Cambodian trade unions have agreed that textile, garment and footwear factory workers should receive a 6.1 per cent raise in monthly wage in 2021. The proposed figure will be negotiated at a meeting of the National Council on Minimum Wage at the Ministry of Labor and Vocational Training on Thursday. The meeting will be attended by representatives of trade unions, garment factory and the labor ministry.

Cambodian Labor Confederation president Ath Thorn said the figure was based on three main factors – a two per cent increase to account for annual inflation, two per cent for factory productivity and 1.3 per cent for margins of profit of employers. Adding that employers have raised concerns about a wage raise considering the disastrous effects of COVID-19 has had on factories.

Kaing Monika, Deputy Secretary-General, Garment Manufacturers Association in Cambodia (GMAC) said the association is still analyzing data. He said each wage raise demand is generally based on the current situation. Given the pandemic, he said it is highly likely that workers will face a wage decrease rather than a raise.