Background
On 20 March 2026, at the headquarters of the Ministry of Labour and Vocational Training in Phnom Penh, the Minister of Labour and Vocational Training, in his capacity as Chair of the National Minimum Wage Council, convened an urgent meeting of the National Minimum Wage Council. The meeting was called to examine options to ease travel cost burdens for workers and employees in the garment, textile, footwear, and travel goods and bag manufacturing sectors during an ongoing global fuel price crisis.
The session was attended by 51 members of the National Minimum Wage Council, with equal representation from the Royal Government, worker and employee representatives, and employer representatives. Discussions were conducted in a spirit of solidarity and high responsibility among the three parties.
Scope of Application
The measure applies to workers and employees in the following sectors:
- Garment manufacturing
- Textile production
- Footwear production
- Travel goods and bag manufacturing
The allowance is intended to support these workers and employees in covering travel-related expenses during the interim period of the global fuel price crisis.
Key Provisions or Decisions
Following deliberations, the National Minimum Wage Council decided to introduce a temporary travel allowance for eligible workers and employees, with the following key elements:
- A temporary travel allowance of USD 2.50 per month will be provided to workers and employees in the specified sectors.
- The allowance will be paid in addition to the travel and accommodation allowances that enterprises, companies, and factories are already implementing.
- The measure will take effect from 1 April 2026.
- The allowance will remain in place until fuel prices return to a normal situation, as referenced in the context of the global fuel price crisis.
Worker representatives expressed their gratitude to the Prime Minister of the Kingdom of Cambodia for ongoing measures to ensure the distribution and supply of fuel and for reductions of taxes on fuel imports, aimed at lowering retail fuel prices and reducing travel expenditure for citizens and workers during the global fuel price crisis. They also thanked employers for responding positively and participating alongside the Royal Government in helping to ease cost burdens in this difficult period.
The Minister of Labour and Vocational Training underlined that the outcome was the result of joint problem-solving among employers, transport service providers, and the Royal Government, and conveyed deep appreciation to the meeting participants, particularly worker and employee representatives.
Implications for Investors, Businesses, or Compliance
Enterprises, companies, and factories operating in the garment, textile, footwear, and travel goods and bag sectors are expected to:
- Provide the additional temporary travel allowance of USD 2.50 per month to eligible workers and employees starting from 1 April 2026.
- Maintain existing travel and accommodation allowances currently applied, with the new allowance paid on top of these existing benefits.
- Monitor announcements from the competent authorities regarding the duration of the measure, which is linked to the normalization of fuel prices.
Investors and employers in the covered sectors should factor the temporary allowance into labour cost planning and payroll administration for the duration of the global fuel price crisis, in line with the decision of the National Minimum Wage Council.
Official Source
The information is based on an official announcement published by the Ministry of Labour and Vocational Training on its verified Facebook page on 20 March 2026.
