Sourcing Cambodia: increase in minimum wage on 1 January 2021
Early in the year, Cambodia slightly upgraded the minimum wage for textiles and footwear.
Since 1 January 2021, the monthly minimum wage increased to 760 000 KHR (EUR 155) for permanent workers compared with 730 000 previously. For workers in the trial period, this was increased to KHR 748 000 (EUR 152).
In contrast to other countries, the minimum wage hasu Cambodiais applicable only to workers employed by the textile,Clothing and the footwear. Employees have other benefits such as a housing allowance, a monthly attendance premium and a daily meal allowance to supplement their monthly income.
This increase is the lowest since 2010-2013, when the minimum wage remained unchanged. The government explains this situation by the impact of the pandemic and the partial withdrawal of the Everything But Arms (TSA) initiative by the European Union in 2020 (cf.EU/Cambodia: planned withdrawal of GSP scheme « Everything but weapons » on 12/08/20). On the part of workers' unions, there was great disappointment because they were calling for a greater revalorisation.
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Source(s): WageIndicator.org – ASEAN Briefing
Editor(s): L.VERBOUW