Cambodia's 2027 Minimum Wage Talks Stall Amidst Significant Labor-Employer Divide

Discussions are ongoing within Cambodia's National Minimum Wage Council to determine the minimum wage for the textile, garment, footwear, travel goods, and bags manufacturing sector for 2027. On September 18, 2026, the third meeting, chaired by Minister of Labor and Vocational Training Heng Sour, was held. It became apparent that a significant gap persists between the demands of both labor and employer representatives. To date, a total of eight negotiation sessions have taken place, including three tripartite meetings, one bilateral meeting between labor and employer representatives, three internal meetings for labor representatives, and one internal meeting for employer representatives. During the sessions, a majority of labor representatives proposed an increase of $15.3 to $225.3 per month, while some requested an increase of $40.6 to $250.6 per month. Conversely, employer representatives are seeking to maintain the current minimum wage of $210 per month. Government representatives have been facilitating discussions by providing additional explanations based on socio-economic criteria. However, consensus has not yet been reached due to the divergent positions. The focus will now shift to the upcoming tripartite meeting scheduled for Monday, September 28, 2026. This meeting is expected to be crucial for fine-tuning specific figures and exploring strategies to balance the improvement of workers' living standards with the maintenance of the industry's competitiveness. The textile and garment industry is a significant source of employment in the Cambodian economy, and minimum wage determinations directly impact the livelihoods of many citizens. The outcome of these negotiations will require continued attention concerning both domestic economic stability and the welfare of workers.