Dhaka, Bangladesh (BBN) - The central bank of Bangladesh asked the lien banks concerned to deduct 0.03 per cent from each readymade garment (RMG) export proceed from July 1 next.
Under the new provisions, the banks will have to transfer the deducted amount to the account namely ‘Central Fund (RMG Sector)’ within seven working days of the deduction, according to a notification, issued by the Bangladesh Bank (BB), on Sunday.
“We’ve issued the notification in line with the government advice,” a BB senior official told BBN in Dhaka.
Earlier, the ministry of labour opened the aforesaid account at Ramna Corporate Branch of Sonali Bank Limited following the fund’s first board meeting decision to deduct the amount from next month.
The board was formed more than six months after the rules were published in line with a provision of the amended labour law 2013 that incorporated that sector-wise separate welfare funds would be established for the workers of the country's export-oriented sectors.
According to the labour rules that came into effect on September 15 last year, the export-oriented factories would have to contribute 0.03 per cent of their freight on board (FoB) price to the fund while the contributions from the government and buyers would be voluntary.
There would be two bank accounts for the fund -- beneficiary and contingency -- where the money would be deposited equally.
Grants for workers or their family members would be taken from the beneficiary account while amount deposited in the contingency account would be used to meet the dues of workers of any closed factory if its owner is unable to pay the workers.
According to the labour rules, the premium of group insurance and health insurance would be paid from the contingency account.
BBN/SSR/AD