The Cambodian government has announced a $2 increase in the monthly minimum wage for workers in the garment, footwear, and travel goods industries, effective January 1, 2026. This adjustment raises the base pay in these sectors to $210, up from the previous $208.
This change was decided during a meeting of the National Council on Minimum Wage (NCMW) held on September 17 at the Ministry of Labour and Vocational Training. Recently, Prime Minister Hun Manet was tasked with establishing the minimum wage for 2026. During this process, both worker and employer representatives indicated they could not agree on a specific wage level, as reported by The Phnom Penh Post.
Following 23 rounds of negotiations, the Prime Minister decided to uphold the consensus reached by these representatives, according to the Khmer Times.
While employers initially suggested keeping the wage fixed at $208, citing economic difficulties such as U.S. tariffs and global market competition, union representatives prompted the government to propose a raise to $210.
Taking into account mandatory allowances and benefits, workers can expect their monthly earnings to range between $227 and $238.
Labour Minister Heng Sour praised the successful negotiation process, highlighting the collaborative approach taken by both parties amid challenging economic circumstances. “Despite uncertainty in the global economy and the fact that many countries in the region have not raised wages, the Royal Government of Cambodia has approved an increase, whether small or large, to ease workers’ burdens and improve their livelihoods,” Sour stated.
Additionally, the government has committed to closely monitoring living costs, particularly for utilities and rent. “The ministry will investigate directly if there are inappropriate increases and take action against landlords or service providers who exploit the wage adjustment,” Sour added.
Kim Chansamnang, president of the National Union Alliance Chamber of Cambodia, expressed satisfaction with the wage increase, emphasizing its importance during difficult times. Chansamnang remarked, “We are pleased with this increase, even though it is small. It comes at a tough moment for the country, and we urge landlords and utilities not to exploit workers by increasing fees.”
The increase in the minimum wage coincides with a strong performance in Cambodia’s garment, footwear, and travel goods (GFT) sector, which reported exports of $7.38 billion in the first half of 2025, according to the General Department of Customs and Excise. This represents a 22% increase from $6.02 billion during the same period last year, with garment exports alone contributing $5.28 billion, also reflecting a 22% rise compared to the previous year.
In the context of trade tariffs, last month the U.S. announced a 19% increase on exports from Cambodia, significantly lower than the 49% initially proposed in April. Deputy Prime Minister Sun Chanthol noted that this new tariff rate positions Cambodia more favorably compared to its regional competitors, Vietnam and Bangladesh, which face a 20% tariff rate.
Overall, the Cambodia minimum wage increase signifies a critical step towards enhancing the livelihoods of workers in crucial sectors, reinforcing the government’s commitment to addressing the concerns of laborers in this challenging economic landscape. The Cambodia minimum wage increase not only reflects the government’s efforts to improve worker conditions but also aims to sustain economic growth amidst global challenges.
