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Breaking: LAC approves minimum wage hike

Labour Minister Ith Samheng (C) signs documents setting next year’s minimum wage for the garment and footwear sector at $170 a month.
Labour Minister Ith Samheng (C) signs documents setting next year’s minimum wage for the garment and footwear sector at $170 a month. Pha Lina

Breaking: LAC approves minimum wage hike

The government today set next year’s minimum wage for the garment and footwear sector at $170 a month, up from $153, the highest increase in wages in the last two years.

The tripartite Labour Advisory Committee – consisting of representatives from the government, unions and employers – went into the meeting with their own wage proposals: $165, $170 and $162, respectively.

The committee this afternoon selected the government proposal of $165, after which Prime Minister declared a now-customary $5 bump, bringing next year’s wage to $170. The increase is the highest in the last two years and comes 10 months before a critical national election in July 2018.

Before the meeting, Labour Minister Ith Samheng, who chaired the meeting, said he was pleased that all the proposals were within Prime Minister Hun Sen’s wage range of $160 to $170 – a suggestion the premier made earlier this week.

“I am glad that the number is not big,” he said. “The subcommittee has provided $162 to $170 so the numbers are close and it is easy for us to decide.”

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