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Cambodia to commence talks over 2016 wage hike for garment sector next month

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PHNOM PENH, (Xinhua) — Cambodia will begin to discuss the annual increase of monthly minimum wage for the garment and footwear industry for 2016 in July, according to a Labor Ministry’ s statement issued late Friday.

The talks will be carried out by a tripartite working group, which comprises representatives of the labor ministry, the Garment Manufacturers Association in Cambodia (GMAC), and the trade unions, the statement said.

It added that the final result of the negotiations will be released in early October and the new wage will take effect from Jan. 1, 2016.

The garment and footwear sector, the kingdom’s largest foreign currency earner, consists of 1,087 factories with approximately 700,000 workers, according to the labor ministry.

The sector exported products in equivalent to 6.2 billion U.S. dollars last year, accounting for 80.5 percent of the country’s total export.

Currently, the basic wage for the sector is 128 U.S. dollars per month; however, workers have got other fringe benefits such as a transport and housing allowance of 7 U.S. dollars and a regular attendance bonus of 10 U.S. dollars per month, GMAC said.
 

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