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The federal government on Wednesday authorized a $2 enhance within the minimal month-to-month wage for garment, footwear and journey items staff, bringing the bottom wage to $212 for 2027, with staff and unions saying the quantity wouldn’t be adequate to cowl their dwelling prices.
The present base wage of $210, even when mixed with a $2.50 transportation allowance, will not be sufficient, they stated, citing a mean month-to-month family expenditure of $504 amongst garment staff’ households.
On the last assembly of the tripartite Nationwide Council on Minimal Wage on September 30, a majority of the 51 council members voted in favor of a $210 minimal wage. Forty-seven members voted for $210, whereas three supported the unions’ proposed $225 determine, and one abstained.
After the vote, Prime Minister Hun Manet intervened by including $2 to the council’s $210 determine, bringing the 2027 minimal wage to $212 which was authorized by the Nationwide Council on Minimal Wage, Labor Minister Heng Bitter instructed reporters. Current advantages stay unchanged.
Bitter stated some economists and different teams who focus on economics won’t perceive Cambodia’s wage construction and focus solely on the minimal wage when evaluating Cambodia with different nations, with out taking extra allowances into consideration.
“At any time when we discuss in regards to the minimal wage, please don’t overlook so as to add the advantages value $19.50. Typically, staff obtain at the very least $231.50 a month, even with out additional time. It’s not simply $212 a month,” Bitter stated.
He added that the federal government and related events would work to enhance the funding atmosphere for industrial growth whereas taking different measures to scale back the every day dwelling prices of individuals, significantly staff.
Nang Sothy, vp of the Federation of Employers and Enterprise Associations of Cambodia, representing employers, stated employers agreed with the federal government’s resolution and urged individuals to not view the $2 enhance as “too small”, citing Cambodia’s financial system, border points and uncertainty within the world financial system as present challenges affecting the manufacturing business.
He stated declining exports and rising worldwide transportation prices may enhance the burden on employers and have an effect on the competitiveness of the garment sector.
“Please don’t choose the extra $2 as too little as a result of we face an financial disaster, border points and issues within the world financial system,” Sothy stated.
He stated employers are dealing with extra transportation prices due to the disaster and that the precise price of using a employee is greater than the introduced base wage.
In accordance with Sothy, the necessary $19.50 advantages supplied by employers, features a $10 common attendance bonus, $7 for housing and transportation, and $2.50 to cowl elevated transportation prices associated to the Suez Canal disaster.
Taken collectively, the whole price to employers per employee may attain about $231.50, he stated. “In actuality, it isn’t simply $212.”
Sothy stated Cambodia will not be a totally industrialized nation however depends closely on processing and exports. The sector subsequently depends upon worldwide markets and the transportation of products abroad.
“Our nation will not be an industrial nation. Typically, we’re a processing nation, and all these items should be exported,” he stated.
He added that financial uncertainty and conflicts in numerous components of the world may have an effect on Cambodia’s markets and exports.
In accordance with CENTRAL, 75% of garment staff’ households are in debt and 56% of staff depend on additional time work. In consequence, staff’ households have been compelled to scale back spending on meals and training to cowl their dwelling bills.
Civil society teams have repeatedly urged the Nationwide Council on Minimal Wage to think about the findings from a just lately launched 2026 survey on family consumption amongst Cambodian staff, whereas calling for a rise within the minimal wage to $250.66.
Sok Kanh, a manufacturing unit employee in Phnom Penh, stated the bottom wage is separate from additional time pay and different advantages, which means a $2 enhance wouldn’t be sufficient to cowl staff’ dwelling prices.
“The bottom wage is separate from additional time and different advantages,” she stated. “If the bottom wage will increase by solely $2, I don’t suppose that’s sufficient for staff to dwell fairly.”
Kanh stated rising costs for items and lease would additional scale back the affect of any wage enhance.
“If wages enhance however market costs are secure, we might don’t have any drawback. However costs and lease are additionally rising, and that places an extra burden on staff,” she stated.
She referred to as on the federal government, companies and landlords to maintain costs and rents reasonably priced for staff.
“The present $210 base wage will not be sufficient, particularly for staff with kids,” Kanh stated. “For instance, a employee with two kids pays $30 or $40 at school charges for every little one, which may already price $80. They nonetheless must pay for college provides, meals and different every day bills.”
Yang Sophorn, president of the Cambodian Alliance of Commerce Unions, expressed disappointment with the minimal wage negotiations, saying the rise wouldn’t permit staff to attain a greater lifestyle.
She stated inflation had reached 3.8%, equal to about $8 in extra prices, whereas market costs continued to rise. The determine additionally doesn’t embody will increase in electrical energy, water and rental prices for staff, she stated.
Sophorn additionally rejected claims that calls for for increased wages would trigger manufacturing unit homeowners to maneuver their operations to nations with decrease wages.
She stated companies have a social duty to staff, together with paying wages and respecting human rights, they usually should adjust to the legislation within the nation they function in. She additionally stated it was unlikely that factories would shut due to wage will increase, arguing that there’s adequate labor power in Cambodia and that it stays favorable for companies.
“Employees must obtain between $250 and $300 to satisfy their fundamental wants and guarantee an honest lifestyle. However the 2027 wage negotiations resulted in solely a $2 enhance. I don’t suppose they will meet their every day dwelling bills,” she stated.
