The Cambodian government has
increased the minimum wage for its textile, garment and footwear workers to
$194 a month - a hike of $2 that is effective from January next year.
The
$2 minimum wage rise for Cambodian garment workers had been proposed by the National
Council on Minimum Wage.
The annual wage review is a contentious issue; on the
one hand, increases are encouraged by unions to help maintain the cost of
living, but on the other resisted by trade associations and factory owners who
want to keep costs competitive for brands.
According to work by global HR consulting firm Robert Half, cloud
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According to Reuters , unions
had sought a $12 increase in the monthly minimum wage this year. But Kaing
Monika, deputy secretary-general at the Garment Manufacturers Association of
Cambodia (GMAC), says even a $2 increase would have a negative impact with
operating costs expected to rise.
Monika told Reuters,
employers would spend more on pension and healthcare contributions and
workplace measures to counter Covid-19, including up to $4 monthly per head on
tests.