PHNOM PENH, Cambodia – “We eat just to survive,” said Em Phors.
Phors, 30, a garment factory worker in Kampong Speu province, 56 kilometers southwest of the capital Phnom Penh, is one of hundreds of thousands fighting for a higher minimum wage each year. Her current salary is $240, and she’s been working in the industry for 13 years.
Despite being Cambodia’s largest employer, generating $7 billion in revenue annually, garment workers struggle to make ends meet on their current wages.
The industry is also showing signs of post-pandemic recovery, with exports increasing by 22% in the first five months of 2024 compared to the same period in 2023.
According to trade data, Cambodia generated nearly $5 billion in revenue from exports of garments, footwear, and travel goods during this period.
The United States and European Union are major destinations for Cambodia’s exports, with the US being its largest single market.
Major apparel and footwear companies, including Adidas, Levi Strauss, New Balance, Puma, Ralph Lauren, Under Armour, VF Corporation, and the American Apparel & Footwear Association, source products from Cambodian factories.
Phors expressed her disappointment with the $2 increase in the minimum wage, bringing it to $206 for 2025. Prime Minister Hun Manet has pledged an additional $2, bringing the monthly minimum total to $208.
“I don’t think this amount can cover the workers’ daily expenses, considering inflation, rent, debt, medication, living costs, travel and other necessities,” she said on Thursday, September 19.
“I’m disappointed because I believe a proper job should allow people to live with dignity. But in reality, we’re just surviving. We eat just enough to get by, and after years of work, we’re left with only health problems.”
Phors said that while her base salary is $204, with benefits, it reaches $240 per month. Overtime can increase her earnings to between $270 and $290.
“Even with overtime, it’s not enough. We have transportation costs, food expenses, healthcare, family members without social security and children’s education. It’s like having 30 days in a month but only being able to afford 20.”
Chhan Chany, 35, has worked at the Yi Da Manufacturer Co., Ltd. factory in Kandal province for seven years and believes the minimum wage for 2025 should be $214.
“This is an amount that workers can accept. However, it still doesn’t fully meet our needs, as we have many responsibilities and expenses,” she said.
“Workers’ demands go beyond just a $14 increase. The $2 proposed by the employer representatives is not enough. We have many needs to fulfill. Currently, all workers are struggling to support their livelihoods,” Chany added.
“My family, for example, needs to earn between $400 and $500 to make ends meet. My salary is only between $250 and $280, which leaves us in a difficult situation.”
‘Necessities of life’
Yang Sophorn, president of the Cambodian Alliance of Trade Unions (CATU), presented seven criteria to support the argument for a minimum wage increase for workers.
On September 18, Sophorn outlined them, which include supporting a family of four, accounting for a 2.7% inflation rate, covering living expenses of $204, recognizing a 2.3% productivity increase, acknowledging the country’s positive economic outlook and labor market situation, and factoring in the sector’s 2% profit level.
Based on these factors, the union is requesting a 7% wage increase, which translates to an additional $14, Sophorn said.
“The minimum wage that workers receive now cannot meet the cost of living. We demand [this] based on the necessities of life.”
Katta Orn, spokesperson for Cambodia’s Ministry of Labor and Vocational Training, said on September 19 that garment workers’ minimum wage has increased from $40 in 1997 to $204 in 2024. He noted that with additional benefits, workers can earn approximately $250 per month.
Orn said that Cambodia’s minimum wage negotiations are founded on comprehensive economic and social analysis. He said that Cambodia’s current minimum wage exceeds that of several neighboring nations, including Laos, Myanmar, and Vietnam. However, Orn did not provide specific figures for comparison.
“If you look at and compare with countries in the region, such as Laos, Myanmar, Vietnam, and others such as Nepal, Sri Lanka and India, Cambodia’s minimum wage is higher than those countries,” Orn said on September 19.
He gave assurances that the minimum wage will continue to increase annually to keep pace with the rising cost of living.
Kaing Monika, deputy secretary general of the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC), said also on September 19 that the association has advocated for a cautious minimum wage increase, citing several factors.
A substantial increase could deter potential orders shifting from countries experiencing unrest, Monika said.
He added that other sectors, including tourism and hospitality, still recovering from recent challenges, could be negatively impacted.
“We are far higher than Myanmar, Laos and India,” he said. He expressed concerns about the potential temporary shift of orders from countries experiencing turmoil, highlighting the possible serious ramifications this could have on other sectors that have not yet fully recovered, particularly tourism and hospitality.
However, he said that the raise is reasonable, taking into account current social and economic factors.
Monika noted the need for a balance between a fixed wage and a market-driven wage, allowing flexibility for employers with varying financial capabilities. Besides, no country has a minimum wage higher than its average income or gross domestic product per capita — “Currently, Cambodia’s minimum wage is approximately 30% higher than the average income or GDP per capita.”
Cambodia’s minimum wage for the textile industry will increase to $208 in 2025, an increase of $4. – Rappler.com
Prak Chan Thul, Kiripost‘s Editor-in-Chief, is a seasoned journalist with over two decades of experience, including 14 years at Reuters. He is one of Rappler’s #FactsMatter Fellows for 2024.
