By Yoon Sat - Jul 24, 2024
In 2020, a worker's basic wages was 160 USD, but it declines to just more than 40 USD in 2024.
Myanmar's wages have not increased in terms of USD due to the exorbitant increase in commodity prices after the military coup, and the basic wage of a worker has fallen to more than 40 dollars.
"In 2020, 1 USD was around 1,400 kyats. A worker's salary around 200,000 kyats (about 160 USD) including their daily wages, attendance bonus and overtime wages. A day's wages were more than 3 USD. The price of both gold and the dollar have risen since the coup d’état. Now, in 2024, a USD worth around 4,800 kyats means that a worker's salary in Myanmar is only one USD per day. It's just over $40 for a monthly salary. The salary did not increase because it was set at 4,800 kyats per day as before so the salary of a worker became less and less and did not increase, even though the price of goods rose. I would like people to sympathize with how many of these workers will be self-sufficient,” said a labor activist.
The military coup council announced in October 2023 that the minimum wage for factory workers such as garment and CMP workers, would be 4,800 kyats per day, which had been set since 2018, and only one thousand kyats per day would be added as a subsidy.
The daily minimum wage of 4,800 kyats is calculated based on the foreign currency exchange rate in 2018, although it has been decided to adjust and increase it every two year is was not revised in 2020, and 2022, and the entrepreneurs refused to increase wages due to the Covid-19 disease, and the only a subsidy was added in 2023.
“It has already been announced that it must be adjusted every two years since 2018. It is not possible to determine whether it is because of the virus or because of the political situation. When the minimum wage was set in 2018, it was calculated based on the foreign exchange rate. Now, they have to raise the minimum wage in accordance with the current exchange rate. The subsidy they are giving is just like a pocket money for a child,” said a labor activist.
Adding a subsidy of 1,000 kyats instead of raising the minimum wage becomes a matter of criticism due to high commodity prices, foreign exchange rates, gold, palm oil and other basic food and consumer goods.
Although it was announced that workers from CMP factory and workshops are entitled to 4,800 kyats daily wages and a subsidy of 1,000 kyats for 8 working hours starting October 1st. Many people are considering and saying that the daily wage should be set at least 10,000 kyats or higher based on the current rise in commodity prices and exchange rates and workers are also continuously demanding.
