Cambodia hikes minimum wage for garment workers to $140

12 Oct '15

2 min read

The Cambodian government has announced an increase in the monthly minimum wage of garment workers by 9.4 per cent to $140 applicable from 1st January 2016, as per Cambodian media reports.

The negotiations between the representatives of owners, garment workers, and the government led to a majority agreeing to set the wage hike to $135. The Prime Minister Hun Sen instructed to add another $5 totaling it to $140 per month for garment and footwear industry workers, putting an end to the eight-day long and tense negotiations.

The 700,000 garment workers will receive the $12 hike from the current $128 from the beginning of the next year.

The trade unions still feel the need to push for $160 even after the announcement. Garment manufacturers on the other hand hope the wage hike increases efficiency and productivity of workers.

The garment industry of Cambodia is the key foreign exchange earner and accounts for exports worth $5 billion every year pre-dominantly to the US and to the EU. Cambodia manufactures garments and exports them to clothing retailers such as Gap, Adidas, Armani, and H&M. (HO)

Fibre2Fashion News Desk – India

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