Leading apparel exporter Cambodia has raised the minimum monthly wage for workers in its key textiles and footwear industry by $2 to $194. As per Apparel Resources, the new wage will be effective from January 2022.

Currently worth $7 billion, the country’s garment industry, is Cambodia’s largest employer, with renowned brands and retailers like H&M, adidas, Nike and Gap sourcing from the country.

As per reports, the factory wages have long been a tricky balancing act for Cambodia’s Government – to keep costs competitive for investors and brands while satisfying influential unions representing 7,00,000 workers, which have held strikes in previous years.

Kaing Monika, Deputy Secretary General, Garment Manufacturers Association of Cambodia (GMAC), says the raise could be problematic with operating costs also expected to rise. Even a $2 increase would have a negative impact.

Employers would spend more on pension and healthcare contributions and workplace measures to counter COVID-19, including up to $4 monthly per head on tests, adds Monika

PavSina, President, Collective Union Movement of Workers, says,the new wage announced by the labour ministry would be a struggle to live on. He requested all stakeholders, the employers and the Government to consider the possibilities of adding more to the workers’ wage.