The Cambodian government has approved a minimum wage increase for the garment, footwear and travel goods sector from US$208 to US$210 per month, effective January 2026. The modest $2 raise affects nearly one million workers in an industry that supplies global apparel and sporting goods companies. While manageable for manufacturers, the rise has been criticized by unions as insufficient to offset rising living costs.
At a meeting in mid-September, Cambodia’s National Minimum Wage Council set the new minimum at $210 per month for 2026, up from the current US$208. The government confirmed the decision will take effect on Jan. 1, 2026, covering workers in the garment, footwear, travel goods, textiles and bag industries.
The Ministry of Labour said other fringe benefits – including attendance bonuses, transport, rent allowances and seniority pay – remain in place. In total, the wage decision directly impacts around one million employees in Cambodia’s export-oriented garment and footwear sector.
Worker frustration over limited rise
Labour unions had pushed for a monthly minimum wage of US$232, arguing that the new level does not reflect higher food and housing costs. Workers expressed frustration, saying the $2 increase is insufficient to offset inflation and rising living expenses.
The modest increase is seen as a compromise between union demands and employers’ warnings that steeper hikes could undermine Cambodia’s competitiveness in the global supply chain.
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