[Cambodia] Minimum wage hike will not cover workers’ basic needs

At the end of last month, the Cambodian government raised the minimum wage for its textile, garment and footwear workers by US$2 from the current US$192 per month. The change will come into effect from January 2022, HRM Asia reports.

However, the Ethical Trade Initiative (ETI) - an independent body which monitors members’ supply chains in accordance with an ethical code - has reportedly spoken out and said the recent minimum wage increase is not enough for workers to meet their basic needs.

The ETI said, “Minimum wages are a floor, not a ceiling. ETI would expect responsible brands to work with their suppliers and local unions to establish a clear plan to progress all wages towards a living wage. Even in an emerging economy like that of Cambodia’s, US$194 does not enable a worker to meet their basic needs, let alone fully support their family and build resilience for the future.

“While this is an agreed minimum wage, we call on all responsible brands to demonstrate that they value the workers in their supply chain by ensuring that the factories from which they source pay a wage workers can live on.

“Local union leaders stated that they hope the minimum wage can be increased next year when the pandemic is over. ETI supports this call and advises all responsible brands to leverage their relationships with suppliers and factories to make this hope a reality,” the body concluded.

At the end of last month, the Cambodian government raised the minimum wage for its textile, garment and footwear workers by US$2 from the current US$192 per month. The change will come into effect from January 2022, HRM Asia reports.

However, the Ethical Trade Initiative (ETI) - an independent body which monitors members’ supply chains in accordance with an ethical code - has reportedly spoken out and said the recent minimum wage increase is not enough for workers to meet their basic needs.

The ETI said, “Minimum wages are a floor, not a ceiling. ETI would expect responsible brands to work with their suppliers and local unions to establish a clear plan to progress all wages towards a living wage. Even in an emerging economy like that of Cambodia’s, US$194 does not enable a worker to meet their basic needs, let alone fully support their family and build resilience for the future.

“While this is an agreed minimum wage, we call on all responsible brands to demonstrate that they value the workers in their supply chain by ensuring that the factories from which they source pay a wage workers can live on.

“Local union leaders stated that they hope the minimum wage can be increased next year when the pandemic is over. ETI supports this call and advises all responsible brands to leverage their relationships with suppliers and factories to make this hope a reality,” the body concluded.