Cambodia Raises 2027 Minimum Wage of Garment Workers to US$212
On September 30, the National Council for Minimum Wage (NCMW) announced that the monthly minimum wage for workers in Cambodia’s garment, footwear, and travel-goods sectors would increase to US$212 in 2027. Nevertheless, the rate remains well below the $250.66 sought by labor unions, and labor grievances may consequently be directed at garment manufacturers and operators.
Initially, the NCMW voted 47–4 to retain the $210 rate; however, under Article 13 of the Law on Minimum Wage—which grants executive authority to the Royal Government—Prime Minister Hun Manet added $2 to the Council-approved rate and agreed to maintain the temporary monthly transport and accommodation allowance of $2.50 in 2027. Labor and Vocational Training Minister Heng Sour justified the rate, noting that the effective minimum wage reaches $231.50 per month, including mandatory allowances and overtime, and reflects cost-of-living, competitiveness, and labor-market conditions. In comparison, Cambodia’s 2027 rate exceeds those of Pakistan ($143), Laos ($140), Myanmar ($97), Sri Lanka ($93), and India (approximately $192), but is near the lower end of Vietnam’s $147 to $211 range.
Nevertheless, labor unions criticized the decision as inadequate, citing a survey of 422 workers across 28 factories indicating that at least $250.66 per month is required to cover essential living expenses. In response, local unions, civil society organizations, and the Clean Clothes Campaign—the world’s largest network of garment-industry civil societies—have called on major European and U.S. clients and brands to assume greater responsibility for labor conditions throughout their Cambodian supply chains.
Although there are no public indications of supply-chain disruptions arising from wage grievances, member companies operating in the industry should remain attentive to potential workplace concerns and reputational risks associated with their internal minimum-wage decisions and labor conditions. Measures such as monitoring human-capital indicators, reviewing salary budgets, and strengthening transparency will help maintain compliance with labor standards and sustain employee morale. As such, early identification and resolution will be critical to mitigating operational disruptions.
