ILO calls on global clothing brands to help Cambodian manufacturers absorb wage hike | Division for Inclusive Social Development (DISD)

With the introduction of a new minimum wage for workers in the garment and footwear industry in Cambodia, United Nations experts have called on global brands that source their products from the country to play a part in helping the industry to absorb the cost increases.

The new minimum wage of $128 per month, which came into effect on 1 January 2015, is projected by the International Labour Organization (ILO) to increase overall average wages in the garment industry – which include bonuses and overtime – from $183 to $217 per month, increasing factories’ wage bills by approximately 18.7 per cent.

“It is important that all sides work together to ensure Cambodia’s garment industry remains economically viable,” said Maurizio Bussi, the ILO’s Country Director for Thailand, Cambodia and Lao PDR. “We call on the global brands to play their part. We have received encouraging signals that key buyers will honour the pledge they gave the Cambodian Government in September.”

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