99pc BGMEA factories clear salaries, Eid bonuses

President of the Bangladesh Garment Manufacturers and Exporters Association Mahmud Hasan Khan on Wednesday said that almost all garment factories in the country have cleared wages and Eid bonuses for February ahead of Eid-ul-Fitr, offering relief to millions of workers despite ongoing economic pressures.

He shared the update at a press briefing held at the BGMEA complex in Uttara, where the association presented the latest situation regarding salary and allowance payments in the readymade garment sector ahead of the festival.

According to BGMEA data, 99.91 per cent of factories have already paid February salaries, with the remaining two in the process of completing payments. 

Similarly, 99.81 per cent of factories have disbursed Eid bonuses, while four factories are yet to finish the process. 

Additionally, although not legally required, 64.03 percent of factories have paid partial advance salaries for March.

To ease travel congestion during the Eid rush, factories are being closed in phases. Around 50 percent of factories had already shut operations by March 17, while the rest are scheduled to close between Wednesday and Thursday, he said.

Despite the positive payment outlook, Mahmud Hasan Khan highlighted that the garment sector is navigating a difficult period in the 2025-26 fiscal year. He cited global economic slowdown, geopolitical instability, and rising international competition as key challenges affecting the industry.

Export earnings declined by 3.73 per cent in the first eight months of the current fiscal year, while back-to-back letters of credit for raw material imports fell by 6.79 per cent. The average unit price of garments also dropped by 1.76 per cent, reflecting tightening margins for manufacturers.

He further noted that volatility in global energy markets, rising transportation costs, and ongoing supply chain uncertainties have compounded the situation. Tensions in the Middle East, in particular, have introduced new risks for export-oriented industries like Bangladesh's garment sector.