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Cambodia sets 2027 garment minimum wage at USD 212 a month, a rise of 0.95%

Published Data as of CambodiaMacro & householdsEWA
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Key points

Implications

ExecutivesSize instalments for garment-sector borrowers on a wage that barely rises in nominal terms in 2027, not on past increases.
InvestorsTreat garment payroll income as stable in volume but weakening in real terms when assessing lenders with large factory-worker books.
OperatorsBase affordability checks on the statutory wage plus verified allowances, since attendance-linked pay varies month to month.

Facts

Decision: Prime Minister Hun Manet announced on 30 September that the minimum wage for regular workers in the garment, textile, footwear and travel goods sectors will be USD 212 a month 1 from 1 January 2027, after the National Council for Minimum Wage voted to keep the current rate and the Prime Minister added the increase. The current rate is USD 210 a month 2, set by Prakas 214/25. Source: The Star (Bernama-Xinhua, 2026-09-30); DFDL.

Coverage: Ministry of Labour and Vocational Training data put the sectors at about 1.1 million 3 workers, most of them women, in more than 1,800 4 factories and branches.

Total pay: the Prime Minister said base pay including standard fringe benefits (attendance bonus, seniority indemnity, housing and transport allowances) will be USD 231.5–242.5 a month 5 in 2027.

Analysis

Over time, the statutory wage has risen from USD 204 a month 6 in 2024 to USD 208 a month 7 in 2025, USD 210 a month in 2026 and USD 212 a month in 2027 (see chart). Annual increases have halved, from 1.96% 8 for 2025 to 0.95% 9 for 2027.

Prices have moved faster. Consumer inflation reached 7.2% 10 in May and 5.5% 11 in July, and the IMF projects 5.6% 12 on average for 2026. On these figures the real value of the statutory wage falls in 2026, and the 2027 rise is too small to restore it.

For lenders, the sector is the most concentrated pool of formal, regular wage income: about 1.1 million workers against an upper-bound estimate of about 4.6 million 13 wage earners in the whole economy. Flat nominal wages with rising prices leave less room for repayments out of each pay cycle, at a time when households are also absorbing lower remittances and tourism income.

Garment-sector monthly minimum wage (USD/month)
010020030020020232042024208202521020262122027
Garment-sector monthly minimum wage (USD/month)
2023200
2024204
2025208
2026210
2027212

Statutory minimum wage for regular workers in the garment, textile, footwear, travel goods and bag sectors, by year of application · Source: Ministry of Labour and Vocational Training prakas and announcements, as reported (2023, 2024, 2025, 2026, 2027) 2027 is the rate announced on 30 September 2026, applying from 1 January 2027. Excludes fringe benefits.

Counterpoints and uncertainties

If inflation falls as ADB expects, to 2.8% 14 in 2027, the real squeeze would ease and be concentrated in 2026. Allowances and overtime can add materially to take-home pay, so the minimum wage understates income for many workers; conversely, weaker export orders would cut overtime and attendance pay first. The formal prakas for 2027 sets the final legal terms.

