How to Make More Money While Working in Cambodia
Currently, the Minimum Wage in Cambodia is only a few cents per day. This is well below the minimum wage in other countries such as Bangladesh and India. Cambodia must increase its minimum wage by at least 30% in the next five years to encourage employment and investment. A minimum wage of US$5 an hour will help a lot of people in the country, but only if it is paid properly. The minimum wage in Cambodia has to increase by at least 30% by 2015 in order to be affordable for the average worker.
The living wage in Cambodia is still below the international minimum wage. A garment worker’s basic wage was $192 a month in 2020, according to the Asia Floor Wage Alliance. Low wages make it difficult to save for emergencies and support themselves. Many garment workers earn less than this. This article discusses how to make more money while working in Cambodia. It may help to consider a few examples. Despite a recent increase in minimum wages, Cambodians still do not have enough money to live on.
The calculation of the Living Wage is based on the price of a food basket. The prices are gathered from the WageIndicator Cost of Living Survey, which aims to collect the actual prices of every item. The composition of the food basket is based on national food balance sheets published by the FAO. The basket includes the cost of a typical meal for one person. The living wage in Cambodia has fallen below the calculated living wage, which is not enough to support a family.
In 2018, the minimum wage in Cambodia was only $8 higher, which does not help people improve their living standards. Recent studies show that a living wage of at least $200 a month is needed to afford the basic necessities. In fact, the Asia Floor Wage campaign has called for a living wage of $470 per month. Even the minimal wage will not cover rising costs, according to recent research. It does not make it possible for anyone to make a living in Cambodia.
The government’s minimum wage in Cambodia is $140 per month, and it is not reported in hourly terms. This is equivalent to 67 cents per hour. In Cambodia, a normal work week is 48 hours, which is equivalent to 67 cents an hour. But a government minimum wage of $153 per month is the same as this, so the Cambodian living wage may not be enough for most people. However, if you’re working full-time, you can expect to make more than that, even if you’re not a graduate.
Minimum wage increase
While other countries are still struggling with the COVID-19 pandemic, Cambodia has increased its minimum wage. In Kampong Chhnang province, Yong Sreylin, a worker at Horizon Outdoor, argued that even a $2 increase would increase operating costs. That would mean employers would have to spend more on healthcare and pension contributions, as well as workplace measures to fight COVID-19. While the government listened to these concerns, it has yet to act.
The Cambodian Minimum Wage Law, promulgated in 2018, governs the minimum wage for employees in the garment industry. The new law must take inflation rates, living expenses, productivity, and the job market into account before determining the minimum wage. It will take effect on January 1, 2022. The new minimum wage in Cambodia is equal to between US$2-US$11 per month. This means that, in terms of wages, Cambodia is not as high as other countries in Southeast Asia.
While the minimum wage in Cambodia is much higher than other countries in purchasing power parity dollars, it is still far below the wage demanded by major unions. While being competitive is desirable, it shouldn’t be at the cost of workers’ welfare. As long as the producers find new ways to increase production costs, they should not place more burden on the workers’ shoulders. The study also looked at the minimum wage in other countries and Cambodia is no different.
Some critics of the new minimum wage argue that the increase will drive up production costs. The result will be higher wages for some, but for others, the situation will stay the same. Even though the minimum wage increases the wages of the qualified, it does nothing for the unemployed and long-term jobless. That’s why a minimum wage increase in Cambodia is not a panacea for the country’s economic problems. So, it’s important to look beyond the surface to determine whether or not the government will ever increase the minimum wage.
Human rights dimension
The low wages in Cambodia have a direct impact on the ability of workers to organize independent trade unions and exercise their rights to a decent living. Without a minimum wage, the vast majority of Cambodian workers are unable to save their money and cannot afford the risks of union participation. Despite the human rights dimension of minimum wage, the situation is bleak. But there are many ways to address this issue. By adopting human rights-based approaches, Cambodian governments can improve the living conditions of garment and footwear workers.
