The government of Cambodia has agreed to raise by $2-192 per month for employees in the clothing and footwear industry by 2021. Earlier, in the light of delicate talks in which syndicates sought an increase of nearly $12 and employers asked a reduction by $17, the NCP accepted a minimum wage of $190 for the year 2021, which did not rise over 2020. Then the government agreed to introduce a $2 boost, effective January 1.
The minimum wage rise in this year is the lowest since the wage has remained unchanged from 2010 to 2013. In the garment, apparel and footwear sectors it affects about 800.000 employees from more than 1000 factories. At its internal meeting on 28 August leaders of the Union voted to raise their ideal minimum wage and settled on $11.59, close to the offer they made in past years and equal to a 6.1% rise. A representative of the employer said the party would wait until the last day to offer its proposed number. Speaking in 2021 as they have been difficult for attracting investors, Nang Sothy, Vice President of the Cambodian Employers Association and Engagement Federations, said employers could still fight. The combination of the Covid-19 crisis and the cuts triggered by EBA made it extremely difficult this year to negotiate a minimum wage. According to the European Commission, the reduction of the tariff regime is 20% of the Cambodian exports of clothing and footwear to the EU, worth approximately 1,2 trillion dollars annually.