Abstract
Digitizing wages in the Cambodian garment sector has the potential to drive efficiency in the supply chain, while bringing large numbers of unbanked workers, especially women, into the formal financial system. However, paying wages digitally also requires factories to fully digitize their payroll system, which could help with audits and compliance requirements of buyers and introducing digital wages does entail a per capita fee paid to workers, factories, and financial service providers (FSPs) that facilitates the payment of wages directly into each worker’s account.The report assesses the market potential for digital wage payments in Cambodia’s garment sector through interviews and survey with over 400 workers and managers from more than 100 factories (half of which are using digital wage payment).This report has been produced by BSR HERproject and International Finance Corporation (IFC) under the IFC/ILO Better Work Partnership.