2025 Minimum Wage for Workers in Garment, Textile, Footwear, Travel Goods, and Bag Sectors under the Cambodian Minimum Wage Law
Overview:
Article 4 of the Law on Minimum Wage, enacted on July 6, 2018, states that the minimum wage is determined by a PraKas from the Minister of Labor. On September 20, 2024, the Ministry of Labour and Vocational Training (MLVT) issued Prakas No. 221/24 ក.ប/ប្រ.ក.ខ.ល on determining the minimum wage for workers in the garment, textile, footwear, travel goods, and bag sectors, which will be effective from January 1, 2025. Any conflicting provisions of this Prakas are void.
Key provisions:
The previous minimum wage was $202 per month for probationary workers and $204 for regular workers, according to PraKas No. 283/23 ក.ប/ប្រ.ក.ខ.ល issued on September 29, 2023. Recently, in accordance with the Article 2 of Prakas No. 221/24 issued on September 20, 2024, by MLVT, workers in the garment, textile, footwear, travel goods, and bag sectors, will receive the following minimum wages:
1- For probationary workers is at $206 per month. At the end of the probationary period and became a full-time worker, the minimum wage shall increase to $208 per month.
2- For regular workers, the pay rate is based on production level. If this results in a rate above the minimum wage, workers receive the higher amount. If it falls below the minimum wage, the employer must adjust pay to meet the minimum wage ($206 per month for probationary workers and $208 per month for regular workers).
Other benefits for workers in the garment, textile, footwear, travel goods and bag sectors remain unchanged, including a transportation or accommodation allowance of $7 per month, an attendance bonus of $10 per month, a meal allowance for overtime working of $0.50 or one free meal, and a seniority bonus of $2 to $11 per month for workers with 2 to 11 years of services.
Penalties:
Under Article 24 of the Law on Minimum Wage 2018, employers who commit any of the following violations can be fined up to 40,000,000(forty million) Riels:
- the wage must be at least equal to the minimum wage set by a PraKas of the Minister of Labor .
- any agreement, written or oral, requiring wages below the legal minimum is null and void .
- in subcontracting or wage-based work, skilled workers should earn at least the guaranteed minimum wage. Workers who paid by the quantity of product must be paid based on their actual output. If their earnings exceed the minimum wage, they receive the extra. If it’s less, the employer must top it up to meet the guaranteed minimum wage .
- all workers covered by this law must be paid equally for the same work, skills, and conditions, regardless of origin, gender, or age .
Conclusion:
In conclusion, Article 4 of the Law on Minimum Wage establishes that the minimum wage is determined by a PraKas from the Minister of Labor. As of September 20, 2024, the Ministry of Labour and Vocational Training has set new minimum wages for workers in the garment, textile, footwear, travel goods, and bag sectors, effective January 1, 2025. Probationary workers will earn $206 per month, increasing to $208 upon full-time status, while regular workers’ pay is based on production levels, with provisions to ensure it meets the minimum wage. Additional benefits for these workers remain unchanged, and strict penalties are imposed for violations of the minimum wage laws, emphasizing the importance of fair compensation regardless of a worker’s origin, gender, or age.
Article 4 of the Law on Minimum Wage 2018.
Ibid., Article 6 Paragraph 1.
Ibid., Article 7.
Ibid., Article 8.
Thailand has started Issuing Local Trademark Certificates for International Registrations (IR) Designating Thailand
Thailand has started Issuing Local Trademark Certificates for International Registrations (IR) Designating Thailand
Since Thailand joined the Madrid Protocol in 2017, the process for international trademark registrations (IR) has become more streamlined. However, a technical issue at the Thai Trade Mark Office (TMO) caused delays in issuing local registration certificates for IRs designating Thailand. The TMO has now resolved this issue and started issuing local registration certificates for IRs designating Thailand, marking an important development for brand owners who have been awaiting official confirmation.
For years, the TMO had committed to issuing local certificates following the World Intellectual Property Organization’s (WIPO) statement of grant but provisional refusals concerning goods and services specifications caused delays. The good news is that, as of August 2024, the TMO has resolved the technical issues, and the office began issuing certificates in early September 2024.
The TMO is now working through the backlog, starting with applications filed in 2017 and 2018. For IRs that did not face provisional refusals, certificates are being processed subsequently. This development provides long-awaited relief for brand owners waiting for their official registration certificates in Thailand.
