The Minimum Wage Of Cambodian Garment Industry Continues To Rise In 2022

After experiencing the impact of the new crown epidemic, the development of the garment industry has been seriously affected, and the relevant parties have different opinions on the basic wage, the minimum wage of the garment industry in Cambodia continues to rise.

The Cambodian labor Advisory Council held a final negotiation on the 28th and decided on the base salary standard for next year by voting. The labor Advisory Council, which is composed of trade unions, enterprises and the government, believes that the current $192 can be maintained in 2022, taking into account the impact of the epidemic on the global economy. After the result was reported to Cambodian Prime Minister Hun Sen, Hun Sen decided to add $2 to increase the base salary in 2022 to $194.

As we all know, the garment industry is one of the pillar industries in Cambodia. In July 2020, the Cambodian garment manufacturers association and other chambers of Commerce issued a joint statement, saying that, affected by the new crown pneumonia, about 400 clothing and footwear enterprises and travel goods enterprises have stopped production, affecting about 150000 workers.

On the 14th of this month, the negotiation on the minimum wage of Cambodian garment industry started again this year. Since the establishment of the mechanism in 2013, the minimum wage in the industry has been raised from $61 per month to $192 per month in 2021, with a significant increase. As this industry is the largest export industry in Cambodia, employing more than 700000 workers, the negotiation results will have a demonstration effect on other industries, so each negotiation has attracted extensive attention of the local community.

The newly finalized base salary system will be implemented from January 1, 2022. In addition to the original statutory allowances and benefits of workers, including full attendance bonus of $10, transportation and accommodation allowance of $7, and length of service allowance of $2-11, workers who have worked for one year can earn at least $213 to $222 per month (excluding overtime).

It is known that the negotiation of minimum wage in Cambodia is jointly participated by trade unions, enterprises and the government, and there has never been any reduction experience in history. Even in 2020, when the epidemic broke out, the minimum wage rose slightly by $2. In addition to wages, the government also requires enterprises to provide small amount of transportation and rent subsidies, as well as full-time bonus, length of service allowance, etc., to reflect the government's concern for the workers and win the support of the public.

(source: China News Network)