Cambodian Garment Workers Demand Fair Pay Amid Rising Costs

The battle over Cambodia’s 2026 minimum wage has begun, and garment workers—most of them women—are bracing for yet another disappointment. Despite fuelling a $13.6 billion export industry, nearly a million workers remain trapped in poverty wages, with the current minimum of $208 per month barely covering survival.

Unions and civil society groups are now calling for a modest but vital increase to $232. This figure reflects the real cost of living in urban Cambodia, where workers spend an average of $408 monthly on essentials—nearly double their income. The total cost of a basic life is estimated at $725, making Cambodia the most expensive among surveyed garment-producing nations.

The sector, which employs over 918,000 people and accounts for more than a third of Cambodia’s GDP, has grown rapidly since the 1990s. Yet wages have lagged far behind. From just $40 in 1997, the minimum wage rose to $206 in 2024, with Prime Minister Hun Manet adding a symbolic $2 bump. Employers now resist further increases, citing global instability and high U.S. tariffs.

For workers, especially women who make up 76% of the workforce, the consequences are dire. Many support extended families, send remittances to rural provinces, and rely on overtime to survive. Even then, household income rarely exceeds $470. Food insecurity is rampant: one-third of workers run out of food before month’s end, and many rely on discounted leftovers to stretch their budgets.

Healthcare is another casualty. Nearly half cannot afford basic medication, and many go without dental care or prescription glasses, despite demanding factory conditions. Debt is spiralling, with average loans rising from $5,000 to $6,000 in just one year.

The implications go beyond individual hardship. One in five Cambodian households depends on the garment sector. Without a meaningful wage increase, the country risks undermining its own development.

As negotiations continue, unions insist that raising the minimum wage is not a favour—it’s a necessity. “It is unacceptable that the backbone of Cambodia’s economy continues to live in poverty,” reads a joint statement from 27 organisations. For the women who carry this industry, dignity must no longer be deferred.

-2025-09-05