🟡 Towards Financial Health in Cambodia's Garment Industry: Read our Report 🟡
As Cambodia transitions to a digital economy, the shift from cash to digital wage payments is rapidly taking hold in the garment sector. Just five years ago, only 22% of factories paid wages digitally; today, that number has soared to 72%. This shift not only improves efficiency and convenience but also brings many unbanked workers into the formal financial system.
Since 2019, RISE, in partnership with the Mastercard Center for Inclusive Growth, has been helping scale this transformation, supporting 17 garment factories with over 25,000 workers (85% women) in Cambodia to transition from cash to digital wages. Our comprehensive, gender-responsive approach ensures factory managers understand the benefits of digitizing wages while providing workers with the necessary training and support.
Key Highlights:
🟡 Efficiency Gains for Employers: A significant 84% reduction in payroll administration costs, saving an estimated USD 16,000 annually. Digital payroll also mitigates risks associated with handling large sums of cash.
🟡 Production Time Savings: Digital wage payments eliminate the need for workers to leave production lines to collect their wages, saving approximately 850 hours of production time each month for an average factory.
🟡 Financial Empowerment for Workers: Workers are gaining confidence in using financial products and services, with many reporting improved money management skills, increased savings, and better financial decision-making with their families.
Read the full article to learn more about how digital wages are transforming the financial landscape for workers and employers in Cambodia: https://lnkd.in/d8AE6c24 Sethypong Sok Charlotte Pallangyo Ella Moffat
Read our report on Improving Financial Health in Cambodia’s Garment Sector through Responsible Wage Digitalization: Benefits for Women and Business https://lnkd.in/gUGJHymW
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