Minimum wages fears assuaged as Cambodia’s garment exports grow
29/07/2015
The ILO says the figures are pleasing given fears that production would fall after the country raised its minimum wage on January 1.
The minimum wage of $128 is still lower than that of some competitors in the region such as China ($297), the Philippines ($269) and Thailand ($237), but above the level in Sri Lanka ($66), Bangladesh ($71) and Pakistan ($99 to $119).
The ILO said in its quarterly bulletin: “Workers and their unions are understandably concerned to ensure that wages are adequate to meet the needs of workers and their families. On the other hand, it is also vital that the impact of the minimum wage on enterprises, productivity, competitiveness and employment is taken into account.
"As social conflict in the past has shown, the minimum wage is a topic of critical importance in Cambodia."
The sector employs 600,000 workers in 640 factories. There were 528 apparel and footwear factories in late 2013.
Share this story:
