Minimum wage increase, a strategic response to economic climate in Kingdom
Minimum wage increase, a strategic response to economic climate in Kingdom
The recent announcement by Prime Minister Hun Manet regarding the minimum wage increase to $208 per month for 2025 reflects a strategic response to the economic climate in Cambodia and globally, said a release by the Ministry of Labour and Vocational Training (MLVT) on Wednesday.
The $4 increase from the previous year is viewed as a step to support workers in the textile, garment, footwear and travel goods sectors, particularly in light of ongoing economic challenges.
Unions and economists said that $208 minimum wage figure for 2025 is in line with the global and Cambodian economic context, with workers benefiting and employers maintaining sustainable productivity in the country, the release added.
Economist and Director of the Institute of China Studies at the Royal Academy of Cambodia, Ky Sereyvath emphasized that this wage adjustment is reasonable and compares favourably to minimum wages in neighbouring countries.
He said that the Cambodian government is focused on preventing income loss for workers, indicating a commitment to maintaining job stability and growth in earnings.
Far Saly, President of the National Trade Unions Coalition, highlighted that the decision was reached after extensive discussions among various stakeholders, ensuring that the increase reflects a collaborative approach.
“Despite global economic difficulties, Cambodia continues to prioritise annual wage increases, contrasting this with stagnant wages in many other regional nations,” Saly pointed out.
According to MLVT, Laos, Myanmar and Sri Lanka have a minimum wage of less than $100, while Bangladesh and Pakistan have a minimum wage of less than $120, and Vietnam and India have between $140 and $204.
This increase includes a $2 adjustment decided during the final round of negotiations between employers and unions at the Ministry of Labour last month, with an additional $2 contributed by Prime Minister Hun Manet.
Heng Sour, Minister of Labour and Vocational Training, said that the agreed-upon figure allows workers to retain their jobs while enabling employers to maintain productivity.
“This figure ensures that workers have jobs and employers can sustain productivity,” he said.
The number of factories has grown from 64 in 1997, employing 80,000 workers, to over 44,000 factories in 2024, while wages have increased from $40 in 1997 to $204 in 2024.
