
The Cambodian government has announced a new monthly minimum wage of $208 for nearly 1 million workers in the garment, footwear, and travel goods sectors, effective January 1, 2025. This 1.96% increase from the current $204 was approved following recommendations by the National Council for Minimum Wage and an additional $2 adjustment by Prime Minister Hun Manet.
Workers will also receive a $10 monthly attendance bonus and $7 for transportation and rent, aimed at supporting daily living costs alongside the base wage.
As a cornerstone of Cambodia’s economy, the garment, footwear, and travel goods industry includes over 1,500 factories employing around 913,000 workers. It generated $6.24 billion in exports in the first half of 2024, a 16.4% increase from the same period in 2023, underlining its resilience and economic importance.
The wage hike responds to domestic and international calls for better labor conditions while addressing industry concerns over rising production costs and global competition. Labor advocates argue that the increase falls short of mitigating urban living costs, while industry leaders worry about competitiveness.
Despite these challenges, the Cambodian government is committed to improving workers‘ living standards, ensuring industry sustainability, and fostering collaboration among stakeholders to maintain economic growth and global competitiveness in 2025 and beyond.