New Minimum Wage Announced for Cambodia’s Garment, Footwear and Travel Goods Sectors

On 20th September 2024, the Ministry of Labor and Vocational Training issued a significant update to the minimum wage regulations for workers in Cambodia’s garment, footwear, and travel goods manufacturing industries. This update comes in the form of Prakas No. 211, which sets forth the new minimum wage standards for the year 2025.

Key Points of the New Regulation:

1. Standard Minimum Wage:

– For 2025: The minimum wage for regular workers in these sectors has been set at USD 208 per month.
– This represents an increase of USD 4 from the 2024 rate of USD 204 per month.

2. Probationary Period Wage:

– For 2025: Workers in their probationary period will be entitled to a minimum wage of USD 206 per month.
– This is also a USD 4 increase from the 2024 rate of USD 202 per month.

These increments demonstrate the government’s ongoing commitment to gradually improving the living standards of workers in these crucial export-oriented industries. The modest increase aims to balance the needs of workers with the competitiveness of Cambodia’s manufacturing sector in the global market.

Employers in the garment, footwear and travel goods industries should take note of these changes and ensure their payroll systems are updated accordingly for the coming year. It’s also advisable for businesses to review their overall compensation structures in light of these changes.