Cambodian government asked to make final decision on factory minimum wage

Economist Lor Vichet told The Post on September 10 that the decision by the involved parties to leave the final call to the government is a “reasonable solution” given the current uncertainties in the global economy.

Hin Pisei

Hin Pisei

The Phnom Penh Post

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Garment workers walk back to their factory after having lunch in Phnom Penh on April 3, 2025. PHOTO: AFP

September 11, 2025

PHNOM PENH – The final decision on the minimum wage for workers in the garment, textile, footwear and travel goods sectors for the year 2026 will be made by Prime Minister Hun Manet, as the representatives of both workers and employers have unanimously agreed that they cannot propose a specific figure. This decision was based on the outcome of several meetings of the National Minimum Wage Council.

A September 10 statement by the Ministry of Labour and Vocational Training shared that the final meeting of the council took place on the same day.

“Based on the potential impacts of the imposition of US reciprocal tariffs and the current labour market conditions, the representatives of both workers and employers have unanimously agreed not to propose any specific wage figure. They will leave it the government to make a decision, based on Cambodia’s competitiveness and the country’s social and economic conditions,” it said.

However, the statement noted that both sides had agreed to submit three requests to the prime minister, for review and possible intervention.

According to the ministry, a total of 21 meetings took place on this matter.

They included three 3 tripartite meetings (workers, employers, government), three bilateral meetings between workers and employers, one bilateral meeting between workers and the government, two bilateral meetings between employers and the government, seven internal meetings among worker representatives and five internal meetings among employer representatives.

Each of the parties agreed that today’s meeting marked their final official positions.

The ministry announced that a final tripartite meeting is scheduled for September 17, at 3pm. It will be held to complete the final formal procedures required under the minimum wage law.

Economist Lor Vichet told The Post on September 10 that the decision by the involved parties to leave the final call to the government is a “reasonable solution” given the current uncertainties in the global economy.

He explained that there are many factors which must be taken into consideration when deciding on the minimum wage.

They include the global and political context, import-export tax rates, worker productivity, competitiveness in international markets and most notably, the ability to attract foreign direct investment to Cambodia.

As of 2025, the minimum wage for workers in the garment, textile, footwear and travel goods stands at $208 per month, an increase from the $204 rate awarded in 2024. Most workers earn more than this figure, via overtime and seniority payments.

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