Cambodia Hikes Minimum Wage For Textile & Garment Workers

Cambodia has increased the minimum wage for its textile and garment industry workers to US $204 per month for regular workers and $202 per month for probationary workers effective from January 1.

This decision was made by the National Council on Minimum Wage (NCMW), a tripartite body comprising equal representation of labour unions, employer’s associations, and the government.

They have also set out the minimum wage for piece rate workers. Such workers are paid based on their level of production.

Piece rate workers stand to earn more than the minimum wage if their production results in pay that is higher than the minimum wage rate.

However, if their production results in pay that is deemed lower than the minimum wage then the workers’ pay is adjusted to equal that of the minimum wage.

While considering the wage hike, the committee took into consideration cost of living, productivity, competitiveness, sector profitability and the current labour market situation.

In addition to the minimum wage, workers also receive an attendance bonus of $10 per month and travel and accommodation expenses at $7 per month.

They also receive meal allowances of $0.50 per day; and overtime and seniority bonus which is between $2 and $11 per month for those between their second to the eleventh year of work.

Textiles and garments are the backbone of Cambodia’s economy and cumulatively employ around 700,000 workers and represent more than half of total export earnings.