Cambodia’s negotiations over the 2027 minimum wage for garment, textile, footwear and travel goods and bag workers remain unresolved, with worker representatives proposing increases of between $15.30 and $40.60, while employer representatives are calling for the current $210 rate to remain unchanged.
The eighth meeting of the National Council on Minimum Wage was held on September 14, with representatives continuing to present their positions as negotiations move toward a final decision expected at the end of September.
Key Facts
| Category | Details |
|---|---|
| Current minimum wage | $210 |
| Lower worker proposal | +$15.30 |
| Higher worker proposal | +$40.60 |
| Employer proposal | Maintain $210 |
| Negotiation meeting | 8th meeting |
| Meeting date | September 14, 2026 |
| Final decision expected | End of September |
| Sectors covered | Garment, textile, footwear, travel goods and bags |
Workers Present Two Wage Increase Proposals
Worker representatives put forward two different proposals during the latest negotiations.
Most representatives proposed increasing the current minimum wage by $15.30, which would bring the monthly rate to $225.30 if adopted.
Other worker representatives called for a larger $40.60 increase, which would raise the rate to $250.60.
The different proposals reflect the range of positions among worker representatives as the council continues its negotiations.
Employers Seek to Keep the Wage at $210
Employer representatives have proposed maintaining the existing $210 monthly minimum wage.
They argued that businesses have already provided an additional $2.50 per month to help ease financial pressures.
The employer position comes as manufacturers continue to face cost pressures, including higher expenses associated with transportation and fuel.
Government Says Negotiations Remain Professional
The Ministry of Labour and Vocational Training said all sides continued presenting their reasoning and internal positions in a professional and mature manner.
Despite the differences between the worker and employer proposals, negotiations remain ongoing.
The National Council on Minimum Wage will hold another three rounds of discussions before the end of September, with a final decision expected after the remaining negotiations.
Current Wage Includes a Government Contribution
Cambodia’s current minimum wage for the garment and textile sector is $210, including a $2 government contribution.
The government has also provided workers with an additional $2.50 monthly travel allowance since April 2026.
The allowance was introduced amid rising fuel prices linked to the war in the Middle East, adding another element to the financial considerations surrounding the 2027 wage negotiations.
Why the 2027 Wage Decision Matters
The garment, textile, footwear and travel goods sectors are major sources of employment and export activity in Cambodia.
For workers, an increase would provide higher monthly earnings and could help offset rising living and transportation costs.
For employers, however, a higher statutory wage would increase labour costs at a time when businesses are already dealing with other operating expenses.
The final wage therefore needs to balance workers’ income needs with the competitiveness and sustainability of Cambodia’s export oriented manufacturing sector.
Angkor Times Analysis
The gap between the two sides remains substantial. Workers have proposed increases ranging from $15.30 to $40.60, while employers want to retain the current $210 rate.
The eventual decision will have implications beyond monthly wages. A higher minimum wage could increase household purchasing power, but it could also raise production costs for manufacturers competing in international markets.
The three remaining negotiation rounds will therefore be important for finding a figure that addresses workers’ economic concerns while maintaining Cambodia’s competitiveness in the garment, footwear and travel goods industries.
What Happens Next?
Three additional rounds of negotiations are scheduled through the end of September.
The National Council on Minimum Wage is expected to use the remaining meetings to consider the positions and supporting arguments from workers, employers and the government before reaching a final decision.
Until that decision is announced, the current $210 minimum wage remains in effect.
FAQs
What is Cambodia’s current minimum wage?
The current minimum wage for Cambodia’s garment and textile sector is $210 per month, including a $2 government contribution.
How much are workers asking for?
Worker representatives have proposed two increases: $15.30 and $40.60.
What would the proposed increases make the minimum wage?
A $15.30 increase would bring the wage to $225.30, while a $40.60 increase would bring it to $250.60.
What are employers proposing?
Employer representatives are proposing that the current $210 minimum wage remain unchanged.
Why are employers seeking no increase?
They said businesses have already provided an additional $2.50 monthly allowance to help ease financial pressures.
When will Cambodia decide the 2027 minimum wage?
Negotiations will continue through three additional rounds in September, with a final decision expected by the end of September.
What sectors are covered by the negotiations?
The negotiations cover the garment, textile, footwear and travel goods and bag sectors.
Does the government provide additional support to workers?
Yes. Since April 2026, the government has provided workers with an additional $2.50 monthly travel allowance amid rising fuel prices.