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Cambodia to increase minimum wage for 2022

Oct 27, 2021 Cambodia
Cambodia to increase minimum wage for 2022
A few weeks ago, Cambodia’s Ministry of Labour and Vocational Training issued regulation setting the new minimum wage for the garment, textile, and footwear industries for 2022
Under the new regulation, workers in the garment, textile, and footwear industries will be paid the following minimum wages:
- Regular workers: 194 US dollars per month (an increase from 192 US dollars in 2021);
- Probationary workers: 192 US dollars per month (an increase from 187 US dollars in 2021).

In the same document it is established the minimum wage for piece-rate workers who are paid by the number of textile/garment/footwear pieces they produce. For this category of workers, the pay rate is related to the level of production and if this results in the worker earning more than the minimum rate, then that worker will be entitled to that higher amount. However, if their production level results in a pay rate lower than the minimum wage, the employer must adjust the worker’s payment to equal the minimum wage.

Cambodia’s minimum wage is regulated under the Minimum Wage Law, dated from 2018, and which determines that the Government will look at certain conditions to determine the new minimum wage each year (such as inflation rates and living expenses, industry productivity, and the current job market).

Cambodia’s garment, textile, and footwear industries are considered vital to the country’s economy, as they account for roughly 80% of the country's total exports. Unlike other countries, Cambodia’s minimum wage rates only apply to these industries.

The new minimum wages will enter into force on the 1st of January 2022.   

        

Worker's other Benefits


In addition to a minimum wage, workers in the garment, textile, and footwear industries are also entitled to:

- Attendance bonus: 10US dollars per month;
- Transportation or accommodation compensation: 7 US dollars per month;
- Food allowance: 0.50 US dollars per day (or one free meal per day);
- Overtime and seniority bonus: 2 US dollars - 11 US dollars per month for those between their second to the eleventh year of work.


Image credits: Giuliano Gabella on Unsplash

Source: www.aseanbriefing.com


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