Cambodia Raises Minimum Wage for Garment Factories Despite COVID-19 Crisis

Despite Minimum Wage Commission's Freeze Decision, Monthly Increase of 2 Dollars Approved

[Asia Economy Reporter Naju-seok] Cambodia has raised the minimum wage for next year despite the novel coronavirus disease (COVID-19) crisis. This decision is interpreted as taking into account the economic downturn caused by COVID-19.

Workers are working at a garment factory in Cambodia.
[Image source=EPA Yonhap News]

According to Cambodian media on the 15th, the National Minimum Wage Committee recently finalized a proposal to freeze the monthly minimum wage for garment, footwear, and other sewing industry workers at $190 (approximately 225,000 KRW), the same as this year, and submitted it to the government. However, Prime Minister Hun Sen decided to raise the monthly minimum wage by $2 for next year.

This decision is noteworthy as it was made amid large-scale unemployment in garment factories in Cambodia due to COVID-19.

The garment industry is Cambodia's largest export sector, employing about 750,000 people. However, recently, 120 factories have closed due to the COVID-19 crisis, causing 50,000 people to lose their jobs.

This content was produced with the assistance of AI translation services.