Cambodia Unions Propose Over $250 Minimum Wage for 2027

Six trade union federations in Cambodia are calling for a minimum monthly wage of $250.66 for workers in the garment, travel goods, and footwear sectors for 2027. The current wage of $210 is deemed insufficient to cover the rising cost of living and household expenses, compelling workers to undertake excessive overtime. Yang Sophorn, president of the Cambodian Alliance of Trade Unions (CATU), stated at a joint press conference on Sunday that the unions proposed $250.66 as their bargaining figure to the National Council for Minimum Wage. She said the proposal is based on workers’ basic needs and the challenges they face, including the cost of food, utilities, transportation, as well as debt, children’s education and health care expenses. "How can a basic wage of only $210 allow workers to live better?" she said. "Especially when their basic household needs already cost more than $500." Sophorn added that workers are struggling and are forced to work overtime to earn additional income to support their families. At times they take over other workers’ shifts to ensure they can get enough to cover household expenses. "They address the rising cost of living by working overtime. The question is whether workers should have to work more than eight hours to support their families," she said. Ry Sithyneth, president of the Independent Trade Union Federation (INTUF), said independent unions have been set up in 28 factories, with about 422 workers participating in the minimum wage survey. He hopes that the 2027 wage negotiations would improve, partly because Cambodia is scheduled to hold commune council elections next year, meaning the government would likely take workers’ concerns into consideration. "Because next year is the commune council election, tomorrow we will submit a letter to the Labor Ministry requesting a 2027 minimum wage of $250.66," he said. Worker representative Khut Sokha said market prices have risen significantly, while water and electricity costs have also increased. She has three children who are still in school and depend on her household income. When her children become sick, she has to spend money on medical treatment, forcing her to borrow from banks because her expenses exceed her income, she said. "My basic salary is only $210. Even when I work overtime, I earn only a little extra. It is extremely difficult, and I have to limit my spending," she said. "So I hope the government will consider the proposed $250.66. It will not make workers rich; it will simply provide a more decent income than the $210 wage." Earlier, Senate President Hun Sen posted on his Facebook page that the overall minimum wage in Cambodia is higher than Vietnam, India, Pakistan, Sri Lanka, Myanmar, Bangladesh, and Laos. Sophorn acknowledged that wages have risen gradually but questioned whether they have kept pace with inflation. She said projected inflation was 2.6% last year but reached 3.8% this year, leaving a 1.7% gap between inflation and minimum-wage increases. Labor Minister Heng Sour said wage negotiations, held on September 1, are not intended to cause “negative consequences” for any party or sector, but should ensure the sector continues to develop while benefiting all stakeholders. Moeun Tola, executive director of CENTRAL, said comparing Cambodia’s wages with those in Sri Lanka and Pakistan requires a “fuller picture”, including the purchasing power and workers’ ability to save. "A fair regional wage comparison should weigh the cost of living, income stability and social protection systems together with wage figures, rather than looking at the figures alone." Cambodia’s export tariff rate to the U.S. market was reduced to 19%, after the country had faced a potential tariff of 49% and later 36%. The tariff uncertainty prompted negotiations to lower the rate to make Cambodia’s exports more competitive with those of regional rivals.