What Is the Minimum Wage in Cambodia?
As of January 1, 2026, Cambodia’s minimum wage for workers in the textile, garment, footwear, and travel goods sectors is approximately 861,000 KHR per month, equivalent to USD 210 per month. This represents an increase from the 2025 minimum wage of 836,384 KHR (USD 208). The adjustment was formalized through a Prakas issued by the Ministry of Labour and Vocational Training (MLVT) setting the 2026 minimum wage.
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
Wage discussions in Cambodia often distinguish between average, reasonable, and typical (statutory) minimum wages. These terms reflect different benchmarks used to assess worker pay across sectors and living conditions.
Average Minimum Wage: The average minimum wage across Cambodia in 2026 is estimated at around US $220–225 per month, reflecting mean wage levels across multiple sectors, including industries not covered by the statutory minimum wage.
Reasonable Minimum Wage: A reasonable minimum wage refers to a pay level aligned with the cost of living and sufficient to support a decent standard of living. While the official sectoral minimum wage is US $210 per month, labor groups and unions argue this remains insufficient given rising living costs, suggesting a more reasonable wage range of approximately US $220–230 per month.
Typical Minimum Wage: The typical minimum wage is the legally mandated rate applied to specific sectors. In 2026, the minimum wage for regular workers in Cambodia’s garment, textile, footwear, travel goods, and bag manufacturing sectors is US $210 per month, effective January 1, 2026.
How Does Minimum Wage Apply to Different Workers In Cambodia?
Cambodia’s minimum wage framework applies primarily to workers in specific manufacturing sectors and varies depending on employment status, contract type, and seniority. Below is an overview of how the 2026 minimum wageapplies to different categories of workers.
Full-Time Employee Wages
Full-time employees in the garment, textile, footwear, travel goods, and bag manufacturing sectors are entitled to the statutory minimum wage of US $210 per month, effective January 1, 2026. Probationary employees are entitled to a slightly lower rate of US $208 per month.
In addition to base wages, eligible workers may receive the following benefits:
- 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, calculated in line with the statutory minimum wage and applicable benefits. Exact pay levels depend on hours worked, employer policies, and the terms of the employment contract.
Interns and Trainees
Interns and trainees are not automatically entitled to the statutory minimum wage unless this is specified in their employment or training agreements. Employers are nonetheless encouraged to provide fair compensation in line with Cambodian labor standards and good employment practices.
Expats
Expatriate employees working in Cambodia are subject to the same minimum wage regulations as Cambodian nationals when employed in covered sectors. In practice, expatriate compensation packages often exceed the minimum wage and may include additional allowances or benefits negotiated contractually.
Minimum Wage for Top Paying Roles In Cambodia
While Cambodia’s statutory minimum wage sets the baseline for eligible workers, higher-skilled and supervisory roles typically earn above the minimum wage, particularly in the garment, textile, footwear, and travel goods sectors. Pay levels vary based on experience, responsibilities, and the size of operations.
- Senior Supervisors: May earn up to US $320 per month, depending on experience, seniority, and supervisory scope.
- Quality Control Managers: Compensation can reach around US $360 per month, reflecting technical expertise, compliance responsibilities, and quality assurance oversight.
- Production Managers: Senior production roles may offer salaries of up to US $420 per month, contingent on factory size, production volume, and managerial accountability.
Factors Influencing Minimum Wage in Cambodia
Cambodia’s minimum wage system is shaped by a combination of institutional processes, economic conditions, and sector priorities. These factors help explain why the statutory minimum wage is set at its current level (US $210 per month for 2026) and why wage decisions can be complex and contested.
Industry-Specific Variations
The statutory minimum wage in Cambodia is standardized for the garment, textile, footwear, travel goods, and bag manufacturing sectors and does not currently apply to all industries. Other sectors (e.g., services, agriculture) are not covered by this mandated minimum, which can lead to wage disparities across the labor market.
Economic Conditions
Economic trends – including inflation, productivity, cost of living, and labor market conditions – are key considerations in minimum wage negotiations. According to the Law on Minimum Wage, these social and economic factors must be taken into account when determining wage rates. The consultations leading to the 2026 wage increase involved tripartite discussions (government, employers, and unions) that considered both competitiveness and cost pressures.
Government Policies and Legislation
The Ministry of Labour and Vocational Training (MLVT), through the National Council on Minimum Wage (NCMW), leads annual negotiations and recommendations on minimum wage levels. The council’s tripartite process – involving government, employer, and worker representatives – evaluates social and economic indicators and issues a formal Prakas (ministerial order) to set the new wage. This process aims to balance worker welfare with economic competitiveness and stability.
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, textile, footwear, and travel goods sectors has followed a steady upward trajectory. Key milestones include approximately US $61 per month in 2012, rising to US $140 in 2016, US $204 in 2024, US $208 in 2025, and reaching US $210 per month in 2026. This progression reflects gradual, annual adjustments rather than sharp increases, following consultations between government, employers, and worker representatives.
Overall, these increases demonstrate the government’s ongoing effort to improve worker income and living standardswhile also preserving Cambodia’s competitiveness in global manufacturing and export markets. The incremental approach aims to balance social protection for workers with economic sustainability for employers and investors.
How To Stay Compliant When Hiring in Cambodia With Playroll
Expanding your business internationally is exciting, but it comes with the challenge of understanding complex legal and payroll requirements. One of the hurdles is ensuring you comply with local minimum wage laws. Playroll makes this process easier by acting as your trusted Employer of Record:
- Scale Your Global Team: Legally hire and onboard employees in 180+ regions, ensuring full compliance with local labor laws, tax regulations, and statutory benefits.
- Pay Your Team Accurately: Your global workforce is always paid on time, and we ensure continuous compliance with local minimum wage and tax laws.
- Guaranteed Legal Compliance: Our comprehensive compliance checks and expertly crafted contracts guarantee your agreements meet local legal standards, including minimum wage laws, tax regulations, and benefits. This way, you can focus on growing your business without worrying about compliance risks.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.


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