Impact of Minimum Wage

          Since 2002, the minimum wage in Cambodia was stayed still and stayed still until the last 3 years ago up to now. It is increasing on the minimum wage on the garment sector as the ministry of labor already signed and set the law into the legal labor law, but we quite don't know how much that it might impact to the garment sector. That's why I would like to share you about the impact of the minimum wage to the garment sectors are two types of impact such internal garment sector and external garment sector.

           First of all, internal sector is a part which impact into two types of people in the garment sector. For example; the impact one is relate to the owner business. As his or her business are too big or haven't problem with minimum wage, so it doesn't matter for them. But for the businesses which are small, it might be extremely impact to their business because the increasing of the minimum wage are affect to their financial like the way they spend the salary to their worker, so it absolutely is his profit might be low. And it gonna make their business become down and down or might be close in one day as soon as possible. The other thing relates to the workers whom are in the same companies or factories are jealously between graduated worker and undergraduate worker. It might be conflict both of them work under the same roof and also complicate to the owner business. Secondly, the external sector is a main part which influence from the internal sector. It is hard for the owner business and also extremely complicate to the society or the government who are relevant to that field. For example; if the government is still keep increasing the minimum wage to the garment sector, there might be more than 10 factories will close at the same time. When the factories were closed, the more unemployment is increase also, but it wasn't quite to the government if they could find the place for them to work. Eventually, the governments can't find the place for them to work, so as a result it might be affect to our economic and human resources as well.

             In short, internal and external sectors are the mainly impact to the garment sectors and also to the governments as well, but I was impressed that the government thought about the garment workers whom they worked hard and got low income wage since last 10 years ago. It is still complicate between the worker with the owner and the owner with the government to be ready and preparedness for the problems which are still up coming. For my perspective, I think the government should better prepare the solution to avoid the problems when they come and keep update us while we are live in the earth.

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