Logo of Phnom Penh Post newspaper Phnom Penh Post - Workers’ wages must be paid twice a month, says ministry



Workers’ wages must be paid twice a month, says ministry

Content image - Phnom Penh Post
Workers work at one of factories in Phnom Penh Special Economic Zone in 2016. Employees will get half of their salary in the second week and benefits in the fourth week of each month, according to the prakas signed by the Minister of Labour. Hong Menea

Workers’ wages must be paid twice a month, says ministry

The Ministry of Labour and Vocational Training on Friday announced a plan to oblige all enterprises under its oversight to pay workers’ and employees’ salaries twice a month starting from January next year.

According to the Prakas, signed by Labour Minister Ith Sam Heng, employees will get half of their salary in the second week and the remaining half together with other incentives and benefits in the fourth week of each month.

Cambodian Alliance of Trade Unions (CATU) president Yang Sophorn said paying workers twice a month has both positive and negative effects.

“It has a positive effect because workers wouldn’t have to take out a loan anymore when they are short. In the past, they would borrow money from others and payback when they get paid."

“But it would also be difficult for them to save money. It’s not something they have demanded. In fact, [the new payment scheme] is in accordance with labour law,” he said.

Meanwhile, the ministry will also implement a seniority indemnity two times a year, starting next year.

The prakas said the seniority indemnity shall apply only to workers/employees who have undetermined duration contract as stipulated under Article 89 of the labour law.

For workers who have a fixed duration contract, the employer shall provide the workers/employees with severance pay which is in proportion to both wage and the duration of the contract.

The amount of this severance pay is stipulated in the collective bargaining agreement. If there is no collective agreement, it shall be at least five per cent of the wages that the workers/employees have been paid during the duration of the contract.

‘More support’

The employer shall provide workers/employees who are working with seniority indemnity equal to 15 days of their wage and other benefits per year. This indemnity shall be paid to workers/employees seven and a half days in June of each year and seven and a half in December of each year.

For workers/employees who have been employed in the first year and have worked consecutively from one to six months, the employer shall provide the workers/employees with seven and a half days of seniority indemnity.

The seniority indemnity back pays of workers/employees who have been working in the enterprise/establishment shall follow certain formalities.

For textile, garment and footwear enterprise/establishment, the employer shall pay back pay of 30 days of the total seniority indemnity every one year, 15 days in June of each year and 15 days in December of each year.

For enterprise/establishment other than the textile, garment and footwear sector, the employer shall pay back pay of 15 days of the total seniority indemnity every one year, seven and a half days in June of each year, and seven and a half days in December of each year.

The maximum seniority indemnity to be paid shall not exceed six months of the average net wages of each year.

For the first year of employment of workers/employees, which is the basis for seniority indemnity, the employer shall pay seniority indemnity of seven and a half days to workers/employees who have worked consecutively from one month to six months.

If the employment duration exceeds six months, it shall be equal to one full year and the employer shall pay seniority indemnity of 15 days to the workers/employees.

Workers/employees who have seniority before 2019 from one month upwards will receive two different types of seniority indemnity, back pay of seniority before 2019 and seniority indemnity in each year. Workers/employees who resign will not receive the back pay of the remaining seniority.

Labour Ministry spokesman Heng Sour could not be reached for comment. But Sophorn said more needs to be done for the benefit of workers.

“Regarding seniority indemnity, I think [the minister] may want more support from workers."

It’s not certain if the prakas will provide more advantages for workers than before because it would be just a small contribution.

“As a matter of fact, the government should check companies that use short-term contracts because short-term contracts could lead to an abuse of workers’ rights,” he said.

MOST VIEWED

  • Kingdom's Covid cluster cases jump to 194

    The Ministry of Health on February 25 confirmed 65 new cases of Covid-19, with 58 linked to the February 20 community transmission. The latest cluster cases include nine Vietnamese nationals, five Cambodians, one each from Korea, Singapore and Japan, with the rest being Chinese. This brings the total number

  • Locations shut, dozens more Covid-19 positive

    The Ministry of Health has closed 23 locations in connection with the February 20 community transmission of Covid-19 and summoned for testing anyone who had direct contact with affected people and places. The number of discovered related infections has risen to 76, including 39 women. In a press release,

  • Cambodia's Covid cluster cases rise to 137

    The Ministry of Health on February 24 recorded 40 more cases of Covid-19, with 38 linked to the February 20 community transmission. Of the 40, two are imported cases involving Chinese passengers. The 38 include two Vietnamese nationals and one Cambodian, with the rest being Chinese. This brings the total cases

  • Covid cluster raises alarm, health bodies urge vigilance

    The Ministry of Health and the World Health Organisation (WHO) in Cambodia have expressed great concern over the February 20 cluster transmission of Covid-19 in the community. Both entities appealed for vigilance and cooperation in curbing further spread of the virus. Ministry spokeswoman Or Vandine said

  • PM confirms third Covid-19 community transmission

    Prime Minister Hun Sen on February 20 announced the Kingdom's third outbreak of Covid-19 community transmission after 32 people tested positive in just over 10 hours. Addressing the public from his residence after an emergency meeting, Hun Sen said: "I dub it February 20 Community Event, in which 32 cases

  • Cambodia to make auto-rickshaws

    Locally-assembled electric auto-rickshaws could hit the Cambodian market as soon as early in May after the Council for the Development of Cambodia (CDC) gave the greenlight to an investment project at the weekend. According to a CDC press release, it will issue a final registration