Cambodia’s National Council for Minimum Wage is considering three proposals for the 2027 minimum wage, with discussions focusing on workers’ living costs, productivity, factory competitiveness, investment and employment.
Cambodia’s 2027 minimum wage negotiations have entered another stage, with the National Council for Minimum Wage considering three proposals of $210, $225.30 and $250.66 per month.
The negotiations bring together government, employer and worker representatives as they weigh competing economic and social considerations, including household expenses, inflation, labour productivity, business capacity, investment, jobs and Cambodia’s competitiveness against regional manufacturing markets.
The current baseline is $210 per month, while the total minimum wage received by workers in Cambodia’s textile, garment, footwear and travel goods sectors is reported at $229.50, including $19.50 in mandatory benefits.
Three Proposals on the Table
The three figures currently under consideration are:
| Proposal | Monthly amount | Difference from $210 |
|---|---|---|
| Employer position | $210 | — |
| Worker proposal | $225.30 | +$15.30 |
| Higher worker proposal | $250.66 | +$40.66 |
The third round of negotiations ended on September 18, with worker representatives maintaining proposed increases of $15.30 and $40.60, while employer representatives maintained the existing $210 wage, according to Labour and Vocational Training Minister Heng Sour.
The parties agreed to resume tripartite negotiations according to the schedule announced on September 1.
Why $250.66 Has Drawn International Attention
The highest proposal of $250.66 per month has received support from the Asia Floor Wage Alliance and partner organisations across Asia.
In a solidarity statement dated September 20, the alliance said the proposal was developed by Cambodian independent trade unions using surveys covering workers’ household costs, living conditions and wage-gap evidence.
The alliance called for workers’ demands to be meaningfully considered during the wage-setting process and also urged international fashion brands to recognise their responsibilities toward workers in global supply chains.
However, members of Cambodia’s National Council for Minimum Wage have questioned why international organisations supporting higher wages in Cambodia do not place similar emphasis on countries with lower minimum wage levels.
Sam Soeun, a council member, cited Bangladesh and Sri Lanka as examples, while Pav Sina said efforts to improve wages should not focus exclusively on Cambodia. These are the views expressed by the individual council members and do not represent an independent assessment of regional wage policies.
Employers Warn About Competitiveness and Jobs
Employer and worker representatives have also raised concerns about the relationship between wages, factory competitiveness and employment.
Cambodian Worker Light Union Confederation President Un Dara said improving workers’ livelihoods should be accompanied by protecting jobs and attracting investment.
He argued that wage discussions should consider concrete data on:
- Living costs
- Labour productivity
- Employer capacity
- Economic conditions
- Regional competitiveness
Dara also questioned what concrete measures could help guarantee factory orders and sustainable employment if wage costs rise.
The International Business Chamber’s employer representative, Arnaud Darc, similarly said the different sides use the same broad criteria and data but assign different weight to positive and negative factors.
He stressed that the minimum wage cannot be determined by one party alone.
How Cambodia Compares With Regional Wage Levels
The Textile, Apparel, Footwear and Travel Goods Association in Cambodia said the country’s minimum wage in 2026 was higher than wage levels reported in several competing Asian manufacturing markets.
According to the association, Cambodian workers in the relevant sectors receive $229.50 in total minimum compensation, consisting of the $210 basic minimum wage plus $19.50 in mandatory benefits.
The association provided the following comparisons:
| Country | Reported minimum wage |
|---|---|
| Cambodia | $229.50 including mandatory benefits |
| India | About $192 |
| Pakistan | $143 |
| Laos | $114 |
| Bangladesh | $102 |
| Myanmar | $97 |
| Sri Lanka | $93 |
| Vietnam | $147–$211 |
The figures are those cited by the association in the source report and may reflect differences in wage structures, benefits, exchange rates and national wage-setting systems.
The association said minimum-wage decisions should follow International Labour Organisation recommendations while taking into account family needs, general wage levels, living costs, social-security benefits and productivity.
Seven Criteria Guide Cambodia’s Wage Negotiations
Cambodia’s tripartite wage-setting framework considers seven criteria:
- Family situation
- Inflation
- Cost of living
- Productivity
- National competitiveness
- Labour-market conditions
- Sector profitability
The competing sides have highlighted different elements of these criteria during the current negotiations.
Supporters of a wage increase have pointed to projected inflation of 2.6% for 2027 and average annual labour-productivity growth of 3.5% over the past decade.
