Bangladesh gains its competitive edge mainly from its low labor costs of semi-skilled workers. The country has a adequate pool of semi-skilled as well as unskilled workers who are willing to work at very competitive rates, thus enabling Bangladesh to penetrate deep into the hearts of the international markets, with comparative and competitive cost advantages.

The government supports the principle of fair wages to the workers linked to increased levels of production. Wages may be fixed through collective bargaining processes. In case of inadequacy of the collective bargaining procedure, wages can be set by the Minimum Wages Board. The Minimum Wages Board strives to ensure a balanced view of both the interests of the management and the workers. The following examples indicate the average monthly basic wages and fringe benefits in US$ per worker in a private sector organization. In the final analysis, wages and others compensations are market set.