Introduction of new minimum wage in Myanmar leaves 500 unemployed

The introduction of a new minimum wage on workers in Myanmar has initially left about 500 workers sacked, an official report said Monday.

Calling for redundancy payment, the Federation of Trade Unions Myanmar (FTUM) however said with some 250,000 employed in the garment and textile industry, the 500 workers will not have much effect on the entire work force.

A garment factory owner was quoted as saying that employers may look to other ways to maintain profit, adding that additional rules and regulations are needed to ensure that the purpose of the Minimum Wage Law is achieved.

Meanwhile, the International Labor Organization in Myanmar said that the introduction of the new national minimum wage will help raise living standard among low income workers and ensure fair competitions among their employers.

The government's National Minimum Wage Committee designated on Aug. 28 a basic and standard minimum eight-hour daily wage of 3, 600 kyats (about 2.83 U.S. dollars) for all workers in the country.

The new minimum wage, covering all regions and states, has been effective since Sept. 1. It does not apply to businesses with less than 15 workers such as family businesses.