Minimum wage in Myanmar remains too low, says EuroCham Myanmar

Mizzima

On 6 April, the EuroCham Myanmar Garment Advocacy Group released a statement reiterating with “greater urgency” the inadequacy of the current minimum wage, noting that continued inaction is a serious risk for workers and manufacturers, as well as the long-term viability of their sector.

The text of the statement continues below:

European brands are the single largest source of buyers from Myanmar, with 64% of Myanmar’s total apparel exports destined for the European Union in 2024 (based on United Nations Comtrade’s data for HS codes 42, 61, 62, and 64). Accordingly, EuroCham Myanmar member garment brands regard an upward adjustment of the legal minimum wage — one that reflects both increased costs for manufacturers and the higher cost of living for workers — as the utmost priority to be addressed urgently, as part of their commitment to heightened due diligence and responsible sourcing from Myanmar.

The current low minimum wage is becoming a growing source of reputational concern for European brands sourcing from Myanmar, reinforcing the business case for addressing the minimal wage levels in the export-oriented apparel sector. Many brands have taken measures to individually mitigate wage risks through individual supplier policies; however, we recognize that a sector-wide approach of improving the legal minimal wage is urgently necessary. Members of EuroCham Myanmar Garment Advocacy Group continue to engage with a trade union federation operating on the ground, factory-level trade unions, and labour rights organisations, and cooperate closely with the EU-funded MADE in Myanmar programme to support lasting improvements in labour rights across the sector.

EuroCham Myanmar Garment Advocacy Group calls on the relevant authorities and all invested stakeholders to urgently work towards establishing a new and improved legal minimum wage for the export-oriented apparel sector — one grounded in current economic reality, that allows workers to meet their basic living needs with dignity, supports stable and productive workplaces, and keeps Myanmar a credible and competitive sourcing destination for responsible global buyers.