Thursday, April 30, 2015

The living wage differs from the minimum wage

A minimum wage is the lowest remuneration that employers may legally pay to workers. The indicators that might be used to set an initial minimum wage rate are ones that minimize the loss of jobs while preserving international competitiveness.
Supporters of the minimum wage say it increases the standard of living of workers, reduces poverty, inequality, boosts morale and forces businesses to be more effective. In other side, opponents of the minimum wage say it increases poverty, unemployment, especial in those unskilled and inexperienced workers.


Workers live in small and non partition room, to spend approximately $15 to $20 per month and be shared among 7 - 8 persons 


A living wage is the minimum income necessary for a worker to meet their needs that are considered to be basic life requirement. In some nations such as the United Kingdom and Switzerland , this standard generally means that a person working forty hours a week, with no additional income, should be able to afford the basics for quality of life, food , utilities , transport , health care , and minimal recreation , one course a year to upgrade their education and childcare.

The living wage differs from the minimum wage in that the latter is set by law and can fail to meet the requirements to have a basic quality of life and leaves the family to rely on government programs for additional income. It differs somewhat from basic needs in that the basic needs model usually measures a minimum level of consumption, without regard for the source of the income.

       A lot of quantity work and over 70 hours per week   
                     
In textile factory in Cambodian, the minimum wage is not a sufficient response to the pressing health risks and poverty conditions faced by factory workers. Low wages come at a high cost on workers. In 2011, over 2400 workers passed out in Cambodian factories due to malnutrition as a direct consequence of low salaries. And H&M, one of Cambodia's main buyers, continues to refuse to pay a living wage to its workers.



                                                                   The poor living situation by the workers


In 2012, the workers not only were working in under-pleasure and tight control, but also facing the biggest problem is poor working environment. H&M had taken the Cambodian minimum wage for the garment which was $US 66 per month. It is lower than living cost. Therefore, a typical garment worker is over 70 hours long a week. They still can’t support their life*. Most garment workers borrow money for food (average debt $50 each), but able to pay just the interest rates on their loans each month.
Nowadays, Cambodian minimum wage is raised up $US 128 in 2015


                                                       Protesting for the low wage by workers

*A worker has to spend approximately $15 to $20 for a rented room per month, shared with eight persons. And it doesn't include the utility cost. Then electricity prices that are among the highest in the world—four to five times more than in neighboring Vietnam.




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