from workers’ pay.
For factories, I would measure labour cost per good piece, rework, overtime, material waiting time and payment delays together. Wage improvement should be supported by better planning and skills, with worker participation, rather than relying on longer hours or unrealistic production targets.
For public agencies and industry bodies, I would prioritise published service fees, visible processing deadlines, digital records of each clearance step and complaint channels that protect users. Digitisation needs accountable decisions behind it. An online form followed by an unexplained manual hold still leaves room for abuse.
My view is that Bangladesh should compete through dependable production and decent work. Workers should share in the value of the garments they make, while factories should be able to quote honestly and deliver predictably. Buyers have a role in funding that outcome through the prices, timelines and payment terms they agree.
How to read and reuse the charts
The wage tables, Bangladesh history and seven country wage increase panels use published figures, with disclosed monthly conversions where needed. US dollar amounts are calculations at November 2026 UN operational rates. The AFWA table retains its 2024 benchmark date. Inflation charts use IMF data, with 2026 labelled as forecast. The FOB, disruption and delivery charts remain teaching models with explicit assumptions.
Figures are rounded only for display. Wages exclude overtime unless the cited schedule says otherwise. Bangladesh living wage coverage uses BDT 12,500 divided by the relevant 2025 benchmark. Actual pay varies by grade, tenure and allowances. The dollar chart compares selected legal wage amounts; productivity, employer benefits, hours and material costs still affect labour cost per garment. Retail comparisons use the full monthly wage and matching H&M product codes in the USA, Germany, Japan and South Korea. The main comparisons use listed regular prices, with observed markdowns separately identified. They show wage equivalents and the salary share represented by one garment, without subtracting household expenses.
The figures should be refreshed when a new wage notification or living wage update is published. The source links below make that update possible without relying on an unattributed comparison graphic.
Sources
The following sources support the linked statements and chart notes. Company pages describe company policies and self reported activity. Independent studies have their own locations, samples and reporting periods.
- ETI Bangladesh wage implementation study — 19 November 2025.
- WageIndicator Karnataka garment wage schedule — Effective 1 April 2026 to 31 March 2027.
- Pakistan government radio on Punjab minimum wages — 10 September 2025.
- Shanghai government minimum wage notice — 14 July 2025.
- Vietnam government regional minimum wages for 2026 — 2 January 2026.
- Cambodia government announcement of the 2026 garment wage — 17 September 2025.
- DFDL explanation of Myanmar wage allowances — 16 October 2025.
- UN Treasury operational exchange rates — Rates effective 1 November 2026; frozen XML in the data package.
- UN Treasury explanation of its operational rates — Accounting reference rates; accessed 4 November 2026.
- Myanmar CSO exchange rate overview — Reference rate of MMK 2100 per US dollar shown in October 2026.
- Gazette on Bangladesh garment wage increments — 7 January 2025.
- West Bengal July 2026 notification, garment schedule item 13 — Government circular dated 22 June 2026, reproduced copy.
- Tamil Nadu government tailoring and export garment wage schedule — Gazette 178, G.O. (2D) 29, 31 May 2024; basic wages.
- Tamil Nadu Commissioner of Labour 2026 dearness allowance statement — 18 February 2026, effective 1 April 2026; item 66, mirrored government PDF.
- Uttar Pradesh October 2026 wage notification — 21 October 2026, effective 1 October 2026 to 31 March 2027; mirrored government PDF.
- Delhi government monthly minimum wage order — 15 April 2025, effective 1 April 2025.
- Haryana government April 2026 wage notification — 9 April 2026, effective 1 April 2026; mirrored government PDF.
- Delhi Labour Department current wage notification register — Checked 4 November 2026; newest listed rate effective April 2025.
- H&M USA white cotton T shirt 0685816001 — Price observed 4 November 2026: US$ 7.99.
- H&M Germany white cotton T shirt 0685816001 — Price observed 4 November 2026: EUR 6.99.
- H&M Japan white cotton T shirt 0685816001 — Listed price retrieved 4 November 2026: JPY 799.
- H&M South Korea basic T shirt listings — Regular fit T shirt listed at KRW 7900; retrieved 4 November 2026.
- H&M official seller catalogue on SSG, white T shirt 0685816001 — Matching SKU regular price KRW 7900; platform discount shown separately; retrieved 4 November 2026.
- H&M USA black piqué polo 1209183001 — Observed 4 November 2026: regular US$ 14.99, sale US$ 5.49.
- H&M Germany black piqué polo 1209183001 — Price observed 4 November 2026: EUR 12.99.
- H&M Japan black piqué polo 1209183001 — Listed regular price retrieved 4 November 2026: JPY 1799.
- H&M South Korea black piqué polo 1209183001 — Retrieved 4 November 2026: regular KRW 17900, sale KRW 10900.
- H&M Germany pricing terms — Section 2.1: displayed prices include VAT; shipping additional.
- H&M Japan pricing terms — Section 2: displayed prices include consumption tax, excluding shipping.
- H&M USA sales tax policy — Sales tax depends on shipment address and is calculated at checkout.
- Global Living Wage Coalition Dhaka benchmark — 2025 estimate.
- Anker Research Institute living wage database — 2025 Bangladesh estimates.
- Asia Floor Wage Alliance living wage calculations — 2024 benchmark release.
- Bangladesh wage history and the 2013 gazette — 5 December 2013.
- ILO and JETRO report on responsible business conduct — 2024 report.
- US government record of the Cambodian wage floor — 2008 investment climate statement.
- Shanghai government 2006 minimum wage notice — Effective 1 September 2006.
- Pakistan minimum wage legislation and amendments — Historical statutory amendments.
- JICA historical account of Vietnamese minimum wages — Historical table 9 2 4.
- Rajasekhar Suchitra and Manjula on Karnataka garment wages — Indian Journal of Labour Economics 2007; table 7 cites Government of Karnataka 2006.
- ILO account of Myanmar wage setting — 2017 report.
- UNDP study of garment workers in Myanmar — 2 June 2025.
- ILO employment wages and productivity in Asian garments — 24 June 2022.
- IMF World Economic Outlook database and conventions — October 2026 database; country reporting year conventions vary.
- IMF DataMapper annual average consumer price inflation series — Retrieved 4 November 2026; 2026 values treated as projections.
- Aberdeen and Transform Trade supplier survey — January 2023 report on pandemic period practices.
- H and M Group purchasing practices — Company policy and reported 2025 assessment.
- Inditex 2024 sustainability statement — 2024 reporting year.
- Primark commitments to supply chain workers — Published 2030 commitments.
- Primark update on living wages and purchasing — 2023 progress update.
- Fast Retailing responsible purchasing policy — Updated 2 November 2026.
- TIB National Household Survey 2025 findings — Released 25 June 2026.
- TIB garment sector governance study findings — 31 October 2013.
- Reported Chattogram customs bribery arrest — 16 September 2025.
- IMF Bangladesh Article IV report on logistics constraints — 2026 publication covering the 2025 consultation.
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