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CAMBODIA: Garment Sector Monthly Minimum Wage Set to Rise to US$168

The monthly minimum wage for workers in Cambodia’s garment sector is set to increase from US$153 to US$168. While no formal date for the implementation of the measure has been announced, the increased remuneration forms part of the new benefits package promised to workers in the sector by Hun Sen, the country’s Prime Minister, on 20 August this year. In an additional change, as of 1 January 2018, workers will no longer have 1.3% of their monthly salary deducted as a contribution to the National Social Security Fund. Their share will, instead, be paid by their employers, whose current contribution matches that of their employees.

Concern has been expressed, however, that the proposed changes could lead to higher operating costs, a development that could see the Cambodian garment manufacturing sector unable to compete on cost terms with its counterparts elsewhere in the region. In light of this, the Garment Manufacturers Association in Cambodia (GMAC), the body that represents employers in the sector, has lobbied the government to provide a number of compensatory benefits, such as subsidised electricity, in order to offset these increased overheads.

Content provided by Picture: HKTDC Research
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