Cambodia to raise minimum wage for textiles, footwear workers

Cambodia has decided to raise the minimum wage for workers in the textiles and footwear industries to US$190 per month, an increase of 4.4 percent, from next year.

Illustrative image (Photo: Internet)

Illustrative image (Photo: Internet)

Minister of Labour and Vocational Training Ith Sam Heng said in a directive on September 20 that the minimum wage for textiles, garment and shoe workers for 2020 is set at U$S190 per month,  adding that the new wage takes effect in January.

The garment industry is Cambodia's largest employer, generating $7 billion for the economy each year. It faces uncertainty after the European Union (EU) in February began a process that could suspend the country's special trade preferences.

Cambodia benefits from the EU's "Everything But Arms" (EBA) trade programme, which allows the world's least-developed countries to export most goods to the EU free of duties.

The EU, which accounts for more than one-third of Cambodia's exports, including garments, footwear and bicycles.

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