Key Facts: Ethiopia vs Bangladesh Wages
- Ethiopia Minimum Wage
- ETB7.50/hr ($0.06 USD)
- Bangladesh Minimum Wage
- ৳12,500/mo ($103.73 USD)
- Ethiopia Avg. Gross Monthly Salary
- ETB6,500 /mo ($50.78 USD)
- Bangladesh Avg. Gross Monthly Salary
- ৳18,000 /mo ($149.38 USD)
- Data Sources
- Ministry of Labour and Social Affairs / ILO (2026-02-24), Ministry of Labour and Employment / Minimum Wage Board; sectoral structure cross-referenced via Wikipedia List of countries by minimum wage (2026-05-04)
Ethiopia
Bangladesh
Updated 2026-05-04
The minimum wage in Ethiopia is roughly 1770 times lower than in Bangladesh in USD terms, reflecting the gap between a low-income and a lower-middle-income economy. Average gross salaries diverge further: $51/mo in Ethiopia versus $149/mo in Bangladesh, a 2.9:1 ratio. GDP per capita (PPP) in Bangladesh is 2.9x that of Ethiopia, underscoring the structural economic divide.
Ethiopia has lower GDP per capita ($3,288 vs $9,647). Ethiopia's unemployment rate is 3.3% compared to Bangladesh's 3.8%.
Detailed Comparison
| Metric | Ethiopia | Bangladesh |
|---|---|---|
| Minimum wage /hr | ETB7.50 $0.06 | — |
| Minimum wage /day | ETB43.33 $0.34 | — |
| Minimum wage /mo | ETB1,300 $10.16 | ৳12,500 $103.73 |
| Minimum wage /yr | ETB15,600 $121.88 | — |
| Avg. gross salary /mo | ETB6,500 /mo $50.78 | ৳18,000 /mo $149.38 |
| Avg. net salary /mo | ETB5,600 /mo $43.75 | ৳17,000 /mo $141.08 |
| Median individual income /yr | N/A/yr | ৳108,000 /yr $896.27 |
Percentage differences are based on USD equivalent values. Positive means Ethiopia is higher.
Work Week
- Ethiopia
-
48 hrs/wk standard
Max 48 hrs/wk
Overtime : 1.25x pay
Labour Proclamation No. 1156/2019 sets maximum ordinary working hours at 8 hours/day, 48 hours/week. Overtime: 125% for first 2 hours, 150% for additional hours, 200% for weekends, 250% for public holidays. Night work (10pm-6am) carries a 50% premium. These regulations apply to formal employment relationships only.
- Bangladesh
-
48 hrs/wk standard
Max 60 hrs/wk
Overtime : 2x pay
Bangladesh Labour Act sets standard at 48 hours/week (8 hrs/day, 6 days). Maximum with overtime is 60 hours/week. Overtime paid at double the basic wage. Factories must provide one day off per week.
What This Means for Workers
A minimum wage worker in Ethiopia earns 176940% less per hour in USD terms than one in Bangladesh.
See this comparison from Bangladesh's perspective: Bangladesh vs Ethiopia
Compare Ethiopia with...
Frequently Asked Questions
Is the minimum wage higher in Ethiopia or Bangladesh?
In Ethiopia, the minimum wage is ETB7.50/hr ($0.06 USD). In Bangladesh, it is ৳12,500/mo ($103.73 USD). Bangladesh has the higher rate by 176940% in USD terms. That nominal gap does not account for local prices; see the purchasing power comparison below for a cost-of-living-adjusted view. Workers in Ethiopia may retain a larger share of their earnings if prices there are lower.
How much less does the average worker earn in Ethiopia compared to Bangladesh?
The average gross salary in Ethiopia is ETB6,500/mo ($50.78 USD), compared to ৳18,000/mo ($149.38 USD) in Bangladesh. In USD terms, workers in Ethiopia earn approximately 194% less. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Ethiopia and Bangladesh is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in Bangladesh earn more in nominal terms, though how far that income stretches depends on local prices in Ethiopia.
How do work hours compare between Ethiopia and Bangladesh?
Both Ethiopia and Bangladesh mandate a similar standard work week of 48 hours. When work hours are equal, the country with the higher minimum wage delivers proportionally higher weekly earnings. Standard work week rules set the baseline; actual hours worked often differ based on industry norms and individual employment contracts.
What is the cost of living difference between Ethiopia and Bangladesh?
While direct cost of living data varies by source, GDP per capita (PPP) gives a useful proxy for overall economic level. Bangladesh has the higher GDP per capita at $9,647, which is 2.9x that of Ethiopia at $3,288. From Ethiopia's perspective, this means goods and services are priced at a lower economic level. A higher GDP per capita generally correlates with higher wages, higher consumer prices, and greater availability of goods and services. Workers moving between these two countries should expect significant differences in rent, food, and transportation costs.