The Ministry of Labour and Vocational Training (“MLVT”) issued a notification dated 30 September 2026 setting the minimum wage for workers in the garment, textile, footwear, travel goods and bag sectors at USD 212 per month for 2027. This represents an increase of USD 2 over the 2026 minimum wage of USD 210 and will apply from 1 January 2027.

Background to the Decision
The National Council for Minimum Wage (“NCMW”) held a total of 17 rounds of consultations during 2026. The worker representatives proposed USD 225 per month, while the employer representatives proposed maintaining the current level of USD 210. As no consensus was reached, a secret ballot was held pursuant to Article 12 of the Law on Minimum Wage. The vote resulted in 47 votes for USD 210, 3 votes for USD 225 and 1 invalid ballot, and USD 210 was accordingly adopted as the Council’s determination.

The Prime Minister subsequently exercised his authority under Article 13 of the Law on Minimum Wage to add USD 2 to the Council’s figure, fixing the 2027 minimum wage at USD 212 per month. Workers on probation will receive USD 210 per month.

Continuation of the Transport and Accommodation Allowance Increase
The temporary increase of USD 2.50 per month to the transport and accommodation allowance, agreed at the NCMW consultation of 20 March 2026, will continue to be paid in 2027. Taken together with the wage increase, workers will receive a total of USD 4.50 per month more than in 2026.

Other Allowances (Unchanged)
The existing allowances payable in addition to the minimum wage remain unchanged:

– Attendance allowance: USD 10 per month
– Transport and accommodation allowance: USD 7 per month (excluding the temporary USD 2.50 increase noted above)
– Seniority allowance: USD 2 per month from the second year of service, increasing by USD 1 each year up to USD 11 per month from the eleventh year
– Meal allowance for overtime: KHR 2,000 (approximately USD 0.50) per day, or a meal in kind

Including these allowances, total monthly earnings for workers are expected to range from USD 231.50 to USD 242.50, depending on seniority and other factors.

Requests from Employers and Workers
During the consultations, employer representatives called for enhanced incentives for investment in upstream industries (textiles and raw materials) and for measures to address the loss of trade preferences following Cambodia’s scheduled graduation from Least Developed Country (“LDC”) status in 2029. Worker representatives called for continued wage reviews in light of rising living costs.

Implementation Considerations
The statutory minimum wage applies only to the garment, textile, footwear, travel goods and bag sectors. Employers in other sectors are not legally bound by the figure; however, it is widely used as a benchmark in wage negotiations and in setting entry-level salaries across industries, and employers in other sectors should expect corresponding pressure on wage levels.

Employers in the covered sectors should update payroll systems, employment contracts and internal wage tables to reflect the new minimum wage from the first pay period of January 2027, and should ensure that the USD 2.50 temporary increase to the transport and accommodation allowance continues to be reflected in 2027 payroll. Seniority allowances should also be reviewed to confirm that each worker’s years of service are correctly recorded.

For Assistance
Employers in Cambodia should consult their legal or HR advisors on the application of the 2027 minimum wage and related allowances, and on any required amendments to employment contracts, internal work rules and payroll arrangements.