Cambodia Raises Minimum Wage for Garment Workers to $210 in 2026

PHNOM PENH, Cambodia (Sept.17, 2025) — The Cambodian government has approved a $2 increase to the monthly minimum wage for workers in the textile, garment, footwear, travel goods and bag manufacturing sectors, raising it to $210 starting in 2026.

The decision follows months of negotiations and comes amid economic headwinds, including retaliatory tariffs from the United States, rising regional competition and comparisons with minimum wage levels in neighboring countries. Broader labor market conditions for 2025–2026 also influenced the move.

The new wage was finalized during the final meeting of the National Council on Minimum Wage (NCMW) for its fourth mandate, held at the Ministry of Labour and Vocational Training.

Over 23 rounds of talks, representatives from labor unions and employer associations reviewed a range of economic indicators, including the impact of U.S. trade sanctions, regional labor cost competitiveness, Cambodia’s wage position relative to nearby nations and domestic employment trends.

Employers initially proposed keeping the wage unchanged. Union representatives, while not formally opposing the offer, urged the government to consider a modest increase in line with the Minimum Wage Law.

The NCMW recommended a wage of $208 to Prime Minister Hun Manet for final approval. After reviewing the proposal and consulting stakeholders, the prime minister authorized an additional $2 increase, setting the official minimum wage at $210 per month.

With mandatory allowances and benefits — including transportation, meal stipends and attendance bonuses — workers are expected to earn between $227 and $238 monthly, depending on individual entitlements.

Despite global economic challenges and wage freezes in parts of the region, the Cambodian government said it remains committed to improving workers’ livelihoods through continued wage increases.