Problems relating to Trade and Investment on Cambodia
16. Employment |
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Issue |
Issue details |
Requests |
Reference |
| (1) Radical and Frequent Hike in the Minimum Wage Level | - Despite the Legal Minimum Wages was raised from USD 60 to USD 80 monthly in May 2013 and to USD 100 in February 2014 in the sewing and footwear manufacture sector, another hike to USD 128 is due in January 2015. Frequent and radical rise of the legal minimum wages gave serious impact on the plan for investing into Cambodia. It consequently freezes the investor's propensity for investing into Cambodia (for example, suppression of new investment, withdrawal of investment already made, etc.). |
- It is requested that GOC revises the minimum wage at a level and at an interval that will permit continued, sustainable, and healthy economic growth in Cambodia, while maximizing employment for the Cambodian nationals. | - Cambodian laws |
| (Action) - GOC envisages deciding on increase of minimum wage hike based upon research, made periodically at predetermined interval, into prices that assure livelihood of its people, commensurate with the geographical culture. For this purpose, GOC sets in place for further discussion, hereafter, a working group in Department of Labour that hears views from both employers and employees. - In December 2013, Labour Advisory Board announced raise in Monthly Minimum Wages (USD95 in 2014, USD110 in 2015, USD126 in 2016, USD143 in 2017. and USD167 in 2018), doubling by 2017 compared to 2013. - The legal minimum wage in Cambodia has increased in the last 3-years as follows: -- 2014 USD100 Up by 12.5% against the preceding year -- 2015 USD128 Up by 28.0% against the preceding year -- 2016 USD140 Up by 9.4% against the preceding year |
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