Cambodia's Minimum Factory Wage Set to Rise to $212 in 2027 After Prime Minister's Intervention

Prime Minister Hun Manet overrode a council vote to keep Cambodia's factory minimum wage at $210, ordering a $2 increase that will bring the effective monthly minimum to $214.50 in 2027 when combined with a temporary travel allowance.

Cambodian Prime Minister Hun Manet has directed the National Council on Minimum Wage to raise the monthly minimum wage for workers in the textile, garment, footwear, and travel goods industries by $2, setting the new floor at $212 for 2027.

The decision came after a secret ballot among council members had initially upheld the existing $210 minimum. Of the 51 votes cast, 47 favored keeping wages unchanged, while only three supported a $225 proposal put forward by workers' representatives. One ballot was ruled invalid. Employer representatives had pushed to hold wages steady, while labor advocates sought a $15 bump.

In addition to the $2 wage increase, Manet instructed the council to preserve a temporary monthly stipend of $2.50 for travel and accommodation costs. Combined, these adjustments mean workers will see their basic monthly wage package climb by $4.50 to an effective minimum of $214.50.

Additional Benefits Unchanged

Several existing benefits will carry over into 2027 without modification:

A $10 bonus for regular attendance
A $7 monthly allowance for travel and accommodation
A seniority bonus beginning at $2 per month in the second year of employment, rising by $1 annually through the 11th year
A meal allowance of 2,000 riel per day or one complimentary meal for overtime shifts

Taking all components into account, the council announced that actual monthly base compensation for workers in these sectors will range from $231.50 to $242.50 in 2027.

Prime Minister Cites Balanced Approach

Manet said in a social media statement that he had been closely tracking negotiations and receiving regular briefings from Labour Minister and council chairman Heng Sour throughout the process.

"Based on the final positions of employer representatives and representatives of workers, and in accordance with the Law on Minimum Wage, I have instructed the council to add $2 to the $210 figure," he wrote.

The prime minister acknowledged council members for conducting deliberations professionally and with a spirit of compromise, weighing workers' living standards against national competitiveness and the need to generate employment for younger Cambodians and workers' families.

He added that the government would continue rolling out measures to support workers' livelihoods and improve the investment climate, while also promoting domestic products to bolster competitiveness and draw further foreign investment.