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Myanmar government approves minimum wage of $2.80 a day

Published: 01-Sep-15 09:21AM

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YANGON (Eleven Myanmar/ANN) - The Union government has approved a proposal for a minimum wage of Ks 3,600 ($2.80) per day amid widespread criticism by some employers and employees, according to the national committee for fixing the minimum wage on August 28.

A statement says the committee at different levels made field trips to explain the facts about the fixing of minimum payroll to the employer-employee organizations and workers and labour union after the minimum payroll has been proposed.

On August 18, the national-level committee approved the minimum wage rate after holding a discussion with chairpersons of the corresponding committee.

The national-level committed issued the notification No.2/2015, stating that the same minimum wage of 3,600 per day (Ks 450 per hour) is fixed for any workers across the country on June 29, in accord with section 10 (d) of the minimum wage law (2013). This law would not be applicable to the enterprises employing fewer than 15 workers and small-scale family businesses, the statement added.

Korean and Chinese garment entrepreneurs have threatened to shut down their factories after the national committee proposed the minimum wage of Ks 3,600 per day on June 29.
In addition, some entrepreneurs from Myanmar garment entrepreneurs association remonstrated about it.
Workers staged a series of protests against the fixing of minimum wage. Five local union and federations issued an announcement stating that the minimum wage of Ks 3600 is relatively lower than that of the government staff.

Factory workers will accept the minimum wage if the government takes account of travel expenses, accommodation costs, services benefit of Ks 10,000 per year and the rights to learning access at the worksite.

It will take effect as from September 1, 2015. Despite criticism, it was approved on Friday (August 28) after the designated period of 90 days ends.

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