Cambodian clothing workers may get next wage rise in January


Clothing workers in Cambodia are likely to get their next wage rise on 1 January 2015, as the Labour Advisory Committee (LAC) has agreed to increase salaries on January 1 each year, reports the Phnom Penh Post.

The tripartite LAC meeting in June, which was attended by representatives of the Ministry of Labour, the Garment Manufacturers Association in Cambodia (GMAC) and trade unions, agreed to increase salaries of those employed in garment factories on 1 January each year, with the decision on the amount of wage increase to be finalised in the fourth quarter of each preceding year.

So far, decisions on increasing minimum wages in Cambodian apparel factories were taken at irregular intervals by the LAC, without using any particular formula for determining wage scales.

Last year, the LAC raised the minimum monthly wage from US$80 including a US$5 health bonus to US$95, which met with protests from workers who were demanding the wage to be doubled to US$160 a month. However, Minister Sam Heng subsequently intervened to raise the minimum wage to US$100 a month, which was implemented from February.

According to the new agreement, the LAC will meet in the third quarter of each year to decide on the next year’s wage rise and will vote on a specific wage in the fourth quarter, which would come into effect every January.

For the full story, see the August 2014 edition of Textiles South East Asia. Not a subscriber? Sign up HERE