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Following a tripartite meeting with employers and trade unions, the Labor Ministry issued a statement that temporary monthly allowance of $2.50 would start April 1, in addition to the existing transportation and accommodation allowances by enterprises, companies, and factories. The allowance would be provided until fuel prices return to normal, according to the ministry at 7:16 pm today.
Far Saly, president of the National Trade Union Coalition, who attended the meeting, lauded the outcome, including an additional 10,000 riel (about $2.50) to existing transportation allowances to help ease workers’ travel costs.
He thanked employers for supporting workers despite rising fuel prices, while noting that the former was also facing high transportation costs.
As rising fuel prices drive up transportation costs for garment workers, Prime Minister Hun Manet ordered the Labor Ministry to hold a meeting with employers and trade unions to seek a solution, a move lauded by trade unions and workers.
The directive seemingly follows a protest on Tuesday by garment workers in Kampong Speu province, demanding higher transportation and meal allowance as rising fuel costs strain their daily expenses.
The gasoline price was 5,400 riel, down 100 riel from a week ago, but diesel continued to rise from 6,550 riel to 6700 riel per liter across Cambodia, according to the Ministry of Commerce on March 20 amid a global energy crunch linked to the U.S.-Israeli war with Iran.
Due to the domestic situation and rising international oil prices, Hun Manet called for a reduction of additional tax on gasoline and diesel to zero dollars.
He also ordered special tax on diesel to be reduced from 4% to 0% and value-added tax (VAT) on gasoline and diesel from 10% to 4%, with the government absorbing the 6%, the ministry stated.
On a Facebook post, the prime minister said he advised Labor Minister Heng Sour to meet representatives of employers and workers’ unions to discuss ways to ease travel costs during the transition period as soon as possible.
“I hope employers and trade unions can find a suitable solution to ease workers’ travel costs while maintaining the competitiveness of our industry,” he said.
National Trade Union Coalition President Far Saly welcomed the prime minister’s call to address rising fuel costs and ease workers’ burden, confirming that they would be meeting employer and union representatives this afternoon (March 20).
“For me, it is not only the transportation cost that is a problem, but the broader situation, as food prices have also been rising due to inflation,” he said.
Although the meeting would focus on transportation costs, he plans to raise concerns about inflation and workers’ loans, which have been affecting their daily expenses.
“We have seen that workers who have taken out loans to buy motorbikes face heavy repayments, including administrative fees, which make it difficult for them, especially those who don’t work overtime or receive the 50 percent [of their salary] from their factory,” he said.
Yang Sophorn, president of the Cambodian Alliance of Trade Unions, said the government should temporarily suspend taxes on fuel imports until prices return to normal as a way to address rising fuel prices.
“I think that if the government temporarily suspends fuel taxes, it will help citizens, including workers,” she said, adding that expanding the state-run public bus service could also resolve the issue.
Garment worker Chhorn Chansout was pleased that government leaders were paying attention to rising transportation costs affecting workers as a result of higher fuel prices.
“I ask the government to increase transportation allowances, as gasoline prices are also rising. The current $7 is not enough,” she said, adding that the allowance should be increased to between $10 and $15.
She spends 65,000 riel a month on transportation from her home to the factory in Choeung Prey district, Kampong Cham province.
According to the labor ministry, the garment, footwear and travel goods (GFT) sector has about 1,800 factories, employing roughly 1.1 million workers, a majority of them women, making it the largest source of employment.
Labor Ministry spokesperson Sun Mesa confirmed that the ministry would organize a tripartite meeting following the prime minister’s order this afternoon.
Note: This story was updated at 9:30 p.m on March 20, 2026 following the Ministry of Labor’s statement on the outcome of the tripartite meeting on transportation costs for garment, footwear and travel goods workers.
