The third round of negotiations concerning Cambodia’s 2027 minimum wage concluded on Friday without an agreement. Employer representatives maintained their stance to keep the current monthly rate of $210, while worker representatives continued to advocate for increases to either $225.30 or $250.66.

Labor Minister Heng Sour cited global economic uncertainty, energy crises, and regional competitiveness as primary obstacles to raising wages. He suggested that the government’s focus remains on job creation to boost household income rather than relying solely on statutory wage adjustments. Meanwhile, a campaign circulating on social media has warned that higher labor costs could lead to factory closures, a sentiment echoed by some workers who fear for their job security.

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Conversely, a coalition of 125 civil society organizations and various trade unions argued that an increase is essential to address the rising cost of living. Data cited by unions indicates that current average earnings cover only about 60% of household expenses, with many workers struggling to manage debt and food costs. Yang Sophorn, president of the Cambodian Alliance of Trade Unions, stated that a $250 wage is within the capacity of employers and argued that Cambodia remains a viable location for the garment sector.

Individual workers expressed concern that stagnant wages fail to keep pace with the rising prices of rent, fuel, and daily necessities. While some workers worry that higher demands could drive businesses away, others argue that the current wage is insufficient to sustain families, forcing many to rely on overtime work to make ends meet.

Source: CamboJA News