Xinhua

 

 

Cambodia has announced a modest increase to its minimum wage for garment, footwear and travel goods workers, raising the monthly base rate to $210 starting January 2026. Prime Minister Hun Manet confirmed the decision on Wednesday via social media, calling it a step forward for the country’s largest industrial workforce.

 

The new wage replaces the current $208 monthly minimum and applies to over 900,000 workers across more than 1,500 factories nationwide. In addition to the base salary, employees will continue to receive monthly fringe benefits, including $10 for regular attendance, $7 for transport and rent, and seniority bonuses ranging from $2 to $11.

 

The garment and textile sector remains Cambodia’s top foreign currency earner, generating $7.62 billion in exports during the first half of 2025—a 22% increase compared to the same period last year. The wage adjustment comes amid growing calls from labour groups for more substantial reforms, especially as inflation and living costs continue to rise.

 

While the $2 increase may appear symbolic, government officials say it reflects ongoing efforts to balance competitiveness with worker welfare. The move also signals continuity in Cambodia’s wage-setting process, which involves tripartite negotiations between unions, employers and the Ministry of Labour.

 

The announcement was met with mixed reactions. Some workers expressed disappointment over the limited rise, while others welcomed the stability and additional benefits. Industry observers note that Cambodia’s wage remains lower than regional counterparts such as Vietnam and Thailand, but its export growth and production capacity continue to attract international brands.

 

As the new rate takes effect in 2026, attention will turn to how the sector adapts—both in terms of labour conditions and global market pressures. For now, the government maintains that the wage hike is part of a broader strategy to support economic resilience and social equity.

 

-2025-09-18

That's not even a 10 cents a day increase.