Cambodia Increases Minimum Wage for Garment Workers

Strategic Insights -

Garment workers in Cambodia have welcomed the Royal Government's decision to raise their minimum wage, starting in 2026. Following 23 meetings between workers and employers, the National Council for Minimum Wage decided to increase the minimum wage by US$2, from US$208 to US$210 per month. The move reflects the government's commitment to improving the well-being of workers, with Prime Minister Samdech Moha Borvor Thipadei Hun Manet making the final decision. The increased wage will take effect on January 1, 2026, and is seen as a positive step in ensuring the livelihoods of the over 900,000 workers employed in the garment, footwear, and travel goods sector.

Key Takeaways:

  • The Royal Government of Cambodia has increased the minimum wage for garment workers to US$210 per month, starting from January 1, 2026.
  • The new minimum wage is a result of 23 meetings between workers and employers, who discussed the impact of U.S. tariffs and Cambodia's competitiveness compared to other countries.
  • The increase of US$2 is a continuation of the government's policy of raising the minimum wage annually to improve the well-being of workers.
  • Garment, footwear, and travel goods workers are also entitled to various benefits, including regular attendance, transport, rent, and seniority bonuses, which can bring their total earnings to between US$227 and US$238 per month.
  • The garment, footwear, and travel goods industry remains Cambodia's largest foreign exchange earner, employing nearly one million workers, most of whom are women.
  • The 2025 minimum wage was set at US$208, an increase of US$4 from 2024.
  • Prime Minister Samdech Moha Borvor Thipadei Hun Manet made the final decision to increase the minimum wage to US$210 per month after considering the inputs from worker and employer representatives.

Statistics:

  • US$2: The increase in the minimum wage from 2025 to 2026.
  • US$210: The new monthly minimum wage for garment workers in 2026.
  • 23: The number of meetings between workers and employers before the National Council for Minimum Wage made a decision.
  • US$208: The minimum wage in 2025, an increase of US$4 from 2024.
  • US$227- US$238: The range of monthly earnings for garment, footwear, and travel goods workers, including various benefits.
  • 1 million: The number of workers employed in the garment, footwear, and travel goods industry, mostly women.
  • 2024: The previous year, with a minimum wage of US$204.
  • 2025: The year with a minimum wage of US$208.
  • 2026: The year when the new minimum wage of US$210 will take effect.

Sources:

  • Agence Kampuchea Presse, "Garment workers rejoice as gov't raises minimum wage to US$210," September 17, 2025.