Top 5pc hold 30pc of income, inequality deepens

Staff Reporter :

Bangladesh’s top 5 per cent income group now controls 30 per cent of the national income, according to a report by the Labour Reform Commission, highlighting growing income disparity in the country. The findings were presented on Monday in a report submitted to Chief Adviser Professor Muhammad Yunus.
The report attributes the widening gap primarily to the rise of oligarchs and increasing concentration of wealth. In 1973, the top 10 per cent of earners held 28.4 per cent of national income. By 2016, that figure had risen to 38 per cent. In 2021, the top 10 per cent controlled 44 per cent, with the wealthiest 1 per cent alone holding 16.3 per cent of the national income.
In contrast, the bottom 50 per cent of the population owned just 17.1 per cent of the national income, underscoring the country’s growing inequality. The Commission warned that Bangladesh is heading towards becoming one of the most unequal countries globally, and without urgent intervention, the situation could become entrenched.
The report also painted a grim picture of the state of labourers in the country. It stated that Bangladesh has the lowest labour wages in the Asia-Pacific region, with average earnings falling below internationally recognised poverty thresholds.
Additionally, the report noted that the burden of debt on low-income individuals and families has escalated dramatically. In 2010, the average loan burden for a poor individual was Tk 21,804, which increased by 92.27 per cent to Tk 41,921 in 2021. For poor families, the average debt rose 143 per cent over the same period-from Tk 54,122 to Tk 131,395.
The Commission emphasised that low wages are eroding productivity and adversely affecting economic growth. It argued that establishing a universal minimum wage would not only support workers but also enhance national productivity.
Currently, Bangladesh lacks a universal minimum wage. Of the 39 officially recognised sectors, minimum wages in 22 fall below the poverty line. Since 2013, minimum wages have been announced for 34 out of 44 sectors, but these remain inadequate when adjusted for inflation and the consumer price index, the report revealed. Gender-based income disparity is also prevalent in several sectors. For instance, in basking mills in North Bengal, female workers earn between Tk 150 and Tk 200 per day, while their male counterparts earn Tk 500 to Tk 600 for the same work.
To address these challenges, the Labour Reform Commission, led by Syed Sultan Uddin Ahmed, has submitted a comprehensive set of recommendations to promote social justice and safeguard workers’ rights.
The Commission comprises former secretaries, academics, legal experts, trade union leaders, employers’ representatives, and a student delegate. Notable members include Dr Mahfuzul Haque, Dr Zakir Hossain, Tapan Dutta, Advocate AKM Nasim, M Kamran T Rahman, and Taslima Akhter, among others.
The report calls for urgent policy reform to curb rising inequality and ensure fair and dignified working conditions across the country.