Cambodia’s 2026 Minimum Wage Surpasses Neighbouring Manufacturing Hubs
Cambodia’s 2026 Minimum Wage Surpasses Neighbouring Manufacturing Hubs
PHNOM PENH, May 5, 2026 — Cambodia’s minimum wage in the garment sector has risen above several competing countries in the region, reinforcing its position in the global manufacturing supply chain despite ongoing cost pressures.
Labour Minister Heng Sour said the minimum wage for 2026 stands at $210 per month, with total earnings reaching $227 to $240 when additional benefits are included. Average monthly income can rise to around $300 with overtime and allowances.
The figures place Cambodia ahead of several regional competitors, including Sri Lanka and Myanmar (both $97), Bangladesh ($102), Laos ($116), Pakistan ($143), and India ($132–$192). Vietnam’s wage range of $148–$212 and Indonesia’s broader range of $138–$340 show more variation but remain competitive.
Officials said Cambodia’s wage policy reflects efforts to balance worker welfare with economic competitiveness, as the country continues to rely heavily on garment exports as a key growth driver.
In addition to base pay increases, the government has introduced supplementary support measures, including a $2.50 travel allowance, aimed at offsetting rising fuel costs linked to global energy pressures.
Authorities say Cambodian workers also benefit from broader social protections, including health coverage, occupational risk insurance and pension schemes, which contribute to overall income security beyond base wages.
The government maintains that sustained wage growth, combined with improved labour conditions, is essential to attracting investment while supporting living standards, even as manufacturers face increasing regional competition and global market uncertainty.
