Minimum wage in Cambodia

A person from a foreign company willing to set in Cambodia asked me to write something about minimum wage. The problem is what to pay to the Cambodian staff keeping just and appropriate. Any foreign company setting in Cambodia, should study, of course, the cost of life in the country. It would give a good idea, since the minimum wage seems to low, at least it is my impression.

The cost of life in a city like Siem Reap or Sihanoukville, could be more expensive than the cost of life in the capital. Although, Phnom Penh is bigger and you must include transport.

The legal minimum wage in a Cambodian factory is 45 US dollars per month and a Cambodian civil servant gets 28 US dollars. [Ref. ILO, Cambodia, Facts and Figures. pdf] In the last months unionists claimed an increase of the minimum wage. [Ref. Fibre2fashion: Cambodia, Minimum wage decision to ignite apparels workers protests, July 12, 2010]

According to this comparative statistic of minimum wages in Asian countries prepared by nwpc last November 2010, the monthly salary is 50 US dollars, so 1.67 dollars per day.

Now well, we are talking about workers and civil servants. Out of this, salaries can established in Cambodia by study formation.

For example, the students who finished technical formation in the Don Bosco schools, can get as a minimum wage about 100 US dollars (400,000 riels). Then, those with a professional title could has as minimum wage the 100% more than that.

Some NGOs offer big salaries to their Cambodian staff, following for example the logical salary scheme of their own countries. It can has its good intention, but it generates also social troubles. If you offer 300 US dollars per month, such sum could be too short in a country like Italy, but it is a luxury salary in Cambodia. Now well, you seem to be just, but sometimes they offer such salaries for example to persons without a real formation, that could be a great worker. It creates problems to other NGOs that would try to follow the national legislation, but whose staff can consider that they also should have 300 dollars per month.

I would recommend to follow the national salary scheme. Now well, as you want to support your Cambodian staff, you can do it through a well thought program of social assistance: paying a percent of their health attention (50-60%?), bonus for every child, bonus for wedding, etc. Why not supporting your staff with a scholarship in a university, polytechnic or school in something related with his/her job? I think it would be better than offering big salaries just with poor calculations.

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