Cambodia to Raise Minimum Wage for Garment Workers

The Cambodian government has agreed to raise the minimum wage for clothing and footwear workers.


The Ministry of Labor, Vocational and Training said that the minimum wage would be raised by 9.2 percent to $153 a month, effective at the beginning of next year.


The increase falls short of the $171 a month wage proposed by unions. On the other hand, factory owners had proposed a $147 minimum wage.


The clothing and footwear industry is Cambodia’s biggest export earner, employing about 700,000 people in more than 700 garment and shoe factories. In 2015, Cambodia shipped nearly $7 billion worth of products to the United States and Europe.


The decision was made after six days of tense negotiations by a commission representing employers, workers and the government.


A $100 level was set for 2014 and $128 for 2015 and $140 this year but pressures over wages remained strong.


The Labor Ministry said that when other benefits are calculated, the workers will make an average of $170 to $181 monthly next year.



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