Cambodia Enforces $210 Minimum Wage for Garment Workers, Warns of Strict Penalties

PHNOM PENH, Cambodia (Jan. 2, 2026) — Cambodia’s Ministry of Labour and Vocational Training has ordered factories in the garment, footwear, travel goods and bag manufacturing sectors to implement the new minimum wage of $210, effective Jan. 1.

The directive, based on the Labour Law, the Law on Minimum Wage and a Prakas issued Sept. 17, 2025, raises the wage from $208 to $210. Factories must pay wages twice per month, provide seniority indemnities twice per year and ensure all legally mandated benefits are delivered on time.

The ministry warned that any failure to comply or miscalculation leading to labor disputes will result in strict penalties imposed by inspectors. Workers who suspect violations are encouraged to report cases via Hotline 1286 or through the ministry’s anonymous complaint system, rather than resorting to road blockades or unlawful protests.

Officials called on employers and workers to cooperate in implementing the directive to ensure stability, compliance and public order.

The garment sector remains a cornerstone of Cambodia’s economy, with 1,810 factories employing nearly two million workers. As of October, Cambodia had approved 579 investment projects worth $9.2 billion, expected to create 400,000 new jobs in addition to 820,000 existing positions.