Business

Cambodia Increases Minimum Wage For Textile And Garment Sectors For 2023

Cambodia’s government has agreed to increase the minimum wage for the country’s textile, garment, and footwear (TGF) industries to US$ 200 per month from the current US$ 194 per month. Unlike other countries, the minimum wage in Cambodia applies only to specified industries. The National Council on Minimum Wage (NCMW), a tripartite body comprising equal representation of labour unions, employers’ associations, and the government sets the minimum wage. The Ministry of Labor and Vocational Training announced the results of a tripartite vote on four possible wage increases: US$198, US$206, US$210, and US$213. Of the 51 council members, 46 voted for US$198 which was increased to US$200 after an intervention by Cambodia’s Prime Minister Hun Sen. In determining the minimum wage, the NCMW studies the following criteria:

Inflation
Cost of living
Productivity
Competitiveness
Sector profitability
The current labor market situation

The new salary will be effective from January 1, 2023.Workers will continue to receive their benefits such as attendance bonuses, travel and accommodation bonuses, meal allowances, and overtime pay.