In Dhaka, a significant number of young professionals are facing not just financial challenges but a humanitarian struggle, navigating the constraints of their starter's salaries amid the current inflationary climate and soaring commodity prices.
With an average monthly salary of Tk 15,000-20,000, freshers are compelled to make heart-wrenching choices about how to allocate their limited resources.
From the skyrocketing cost of food to the escalating rental market, this feature explores the pressing issues that are making life increasingly difficult for young professionals in the city.
Accommodation
American economist and urban planner Lewis Mumford wrote in his 1938 book The Culture of Cities that “the rent of a dwelling should not exceed 25 per cent of the family income.”
However, accommodations often eat up over 40 per cent of one’s salary depending on the area in Dhaka nowadays.
While the ideal option for a single individual would be a one-bedroom apartment, these are not commonly found in Dhaka. Such small apartments are sometimes found on the top floor of high-rise buildings, however, owners often refuse to rent to unmarried individuals.
The average rent for a one-bedroom apartment in Dhaka is around Tk 10,000 and for small two-bedroom apartments Tk 11,000-15,000 per month depending on the area. This means that a significant portion of the salary goes towards rent.
Individuals often share apartments or live in cramped spaces to save on rent, but they may still have to pay around Tk 5,000-7,000 per month. Hostels for working adults also cost a similar amount or higher, depending on the facilities provided.
While those who have the option to live with their family and not contribute towards rent can save up on this, those who live alone often have to sacrifice other expenses, such as entertainment or clothing, in order to afford rent.
Groceries
The prices of essential food items, such as rice, lentils, and oil, have been rising steadily in recent years, making it difficult for an individual on a limited budget to afford a healthy and nutritious diet.
While cooking at home instead of eating out is a less money-consuming option, with the daily commodity price hike, budgeting for groceries also becomes a struggle.
On average, individuals living alone spend around Tk 5,000-7,000 on groceries and food-related expenses. Eating out on a budget leaves fewer options to pick from for a healthy diet.
Commute
Commuting costs are also a major burden even for those who use public transport. Many have to travel long distances to work, and the cost of transportation can add up quickly.
Bus fares have doubled in recent years due to fuel price hikes. The average cost of a bus ride in Dhaka is Tk 20-30 for 7-8 kilometres. Those who live close to their workplace can save money on transportation by walking or cycling.
However, many have to travel long distances to work, and public transportation can be time-consuming and unreliable.
With the city’s notorious traffic congestion, many have to rely on ride-sharing services like Uber or Pathao to get to work. This can be expensive, especially if they have to travel long distances.
According to a recent survey, the average cost of a one-way ride in Dhaka is around Tk 200-300. For freshers who have to travel multiple times per day, this can add up to a significant portion of their income.
Utility bills
Utility bills, such as electricity, water, and gas bills, can also add up quickly.
The average electricity bill for a one or two-bedroom apartment is Tk 700-1,200 per month depending on how many appliances are used.
Meanwhile, gas bills vary on the type used - pre-paid metre, piped gas supply and LPG cylinder. Pre-paid metre gas is the best option for bachelors living alone or with roommates, but it is not always available.
Water bills and service charges are often included with the rent or charged separately, which is an additional Tk 500-1,000 bill on average.
Entertainment
Entertainment is often the first thing that young professionals cut back on when they are trying to save money. With the rising cost of living in Dhaka, many cannot afford to go out and enjoy themselves.
However, it is important to have some leisure time and to engage in enjoyable activities. The average cost of a multiplex movie ticket is Tk 500 which is considered a luxury expense for someone on a tight budget.
Budget-friendly entertainment options are limited in Dhaka. While there are public parks scattered around the city, they are often not easily accessible from certain areas.
Clothing
Clothing, one of the basic necessities, can turn into a burden for someone earning a basic starting salary. While it is expected to look impeccable and professional at work, good quality clothes tend to be quite expensive.
The average cost of a new shirt in Dhaka is Tk 500-1,000, t-shirt Tk 250-500, jeans Tk 500-1,000, kamiz Tk 1,000-1,500, shoes Tk 1,500-2,000. Cheaper products can be found at various footpath markets around the city, but they often tend to be less durable.
While buying expensive clothing is cheaper in the long run, budgeting it on a starter’s salary can be quite a struggle.
Healthcare
Medical care can be expensive in Dhaka. The average fee of a doctor visit is Tk 500-1,000. The cost of prescribed medications and required tests can also be high.
Affordable services at government hospitals can often be time-consuming as the queue tends to be pretty long. Hence, many have to delay or forgo treatment, which can lead to serious health problems.
A cycle of financial insecurity
Overall, the rising cost of living is making it increasingly difficult for entry-level employees to survive on a salary of Tk 20,000 per month. Freshers are often forced to make difficult choices about how to allocate their limited resources, and they often have to sacrifice essential expenses in order to make ends meet. This can have a significant impact on their health, well-being, and quality of life.
It is important to note that these are just some of the challenges that newly employed youth in Dhaka face. They may also have other expenses and the specific challenges vary depending on their individual circumstances.
Despite their best efforts to budget and save, many young professionals find themselves caught in a cycle of financial insecurity, forced to choose between necessities like food and rent.
