New Minimum Wage Set for 2015
By Max Howlett and Yun Sophal
A new monthly minimum wage for workers in the garment, textile, and footwear sectors will increase to US$128 with effect from January 1st, 2015, according to Prakas No. 283 dated November 12th, 2014, issued by the Ministry of Labor and Vocational Training. The current minimum wage for the above workers is US$100 per month.
This Prakas has been issued subsequent to a declaration made on the same day by the tripartite Labor Advisory Council, recommending an amount of US$123 as a new minimum wage for 2015, which decision was made after a majority vote among the council members. Under the above Prakas, an additional amount of US$5 has been added to the Labor Advisory Council’s proposed rate.
There are no minimum wages determined for other sectors, but the rates specified for garment, textile, and footwear workers also have some influence in the manufacturing industry in general. As yet, there is no minimum wage for the private sector as a whole, but generally employees are paid according to their professional worth.
Sciaroni & Associates Labor Practice Group
Obtaining good labor advice and having well-executed employment contracts will help businesses to prevent disputes, save time and cost, and preserve reputation.
Sciaroni & Associates has been heavily involved in the development of this important sector since its early stages and is a leading and trusted authority on labor matters. In addition, the firm has assisted clients in mediation, arbitration, and settlement of disputes. Members of our Labor Practice Group have also authored textbooks of the subject for Cambodian lawyers and students.
As such, we are well placed to advise and assist you on labor related matters in Cambodia, and we have represented companies, investors, embassies, and organizations in the Kingdom of Cambodia as well as individuals.
Sciaroni & Associates is a leading business and investment advisory firm serving Southeast Asia since 1993 with offices in Cambodia, Laos and Myanmar. Sciaroni & Associates assists clients in understanding the complex business conditions in those markets while efficiently identifying and resolving issues following strict international ethical standards. Our firm provides experienced advice and seasoned business insights to many of the world’s leading companies, governments, economic think tanks, global development funds and international NGOs.
For more information please visit www.sa-asia.com or contact us at [email protected].
An Australian lawyer, Max has been working in Cambodia since 1995 on a range of commercial, real estate and general legal matters. He has extensive knowledge of Cambodian law and assists many international clients with compliance issues regarding local laws and regulations. Max has a Master of Laws degree from the University of Melbourne.
Sophal has extensive knowledge of Cambodian law, practice, and custom, specializing in labor law issues and labor dispute resolution with experience in legal research, analysis, evidence examination and arbitral award drafting. She has served as a Legal Officer with the Arbitration Council Foundation. She earned her Bachelor of Laws in dual language-based programs from the Royal University of Law and Economics, Cambodia, and a Masters Degree in Law from the Transnational Law and Business University, South Korea. She speaks English and Khmer.
