On 30 September 2026, the MLVT issued the above Prakas, which sets the 2027 minimum wage for workers/employees in textiles, garments, footwear, travel goods, and bags.
Key Provisions
Effective Date: 1 January 2027
Minimum Monthly Wage:
- Regular workers/employees: USD 212 per month
- Probationary workers/employees: USD 210 per month
Piece -Rate Workers/Employees:
- Piece-rate workers/employees are paid based on their actual output. If their output-based earnings exceed the applicable minimum wage, they are entitled to a higher amount.
- If their output-based earnings fall below the applicable minimum wage, the employer must pay the difference so that each worker/employee receives at least:
_ USD 210 for probationary workers/employees
_ USD 212 for regular workers/employees
Additional Allowance: A temporary monthly allowance of USD 2.50 will continue to apply in 2027, in addition to the existing transportation and accommodation allowances.
Other Benefits: All other existing benefits and entitlements of workers/employees remain unchanged.
Implementation of the New Minimum Wage for 2027 in the Textile, Garment, Footwear, Travel Goods, and Bag Industries
KPMG Commentary
This wage adjustment reflects the Royal Government of Cambodia's continued efforts to strengthen labour standards and improve living conditions for workers in key manufacturing industries. Employers in the affected industries should review their payroll arrangements and make the necessary adjustments to ensure compliance with the revised minimum wage by 1 January 2027.
KPMG Cambodia can help businesses review their payroll processes and compliance frameworks in light of the updated requirements. Our team provides payroll compliance reviews and practical advisory support to help organizations meet their obligations under the Cambodian Labour Law and related regulations.
If you need help with minimum wage compliance in Cambodia, please contact us.