Cambodia, Ontario, Nova Scotia Update Minimum Wage Rates
Recent minimum wage developments in Cambodia, as well as the Canadian provinces of Ontario and Nova Scotia, will require affected employers to update payroll calculations and review the affected employee populations.
While the changes differ significantly in scope and methodology, they demonstrate that minimum wage compliance can depend on sector, location, and the mechanism used to set statutory rates.
Cambodia Sets 2027 Minimum Wage for Garment and Related Sectors
For 2027, Cambodia has set the monthly minimum wage for workers in the textile, garment, footwear, travel goods, and bag sectors at US$212. The new rate takes effect on 1 January 2027 and is a US$2 increase over the US$210 minimum applicable in 2026.
The rate was set following negotiations through the National Council for Minimum Wage. Employers proposed maintaining the existing US$210 rate, while worker representatives proposed US$225. The US$210 proposal received 47 of 51 votes, after which Prime Minister Hun Manet added US$2 to set the final US$212 rate.
Additional allowances and benefits continue to apply alongside the statutory minimum wage, making it important for payroll teams to consider the complete remuneration structure rather than the rate alone.
Ontario Minimum Wage Rises to CA$17.95
Ontario increased its general minimum wage from CA$17.60 to CA$17.95 per hour on 1 October 2026. The provincial government estimates that more than 700,000 workers will benefit from the increase.
The annual adjustment is linked to the Ontario Consumer Price Index, which rose by 1.9%. Ontario's minimum wage is reviewed annually, with new rates taking effect each October.
Specialised minimum wage rates for students, homeworkers, and hunting, fishing and wilderness guides also increased. Employers should therefore confirm which statutory rate applies to each affected employee rather than applying the general rate across the entire workforce.
Nova Scotia’s Second Increase of 2026
Nova Scotia also increased its minimum wage on 1 October 2026, from CA$16.75 to CA$17.00 an hour.
This is the province's second minimum wage increase this year. The rate previously rose from CA$16.50 to CA$16.75 on 1 April 2026. The adjustments reflect the consumer price index plus 1%, in line with Nova Scotia's minimum wage regulations. The provincial government estimates that about 31,000 workers, representing around 6.5% of the workforce, currently earn the minimum wage.
Practical Implications for Payroll Teams
These changes illustrate why global minimum wage monitoring cannot stop at the country level. In Canada, requirements vary between provinces, while Cambodia's new rate applies to specific manufacturing sectors.
Payroll teams should confirm the affected employee populations, update rates using the correct effective dates, and review any calculations or pay elements linked to the statutory minimum. Where specialised rates or additional allowances apply, these should also be incorporated into payroll controls and testing.
The different approaches are equally important from a planning perspective. Ontario and Nova Scotia use defined, inflation-related mechanisms that provide employers with a degree of predictability, whereas Cambodia's rate is set through an annual negotiation process. Understanding how rates are determined can therefore help payroll teams anticipate future changes rather than responding only after new figures are announced.
Key Takeaways
Minimum wage compliance is increasingly about more than monitoring a single national rate. Regional rules, sector coverage, specialised employee categories, and different adjustment mechanisms can all determine what an employer must pay.
For global payroll teams, maintaining clear ownership of minimum wage monitoring and accurately translating legislative changes into payroll systems remain fundamental controls. The changes in Cambodia, Ontario, and Nova Scotia demonstrate the value of monitoring both the rate itself and the framework behind it.
Join The Payroll Community to connect with more than 30,000 of your payroll peers worldwide. Gain access to the Global Forum, where you can network with payroll professionals, ask follow-up questions about this article, and more.
Become a PayrollOrg Global Subscriber for access to additional global payroll resources, including Global Payroll eMagazine, news alerts, and more.
Max van der Klis-Busink, MCIPP, RPP, is the Founder and Global Payroll Consultancy Lead of Passion For Payroll.
