Minimum Wage in Myanmar

The Minimum Wage Committee of Myanmar was formed to fight for higher wages for garment workers. This article highlights the positive and negative effects of a hiked minimum wage for garment workers. It also discusses how the minimum wage committee works. Read on to find out more. Below are some other questions that must be addressed. For more information about minimum wage committees in Myanmar, visit this page. But first, let’s understand why the Minimum Wage Committee of Myanmar is necessary.

Minimum wage committees in Myanmar

The labor ministry in Myanmar has reduced the daily minimum wage from Ks6,000 (US$2.0) to Ks3,600 (US$2), which is much lower than the international minimum wage of $1.30. The punishment for noncompliance is imprisonment for up to a year and a fine not exceeding 500,000 kyats. However, there are still some advantages to working for the minimum wage in Myanmar. For example, the daily cost of living for a worker in Yangon can be as high as 8,000 kyats (about $8) per day.

The minimum wage award was met with fierce opposition by labor-intensive manufacturing enterprises, located in industrial zones in Yangon and Mandalay. Since 2012, union activity and strikes have increased in these sectors. Myanmar’s Garment Manufacturers Association has complained that the new wage would affect investment. In a response to this, the Association has suggested that the minimum wage be double the industry-average introductory wage for unskilled workers. It also cited the high rate of overtime pay.

The Minimum Wage Law of Myanmar requires a review of the minimum wage every two years. Since the pandemic affected the country’s economy, the procedures for amending the Minimum Wage Law were postponed. However, if the disease stabilizes, the procedures will resume. The minimum wage in Myanmar is Ks3,600 (US$2.0) a day, which is close to the 4,000 kyats per day claimed by labor organizations. The minimum wage is intended to be the same all over the country but exempted small family businesses and trainee probationary workers.

Currently, the Confederation of Trade Unions of Myanmar (CTUM) has conducted a survey examining the cost of living, health, and education in Shan and Kayin states. In their latest survey, the CTU is inclined to propose a minimum wage of K7200 per eight hours of work and K900 per hour. The current minimum wage of K4800 per hour is due for review in May. Therefore, it is crucial that the minimum wage be raised to meet the needs of workers in Myanmar.

The government implemented a minimum wage without any exemptions in the garment sector, despite the powerful buyers exerting normative pressure. Foreign investors continue to be attracted to Myanmar’s low-cost labor supply. In such a case, corporate imperatives for low-cost labor supply clash with the commitment to raise wages and labor standards. Therefore, this situation requires social mobilization. However, it is important to remember that the minimum wage in Myanmar is still far below the global minimum.

The ILO’s Labour Law Reform and Institutional Capacity Building program recognize the link between labor relations and foreign investment. Support for the program is provided by the United States, Japan, and Denmark. The donors consider the labor regime to be an important component of a country’s investment environment and contribute to its overall sustainable development. With this in mind, the ILO has taken a direct intermediary role in Myanmar’s reintegration into the global production network.

The increased minimum wage for garment workers

The government of Myanmar has decided to increase the minimum wage of garment workers in the country. According to the International Labour Organization, an increased minimum wage will encourage investment and stabilize labor relations. Some global garment brands have welcomed the decision and publicly advocated for the change. These companies, including H&M and Gap Inc., have already purchased products made in Myanmar. But some factories have already threatened to shut down. The new minimum wage may just be the tip of the iceberg.

A recent study by the International Labor Organization (ILO) showed that the monthly minimum wage in Myanmar is the lowest in the textile sector. Workers in the country earn only $67 per month for working six days. The low wage is caused by the country’s vast workforce and cheap production costs. Global apparel companies should consider this when setting their prices. If the minimum wage is not raised, workers will be forced to find other employment.

The minimum wage in Myanmar would be around $67 a month. Compared to Cambodia, the minimum monthly wage in Myanmar ranges from $90 to $128. It would apply to all businesses and industries, except for family-run companies and those with less than 15 employees. It will go into effect on Sept. 1. Despite the high costs of living, Myanmar exports more than $1 billion in clothing each year.

International fashion brands do not directly employ foreign garment workers. Instead, they use third-party suppliers and second-tier factories. It is difficult to enforce workers’ rights in such circumstances. In Myanmar, 90 percent of garment workers are women. The majority of garment workers are from small towns outside the capital and move to the garment manufacturing hub in Yangon for opportunities. Most workers work in dormitories with other garment workers, while many send their salaries home. As a result, many of them are particularly vulnerable following the military coup.

The increased minimum wage for garment workers in Myanmar has been controversial in the labor industry. While most garment factories are unorganized, some are unionized and play a significant role in shaping working conditions. In 2015, the minimum wage was established after massive strikes by garment workers. The unions claimed that management had been using the Covid-19 anti-union law to break unions and intimidate local leaders. A number of individual wage-related complaints were also filed with the Myanmar Labour Department.

The government of Myanmar has stepped in to introduce a minimum wage without exemption in the garment sector. This step has been controversial because multinational corporations have historically ignored the needs of the local workforce. Their lack of transparency in the supply chain has allowed foreign investors to exploit the low-wage labor in Myanmar, while the government has remained silent. However, despite the pressure of international investors, the government has decided to enact the minimum wage without an exemption.

Negative impacts of hiked minimum wage for garment workers

The government is considering hiking the minimum wage to compensate for the higher cost of production. It is currently the second-lowest wage in Southeast Asia, behind only Thailand. However, it is crucial to attracting FDI to the country by creating a good work environment for garment workers. Despite a wage hike, only 39% of garment factories are owned by locals. Increasing wages will put pressure on employers and result in more expensive production.

Labor costs in Myanmar are set to rise by 33 percent in 2018, and sourcing costs are expected to increase at a similar pace. The hiked minimum wage is still much lower than the 55 percent increase that several unions have advocated over the past year. While the new minimum wage is a welcome improvement, many garment factory owners are worried that the increased cost is too much for the workers. The law also requires enterprises to pay 200 percent over time.

According to a recent survey by Progressive Voice, 61% of workers believed the increase in the minimum wage had a negative impact. The rise in prices of staples and commodities caused workers to feel a sense of unrest and a drop in morale. The increase, however, did not result in a full-scale shutdown of a factory, but it impacted thousands of workers. In addition, it reduced bonuses and incentives and prevented factory owners from docking workers’ pay if they were late for work.

Increased wages also created a more tolerant work environment, despite the social unrest. In recent years, Myanmar has seen a rapid rise in exports of garment products, nearly doubling its export revenues between 2010 and 2014. However, the country’s textile sector still has a long way to go before reaching the US$8-ten-billion export target. Myanmar has a vast manufacturing potential, but the lack of infrastructure, insufficient power supply, and corruption make doing business in the country a challenge.

In the meantime, the government must develop a minimum wage policy to promote productivity and efficiency among enterprises. It should also consider the needs of low-income workers and gender equality to avoid employment loss caused by the wage structure. This policy should address the concerns of workers and help to maintain a balanced labor market. So, the minimum wage should be increased, but it must be followed by appropriate measures to ensure that it is a good investment for the country’s economy.

However, a hiked minimum wage can have negative effects on the economy. It can reduce the productivity of the economy, which in turn may affect the profitability of firms. It can also cause adverse employment effects. Some research has suggested that minimum wage legislation can stimulate the growth of national economies. But there are also negative effects on the employment market. In Myanmar, minimum wage laws can cause a decrease in the employment and profitability of firms.

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