Minimum Wage Determination for Workers in Textile, Garment and Footwear Industry for year 2016

The Labor Advisory Committee (LAC) has recently issued a Statement regarding the Minimum Wage for the Textile, Garment and Footwear Sector for 2016, resulting from the 13^th LAC Meeting of its 8th mandate.

The meeting did not reach a consensus regarding figures: the employer side still maintains his $133 figure while the union side maintains his $160 figure. However, it has been decided to implement further procedure by conducting a secret vote on three figures and got the result as following:

$133 figure received 0/28 votes.
$135 figure received 24/28 votes.
$160 figure received 02/28 votes.

And abstentions 02/28 votes.

Following the results, the LAC submitted the $135 figure to the Minister of the Ministry of Labour and Vocational Training (MoLVT) in order to oversee and decide on the figure of the Minimum Wage of workers in the Textile, Garment and Footwear Sector for 2016 in compliance with the valid provisions of the Labour Law. It shall be implemented from January 01st, 2016.

Besides, MoLVT has issued Prakas n°409 on Minimum Wage Determination for Workers in Textile, Garment and Footwear Industry for year 2016. It provided, based upon Prakas, that:

– the minimum wage for workers in textile, garment and footwear industry for 2016 shall be set officially as $140. per month;

– the minimum wage for probationary workers shall be set as $135 per month. After the probation period ends, the regular workers shall receive $140 as the minimum wage per month;

– The workers who receive the wage based on the quantity of the products (piecework) shall get the wage based on their result. If the produced work exceeds the minimum wage that was stated in point 1 of article 2, the workers shall get the exceeded amount. If the produced work is lower than the minimum wage that was stated in point 1 of article 2, the employer shall add up to $135 per month for probationary workers and $140 for regular workers.

For more information, have a look at the full Statement of Lac, available in English and in Khmer as well as the Prakas n°409 on Minimum Wage Determination for Workers in Textile, Garment and Footwear Industry for year 2016, available in khmer.