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In the bustling streets of Dhaka, countless lives teeter on the edge of survival, where each day’s earnings decide whether families eat or go hungry.

Thirty-two-year-old Rina Begum sets up her modest stall near a busy bus stop, balancing two large pots on a makeshift wooden table as she sells puffed rice and fried snacks to rickshaw-pullers, day-labourers, and office-goers.

On good days, she earns around Tk 500–600, but when rain falls or authorities force vendors off the streets, her earnings are halved.

‘The prices of oil, rice, and vegetables have doubled in the last two years, but my earnings remain the same. Sometimes I skip meals so that my children can eat,’ she said, wiping sweat from her forehead as she fried ‘beguni’ in a sizzling pan.

Rina’s story is far from unique. She is one of more than 6 crore Bangladeshis working in the informal sector, which constitutes nearly 85 per cent of the country’s workforce, according to the Labour Force Survey by the Bangladesh Bureau of Statistics (BBS).

From domestic helpers and construction workers to street vendors and transport operators, these millions form the invisible backbone of Bangladesh’s economy, yet they receive little recognition or protection.

A joint study by Karmojibi Nari and FES Bangladesh, covering informal workers in all divisions, found that most are employed in retail and sales, agriculture and livestock, food and beverage services, transport and crafts.

Nearly 69 per cent of these workers are aged between 25 and 44. Various studies estimate that the informal sector contributes roughly 40–43 per cent of Bangladesh’s GDP. Without these jobs, many would face unemployment or underemployment.

Despite their critical role, informal workers remain largely unrecognised, without legal protection, social security, or support systems, especially amid rising inflation. Economists say inflation has hit them hardest.

Professor Dr M Shariful Haque, Chairman of the Department of Economics and Banking at the International Islamic University Chittagong, explained that high food inflation sharply reduces the real incomes of informal workers, whose cash wages and small-business revenues are not indexed. ‘When food inflation spikes, they have no cushion. Their choices are between eating less, borrowing, or pulling their children out of school,’ he said.

Prof Haque added that the average income of informal workers ranges from Tk 10,000 to Tk 30,000, but these earnings have not kept pace with inflation, which reached 10.03 per cent in the 2024–25 fiscal year, the highest in 14 years.

Food inflation rose to 10.70 per cent, while non-food inflation stood at 9.47 per cent. In August, the inflation rate fell slightly to 8.29 per cent, the lowest in over three years.

Rice prices, in particular, are exerting strong pressure on both food and overall inflation, according to the latest economic update from the General Economics Division (GED) of the Planning Commission under the Planning Ministry.

The report noted that rice’s contribution to food inflation rose from 40 per cent in May to 51.55 per cent in July.

Bangladesh is densely populated, with more than 64 per cent of the population aged 15 years and above. Of this adult population, 59 per cent are economically active, though there is no precise data on how many are employed in the informal economy or their exact contribution.

Unlike formal workers, informal earners generally lack appointment letters, fixed wages, or legal recourse in cases of exploitation. Illness or injury can instantly wipe out their income.

Sumon Ali, 32, begins each day by pulling his worn helmet over his head and pushing his old motorbike onto the streets, whispering a small prayer, ‘Let me earn enough today to keep the family running.’

On a good day, he earns between Tk 700 and Tk 800 ferrying passengers across Dhaka, but after deducting fuel, mobile data, and commissions, he is left with barely Tk 400. Back pain and strained eyesight already warn him that he cannot continue indefinitely.

Similarly, 45-year-old rickshaw puller Mizanur Rahman pedals slowly home to his one-room tin-shed in Kamrangirchar after earning Tk 700. His daily rent of Tk 150 and the cost of food for his family of five leave almost nothing for emergencies. ‘If the wheel breaks or I fall sick, my family goes hungry. No one helps us,’ he said.

Syed Sultan Uddin Ahmed, Executive Director of BILS and Chairman of the Labour Reform Commission, stressed that recognition and legal protection are essential. ‘Without these, it will not be possible to ensure the rights of domestic and other workers. They remain invisible in our legal and economic frameworks.’

Earlier this year, the Labour Reform Commission recommended sweeping changes, including a national minimum wage, extension of maternity benefits to informal women workers and wage reviews every three years instead of five. They also proposed contributory social insurance for informal earners and emergency sectoral funds to support workers during crises.

The commission further suggested making appointment letters mandatory within fifteen days for both formal and informal workers and establishing a digital labour registration system to ensure recognition.

Regarding wages, the commission recommended criteria for determining a national minimum wage, to be announced subsequently.

Millions of workers in Bangladesh and South Asia survive in the informal economy, including domestic helpers, street vendors, bike riders, and garment subcontractor helpers.

In Bangladesh, nearly 85 per cent of the workforce is informal, compared to around 80–82 per cent in India and over 90 per cent in Nepal.

These workers face daily uncertainty: low and irregular wages, no contracts, no health coverage, and limited legal protection. Rising inflation has worsened their struggles, forcing families to cut essential expenses.

While social protection programmes exist on paper, coverage is limited and enforcement weak, leaving most informal workers vulnerable to accidents, illness, and poverty.