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Workers

Cambodia Approves Minimum Wage Increase for Garment Sector Workers

Strategic Insights

— 2 min read

The Cambodian government has approved a new minimum wage for workers in the garment, footwear, and travel goods sectors, effective from January 1. The wage, set at $210 per month, is an increase of $2 compared to the previous minimum wage of $208. The decision was made after 23 rounds of negotiations between labour unions, employers, and government officials. The increase is seen as a modest rise, particularly given the challenging economic climate and global economic pressures such as US tariffs and regional wage comparisons.

Key Takeaways:

  • The minimum wage for garment sector workers in Cambodia has been increased to $210 per month, effective from January 1, representing a $2 increase from the previous minimum wage of $208.
  • The decision was made after 23 rounds of negotiations between labour unions, employers, and government officials, with employer representatives initially proposing keeping the minimum wage at $208.
  • The National Union Alliance Chamber of Cambodia President, Kim Chansamnang, welcomed the decision, stating that it was a 'successful' negotiation, despite the challenges faced by workers and employers.
  • The labour ministry has vowed to investigate any attempts by landlords or service providers to exploit the wage adjustment by raising fees on workers, particularly in terms of water, electricity, and rental charges.
  • The garment sector employs more than a million workers, 70% of whom are women, and the increase is seen as a way to retain skilled workers, attract investment, and create new job opportunities.
  • The government is also facing the challenge of reintegrating more than 920,000 migrant workers who have returned from Thailand amid escalating border tensions, with the aim of creating 10,000 jobs per day to absorb the influx.
  • Garment workers have expressed appreciation for the steady increases in the minimum wage, although some have appealed to landlords not to raise rent and utility charges ahead of the new wage adjustments.

Statistics:

  • The new minimum wage of $210 per month represents a 0.96% increase from the previous minimum wage of $208.
  • The garment sector in Cambodia employs more than a million workers, 70% of whom are women.
  • The government aims to create 10,000 jobs per day to absorb the influx of migrant workers who have returned from Thailand.
  • The cost of living in Cambodia varies significantly by location and lifestyle, with Phnom Penh being more expensive than rural areas.
  • Inflation in Cambodia is projected to moderate to 2.3% in the next year, according to forecasts from AMRO and the World Bank.
  • The General Department of Customs and Excise reported that GFT exports grew to $7.38 billion in the first half of 2025, up 22% from $6.02 billion during the same period last year.

Sources:

  • "Cambodia Approves Minimum Wage Increase for Garment Sector Workers"
  • Ministry of Labour and Vocational Training
  • National Union Alliance Chamber of Cambodia
  • National Trade Union Confederation
  • Global Living Wage
  • AMRO and the World Bank
  • General Department of Customs and Excise

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