PHNOM PENH: Prime Minister Hun Manet said that the recent $4 per month increase in the minimum wage took place in a difficult world economy and should be celebrated. Last week an agreement was reached to raise the minimum wage for factory workers from $200/month to $204/month, falling short of the labor union’s initial demands for $215.

In a gathering of nearly 20,000 workers in Phnom Penh on October 3, the PM tried to explain that too much of a raise will make Cambodia less competitive in global trade and noted that factory workers in other competing countries make even less than they do. He said that employers and employees must maintain the balance of investment in businesses and attract more investment.

"This is the spirit-that we must live together. More or less, we share to live,” he said. He then compared the working economy to keeping pots in the kitchen full of food, “We maintain the pots, add rice to the pots and find opportunities to expand so that more factories can be opened so that our brothers and sisters can have jobs," he said.

He went on to thank the employees and workers who participated in the salary discussions.

Starting in 2024, factory workers will receive an additional $4 per month. This means that if an employee works 50 hours per week, they receive an extra two cents per hour. The decision was made upon the September 28 deadline after 20 meetings of a committee of representatives for unions, employers and the government. While unions initially asked for $215, they eventually lowered their offer to $213. Employers’ final offer, which won a vote of 46-5, was $202 which the government raised to $204. The remaining five votes stayed fast at $213.

The garment, footwear and travel goods industry is the largest foreign exchange earner for Cambodia. The sector consists of roughly 1,077 factories and branches, employing approximately 800,000 workers, mostly female.