Cambodia Boosts Garment Workers’ Minimum Wage: What It Means for Siem Reap

On September 30, 2026, the Cambodian government approved a $2 increase in the minimum monthly wage for the garment, footwear, and travel goods sectors, raising the base wage to $212 for 2027. While this adjustment aims to support workers, many in the industry and unions remain concerned about the sufficiency of the increase. Prime Minister Hun Manet intervened, adding the $2 to the council’s $210 figure, bringing the final decision to $212.

The current base wage of $210, combined with a $2.50 transportation allowance, is still not enough to cover living costs, according to workers and unions. With an average monthly household expenditure of $504, the increase is seen as insufficient. Employers, represented by Nang Sothy of the Federation of Employers and Business Associations of Cambodia, argue that the actual cost to employers is more than $212 due to additional benefits and transportation costs.

This wage adjustment affects not only workers in the garment sector but also the broader economy of Siem Reap, which relies heavily on tourism and related industries. The increase could have mixed effects, potentially boosting local spending but also increasing the cost of doing business for employers.