Cambodia has set the 2027 minimum wage for workers in the garment, textile, footwear, travel goods and bag sectors at $212 per month, after Prime Minister Hun Manet added $2 to the figure receiving the strongest support in the final tripartite vote.
The decision was reached on Wednesday, September 30, following the final meeting of the National Council for Minimum Wage, which brought together representatives of the government, employers and workers.
The final decision means the 2027 minimum wage will increase by $2 from the $210 monthly rate applicable in 2026. The new rate will take effect on January 1, 2027.
Key Facts
| Indicator | 2026 | 2027 |
|---|---|---|
| Basic minimum wage | $210 | $212 |
| Change | — | +$2 |
| Effective date | Jan. 1, 2026 | Jan. 1, 2027 |
| Employer proposal | — | $210 |
| Union proposal | — | $225 |
| Final council vote for $210 | — | 47 of 51 votes |
| Prime Minister's additional amount | — | +$2 |
| Estimated total monthly income with benefits | $227–$238* | $229–$240 or more |
*The 2026 total-income range is based on the previous year's government announcement.
$210 Wins the Final Tripartite Vote
The National Council for Minimum Wage put two figures to a final vote.
Employer representatives proposed maintaining the minimum wage at $210, while union representatives proposed $225.
The $210 figure received 47 of 51 votes, giving it the strongest support in the council's final vote.
Prime Minister Hun Manet subsequently added $2 to the negotiated figure, bringing the final 2027 minimum wage to $212 per month.
The decision follows several rounds of tripartite discussions during September. The Ministry of Labour and Vocational Training had been conducting the formal minimum-wage consultation process ahead of the 2027 decision.
New Minimum Wage Starts January 1, 2027
The new $212 rate will take effect from January 1, 2027.
It applies to workers in Cambodia's:
Textile sector
Garment sector
Footwear sector
Travel goods sector
Bag sector
The increase is relatively modest in nominal terms, representing a $2 rise, or approximately 0.95%, from the 2026 base wage of $210.
Cambodia had previously raised the sector's minimum wage from $208 in 2025 to $210 for 2026, also following a decision by Prime Minister Hun Manet to add $2 to the figure resulting from the wage-setting process.
Workers Will Receive Additional Benefits
The $212 figure represents the basic monthly minimum wage and does not include the additional allowances and benefits available to eligible workers.
According to the announcement, workers will continue receiving:
| Benefit | Amount |
|---|---|
| Minimum monthly wage | $212 |
| Transportation and accommodation allowance | $7/month |
| Regular attendance bonus | $10/month |
| Meal allowance for voluntary overtime | 2,000 riel/day |
| Seniority payment | $2–$11/month |
Seniority payments range from $2 to $11 per month for workers with between two and 11 years of service.
Based on the minimum wage and applicable additional benefits, workers are expected to receive average total monthly income of approximately $229 to $240 or more, according to the announcement.
The actual amount received by an individual worker can vary depending on applicable benefits, overtime and seniority.
The 2027 Wage Decision in Context
The 2027 wage-setting process involved different positions from the three sides of the tripartite system.
Employers supported maintaining the $210 level, while unions proposed $225 in the final vote.
The final $212 decision therefore falls between the two figures put to the vote, although the mechanism was that the Prime Minister added $2 to the $210 figure that received the majority of council votes.
This year's process follows the established tripartite framework in which government, employer and worker representatives participate in discussions on Cambodia's minimum wage.
What the $2 Increase Means for Businesses?
For manufacturers in the garment, textile, footwear, travel goods and bag sectors, the new wage will increase the basic payroll cost associated with minimum-wage workers from the 2026 level.
However, the overall labour-cost impact is broader than the $2 increase in the statutory wage because employers also have obligations relating to allowances and benefits.
The sector's business environment also depends on other costs, including utilities, transportation, materials, compliance, productivity and export-market conditions.
For manufacturers competing in international markets, the wage decision is therefore one component of a wider cost structure.
What the Decision Means for Workers?
For workers earning the statutory minimum, the new rate provides a $2 increase in the basic monthly wage beginning in January.
The continuation of transport and accommodation allowances, attendance bonuses, meal allowances for voluntary overtime and seniority payments means total compensation can be higher than the basic wage.
The announced total monthly income range of $229 to $240 or more reflects this broader compensation structure rather than the basic minimum wage alone.
Cambodia's Garment and Manufacturing Competitiveness
Cambodia's garment, footwear and travel-goods industries remain important parts of the country's manufacturing and export economy.
The annual minimum-wage process therefore has implications beyond individual workers and employers.
For workers, the wage affects household income and purchasing power.
For manufacturers, labour costs form part of production expenses and can influence competitiveness when companies compare Cambodia with alternative production locations.
The final $212 rate must therefore be viewed alongside productivity, workforce skills, market access, logistics, energy costs and other factors affecting Cambodia's manufacturing competitiveness.
Angkor Times Analysis
The 2027 minimum-wage decision illustrates the balancing process involved in Cambodia's labour-intensive manufacturing economy.
The final outcome is $212, only $2 above the 2026 statutory minimum, but the broader compensation package means employers' total labour costs are not determined by the base wage alone.
The tripartite vote also shows the gap between the positions presented during the final decision: employers proposed $210, while unions proposed $225. The final statutory figure sits $2 above the employer proposal and $13 below the union proposal.
For workers, the immediate effect is a modest increase in the guaranteed basic wage, with existing allowances and benefits continuing to form part of overall compensation.
For manufacturers, the limited increase in the base wage provides greater predictability in payroll planning, but competitiveness will continue to depend on a wider set of operating costs and productivity conditions.
The source does not provide a forecast of how the $212 wage will affect employment, factory investment, exports or business closures. Those outcomes should therefore not be inferred directly from the wage decision.
The more relevant indicators for 2027 will be whether factories maintain employment, how productivity develops, whether manufacturers continue investing in Cambodia and how the country's labour costs compare with competing production markets.
Frequently Asked Questions
What is Cambodia's 2027 minimum wage?
Cambodia's 2027 minimum wage for workers in the garment, textile, footwear, travel goods and bag sectors is $212 per month.
When will the new wage take effect?
The $212 minimum wage will take effect on January 1, 2027.
How much did the minimum wage increase?
The basic minimum wage increases by $2, from $210 in 2026 to $212 in 2027.
What were the proposals before the final decision?
Employers proposed $210, while unions proposed $225. The $210 figure received 47 of 51 votes in the final council vote.
Why is the final wage $212 instead of $210?
After the $210 figure received the strongest support in the tripartite vote, Prime Minister Hun Manet added $2, bringing the final minimum wage to $212.
Do workers receive benefits in addition to the $212 wage?
Yes. The announced benefits include a $7 monthly transportation and accommodation allowance, a $10 regular attendance bonus, a meal allowance for voluntary overtime and seniority payments of $2 to $11 per month.
How much can workers receive in total each month?
The announcement estimates average total monthly income at $229 to $240 or more, depending on applicable benefits and other payments.