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Cambodia’s minimal wage negotiations for 2027 started Tuesday, with employees and unions calling for a bigger enhance as rising meals, gasoline and dwelling prices proceed to place stress on garment employees incomes a month-to-month minimal wage of $210.
The Nationwide Minimal Wage Council held its first assembly to debate setting the minimal wage for employees in Cambodia’s garment, textile, footwear, journey items and bag sectors for 2027.
Labor Minister Heng Bitter mentioned the primary wage assembly allowed all events’ views to be heard and to overview information, modifications and each standards compiled by the ministry as a foundation for inside discussions.
He hoped additional discussions would produce outcomes throughout tripartite conferences scheduled for September 14, 18, 28 and 30, 2026, noting that rising inflation can be taken into consideration, he mentioned, together with Cambodia’s competitiveness and general situations in world markets.
“Throughout these tripartite conferences, every occasion may also maintain bilateral discussions,” he mentioned. “We subsequently hope this era will present adequate time for every occasion to conduct its inside discussions.”
The minimal wage elevated from $40 in 1997 to $145 in 2015, steadily rising to $200 in 2023 and $204 in 2024.
In September 2025, the federal government determined to boost the minimal wage for garment employees by $4, bringing the month-to-month minimal wage to $210 for 2026. Staff and unbiased unions expressed dissatisfaction with the rise, saying the quantity was inadequate to satisfy their dwelling prices.
The seven standards used to find out the minimal wage are primarily based on social and financial components, together with household circumstances, inflation, dwelling prices, productiveness, nationwide competitiveness, labor market situations and the profitability of the sector, in line with the ministry.
Bitter mentioned the components for just a few of the standards remained steady, whereas others had both dropped or risen. All of the events concerned within the dialogue are required to research the information, notably concerning competitiveness and productiveness, earlier than proposing particular figures.
“It’s nonetheless too early to say what the quantum of the quantity must be or how a lot must be given to employees,” mentioned Bitter.
Wage negotiations aren’t meant to trigger “adverse penalties” for any occasion or sector, fairly it ought to be sure that the sector continues growing and all stakeholders profit from it.
In August, Cambodia’s levy on exports to the U.S. market was minimize to 19%, after beforehand dealing with tariffs of 49% and later 36%, which fueled uncertainty till negotiations introduced down charges which aligned with regional rivals.
Beforehand, employer representatives requested unions to find out their proposed wage enhance primarily based on scientific and technical standards and to keep away from proposing excessively excessive figures.
Yang Sophorn, president of Cambodian Alliance of Commerce Unions, mentioned the primary assembly is for contributors to hearken to the Labor Ministry’s presentation on the modifications in financial and social components and evaluate the information with their very own findings throughout inside discussions.
Particular wage proposals can be mentioned throughout subsequent conferences primarily based on analysis performed by either side, she mentioned.
Nonetheless, she talked about that employees’ dwelling prices must be a key consideration, together with inflation and different components included among the many seven standards.
“We can’t but disclose the determine that we plan to suggest as a result of we nonetheless want to debate it,” she mentioned. “However we’ve to ask whether or not employees can survive when inflation continues to rise whereas the minimal wage is just $210.”
Many unbiased garment, footwear and journey items unions had hoped for a minimal wage of $232 a month in 2026, which they and rights teams mentioned was the “minimal adjustment” wanted regardless of falling wanting the true price of dwelling.
Koeut Sokny, 33, a sewer in a garment manufacturing unit within the capital’s Stung Meanchey district, mentioned she hoped the federal government and unions would push manufacturing unit house owners to boost the minimal wage to round $220 for 2027.
She mentioned rising costs for items and gasoline had made the present $210 month-to-month minimal wage inadequate to cowl day by day bills.
“I’d ask for no less than a $10 enhance as a result of costs preserve rising and gasoline stays costly,” she mentioned. “It takes me about half-hour to journey to work. Our wages are low, costs are rising, whereas manufacturing unit house owners proceed exporting their merchandise.”
Minimal wage guidelines apply solely to Cambodia’s garment, footwear and journey items sector, which employs almost a million individuals — principally ladies — and varieties the spine of the nation’s formal workforce, whereas greater than 88% of employees stay in casual jobs.
One other employee, Khuon Sokha, 44, who works at Normal Enterprises Garment (Cambodia) Co., Ltd., mentioned she doesn’t anticipate manufacturing unit house owners to comply with a major wage enhance for 2027.
Nonetheless, she mentioned employees proceed hoping that wages would rise consistent with rising meals and items costs. Even with extra time work, employees’ earnings doesn’t meet the price of dwelling in Phnom Penh.
“I can’t predict what is going to occur,” she mentioned. “Prior to now, wages have been too low, so I don’t dare say what quantity is adequate. However I do know that if wages stay low, employees will fall into debt as the price of items proceed to rise. Our day by day lives have gotten very tough.”
Aside from low wages, Sokha mentioned her manufacturing unit has strictly enforced office guidelines, however employees profit from having Nationwide Social Safety Fund (NSSF) playing cards which helped cut back some bills.
Union chief Ath Thorn mentioned the wage negotiations are continuing equally to earlier years and it’s tough to foretell how strongly unions might push for a much bigger wage as a result of only some unbiased unions remained.
“Total, employees are dealing with higher difficulties than earlier than as a result of their incomes stay the identical whereas the price of dwelling has elevated,” he mentioned. “Mechanically, this makes life harder.”
Thorn proposed two measures to handle the state of affairs. First, the minimal wage must be raised to round $250 monthly to handle the challenges employees presently face. If a rise to that stage was not attainable, he mentioned, the federal government ought to work to maintain market costs low to scale back the burden on employees.
