Garment workers in Bangladesh are one step closer to receiving their wages digitally following the signing of a new agreement between the country’s government and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
In a ceremony last week, representatives from the government’s ICT division and the BGMEA agreed the implementation of a ‘digital wallet’ for RMG factory workers in Bangladesh.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The so-called digital wallet will provide a vendor-neutral platform for wage transactions, as well as ensuring that female workers get full ownership of their earnings, an that the payment system is more transparent.
Other advantages include financial benefits such as cashback, reward points and merchant discounts “to increase the value of wages received”; and the ability to receive funds from corporate social responsibility (CSR), social security schemes and other sources for targeted use such as health/medical, education, childcare etc.
Workers will also be able to access and transfer funds, as well as cash in/out, from any participating financial institution; and make digital payments for utility services such as electricity, gas and water. They will also have access to financial services including credit and insurance; and enhanced worker safety and security is anticipated by reducing the use of cash.
The government’s ICT division, ministry of posts, telecommunications and information technology will be responsible for creating and operating the digital wallet, while the BGMEA will be responsible for ensuring its adoption by RMG factories.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataBGMEA president Dr Rubana Huq told local media the digitised payment will start on a pilot basis ahead of Eid-ul-Azha (11-15 August).
“I can say that all 35 members of the current BGMEA board of directors will start paying digitally from the Eid-ul-Azha. We will motivate the other factory owners to do the same as soon as possible.”
