How Much Is the Minimum Wage in Cambodia? A 2025 Guide

Understanding the minimum wage in Cambodia is crucial for both local workers and foreign investors. In light of the expanding economy and changing labor market, 2025 will see new wage regulations which impact a range of industries nationwide.

In this comprehensive guide, we’ll explore the Cambodia minimum wage, how it compares to the Cambodia average salary, and what employees and employers need to know about compliance and expectations. This guide will provide you a comprehensive image of Cambodia's financial situation this year, irrespective of whether you are searching for work, running a business, or are just inquisitive.

What Is the Minimum Wage in Cambodia in 2025?

As of January 2025, the minimum wage in Cambodia workers in the apparel, textile and footwear industries are the main groups covered by wage legislation and their monthly wages are fixed at $204. The rate has increased by $6 since 2024. Both obligatory bonuses and base salary are included in the remuneration. Although this standard applies specifically to workers in the garment sector it often serves as a benchmark for other industries.

Breakdown of the 2025 Wage

• Basic monthly salary: $204
• Daily equivalent (assuming 26 workdays/month): Around $7.85 per day
• Overtime pay: Additional, based on job role and work schedule

It’s important to note that the Cambodia minimum wage per day varies in informal sectors and also provinces where formal contracts may not exist. The goal of standardizing wages across all industries is still being pursued by the government. For example, in some rural areas the Cambodia minimum wage per day may be negotiated informally and fall below official rates though the aim is to bring uniformity.

Why the Change in 2025?

Several factors influenced the increase in the minimum wage in Cambodia 2025, representing a nuanced combination of political, social and economic factors:

• Inflation adjustment: As living expenses rise, especially in Phnom Penh, workers are finding it more and more difficult to pay for essentials like rent food and transportation also. As a result, wage structures had to be reviewed in order to better reflect the actual economic climate.
• Labor union advocacy: When it came to advocating for increased wages worker unions were essential. After raising awareness of problems like long workdays limited benefits and wage stagnation through a number of coordinated actions and discussions the Cambodian government reexamined the minimum wage.
• Government policy goals: The Royal Government of Cambodia has made social protection, economic equality and poverty reduction its top priorities. Raising the minimum wage in Cambodia 2025 backs national initiatives to promote sustainable development and raise living standards.
• Regional competitiveness: Cambodia is competing with neighboring countries like Vietnam and Thailand for foreign investment. A structured and fair wage system helps retain skilled labor while presenting Cambodia as a stable and equitable labor market.

The proactive measures taken to update the Cambodian hourly rate for 2025 bringing it more in line with modern reality and encouraging a more robust labor market can be explained by these aspects taken together.

How Does the Minimum Wage Compare to the Average Salary in Cambodia?

The Cambodia average salary varies depending on industry and experience. Financial, IT and hospitality professionals usually earn far more than the minimum wage.

Key Comparisons:

• Garment factory worker: ~$204/month (minimum wage in Cambodia)
• Junior office admin: $250–$350/month
• Experienced software developer: $1,000–$2,000/month
• Senior management roles: $3,000+/month

These numbers show a gap between the minimum wage in Cambodia and the average wage in Cambodia, which shows differences between industries. However, as the economy matures, salaries are expected to rise across the board. For example the average wage in Cambodia for a skilled technician in Phnom Penh is now about $600, showing a clear difference between regulated and market-based salaries.

Step-by-Step Guide: How to Calculate Your Monthly Pay

By taking this scientific approach it is easy to understand your expected salary based on Cambodia's minimum wage:

1. Decide on your role: Verify whether the field in which you work has regulated minimum wages (such as clothing or footwear).

2. Choose your base pay, which, if regulated, is $204 per month.

3. Calculate daily and hourly rates:

• Daily: $204 / 26 = $7.85 per day
• Hourly (assuming 8-hour days): $7.85 / 8 = ~$0.98/hour

4. Consider benefits such as overtime bonuses and travel expenses also.

5. Examine deductions: If appropriate deduct taxes or social security contributions.

This tutorial is not only necessary for individuals receiving the minimum salary in Cambodia, but also for everyone evaluating whether their compensation aligns with the salary in Cambodia standards. Knowing these calculations helps both workers and employers stay financially informed.

Use Case 1: A Garment Factory Worker

Sokha works in Phnom Penh at a textile company. Her base salary is the minimum wage in Cambodia 2025, which equals $204. In addition to working six days a week, she occasionally receives overtime which raises her monthly salary by around $30. Her monthly take-home, after minor deductions is around $220. With careful budgeting, she’s able to send money home to her family in the province. Her employer ensures that she receives at least the Cambodia minimum wage per day which gives her financial security.

Use Case 2: Entry-Level IT Worker

Sovann just started as a junior IT support specialist in Siem Reap. His starting salary is $300 per month, even though his job isn't subject to Cambodia's minimum wage regulations.  Despite being greater than Cambodia's minimum salary, it’s still lower than the average salary in Cambodia for IT professionals. With experience, he expects to reach $600–$800/month within two years. His initial wage reflects the typical salary in Cambodia for entry-level white-collar jobs.

What Employers Need to Know

Employers must stay compliant with wage laws or risk penalties. Key things to keep in mind:

• The minimum salary must be reflected in contracts.
• Salary components should be broken down on paystubs.
• For qualified workers, social security registration is required.
• Ministry of Labor may perform audits on a regular basis.

By following these guidelines, employers help to promote fair labor practices and employee happiness. They also help to boost the general average income in Cambodia making it easier to retain talented workers.

Future Outlook: Is the Minimum Wage in Cambodia Expected to Rise Again?

Throughout the previous five years, Cambodia's minimum wage has continuously increased also.  The goal of legislation is to balance competitiveness and worker welfare. It's likely that future rises will depend on:

• National inflation rates
• The state of the regional economy
• The state of investments

Every year, pay changes are usually released in the final quarter and also both employers and employees should be aware of them. These changes also have an impact on Cambodian compensation expectations particularly for low- to mid-paying positions.

Conclusion

The minimum salary in Cambodia is more than simply a number, it represents the nation's economic progress and labor objectives. Earnings for Cambodian workers in important industries are gradually increasing as of 2025 with a baseline of $204 per month. While the Cambodia minimum wage still trails behind the average salary in Cambodia, the gap is slowly narrowing.

Whether you’re an employee or employer, understanding the minimum wage in Cambodia 2025, making educated financial judgments is aided by its restrictions and how it stacks up against the average pay in Cambodia.

Stay updated, plan smartly, and always aim for growth in Cambodia’s evolving job market. Knowing how the daily minimum wage in Cambodia compares to the country's overall salary trends is crucial when determining your own pay or employing employees.

Read More: Top 5 Ways How to Negotiate Salary in Interview with HR