Home / Knowledge / News / Apparel/Garments / Bangla labour welfare fund not receiving expected deposits
Bangla labour welfare fund not receiving expected deposits
Jul '18
Bangla labour welfare fund not receiving expected deposits
Bangladesh’s central workers’ welfare fund for the readymade garments (RMG) sector is not receiving the expected deposits, as a number of factories, including those from the export processing zones (EPZs), refrain from contributing, according to labour ministry officials. The fund received Tk100 crore in the last two fiscals—Tk47.68 crore less than what was expected.

The government started collecting 0.03 per cent of freight on board prices from the RMG factory owners on July 1, 2016 for the fund.

According to AMM Anisul Awal, director general of the Bangladesh Labour Welfare Foundation Fund, at least Tk20-22 crore less was received every fiscal than the legally binding amount per year as lien banks of the export-oriented garment companies didn’t properly deduct the amount meant for the fund from exporters.

On May 29, the country’s central bank asked all banks to ensure deduction of 0.03 per cent of the encashed export value from the export-oriented RMG factories for the fund.

The factories affiliated to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) will contribute to the central fund and not the factories located in the EPZs, a top English-language newspaper in the country quoted Nazma binte Alamgir, general manager (public relations) with the Bangladesh Export Processing Zones Authority (BEPZA), as saying.

Laws for the factories located inside and outside the EPZs were completely different, she clarified.

BEPZA factories do not contribute to the central fund and never receive any benefit from the fund as the authority has its own fund for the workers’ welfare, Nazma added. (DS)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: PR Newswire/Hoang Trieu

Apparel/Garments | On 14th Jul 2020

Dony Garment makes protective gear main production line

Dony Garment, a Vietnamese garment production company, has made...

Pic: Bodygram

Retail | On 14th Jul 2020

Transcosmos signs agreement with Bodygram, Japan

Transcosmos, headquartered in Japan, has signed a partnership...


Textiles | On 14th Jul 2020

How clothes are used determines sustainability: AWI

Sustainability of clothing greatly depends on the number of times it...

Interviews View All

Claudia Kersten, Global Organic Textile Standard

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Manuj Terapanthi, Texaura

Manuj Terapanthi

Transparent supply chain and fair trade will boost sustainable market

Top executives, Machinery Company

Top executives
Machinery Company

We will promote latest technologies at ITMA Barcelona

Zillur Rehman,

Zillur Rehman

Cornerstone Systems offers consultancy to businesses for enhancing their...

Laksheeta Govil,

Laksheeta Govil

Founded in 2014, Fizzy Goblet is a Delhi / NCR based handcrafted leather...

Alessandro Marengo,

Alessandro Marengo

Founded in 1974, Italian firm Zaitex SpA is one of the leading suppliers...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions & Vertriebs Gmbh, founded in 1978 and headquartered ...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kevin Nelson, TissueGen

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Anjali Bhaskar, Samatvam

Anjali Bhaskar

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search