UN calls on brands to help Cambodian factories absorb wage hike
United Nations experts have called on global brands to help manufacturers in Cambodia absorb the rising costs after the minimum wage was raised 28% to $128 a month, effective January 1.
The International Labour Organization (ILO) estimates this will increase overall average wages in the garment industry – which include bonuses and overtime – from $183 to $217 per month, increasing factories’ wage bills by 19%.
Brands which source from footwear factories in Cambodia include: Asics, Nike, Merrell, Dockers, Paul Smith, adidas and Puma.