Cambodia New minimum wage for garment and footwear sector in 2025

Cambodia has raised the minimum wage in the textile, clothing, footwear and tourism industries to 2025 in line with a decision made by the National Council for Minimum Wages (NCMW), a tripartite body consisting of equal representation from trade unions, employers’ associations and the government, through Prakas Law 211.

Prakas 211 will be in force from January 1, 2025.

What is the new minimum wage?

The new minimum wage in the textile, clothing, footwear and tourism industry in 2024 will be:

• $208 per month for permanent employees;
• $206 per month for probationary employees.

The minimum wage in 2024 was $204 per month for permanent employees and $202 per month for probationary employees.

Prakas 211 also outlines minimum wage provisions for pieceworkers, who are paid based on their level of productivity. These workers have the potential to earn more than the minimum wage if their production yields a higher rate of pay. However, if their production yields earnings below the minimum wage, their pay is adjusted to the minimum wage threshold of $208 per month for permanent employees or $206 per month for employees on probation.

What other benefits do workers in Cambodia receive?

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

1. Attendance Bonus – $10 per month;
2. Travel and accommodation costs – USD 7 per month;
3. Meal Allowances – $0.50 per day;
4. Overtime and Seniority Bonus – $2-$11 per month for second to eleventh years of service.

The clothing and textile sector continues to be the backbone of the economy

The clothing and textile sector continues to be the backbone of Cambodia’s economy, contributing significantly to employment, exports and overall economic growth.

The garment and textile industry contributes about 10 percent of Cambodia’s GDP and accounts for more than 70 percent of the country’s total exports. The industry continues to grow thanks to competitive labor costs, preferential trade agreements, and access to key international markets such as the EU and the U.S. Additionally, these industries are among Cambodia’s largest employers, employing some 750,000 workers.

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