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Morocco’s monthly minimum wage ranks third among major EU clothing suppliers

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Morocco’s monthly minimum wage, known as SMIG, holds the third position among the leading apparel suppliers to the European Union, following Turkey and China, according to a benchmarking study by Evalliance. 

The study compares minimum wages in key EU apparel-supplying countries.

Morocco’s current monthly minimum wage is $307, approximately $1.61 per hour. This level is comparatively high when compared to most other producing countries. 

It is three times the minimum wage in Bangladesh or Pakistan, nearly five times that of Myanmar, and 50% more than Tunisia’s, reflecting the significant depreciation of the Tunisian Dinar in recent years, unlike the Dirham, which remains robust.

Turkey boasts the highest minimum wage among the top ten EU apparel suppliers, standing at $464, equivalent to $2.38 per hour. 

Over recent years, Turkey’s minimum wage has increased significantly, despite a considerable depreciation of the Turkish Lira against the dollar and the euro.

China, currently ranked second, saw significant growth in its minimum wage in the early 2010s, but this growth slowed notably from 2019. The minimum wage varies widely between regions. For example, there’s an 89% wage gap between Shanghai and Liaoning

Tunisia is ranked fourth, with the minimum wage set at $224, as determined by the collective agreement. This includes the base salary, attendance, transport, and punctuality bonuses, along with a 1/12 share of a 13th-month payment from companies. 

In India, the minimum wage in New Delhi for 2023 is $210, with variations across regions. For instance, the minimum wage is currently $173 in Karnataka (Bangalore), $170 in Kerala, and drops to $123 in Uttar Pradesh. 

On average, Indian wages are substantially higher than those in neighboring countries, Pakistan and Bangladesh.

In Cambodia, where a majority of businesses have Chinese or Sino-Cambodian mixed ownership, the current minimum wage is $200. 

This figure consistently increases each year, positioning it well above that of its direct neighbor and competitor, Bangladesh. Minimum wages specific to the apparel industry are determined annually by the government based on sectoral negotiations.

Vietnam’s monthly minimum wage, paralleling Cambodia’s progression, currently stands at $193. Similar to China, it varies across regions.

Myanmar remains, by far, the lowest among the top ten EU apparel suppliers, with a minimum monthly wage of $65, six times less than Shanghai’s minimum wage. This largely explains why Chinese textile and apparel investors have established a presence in Myanmar, despite its dire human rights situation.

In the European Union, there is considerable variation in minimum wages among member states. 

Luxembourg has the highest at $2,508, while Bulgaria has the lowest at $398. 

France, with a monthly minimum wage of $1,747 for 35 hours per week, is the second-highest after Luxembourg, reflecting both the high minimum wage and substantial social charges.

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Étiquettes : , , , , , , , , Last modified: janvier 9, 2024
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