The revised wage structure in garment sector in Cambodia is expected to increase by nearly 20 per cent, with minimum wage fixed to US$ 128 per month from the earlier $100 per month, including transportation, seniority and other bonuses. Workers will be able to earn a total monthly salary of between $147 and $156 a month from January 2015, Cambodian labour ministry said.
As a result, average wages (which include bonus and overtime) in the garment industry are likely to rise from $183 to $217 per month, according to estimates made by the ILO’s Country Office for Thailand, Cambodia and Lao PDR.
The pay rise is expected to increase factories’ wage bills by approximately 18.7 per cent. It comes on top of earlier adjustments that have more than doubled the minimum wage since 2012, when it stood at $61.
At the same time, the prices that Cambodian factories receive in their main markets have been stagnating or declining. In such a situation, global garment brands which source their products from Cambodia should play a part in helping the industry absorb the new minimum wage of $128 per month, according to experts from the ILO.
“It is important that all sides work together to ensure Cambodia’s garment industry remains economically viable,” Maurizio Bussi, ILO’s country director for Thailand, Cambodia and Lao PDR said. “We call on the global brands to play their part. We have received encouraging signals that key buyers will honour the pledge they gave the Cambodian government in September, and will reflect the new minimum wage in higher FOB prices for 2015.”