Trade unions and civil society groups have called for a minimum wage hike next year for garment, footwear and travel goods (GFT) workers, saying it is essential for the “real cost of survival.”
In a joint statement on Tuesday, 28 unions and rights groups demanded the 2026 minimum wage be raised to $232 a month, up from the current $208, which they said was “far below the threshold of a dignified life.”
“This is not merely a request, it is an urgent necessity grounded in the real costs of survival for Cambodian workers and the demonstrated economic capacity of the country,” the statement said.
The National Minimum Wage Council, under the Labor Ministry, met on August 20 with unionists, factory owners and other stakeholders to discuss the floor wage – a meet usually conducted every year. Talks remain at an impasse, with a second round held Wednesday and further sessions scheduled in the coming weeks.
Minimum wage rules apply only to Cambodia’s GFT sector, which employs nearly one million people – mostly women – and forms the backbone of the country’s formal workforce, while more than 88% of workers remain in informal jobs.
Workers spend an average of $408 a month on food and other essentials, almost double their typical income of $250 including overtime and small benefits, according to the Asia Floor Wage Alliance’s 2024 survey.
The disparities between living cost and wages have driven around 76% of GTF workers into debt just to survive, according to the survey.
Sam Bopha, 41, a garment worker in Phnom Penh, said wages typically rise only a few dollars a year despite complaints, while market prices continue to climb rapidly.
Floor wages for 2025 increased just $4 following a ruling by the National Minimum Wage Council, implemented in 2018, a couple years after restrictive trade laws were enacted in the wake of deadly crackdowns on workers campaigning for fair pay.
Bopha said if her wage does not rise to $232, she expects her family’s wellbeing to deteriorate further, especially if layoffs begin, even after Cambodia recently received a competitive tariff rate to the U.S., the sector’s largest market.
“Even if the government can help workers increase their salaries to more than $208, we will still be thankful – even if it’s not enough, we will try to work extra hours.”
Labor Ministry spokesperson Sun Mesa emphasized that the minimum wage council is “just a facilitator” in the meetings, and that factory owners and unions must decide on wages.
Without naming which union, Mesa said a $10 increase is currently being proposed while employers are holding firm.
Ath Thorn, vice president of the Coalition of Cambodian Apparel Workers’ Democratic Union, said wage negotiations are always contested, with employers and workers pushing different positions while the government makes the final decision.
He said wages are shaped by workers’ living costs, negotiation power and the government’s limited top-up, usually an extra dollar or two.
“After the nationwide strike in 2013, negotiations reached $28, but increases have since been modest. This year, talks are still ongoing,” Thon said, adding that companies should expand benefits.
The GFT sector remains the backbone of Cambodia’s exports, generating $13.6 billion in goods for the global market in 2024. Around 1,555 firms operate in the country, supplying some of the world’s leading retailers.
“It is unacceptable that workers, who are the backbone of Cambodia’s economy, are not afforded a dignified living standard while the sector continues to attract international investment and generate huge profits for brands and employers,” the 28 unions and rights groups said.
