The monthly minimum wage of garment workers has been increased by an additional $4, bringing the total to $208 for 2025, however, independent workers and unions are unsatisfied with the new pay.
In the final meeting of the tripartite National Minimum Wage Council on September 19, 51 members participated in the voting, with the majority voting in favor of the $206 salary. The government proposed an increase in the current minimum wage, which employers supported.
Out of 51 members, 46 voted in favor of $206, one voted for $208 and four others supported the union’s proposal of $214.
After the voting, Prime Minister Hun Manet decided to add $2 to $206, making it $208 from $204 currently.
Labor and Vocational Training Minister Heng Sour told reporters that like last year, Hun Manet added $2 to the minimum wage figure. Thus, from January 1, 2025, the new salary would be $208 per month. While other benefits stayed the same for workers, the new salary would see workers earning up to $225 a month.
“The government continues to increase the minimum wage. Earlier, the prime minister also stated that in addition to raising wages, the government will continue to intervene to maintain price stability to ensure the cost of living of workers, such as rent, does not increase. If it’s too high, it will affect the workers,” he said.
The $208 minimum wage will be implemented next January for full-time workers, while probationary workers will receive $206 per month.
Workers’ other benefits, such as coverage for travel and accommodation amounting to $7 per month, would be maintained. In addition, a bonus of $10 per month, meal allowance of 2,000 riel per day for volunteers working overtime, and seniority bonus of $2 to $11 per month for workers who have been working between two and 11 years, will be provided.
The ministry stated that on average, workers will receive $225 to $236 a month. Apart from raising the minimum wage, the government and relevant institutions will work together to reduce the costs for workers.
Hor Chamroeun, who works at Wing Star Shoes factory, said the new minimum wage will not adequately support their living expenses due to the high cost of living, including other expenditures.
“The government increased $4 [again] this year. This won’t be enough to pay for things in the market,” Chamroeun said. “If the salary was raised between $220 and $230, I can manage my daily expenses and bank payments.”
He mentioned that it was “not wrong” to talk about the wages of workers in other countries where it was lower than Cambodia. However, in those countries the price of goods was cheaper, whereas in Cambodia, the price of goods has risen, so the new wage of $208 was not sufficient.
“The salaries of workers in neighboring countries are low, but the goods are cheap, so the workers can live comfortably,” said Chamroeun. “So, I expected the government to raise the wage between $8 and $10 and [the government] should help bring the prices down.”
Yang Sophorn, president of Cambodian Confederation of Trade Unions, told CamboJA News that the 2025 garment sector minimum wage would not cover workers’ expenses due to high goods prices. She was not satisfied with the figure, she said.
Sophorn said inflation should be taken into consideration, thus the new wages should rise by $5 or $6.
“This year’s figure seems to have risen very little, compared to the inflation rate of 2.7%. The figure only increased $4, so I feel sad,” said Sophorn.
The wages should be raised to an appropriate level, as $208 per month is not enough. Therefore, she wants a study on economic and social factors to be conducted to understand the needs of workers.
“I want a joint study done by the government, employees and employers and implement the recommendations,” Sophorn said. “Otherwise, I think we will still find it difficult to discuss amicably.”
On his Facebook page, Hun Manet said despite economic challenges, the government did not forget to pay attention to improving the lives, occupation and well-being of people from all walks of life.
“Raising the minimum wage this year, no matter the amount, is a way to reduce workers’ hardship. I have given instructions to Heng Sour to add $2 to $206, following the voting outcome of the National Minimum Wage committee,” he said.
Hun Manet remarked that in 2024, many countries in the region did not raise the minimum wage because the economic situation has not improved. Not only did the minimum wage in US dollars in some countries not increase, but it was lower than at the end of 2023 due to the fluctuations in the exchange rates of those countries.
“Along with the wage increase, I would like to inform the workers and public that I will continue to urge the relevant ministries, institutions and authorities to monitor and put in place additional measures to determine the possibility of reducing workers costs,” he assured.
Nang Sothy, vice president of the Federation of Employers and the Cambodian Business Association, representing employers, said they were “happy” with the outcome of the minimum wage negotiations for 2025 because the figure was acceptable.
“We are very pleased. The other thing is that all 17 workers showed a different kind of friendship compared with previous years. The meeting participants were not friendly [previously], but this year [they] were kind and able to discuss,” Sothy said.