Key figures

  1. Garment-sector minimum wage, 2027: USD 212 a month (up USD 2 from USD 210 in 2026). Statutory monthly minimum wage for regular (post-probation) workers, applying from 1 January. Garment, textile, footwear, travel goods and bag sectors. Basis date: 30 Sep 2026. Source: The Star (Bernama-Xinhua): Cambodia raises monthly minimum wage for garment workers to US$212 for 2027 (2026-09-30)
  2. Garment-sector minimum wage, 2026: USD 210 a month (up from USD 208 in 2025). Statutory monthly minimum wage for regular (post-probation) workers, applying from 1 January (Prakas 214/25). Garment, textile, footwear, travel goods and bag sectors. Basis date: 17 Sep 2025. Source: DFDL: Cambodia — Increase in Minimum Wage for 2026 for the Garments, Textiles, Footwear, Travel Products and Bags Sectors (Prakas 214/25)
  3. Workers in garment, textile, footwear and travel goods sectors: about 1.1 million. Workers covered by the sector minimum wage, Ministry of Labour and Vocational Training data as reported. Garment, textile, footwear, travel goods and bag sectors. Basis date: 30 Sep 2026. Source: The Star (Bernama-Xinhua): Cambodia raises monthly minimum wage for garment workers to US$212 for 2027 (2026-09-30)
  4. Factories and branches in garment, textile, footwear and travel goods sectors: more than 1,800. Factories and branches in the sectors, Ministry of Labour and Vocational Training data as reported. Garment, textile, footwear, travel goods and bag sectors. Basis date: 30 Sep 2026. Source: The Star (Bernama-Xinhua): Cambodia raises monthly minimum wage for garment workers to US$212 for 2027 (2026-09-30)
  5. Garment-sector base pay including fringe benefits, 2027 (government estimate): USD 231.5–242.5 a month. Minimum wage plus standard fringe benefits (attendance bonus, seniority indemnity, housing and transport allowances), as stated by the Prime Minister. Garment, textile, footwear, travel goods and bag sectors. Basis date: 30 Sep 2026. Source: The Star (Bernama-Xinhua): Cambodia raises monthly minimum wage for garment workers to US$212 for 2027 (2026-09-30)
  6. Garment-sector minimum wage, 2024: USD 204 a month (up from USD 200 in 2023). Statutory monthly minimum wage for regular (post-probation) workers, applying from 1 January. Garment, textile, footwear, travel goods and bag sectors. Basis date: 28 Sep 2023. Source: Asia News Network: Cambodia's minimum wage set at $204 per month, after Sep 28 vote (2023-09-29)
  7. Garment-sector minimum wage, 2025: USD 208 a month (up from USD 204 in 2024). Statutory monthly minimum wage for regular (post-probation) workers, applying from 1 January (Prakas 221/24). Garment, textile, footwear, travel goods and bag sectors. Basis date: 20 Sep 2024. Source: ILAW Asia via Legal 500: 2025 minimum wage for workers in garment, textile, footwear, travel goods and bag sectors (Prakas 221/24)
  8. Increase in the garment-sector minimum wage, 2025: 1.96%. T&S calculation: 2025 minimum wage (USD 208) / 2024 minimum wage (USD 204) − 1. Garment, textile, footwear, travel goods and bag sectors. Basis date: 20 Sep 2024. Source: T&S calculation from ILAW Asia via Legal 500 (Prakas 221/24)
  9. Increase in the garment-sector minimum wage, 2027: 0.95%. T&S calculation: 2027 minimum wage (USD 212) / 2026 minimum wage (USD 210) − 1. Garment, textile, footwear, travel goods and bag sectors. Basis date: 30 Sep 2026. Source: T&S calculation from The Star (Bernama-Xinhua, 2026-09-30) and DFDL (Prakas 214/25)
  10. Consumer price inflation, May 2026 (y/y): 7.2% (up from 2.6% in February 2026). Year-on-year CPI change as cited by ADB. Whole economy. Basis date: 31 May 2026. Source: Phnom Penh Post: ADB cuts Cambodia's 2026 growth forecast to 3.9% amid tourism slowdown (2026-09-23)
  11. Consumer price inflation, July 2026 (y/y): 5.5% (down from 7.2% in May 2026). Year-on-year CPI change as cited by ADB. Whole economy. Basis date: 31 Jul 2026. Source: Phnom Penh Post: ADB cuts Cambodia's 2026 growth forecast to 3.9% amid tourism slowdown (2026-09-23)
  12. IMF inflation projection, 2026 (average): 5.6%. IMF 2026 Article IV projection of average consumer price inflation. Whole economy. Basis date: 28 Sep 2026. Source: IMF: Executive Board concludes 2026 Article IV consultation with Cambodia (Press Release 26/307, 2026-09-28)
  13. Upper-bound estimate of wage earners: about 4.6 million
    Upper bound because the labour force includes the unemployed.
    . Labour force × wage-worker share. Labour force. Basis date: 31 Dec 2025. Source: T&S calculation from World Bank WDI (ILO modelled estimate): labor force, total (SL.TLF.TOTL.IN), Cambodia — labour force × wage share (SL.EMP.WORK.ZS)
  14. ADB consumer inflation forecast, 2027 (average): 2.8%. ADB Asian Development Outlook September 2026 forecast, annual average. Whole economy. Basis date: 23 Sep 2026. Source: Phnom Penh Post: ADB cuts Cambodia's 2026 growth forecast to 3.9% amid tourism slowdown (2026-09-23)

Sources

  1. The Star (Bernama-Xinhua): Cambodia raises monthly minimum wage for garment workers to US$212 for 2027 (2026-09-30)primary
  2. DFDL: Cambodia — Increase in Minimum Wage for 2026 for the Garments, Textiles, Footwear, Travel Products and Bags Sectors
  3. ILAW Asia via Legal 500: 2025 minimum wage for garment, textile, footwear, travel goods and bag sectors
  4. Asia News Network: Cambodia's minimum wage set at $204 per month, after Sep 28 vote (2023-09-29)
  5. IMF: Executive Board concludes 2026 Article IV consultation with Cambodia (2026-09-28)primary
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A Japanese version of this article is available: 日本語版

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