On 30 September 2026, the Ministry of Labour and Vocational Training (“MLVT”) issued Prakas No. 226/26 on the Determination of the Minimum Wage for Workers/Employees in the Textile, Garment, Footwear, Travel Goods and Bag Industries for 2027 (the “Prakas”). The Prakas will take effect on 1 January 2027.
1. Officially Determined Minimum Wage for 2027
Under the Prakas, the statutory minimum wage applicable to workers/employees employed in the textile, garment, footwear, travel goods and bag industries has been increased to USD 212 per month, as determined by the National Council for Minimum Wage. This represents an increase of USD 2 per month from the minimum wage of USD 210 per month applicable in 2026.
2. Minimum Wage Applicable During and After the Probationary Period
For workers/employees engaged during a probationary period, the applicable minimum wage is USD 210 per month. Upon completion of the probationary period, such workers/employees shall be entitled to a minimum wage of USD 212 per month, in accordance with the Prakas.
3. Minimum Wage Requirement for Piece-Rate Workers/Employees
For workers/employees remunerated based on the quantity of work produced (piece-rate), wages shall be calculated based on the actual production.
If the wages calculated based on the actual quantity of work produced exceed USD 210 per month during the probationary period or USD 212 per month upon completion of the probationary period, the workers/employees shall be entitled to receive the higher amount corresponding to their actual production.
Conversely, if the wages calculated based on the actual quantity of work produced are less than the applicable minimum wage, the employer shall be required to make up the difference to ensure that the workers/employees receive at least USD 210 per month during the probationary period and USD 212 per month upon completion of the probationary period, as applicable under the Prakas.
4. Continuation of Temporary Additional Allowance for 2027
In accordance with the understanding reached at the meeting held on 20 March 2027, the temporary additional allowance of USD 2.50 per month shall continue to apply in 2027. This allowance shall be provided in addition to the applicable transportation and accommodation allowances.
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