Cambodian Workers Seek $10 Minimum Wage Increase for 2026

PHNOM PENH, Cambodia (Sept. 3, 2025) — Cambodian labor unions have proposed a $10 increase to the monthly minimum wage for garment, footwear and travel goods workers in 2026, while employer representatives have called to maintain the current rate of $208, officials said Tuesday.

The proposal was tabled during the second round of negotiations held by the National Council on Minimum Wage. Minister of Labor and Vocational Training Heng Sour told reporters that union representatives requested the wage be raised to $218 per month, citing rising living costs. Employer representatives, however, argued for keeping the current rate, citing external economic pressures including high U.S. tariffs on Cambodian exports.

The current minimum wage of $208 per month was implemented in January 2025, following a $4 increase from the previous year. That figure was reached through tripartite negotiations and later topped up by Prime Minister Hun Manet, who added $2 to the initially approved $206.

Tuesday’s meeting concluded without a final decision, with all parties agreeing to continue tripartite talks on Sept. 10. Heng said bilateral meetings between labor and employer representatives would also be held to seek common ground. “We hope to reach a consensus that benefits both workers and employers,” he said.

Employers have expressed concern over the impact of U.S. tariffs, which remain high despite a recent 19% reduction. They also noted a positive trend in returning Cambodian migrant workers from Thailand, which could help meet domestic labor demand.

The minimum wage council first convened on Aug. 20 to begin discussions for the 2026 wage. Tuesday’s session included closed-door meetings among labor and employer representatives prior to the formal tripartite dialogue.