Cambodian govt announces $15 wage hike for garment workers

26 Dec '13

2 min read

The Labour Advisory Committee, under the Ministry of Labour and Vocational Training, has announced a US$ 15 increase in minimum wage of workers/employees in the textile, garment and footwear industries for next year, which would be implemented from April 1, 2014.

Following the in-depth consultation and discussion, at the 6th meeting of the 8th mandate, the Labour Advisory Committee decided to double the minimum wage for garment workers from the current US$ 80 per month to US$ 160 per month over the next five years, according to a statement.

The current minimum wage for garment employees who have completed their probation period is US$ 80 per month, including a US$ 5 health allowance. For 2014, this would be increased by US$ 15 to US$ 95 per month. This would be followed by another US$ 15 increase in 2015 to US$ 110 per month.

Similarly, a rise of US$ 16, US$ 17 and US$ 17 would be implemented in 2016, 2017 and 2018, respectively, to take the minimum wage to US$ 160 per month.

However, employees/workers who are on probation would receive US$ 5 per month less than the above minimum wage.

The increased amount shall be added for all workers/employees at every time of the increase in minimum wage to the existing wage, the Labour Advisory Committee said in a statement.

The garment sector is the main foreign exchange earner for Cambodia, accounting for about 80 percent of the country’s overall exports. It employs over 300,000 workers, with more than 90 percent of them being female.

In 2012, Cambodia exported apparels worth US$ 4.61 billion, registering a growth of nine percent compared to exports of US$ 4.24 billion made in 2011.

From January to November this year, Cambodia’s apparel exports grew by a sharp 22 percent year-on-year to US$ 5.07 billion, according to the Ministry of Commerce data.

Fibre2fashion News Desk - India

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