15 September 2020

On 10 September 2020, the Ministry of Labour and Vocational Training (MLVT) published the 2021 minimum wage for workers in textile, garment and footwear industries.

The 2021 minimum wage is set at $187 per month for probation workers and $192 per month for full-time employees. Probation workers will get a minimum allowance of $192 per month after finishing their probationary period.

For piece-rate workers, the allowance is based on the quantity of work produced. If the allowance for piece-rate workers is lower the 2021 minimum wage, the employer must pay workers $187per month if they are a probationary worker or $192 per month if they are a full-time employee.

In the meantime, the MLVT also noted that the existing employment benefits for workers in the textile, garment and footwear industries such as allowances for travel and accommodation, performance bonuses, meal allowances for overtime work, and the monthly seniority bonus (which is not the same as the seniority indemnity) shall continue in 2021.

This regulation will take effect on 1 January 2021.

If you have any questions regarding the above or require any assistance, please contact Matthew Rendall, Senior Partner and Phirum Ol, Senior Associate at SokSiphana&associates (a member of ZICO Law).

This alert is for general information only and is not a substitute for legal advice.