Although still awaiting approval, as at 24th June, the new minimum daily wage is expected to receive authorisation and be set between Ks 3,200 ($3) and Ks 4,000 ($3.7).
Discussions have been ongoing since 2013. These were driven initially by the aim to reduce tensions between factory workers and owners. This expanded to other sectors of industry and commerce.
Trade Unions requested Ks 4,000. Factory owners responded claiming any wage above Ks 2,500 would lead to factory closures. Further meetings have produced this announcement.
Whereas a factory worked may on average earn Ks 1,000 per day with bonuses, factory owners state the worker could earn per month from Ks 100,000 to Ks 150,000 when taking into account bonuses for the volume of work completed. A bonus system, they claim, is required to motivate staff. Wages tend to be higher in Yangon compared to elsewhere in Myanmar.
