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$2 hike in minimum wage for Cambodian garment workers

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The Cambodian government recently decided to raise the minimum wage for garment and footwear industry workers by $2 to $192 per month for 2021. This has led to dissatisfaction among both workers’ unions and employers after the two parties failed to come to an agreement in talks that ended on September 10. The new wage will be effective from January 1.

The National Council on Minimum Wage (NCMW) approved a $190 minimum wage for 2021, marking no increase over 2020, following negotiations in which unions requested a raise of nearly $12, and employers asked for a cut of $17. The government then decided to add a $2 raise, according to Cambodian news reports.

This year’s minimum wage increase is the smallest since the wage went unchanged from 2010 to 2013. In last year’s negotiations, the NCMW settled on a raise of $8.

NCMW comprises 17 representatives each from the Garment Manufacturers’ Association in Cambodia (GMAC), unions and the labour ministry.

The minimum wage affects about 800,000 workers from more than 1,000 factories in the textile, garment and footwear industries.

Fibre2Fashion News Desk (DS)

The Cambodian government recently decided to raise the minimum wage for garment and footwear industry workers by $2 to $192 per month for 2021. This has led to dissatisfaction among both workers’ unions and employers after the two parties failed to come to an agreement in talks that ended on September 10. The new wage will be effective from January 1.



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