Cambodia Raises Minimum Wage for Garment and Footwear Sectors in 2025

Cambodia has increased the minimum wage for the textile, garment, footwear, and travel product industries for 2025 under a decision made by the National Council on Minimum Wage (NCMW), a tripartite body comprising equal representation of labor unions, employer’s associations, and the government, through Prakas 211.

Prakas 211 will be effective from January 1, 2025.

What is the new minimum wage?

The new minimum wage for the textile, garment, footwear, and travel product industries in 2024 will be:

• US$208 per month for regular workers; and
• US$206 per month for probationary workers.

The minimum wage in 2024 was US$204 per month for regular workers and US$202 per month for probationary workers.

Prakas 211 also outlines the minimum wage provisions for piece rate workers, who are compensated based on their level of output. These workers have the potential to earn more than the minimum wage if their production yields a higher pay rate. However, if their production results in earnings lower than the minimum wage, their pay is adjusted to meet the minimum wage threshold of US$208 per month for regular workers or US$206 per month for probationary workers.

What other benefits do workers in Cambodia receive?

In addition to the minimum wage, workers will also receive the following benefits:

1. Attendance bonus — US$10 per month;
2. Travel and accommodation expenses — US$7 per month;
3. Meal allowances — US$0.50 per day; and
4. Overtime and seniority bonus — US$2-US$11 per month for those between their second to the eleventh year of work.

The garment and textile sectors continue to be the cornerstone of the economy

The garment and textile sectors continue to cornerstone Cambodia’s economy, contributing significantly to employment, exports, and overall economic growth.

Garment and textile manufacturing contributes around 10 percent to Cambodia’s GDP and is responsible for more than 70 percent of the country’s total exports. The industry has grown steadily due to its competitive labor costs, preferential trade agreements, and access to key international markets such as the EU and the U.S. Further, these industries are one of the largest employers in Cambodia, with around 750,000 workers employed.

However, Cambodia’s garment and textile industry faces rising labor costs, compliance with international labor standards, and global competition. The sectors are also heavily reliant on imported raw materials, mainly from China.

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