Minimum Wage in Cambodia: Rates, Trends & Compliance

What Is the Minimum Wage in Cambodia?

As of January 1, 2025, Cambodia's minimum wage for workers in the textile, garment, footwear, and travel goods sectors is 836,384 KHR per month, or USD 208 per month. This represents a 2% increase from the 2024 minimum wage of 818,800 KHR (approximately USD 204). These adjustments were formalized through Prakas 211/24 issued by the Ministry of Labour and Vocational Training (MLVT).

Minimum Wage in Cambodia Based on Region

Currently, Cambodia does not implement region-specific minimum wage rates. The established minimum wage applies uniformly across the nation, specifically to the garment, textile, footwear, and travel goods sectors. Other industries are not subject to this mandated minimum wage.

Average vs Reasonable vs Typical Minimum Wages

Average Minimum Wage: The average minimum wage in Cambodia for 2025 is estimated to be US$220 per month. This figure represents the mean wage across various sectors, including those that are not covered by the national minimum wage law.

Reasonable Minimum Wage: A wage level that aligns with the cost of living and ensures a decent standard of living for workers. While the official minimum wage for the garment sector is US$208 per month, some workers and unions argue that this amount is insufficient to meet the rising costs of living, suggesting that a reasonable wage should be between US$220 and US$230 per month .

Typical Minimum Wage: The standard wage rate applied within specific industries or regions, which may vary based on local economic conditions. In Cambodia's garment, footwear, and travel goods sectors, the minimum wage for regular workers is set at US$208 per month, effective from January 1, 2025.

How Does Minimum Wage Apply to Different Workers In Cambodia?

Full-Time Employee Wages

Full-time employees in the garment, textile, footwear, and travel goods sectors are entitled to the standard minimum wage of US$208 per month, with probationary employees earning US$206 per month. Additional benefits include:

• Attendance Bonus: US$10 per month
 
• Travel and Accommodation Allowance: US$7 per month
 
• Meal Allowance: US$0.50 per day (or one free meal per day for overtime workers)
 
• Seniority Bonus: US$2–US$11 per month for employees with 2 to 11 years of service

Part-Time Employee Wages

Part-time employees are generally compensated on a pro-rata basis, in line with the standard minimum wage and benefits. Specific rates may vary depending on the employer's policies and the nature of the employment contract.

Interns and Trainees

Interns and trainees may not be entitled to the minimum wage unless specified in their contracts or agreements. Employers are encouraged to provide fair compensation for internships and training periods to ensure compliance with labor standards.

Expats

Expatriate workers employed in Cambodia are subject to the same minimum wage laws as Cambodian nationals. However, their compensation packages may include additional allowances or benefits as negotiated in their employment contracts.

Minimum Wage for Top Paying Roles In Cambodia

 
• Senior Supervisors: May earn up to US$300 per month, depending on experience and responsibilities.
 
• Quality Control Managers: Compensation can reach US$350 per month, reflecting specialized skills and expertise.
 
• Production Managers: Top-tier positions may offer salaries up to US$400 per month, contingent on the scale of operations and managerial duties.

Factors Influencing Minimum Wage in Cambodia

Industry-Specific Variations

The minimum wage in Cambodia is currently standardized across the garment, textile, footwear, and travel goods sectors. Other industries do not have a mandated minimum wage, leading to potential disparities in earnings across different sectors.

Economic Conditions

Cambodia's economic landscape, including inflation rates and employment levels, influences wage policies. For instance, the 2.7% inflation rate in 2024 was a consideration during the 2025 minimum wage negotiations.

Government Policies and Legislation

The Ministry of Labour and Vocational Training, through the National Council on Minimum Wage, plays a pivotal role in determining and adjusting the minimum wage. Decisions are made based on economic indicators and social factors, aiming to balance worker welfare with economic competitiveness.

Tax Implications of Minimum Wage

Employees earning the minimum wage are subject to Cambodia's personal income tax rates, which are progressive. Employers are responsible for withholding and remitting these taxes on behalf of their employees. Additionally, both employers and employees contribute to social security schemes, which fund benefits such as pensions and healthcare.

Minimum Wage History and Trends in Cambodia

Over the past decade, Cambodia's minimum wage in the garment sector has shown a consistent upward trend:

• 2012: Approximately US$61 per month
 
• 2016: Increased to US$140 per month
 
• 2024: Set at US$204 per month
 
• 2025: Raised to US$208 per month

These increments reflect the government's efforts to improve workers' living standards while maintaining Cambodia's competitiveness in the global market.

How To Stay Compliant When Hiring in Cambodia With Playroll

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