Cambodia garment industry workers discuss wage increase - Global Banking & Finance Review
Image depicting Cambodian garment workers responding to the new minimum wage increase to $128, a crucial development for Cambodia's finance and labor sectors.
Finance

CAMBODIA INCREASES GARMENT INDUSTRY MINIMUM WAGE

Published by Gbaf News

Posted on November 13, 2014

1 min read
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Cambodia Announces Minimum Wage Increase

PHNOM PENH, Cambodia (AP) — Cambodia is raising the minimum wage in its important clothing industry by 28 percent to $128 a month, falling short of labor unions’ $140 proposal.

Labor Advisory Committee Wage Negotiations

The Labor Advisory Committee, representing employers, workers and the government, originally agreed Wednesday on a $123 minimum wage. A Labor Ministry statement said it was increased to $128 after long-serving Prime Minister Hun Sen intervened.

Union Demands and Recent Labor Protests

A militant union campaign to double the then-minimum of $80 two years ago resulted in clashes with police. The unions later scaled back their demand.

Impact on Garment Industry and Workers

The clothing industry is Cambodia’s biggest export earner, employing about 500,000 people in more than 500 garment and shoe factories. The new wage level takes effect at the beginning of next year.

Key Takeaways

  • Cambodia raised its garment industry minimum wage by 28% to $128 per month, below labor unions’ $140 demand.
  • The increase was facilitated by Prime Minister Hun Sen stepping in to raise the agreed $123 to $128.
  • Cambodia’s garment sector—employing around 500,000 across 500+ factories—is the country’s largest export earner, and the wage hike takes effect at the start of next year.

References

Frequently Asked Questions

What is the new minimum wage for Cambodia’s garment industry?
The new minimum wage is $128 per month, a 28% increase over the previous level.
What was the unions’ proposed wage?
Labor unions had proposed a minimum wage of $140 per month.
Who intervened to adjust the wage?
Prime Minister Hun Sen intervened to increase the agreed wage from $123 to $128.
How many workers and factories are affected?
Approximately 500,000 workers in more than 500 garment and shoe factories are impacted.
When does the new wage take effect?
The new wage level takes effect at the beginning of next year.

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