Cambodian unions and civil society groups have criticised a decision to set the minimum wage for garment workers and related sectors at $210 a month in 2027, saying the $2 increase will fail to keep pace with rising living costs.
In a joint statement issued on October 5, 2026, the groups said the National Minimum Wage Council had voted overwhelmingly on September 30, 2026, to keep wages unchanged. A subsequent intervention by Prime Minister Hun Manet brought the final figure to $210.
The groups said the outcome raised questions about the council’s independence, transparency and effectiveness.
Unions had sought a monthly minimum wage of $250.66, citing research into the everyday expenses of workers and their families. The study surveyed 422 workers at 28 factories in Phnom Penh and the provinces of Kandal and Kampong Speu.
More than 100 unions and civil society organisations supported the proposal, alongside international groups including the Asia Floor Wage Alliance and the Clean Clothes Campaign.
The unions said the $2 increase amounted to about 0.95%, compared with an inflation forecast of 3.1% that they attributed to the International Monetary Fund. They argued that workers needed at least $6.51 more a month simply to maintain their purchasing power.
“An increase of just $2 is not enough to ease the financial burden on workers and their families,” the groups said.
They warned that rising food prices and household debt were putting workers under increasing pressure, while wage increases below inflation continued to erode their earnings in real terms.
Sieng Rithy, president of the Cambodian Youth Power Union Federation, expressed deep disappointment. Sieng Rithy said the increase failed to address workers’ hardships or reflect the seven criteria considered during wage negotiations.
The criticism comes as Hun Manet promotes Cambodia’s longer-term economic ambitions.
In a Facebook message, Hun Manet said Cambodia would graduate from the United Nations’ least developed country category on December 19, 2029. Hun Manet also outlined goals of reaching upper middle income status by 2030 and high income status by 2050, attributing those ambitions to the government’s Pentagonal Strategy.
For unions, however, the immediate concern remains whether workers can afford their daily needs. They say the agreed increase falls well short of the support workers and their families require.