Minimum Wages
On 30 September 2026, the Ministry of Labour and Vocational Training (“MLVT”) issued Prakas 226/26 on the Determination of Minimum Wage for Workers in the Garment, Textile, Footwear (“GTF”), Travel Product and Bag Sectors (“Prakas 226”), to set a new minimum wage for 2027, which will be effective from 1 January 2027.
Under Prakas 226, workers in the above sectors will be entitled to the following new minimum wage:
(1) for regular workers, USD 212 per month; and
(2) for probationary workers, USD 210 per month.
Prakas 226 also sets out the minimum wage for piece rate workers. For such workers, the pay rate is determined based on their level of production and, if such production gives rise to a higher pay rate than the minimum wage, the workers will be entitled to such higher amount. However, if their production gives rise to a pay rate lower than the minimum wage, the employer must adjust the workers’ pay such that the total pay is at least equal to the minimum wage (USD 212 for regular workers and USD 210 for probationary workers).
The other benefits to which the workers in the GTF sectors are entitled remain unchanged, such as compensation for a transportation or accommodation allowance of USD 7 per month, an attendance bonus of USD 10 per month, a meal allowance of USD 0.5 per day (or one free meal per day) for workers who work overtime and a seniority bonus from USD 2 to USD 11 per month for workers in their second to the eleventh years of service.
Prakas 226 further provides that the temporary transportation and accommodation allowance of USD 2.50 per month, established by the decision dated 20 March 2026, will continue to apply in 2027.
Under the Law on Minimum Wage, which was promulgated on 6 July 2018, the key factors in determining the minimum wage include social considerations (such as inflation rates and living expenses) and economic considerations (such as productivity, competition, job market status and profitability of a particular industry). The discussions on the minimum wage are conducted on an annual basis, unless decided otherwise by the National Council on the Minimum Wages, and such minimum wage is determined by a Prakas issued by the MLVT.
Contributable Wage for Social Security Schemes
On 19 October 2026, the MLVT and the Ministry of Economy and Finance (“MEF”) jointly issued Inter-Ministerial Prakas 234/26 on the Adjustment of the Minimum and Maximum Contributable Wage (“Joint Prakas 234”), setting new contributable wage thresholds for calculating contributions to the schemes administered by the National Social Security Fund (“NSSF”).
The contributable wage thresholds were previously determined under Sub-Decree No. 144 on Determination of the Contributable Wage dated 19 August 2021 (“Sub-Decree 144”), which set the minimum and maximum contributable wages for the pension scheme at KHR 400,000 (approximately USD 100) and KHR 1,200,000 (approximately USD 300), respectively. The contributable wages specified in Sub-Decree 144 also apply to the occupational risk and healthcare schemes. Sub-Decree 144 further authorizes the MLVT and the MEF to adjust these thresholds through an inter-ministerial Prakas.
Under Joint Prakas 234, the minimum and maximum contributable wages are now set at KHR 600,000 (approximately USD 150) and KHR 1,500,000 (approximately USD 375), respectively.
Joint Prakas 234 provides for immediate implementation of the new contributable wage thresholds in October 2026. However, to ensure effective implementation, the NSSF issued a notification on the Adjustment of the Minimum and Maximum Contributable Wage on 28 October 2026, requiring the new thresholds to apply from November 2026 instead.
Employers should update payroll and NSSF contribution calculations from November 2026 to reflect the revised contributable wage thresholds for the pension, occupational risk and healthcare schemes. These changes affect the contribution calculation base, not employees’ actual salaries, and employers should assess the resulting impact on contributions and applicable employee deductions.
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The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.