CAMBODIA BOOSTS MINIMUM WAGE

The Cambodian government has raised minimum wages by 11%, a change which will benefit many low paid garment workers. Currently, the average Cambodian garment worker earns around US$153 per month, a number which will increase to US$170 when the legislature is enacted. Additionally, the Export Management Fee paid annually by factories will be waived in order to balance the higher labour costs. There will also be a decrease in taxation to highly profitable factories in order to further help factories cover rising costs. Cambodia's garment and footwear manufacturing industry has been increasing in size and was valued at US$7.2b in 2016. Several groups within Cambodia, notably the Garment Manufacturers Association of Cambodia, have raised concerns that this increase in minimum wage - which is intended to increase the living standards of low-paid Cambodians - will make Cambodia an unattractive location for manufacturing and may decrease the profitability of many businesses.