Cambodia Expats Online: Forum | News | Information | Blog

Cambodia raises minimum wage for garment industry amid COVID-19 outbreak
Cambodian Labour Minister Ith Samheng on September 10 announced the new monthly minimum wage for the country’s garment and footwear industry at 192 USD in 2021 from current 190 USD, although the sector has been badly hit by the COVID-19 pandemic.
VNA Saturday, September 12, 2020 17:27
Phnom Penh (VNA) - Cambodian Labour Minister Ith Samheng on September 10 announced the new monthly minimum wage for the country’s garment and footwear industry at 192 USD in 2021 from current 190 USD, although the sector has been badly hit by the COVID-19 pandemic.

The Minister said Prime Minister HE decided to increase the minimum wage next year, and it will take effect on January 1.

The garment and footwear industry is the nation’s biggest export sector, employing about 750,000 people in approximately 1,100 factories and branches. However, due to the coronavirus outbreak, some 120 factories still suspended their operations, affecting around 50,000 workers, he said.

The Southeast Asian country saw a 5.4 percent drop in the garment and footwear exports to 3.78 billion USD during the first half of this year compared to the same period last year, according to government data.
https://en.vietnamplus.vn/cambodia-rais ... 182869.vnp

September 28, 2020
Garment workers say minimum wage increase isn’t enough

Garment factory workers have expressed concern over the small increase in minimum wages promised next year, amid rising living costs and other financial burdens faced by employees in the sector.

Among the financial burdens mentioned by garment workers, were rising food costs, crippling loans, rising rent prices and the need to send money to family.

On September 10, the National Council on Minimum Wage set the 2021 minimum wage at $190 per month for workers in the textile, garment, and footwear industries, with Prime Minister HE adding two additional dollars on the agreed number, bringing the total to $192.

Garment’s sector employee Kheang, who works in a factory in Chak Angre commune, doesn’t think the rise is enough.

“It would be good if rent was not also increasing,” she said, adding that her landlord has consistently increased her rent year on year.

Besides the rent, Kheang said she spends $60 to $70 on formula milk for her child every month as well as sending money home to her family.

Garment worker Thoeun Sokha, who is employed by Top Summit Garment Inc, said the two dollars increase is not suitable, especially for the hard work they do.

She said that her wages are already eaten up by increasing food prices, medical expenses and rent, all while she has to send money home to support her child and mother in the province.

Khoy Davi, a garment worker near Phnom Penh Special Economic Zone, said the current minimum wage is not substantial enough for her to live on and she has to top it up by also selling products online.
“However, the money you can earn online is not as good as it used to be, since COVID-19 hit,” she said.

“I have a loan to pay every month, which costs me over $100 per month alone,” she said.
“I do not think increasing the wage to $192 will ease my family’s economic issues,” she added.
https://www.khmertimeskh.com/50767199/g ... nt-enough/

It's time to discuss the 2023 minimum wage for factory workers; official talks start in August, but unofficial reports say that the workers' unions will be demanding a substantial increase - perhaps as much as US$10 pm, or more - due to the rise in the cost of living.

Cambodia: Negotiations for 2023 minimum wage for workers in textile, garment, footwear, bags and travel goods sectors to commence in July
©ILO

The Ministry of Labour and Vocational Training announced a series of internal meetings to commence from July to discuss the 2023 minimum wage for the textile, garment, footwear, bags and travel goods sectors. Minimum wage in 2022 is $194.

The Ministry of Labour and Vocational Training said in a notice that bilateral and tripartite talks – between the government and representatives of employers and workers – would begin in August.

The notice said the National Council on Minimum Wage (NCMW) would convene a month later to finalise the minimum wage, which the ministry is to enact on January 1.

The NCMW comprises officials from the labour ministry, factory owner representatives, industry stakeholders and workers’ representatives from civil society organisations and trade unions.

Invoking Article 5 of the Law on Minimum Wage, the ministry called on all parties to base their internal deliberation process for a figure on formal data and reputable academic research on social criteria – such as household status, inflation rate and cost of living – and economic criteria, including productivity, competitiveness of the country, the labour market situation and sectoral profitability.
https://www.business-humanrights.org/zh ... e-in-july/

Not per hour, not per day.....per MONTH.

Ghostwriter wrote: ↑Tue Jul 05, 2022 3:11 am Not per hour, not per day.....per MONTH.

Yeah when you think about it, it's really quite shocking.

Keeping the wages down attracts the investors. The factory owners, exporters won't feel the hardships like the factory workers, but like we have seen many times, it will be the fault of the buyers.

The Khmer are stuck. Unlike other countries, they can’t innovate their way to higher productivity and increased value added services. They are stuck with just raw labor. And raw labor is cheap.

Now if time could be rewound 20 yrs or so and public education was ramped up to be equal to those of western countries, the workforce of today would have the knowledge and skills to command higher wages.

Of course this is as likely to happen as the expat myths about the Khmer.

Offensive and sickening , and wtf is $2 dollars gonna do ? was it even worth it ? I hope all the workers go on strike

"It's time to discuss the 2023 minimum wage for factory workers; official talks start in August, but unofficial reports say that the workers' unions will be demanding a substantial increase - perhaps as much as US$10 pm, or more - due to the rise in the cost of living."

I don't think they have determined the raise for Minimum Wage in 2023 yet. Talks are to start in August.

But I agree a $2 raise PER MONTH would be a criminal. With the rising cost of living in KoW, it would be a decrease in the Minimum Wage rather then a raise. IMHO they would need a raise of at least $15 per month just to keep pace with inflation. Assuming an inflation rate of 8%. I don't see that happening anytime soon.

I saw on twitter Khmer Times said they were demanding upwards of $214, despite a living wage being around $250.