Employer representatives, meanwhile, have raised concerns about sector profitability and national competitiveness while supporting a continuation of the $210 basic wage.
Kaitz Index Adds Another Measure
The negotiations have also brought attention to the Kaitz Index, which measures a country’s minimum wage relative to average or median earnings.
The Textile, Apparel, Footwear and Travel Goods Association said Cambodia’s Kaitz Index reached 72% in 2025, compared with a reported European range of 42% to 68%.
The International Labour Organisation has noted that the Kaitz ratio is a reference indicator that should be complemented by other forms of analysis rather than used in isolation.
Calls for Greater Transparency
Darc has called for greater transparency around the data used in the wage-setting process, including differences between official government surveys and research conducted by trade unions.
He proposed publishing the calculations, data weightings and assumptions used by the different parties alongside the government’s final decision.
His position reflects a broader issue in wage negotiations: the same economic indicators can lead to different proposed outcomes depending on how each factor is weighted.
Angkor Times Analysis: Why the 2027 Wage Decision Matters
The 2027 minimum-wage discussion is more than a question of the monthly amount workers receive.
For workers, the central issue is purchasing power and whether wages adequately reflect household expenses, inflation and living costs.
For employers, the calculation also involves production costs, factory profitability, orders, employment and the ability to remain competitive with manufacturing locations elsewhere in the region.
For Cambodia’s economy, these factors are interconnected.
A higher wage can increase workers’ purchasing power, while higher labour costs can also affect the cost structure of export-oriented industries. The effect therefore depends on productivity, factory orders, product pricing, investment decisions and the competitiveness of Cambodia’s manufacturing sector.
The current negotiations show why the seven official criteria matter. No single indicator captures the entire economic picture.
The debate over the $210, $225.30 and $250.66 proposals therefore reflects different assessments of how Cambodia should balance worker incomes with employment, investment and industrial competitiveness.
The National Council for Minimum Wage will continue its deliberations before issuing its recommendation for the 2027 wage.
What Happens Next?
The National Council for Minimum Wage will continue tripartite discussions involving government, employers and workers.
The final recommendation will determine the minimum-wage baseline for 2027, succeeding the current $210 monthly basic wage.
Until the council completes its deliberations and the government issues the final decision, the three proposals should be treated as positions under negotiation rather than a confirmed 2027 wage.
Key Facts at a Glance
| Indicator | Details |
|---|---|
| 2027 wage proposals | $210, $225.30 and $250.66 |
| Current basic minimum wage | $210/month |
| Current total minimum compensation cited | $229.50 |
| Negotiating body | National Council for Minimum Wage |
| Negotiating structure | Government, employers and workers |
| Seven wage criteria | Family situation, inflation, cost of living, productivity, competitiveness, labour market and sector profitability |
| Projected 2027 inflation cited | 2.6% |
| Average annual labour productivity growth cited | 3.5% |
| Cambodia Kaitz Index cited for 2025 | 72% |
| Next step | Continued deliberations and recommendation |
Frequently Asked Questions
What are Cambodia’s three proposed minimum wages for 2027?
The three proposals currently being considered are $210, $225.30 and $250.66 per month.
What is Cambodia’s current minimum wage?
The current basic minimum wage cited in the report is $210 per month.
Why is $250.66 being proposed?
According to the source, Cambodian independent trade unions developed the $250.66 proposal using surveys of workers’ household costs, living conditions and wage-gap evidence. International organisations have expressed support for the proposal.
How much do Cambodian garment workers currently receive including mandatory benefits?
The Textile, Apparel, Footwear and Travel Goods Association said the total minimum wage for workers in the relevant sectors is $229.50, consisting of a $210 basic wage and $19.50 in mandatory benefits.
What factors does Cambodia consider when setting the minimum wage?
The National Council for Minimum Wage considers seven criteria: family situation, inflation, cost of living, productivity, national competitiveness, labour-market conditions and sector profitability.
Has Cambodia decided the 2027 minimum wage?
No. The National Council for Minimum Wage is continuing its deliberations before issuing its recommendation.
Why are employers concerned about a higher wage?
Employer representatives have raised concerns about sector profitability, national competitiveness, factory retention, investment and employment.
Why do worker representatives support higher wages?
The arguments reported in the source focus on household costs, living conditions, inflation, wage gaps and workers’ purchasing power.