Living Wage versus Minimum Wage

Garment producing countries in Asia compete for global brands’ sourcing orders for garment production. Since low production cost is a primary factor for brands’ preferred sourcing country, governments and industry in each production country compete on the basis of low wages to avoid the risk of losing business.

As a result, minimum wage for garment workers in production countries are at poverty levels. Asia Floor Wage at the present time is on average three times the statutory minimum wages or wages set by national governments – and in some cases even more.