2027 Garment Sector Minimum Wage Set at US$212: What Foreign-Owned Factories Should Do Before 1 January
At a glance
The minimum wage for workers in the textile, garment, footwear, travel-goods and bag industries will be US$212 per month from 1 January 2027, up from US$210 in 2026. The National Council for Minimum Wage voted for US$210 on 30 September 2026. Prime Minister Hun Manet then added US$2. The Ministry of Labour and Vocational Training (MLVT) Prakas setting the new rate was published on 6 October 2026.
US$212 per month for regular workers, effective 1 January 2027.
US$210 per month during the statutory probationary period.
US$210 won 47 of 51 votes; Prime Minister Hun Manet added US$2 executive supplement.
AKP reports that with allowances and bonuses, workers earn approximately US$229–US$240 per month.
What does the Prakas say?
The Ministry of Labour and Vocational Training (MLVT) published the official Prakas setting the 2027 minimum wage following the National Council for Minimum Wage vote and Prime Minister Hun Manet's executive supplement. The core provisions are:
- Probation workers: US$210 per month during probation, rising to US$212 once they become regular workers.
- Piece-rate workers: Paid on actual output, but statutorily topped up to at least US$210 (probation) or US$212 (regular) if their output earnings fall short.
- Accommodation and transport allowance: The existing mandatory monthly allowance continues in 2027.
- Existing benefits: Other benefits workers already receive under employment agreements or enterprise custom must be maintained.
- Effective date: 1 January 2027.
AKP lists the statutory allowances and supplements that come on top of the basic wage as regular-attendance, transport, accommodation, and seniority bonuses.
What does this mean for 2027 budgets?
For each regular worker, the basic wage rises by US$2 a month, or about 1%. On its own this is a modest increase. But costs that are calculated from wages, such as overtime, night work, leave pay, seniority bonuses, severance provisions and social security contributions, will move with it.
Factories planning their 2027 budgets, or pricing contracts with international buyers, should run the numbers on total cost per worker, not just the basic wage. Small yearly increases are the norm in Cambodia: the rate has risen steadily from US$170 in 2018 to US$212 in 2027.
Confirm how each allowance and bonus is calculated under the Labour Law and relevant prakas, and evaluate the knock-on effect of the new wage baseline on National Social Security Fund (NSSF) contribution ceilings.
What should employers do now?
Foreign-owned factories, export manufacturers, and HR management teams should carry out six practical compliance steps before 1 January 2027:
01 — Re-cost 2027 payroll budgets
Re-cost payroll at US$212 (regular) and US$210 (probation), including the knock-on effect on wage-linked costs such as overtime multipliers and severance reserves.
02 — Update payroll and ERP software
Update payroll systems so January 2027 wages, paid in early February 2027, reflect the revised statutory rates.
03 — Review employment contracts and internal rules
Review existing employment contracts and internal work rules. Contracts stating a wage below the new minimum should be formally amended or covered by a written wage notice.
04 — Audit piece-rate top-up mechanisms
Check piece-rate pay to make sure the top-up mechanism is applied consistently every month to guarantee the minimum wage floor.
05 — Maintain existing allowances and benefits
Confirm that the housing and transport allowance, attendance bonus, and seniority payments continue in 2027 without unilateral deduction.
06 — Brief HR, supervisors, and workforce
Brief HR and line managers on the new wage standards, and keep a formal record of all communications provided to workers.
Key takeaways
- The minimum wage is US$212/month from 1 January 2027, or US$210 during probation.
- Piece-rate workers must be topped up to the minimum.
- Existing allowances and benefits continue.
- Budget for the knock-on effect on wage-linked costs, not just the US$2 rise.
How MLV Law Group can help
MLV Law Group advises foreign-owned factories and investors on Cambodian labour compliance. We can review your 2027 payroll assumptions against the Prakas, update employment contracts and internal work rules, check how allowances, bonuses and severance are calculated, and support labour due diligence on transactions. We review each matter and issue a written service proposal.
Contact legal@mlvlawgroup.com or +855 71 777 4168. For more context, see our practice areas on Employment & Labor and Work Permits.
AKP, 'Cambodia Sets 2027 Minimum Wage for Garment Workers at US$212' (30 September 2026); Commerce Cambodia & TAFTAC, 'Prakas On Determination of Minimum Wage for Workers for 2027' (published 6 October 2026 with official Khmer Prakas text).
Statutory Disclaimer
This note is general information on Cambodian law as at 7 October 2026. It is not legal advice and does not create a lawyer–client relationship. Prakas and administrative practice change, and the official Khmer text prevails. An engagement letter is required before MLV Law Group acts on any matter.