Looking Forward
As the TMO works through the remaining backlog, brand owners are encouraged to review their portfolios, especially IR designations affected by provisional refusals. This step marks a positive shift in Thailand’s trademark registration process, offering greater clarity and efficiency for international trademark applicants seeking protection in the region.
We encourage brand owners to stay updated on these changes and reach out if they need support with their portfolios.
Authors
- Somphob Rodboon, Managing Partner
- Thanapha Phetkeereeskul, Senior Associate
Somphob Rodboon, recognized as Trademark Star 2024 by Managing IP
Somphob Rodboon, Managing Partner of ILAWASIA Co., Ltd., has been recognized as a Trade Mark Star in 2024, as surveyed by IP Stars of Managing IP.
This prestigious recognition highlights his exceptional expertise and leadership in the field of intellectual property, particularly in trademark law. Somphob’s dedication to delivering high-quality legal services continues to strengthen ILAWASIA’s reputation as a leading law firm in Southeast Asia.
ILAWASIA ranked in the Asia M&A Rankings 2024
ILAWASIA Co., Ltd. is honored to announce that our head office has been recognized as one of the Notable Firms in the Asia M&A Rankings 2024, as surveyed by Asian Legal Business (ALB). This prestigious recognition, featured in the September 2024 issue of ALB both online and in print, places us among an elite group of 25 global, regional, and local firms in Thailand, spotlighting our expertise and leadership in the field of Mergers & Acquisitions.
This achievement underscores our unwavering commitment to delivering excellence in legal services, particularly in the dynamic and high-stakes area of M&A transactions. Over the years, ILAWASIA has built a strong reputation for guiding both local and international clients through complex mergers, acquisitions, and corporate restructuring deals. We take great pride in providing bespoke legal solutions that address our clients’ strategic business objectives while navigating the intricate regulatory landscapes across various jurisdictions.
As one of the leading legal service providers in the M&A practice area, this recognition not only highlights our technical expertise but also reflects the dedication of our talented team, who continuously strive to uphold the highest standards of service. Our focus on client success, innovation, and cross-border collaboration remains at the core of our practice.
We extend our deepest gratitude to our clients, partners, and colleagues for their continued trust and support. This recognition reinforces our determination to further enhance our services and remain a trusted advisor in the M&A sector. We look forward to continuing to lead the way in delivering impactful and innovative legal solutions for businesses operating in Thailand and across the region.
At ILAWASIA, we are driven by our vision of being a leading force in the legal industry, and this recognition is a milestone in our journey toward shaping the future of legal practice in Thailand and beyond.
Source : https://www.legalbusinessonline.com/features/alb-asia-ma-rankings-2024
More details on our M&A service : https://ilawasia.com/service/#m-and-a
#ILAWASIA #MergersAndAcquisitions #LegalExcellence #ALBRankings2024 #LegalLeadership #ThailandLegal
ILAWASIA Joins ICLA Network as Official Firm for Thailand Jurisdiction
ILAWASIA Joins ICLA Network as Official Firm for Thailand Jurisdiction
[Bangkok, Thailand, 20 August 2024] — ILAWASIA is pleased to announce its official listing as one of the network firms for the International Commercial Law Alliance (ICLA) in the Thailand jurisdiction. This significant development enhances our firm’s global reach and strengthens our ability to provide exceptional legal services in the region and global.
The inclusion of ILAWASIA in the ICLA network underscores our commitment to excellence and our strategic growth within the international legal community. Our firm’s expertise and dedication align seamlessly with ICLA’s mission to offer top-tier legal support across various jurisdictions
For further details on our listing, please visit the ICLA Thailand Locations page at this link : https://icl-alliance.com/locations/asia/thailand/
ILAWASIA looks forward to leveraging this affiliation to deliver even greater value to our clients and contribute to the ongoing success of the ICLA network.
#ILCA #Collaboration
Litigation Star
The Firm is delighted to announce that our Managing Partner, Somphob Rodboon, has been recognized as a Litigation Star for the Thailand jurisdiction by Benchmark Litigation. This prestigious accolade positions him among the top 35 practitioners in Thailand.
The Firm is profoundly honored by his achievement, which underscores our dedication to excellence, expertise, and delivering exceptional legal services to our clients. This recognition motivates us to maintain the highest standards of professionalism and performance in the field of litigation.
The Firm extend our gratitude for this acknowledgment and remain committed to serving our clients with distinction.
