Cambodia’s third round of tripartite negotiations on the 2027 minimum wage ended Friday without agreement, with employer representatives maintaining the current $210 monthly rate while worker representatives continued to seek increases to $225.30 or $250.66, according to Labor Minister Heng Sour.
He said the global economic outlook remains uncertain, as do the energy crisis and conditions in other sectors, while noting that some countries in the region have lower wages than Cambodia, which could cause challenges in competitiveness.
“Based on these factors, we face difficulties in raising wages,” he said.
“On the government side, we explained to the relevant parties that increased income does not necessarily mean increasing the wage figure for a particular sector. If we can create new jobs, household incomes could rise more than simply raising the wage figure [seeing that] families do not have new work opportunities.”
Beyond advocacy for higher wages, a campaign has emerged arguing that demands for higher wages could force factories to close. It claims that higher wages would increase the costs for factory owners, which occurs at a time when economic conditions are “unfavorable for wage increases”.
In a video posted on a Facebook page called “MLVT Fan”, garment workers said: “If we demand higher wages, jobs in Cambodia may no longer remain. So why demand it? If companies close their doors, we won’t be able to find better jobs than these.”
According to a joint statement from 125 local and international civil society organizations, the proposed increase of $40.66 is based on research showing that many workers struggle to cover household expenses, food and debt repayments.
The groups said the increase would help protect workers’ purchasing power and gradually narrow the gap between the statutory minimum wage and living wages.
On September 14, a joint letter by trade unions cited studies from 2022 and 2024 as well as preliminary findings in 2026 to show that average earnings covered only about 60% of household expenses. A 2025 study reported that workers took home an average monthly salary of $287 compared to median household spending of $391, the letter stated.
Khut Sokha, a factory worker in Kien Svay district, said workers would struggle to live if wages did not increase, as the price of goods and other necessities continued to rise. She said workers are forced to work overtime to earn additional income to support their families.
“If the wage remains at $210, it will affect us. The price of goods and gasoline are increasing. So if employers still don’t raise our wages, we will be seriously affected,” she said.
Sok Kanh, a factory worker in Phnom Penh, expressed a similar view, adding that demands for higher wages “would not necessarily force factory owners to close their business” and move out of Cambodia. She said factories in every country must follow regulations and take wages into consideration.
“Wages in other countries may be lower, but things there are also cheaper. They are not as expensive as in Cambodia. Everything is expensive here,” she said.
Wage increases do not make workers wealthy, as the rise is only about $2 a year done via government-set adjustments. She said such increases do not keep pace with rising prices.
“The government should look at the price of goods and rent. If prices continue to rise, even if workers’ wages reach $500, it still won’t be enough,” Kanh said.
Yang Sophorn, president of the Cambodian Alliance of Trade Unions (CATU), said employers did not agree to any of their proposed figures during the third round of negotiations and continued to maintain their position against a wage increase.
Workers would continue to face problems, including inadequate food, and debt repayments, as well as rising housing costs and rental, and cost of living, if minimum wage is not increased, she told CamboJA News.
“I think raising the wage to $250 is not beyond the ability of employers in Cambodia to provide to workers,” she said. “And I believe Cambodia still has favorable conditions for the garment sector, rather than factories leaving for other countries.”
The organizations said research also shows that indebted garment workers sometimes reduce food consumption to repay loans, while other studies point to widespread debt and overtime work. They said rising prices have further strained household budgets.
The groups called on the Labor Ministry, National Council on Minimum Wage, employers and international brands to engage constructively with the unions and consider the evidence presented by workers and their representatives on the wage hike.