The Special Representative notes that the government of Cambodia has recently set up a Working Group on Cambodian women’s rights. This Committee should be formed and fully operational once the government has completed its report on CEDAW. This committee should continue to operate to spur the government to amend discriminatory laws. The Working Group also recommends that the Government of Cambodia continue the process of drafting an action plan to improve the conditions of Cambodian women.
The Centre for Human Rights’ office in Cambodia has requested an audience with the King, which is the constitutional protector of human rights and guarantor of international human rights conventions ratified by the country. The King, however, has cancelled the audience as he has been travelling overseas. The Special Representative has since reported the outcome of the meeting to the King through a letter. In the meantime, the King should ensure that the minimum wage is properly paid in Cambodia.
The Special Representative also calls for the Government to introduce human rights education into the local communities of women. Indigenous women in Cambodia are particularly vulnerable, as they may be in a position of traditional subservience, and may be subject to onerous child-rearing obligations. Indigenous women also enjoy significant freedom of choice of husband and other rights that are not universal. The Special Representative recommends that the Government of Cambodia introduces human rights awareness programs in minority communities. A specific focus on reproductive rights, freedom of personal relationships, and sexual and physical violence must be among these issues.
Impact on labor market
The Ministry of Labor in Cambodia has recently announced the new minimum wage in Cambodia, which will be implemented in 2021. While it is $2 higher than last year, the minimum wage is drawing criticism from garment and shoe factory workers who have been struggling to keep up with inflation. Workers in garment and shoe factories will be eligible to receive the new wage, which will also include compensation for food, transportation, and rent, based on seniority at the workplace.
In Myanmar, the minimum wage policy is not enforced in all regions of the country. This is primarily because there are no minimum wages in all regions. In most areas, the minimum wage is higher than the poverty line, but still low when compared to labor productivity. It is difficult to determine whether minimum wage reforms will have any lasting effect on employment. However, the minimum wage policy should be carefully evaluated and monitored to ensure its impact on labor productivity.
The minimum wage legislation may have a negative impact on employment. Studies show that firms with fewer employees decreased the number of female workers. These changes are not as significant as those observed in regions where more people live. Despite these findings, the minimum wage in Cambodia is still increasing overall employment in the country. Nonetheless, the minimum wage policy may be acting as an attraction to foreign investors, which in turn will lead to disproportionate effects on full-time employment.
The increase in the minimum wage may have increased the number of part-time workers. Joint-venture enterprises had fewer part-time workers than domestic enterprises. However, female employment increased statistically compared to that of firms in larger population areas. Further, the minimum wage policy has had an adverse impact on small enterprises, which are more likely to lack sufficient resources to recruit employees. This policy is essential to ensure the welfare of Cambodian workers.
Whether or not a country’s minimum wage law is fair is a question that remains controversial. In Cambodia, the government has been reluctant to make this law effective. This is despite complaints from human rights organizations, including Human Rights Watch. Human Rights Watch conducted interviews with workers in Phnom Penh and contacted the independent union federation in the capital. These workers said they had been working in the same conditions for more than two years without any compensation or breaks.
As the country is set for a pivotal general election in July 2018, its minimum wage law is a major issue. Although the ruling party won local elections with a record 51% of the vote, it is now facing a tough challenge from the Cambodian National Rescue Party. Regardless of the results of the election, the minimum wage law is an important issue for the majority of garment workers. It is therefore critical that the government ensures that enough resources are allocated to labor inspections.
The government’s failure to increase the minimum wage has also caused an unrest among garment workers in Cambodia. Workers’ expenses continue to rise daily and are too high to pay for them. The Cambodian government has been under fire over the low wage in recent years, leading to violence against protesters. During a recent strike, police shot and killed four textile workers and injured dozens of others. The government responded by raising the minimum wage for the rest of the year to $100 per month.
While major brands have expressed support for the new minimum wage, they have also expressed concerns over the lack of progress in the garment industry. Despite the fact that they are demanding improvements, they have not raised their prices per piece of clothing. They are the ones who have caused the depressed wages and a “race to the bottom” among garment workers. While they do not want the government to have to raise wages, they cannot afford to lose business if their suppliers are not getting paid more.