ABSTRACT Labor welfare, aligned with the standards set by the International Labor Organization (ILO) and effectively practiced, plays a vital role in ensuring the optimal functioning and protection of the labor force within an industry. The garment supply chain is a significant contributor to the national economy in Bangladesh. However, labor welfare in this sector falls short of expectations due to inadequate access to facilities and benefits such as transportation, recreation, housing, and education. As such, it is of interest to see whether the labor welfare policies in Bangladesh’s garment factories align with ILO guidelines, how these policies impact workers’ overall well-being, and the extent to which the garment industry adheres to the prescribed labor welfare standards in the country. Using a mixed-method research design, the study reveals that nine welfare factors significantly correlate with worker well-being. Nevertheless, the study underscores the disparity between current labor welfare policies under labor law and those recommended by the ILO, revealing substandard labor welfare provisions and practices. The study’s outcomes can guide policymakers, business leaders, and stakeholders in enhancing labor welfare practices, ultimately aiming to improve worker well-being and work efficiency.