Cambodia Kicks Off 2027 Minimum Wage Talks Based on Seven Indicators

PHNOM PENH, Sept 3, 2026 (KPT) — Cambodia has opened formal negotiations on the 2027 minimum wage for workers in the textile, garment, footwear, travel goods and bag sectors, with government, unions and employers agreeing to base discussions on seven social and economic indicators, officials said Tuesday. Labour Minister Heng Sour, who chairs the National Minimum Wage Council, presided over the council’s first meeting on September 1, bringing together 51 representatives under Cambodia’s tripartite wage-setting mechanism. The session presented statistics covering the seven criteria, which the three parties will now review internally before developing their positions for the next rounds of talks. The negotiations aim to balance workers’ living standards and purchasing power with employers’ competitiveness and broader economic conditions affecting Cambodia’s export-driven industries. Four further meetings are scheduled for September 14, 18, 28 and 30, with the final session set to conclude the process. No figure for the 2027 wage was announced at the opening meeting. The talks carry particular weight for Cambodia’s garment and related manufacturing industries, which remain major sources of employment and export earnings. The country’s formal workforce surpassed 2 million in 2025, up more than 400,000 from the previous year, while enterprises totaled 46,649, including 1,867 garment factories. Garment and textile exports continued to expand in 2026, exceeding $8 billion in the first half of the year, up 6.2 percent year-on-year, according to the Ministry of Commerce. The wage decision will be closely watched by workers, manufacturers and international buyers, whose sourcing choices are influenced by production costs and Cambodia’s competitiveness. The current minimum wage for garment, footwear and travel-goods workers is $210 per month, effective January 1, 2026. The 2027 figure will be determined through the ongoing tripartite negotiations.