Myanmar: towards a minimum wage for the summer?

By

Matthieu Guinebault

Published
Mar 18, 2015

Myanmar’s government is currently working to introduce a minimum wage and to launch a social security program, according to the union IndustriAll Global following talks with the government.

"The wages in the industry and in mining in Myanmar generally vary between 56 and 189 euros per month,” said the union. "The government is seeking to establish a minimum wage and hopes to do so this spring."

Discussions with Myanmar’s government follow a series of trade union actions that affected several large production plants. The social role of unions is not yet very well established in the country, where they were banned until 2012. 

The introduction of a minimum wage is being watched closely since Myanmar, with its low wages, is becoming a kind of El Dorado in offering production at knockdown prices. In 2014, Myanmar received some 5 billion dollars of foreign investment, ahead of projections made for 2015.

In 2014, the country exported 1.7 billion dollars of clothing, doubling the figure for 2012, according to the Myanmar Garment Manufacturers Association. Last June, US company Gap was pleased to become the first American brand to produce Made in Myanmar.