Cambodia has set a new monthly minimum wage for workers in the country's garment, footwear and travel goods sector at $200 from 2023, up 3.09% from the current level of $194, Xinhua news agency reported quoting Labour Minister Ith Sam Heng.
The wage increase: The announcement came after the National Council for Minimum Wage (NCMW) voted on a minimum wage of about $198 per month for next year. The government then added $2 to this amount.
- Garment worker unions in the country were seeking a wage hike of between $20 and $50 next year, given the increased costs of living.
- The 51 NCMW members include representatives of the government, the manufacturers' group, and the trade union.
- Besides wage, workers in the garment, footwear and travel goods sector will also receive other fringe benefits of $21-32 per month for regular attendance, transportation, rent and seniority bonus.
- The garment, footwear and travel goods sector is the largest foreign exchange earner for the Southeast Asian country. It involves about 1,100 factories and branches with approximately 750,000 workers, mostly women.
What they said:
Today, the National Council for Minimum Wage decided on the monthly minimum wage of 198 dollars and Cambodian Prime Minister Samdech Techo Hun Sen added another 2 dollars, so the monthly minimum wage for the garment, footwear and travel goods industry for 2023 is 200 dollars," Samheng told reporters after the vote. This new minimum wage will take effect from 1 January 2023. The 6-dollar increase will not make a big change to the livelihoods of our workers because of rising inflation, but we hope it will help ease their hardships.
— Nang Sothy
Co-Chair
Government-Private Working Group on Industrial Relations
Although the wage hike failed to meet the union's demand of 215 U.S. dollars, it is a positive step toward improving the workers' livelihoods. The new minimum wage is acceptable.
— Pav Sina
President
Collective Union of Movement of Workers
ADB retains Cambodia's growth forecast: The Asian Development Bank (ADB) maintained its economic growth forecast for Cambodia at 5.3% in 2022, but lowered the 2023 forecast to 6.2% from the earlier prediction of 6.5% due to weaker global growth, according to its updated outlook report released on Wednesday.
- Cambodia's garments, travel goods, and footwear outputs remained robust, registering 39.8% year-on-year growth in the first half of 2022, despite the economic slowdown in the United States and Europe, the report said.
