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Cambodia - Minimum Wages - 2011


LAST UPDATE

1 June 2011

SOURCES


Name of Act

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Name of Act

Notification on the minimum wage in the textile, garment and shoe-sewing industries 2010

Name of Act

Ministry of Labour and Vocational Training Notification No. 745 KKBV, dated 23 October 2006.

Name of Act

Ministry of Labour and Vocational Training Notification No. 032/08, dated 17 April 2008.

Other source used

LAC Statement 8 July 2010

LEGAL DEFINITIONS


Employee/worker

Workers are persons who have signed an employment contract in return for remuneration, under the direction and management of another person, whether that person is a natural person or legal entity, public or private.

Employees or helpers are persons who are contracted to assist any person in return for remuneration, but who does not perform manual labor fully or who does so incidentally.
Labour Law §§3, 5

Employer

All persons or legal entities, public or private, are considered to be employers who constitute an enterprise, provided that they employ one or more workers.
Labour Law §2

Wage

Wage means the remuneration for employment or service that is convertible in cash or set by agreement or by national legislation, given to a worker by an employer, by virtue of a written or verbal contract of employment or service, either for work done or to be done or for services rendered.

Wages include in particular:
(i) actual wage or remuneration;
(ii) overtime payments;
(iii) commissions;
(iv) bonuses and indemnities;
(v) profit sharing;
(vi) gratuities;
(vii) the value of benefits in kind;
(viii) family allowance in excess of the legally prescribed amount;
(ix) holiday pay or compensatory holiday pay;
(x) amount of money paid by the employer to workers during disability and maternity leave.

Wage does not include:
(i) health cares;
(ii) legal family allowance;
(iii) travel expenses;
(iv) benefits granted exclusively to help the worker do his or her job.
Labour Law §§102, 103

MINIMUM WAGE FIXING


Procedure


Government decides after tripartite or bipartite body discussions/recommendations

The legislation provides that there should be a guaranteed minimum wage set by the Ministry of Labour by way of a Prakas (ministerial order), after receipt of recommendations made by the Labour Advisory Committee. The wage is adjusted from time to time in accordance with the evolution of economic conditions and the cost of living.

The Committee is made up of the Minister of Labour or his representative as the chairperson, a number of representatives of relevant ministries, and an equal number of representatives from the workers’ and employers’ unions and organisations that are the most representative at national level.
Labour Law §§107, 351

Minimum wage set through decentralized collective bargaining

The Labour Code also stipulates that collective agreements may provide for conditions (such as minimum wage rates) that are more favourable to workers than those provided for in the legislation. The collective agreements must specify their scope of application and the agreement shall only apply to those establishments or sectors specified.
Labour Law §§96, 97

Criteria

The wage must be at least equal to the guaranteed minimum wage; that is, it must ensure every worker of a decent standard of living compatible with human dignity.
Labour Law §104

Needs of workers and their families

The needs of workers and their families shall be taken into consideration for determining the minimum wage to the extent possible.
Labour Law §107 (3)

Cost of living

Consideration of the needs of workers and their families shall be in relation to the cost of living.
Labour Law §107(3)

Level of wages and incomes in the country

Consideration of the needs of workers and their families shall be in relation to the general level of salary in the country.
Labour Law §107(3)

Social security benefits

Consideration of the needs of workers and their families shall be in relation to social security allowances.
Labour Law §107(3)

Economic development

The requirements of economic development shall be taken into consideration for determining the minimum wage to the extent possible.
Labour Law §107(3)

Productivity

Productivity shall be taken into consideration for determining the minimum wage to the extent possible.
Labour Law §107(3)

Level of employment

The advantages of achieving and maintaining a high level of employment shall be taken into consideration for determining the minimum wage to the extent possible.
Labour Law §107(3)

Inflation rate

The wage is to be adjusted from time to time in accordance with the evolution of economic conditions and the cost of living.
Labour Law §107(2)

Other provisions

Consideration of the needs of workers and their families shall be in relation to the comparative standard of living of other social groups.
Labour Law §107(3)

Coverage


Scope

The provisions concerning minimum wage setting are contained in the Labour Code, which applies to all enterprises and establishments whether they are of a professional, charitable or educational nature.

Minimum wage rates have in fact only been set for workers in the textile, garment and shoe-sewing sector.
Labour Law §1
Notification on the minimum wage in the textile, garment and shoe-sewing industries
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Excluded categories


» Workers

Judges and workers holding a permanent position in the public sector are excluded.
Labour Law §1

» Sectors

Domestic workers are excluded from the scope of the Labour Code.
Labour Law §1
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» Occupations

Members of the police, army, military police forces, and air and maritime transportation personnel who are governed by a separate statute are excluded from the scope of the Labour Law.
Labour Law §1

Specific minimum wage rates


» Specific minimum wage by occupation

The Labour Code states that rates must be established without distinction between professions or jobs.
Labour Law §107 (1)

» Specific minimum wage by sector

The Labour Code states that rates must be established without distinction between professions or jobs.
Labour Law §107 (1)

» Specific minimum wage by region

In accordance with the Labour Code, minimum wage rates may vary regionally based on the economic conditions that determine the cost of living. The minimum wage for the garment and footwear sector does not distinguish between different regions.
Labour Law §107 (1)

» Minimum wage levels for specific categories of workers


» Domestic Workers

Domestic workers are excluded from the scope of the Labour Code.
Labour Law §1

» Piece-rate workers

Task-work or piece-work, whether done at home or in the workshop, must be paid at a wage rate calculated in a manner that permits the worker of mediocre ability, working normally and for the same amount of time, to earn a wage at least equal to the guaranteed minimum wage as determined for a worker.
Labour Law §108

Level


Minimum wage level(s) in national currency

USD $61 per month for regular and casual workers.
USD $56 per month for probationary workers.
LAC Statement 8 July 2010

Last minimum wage update

8 July 2010
LAC Statement 8 July 2010

In-kind allowances

The value of benefits in kind may be included in the determination of wages. However, wages can be garnished or assigned only as follows:
1 . The portion of wage that is less than or equal to the guaranteed minimum wage cannot be garnished or assigned.
2. A maximum of twenty percent of the portion of wage greater than the guaranteed minimum wage to three times the minimum wage can be garnished or assigned.
3. A maximum of thirty percent of the portion of wage greater than three times the guaranteed minimum wage to ten times the minimum wage can be garnished or assigned.
4. A maximum of fifty percent of the portion of wage greater than ten times the minimum wage can be garnished or assigned.
The wage taken into account for this calculation is the monthly wage.
Labour Law §§103, 130
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Rate of payment

The rate of payment required by the Labour Law varies according to the type of contract on which the worker is employed.

» Monthly

Employees’ wages must be paid at least once per month.
Labour Law §116

» Other

Labourers’ wages shall be paid at least 2 times per month, at a maximum of 16 day intervals.

Commissions due to sales agents or commercial representatives must be paid at least every 3 months.

For all task-work or piecework that is to be executed for longer than fifteen days, the dates of payment can be fixed by agreement, but the laborer must receive partial payments every fifteen days and be paid in full in the week following the delivery of the work.
Labour Law §116

Scheduled frequency of adjustment

The Labour Code does not set a specific time period for the adjustment of minimum wage rates. Rates are adjusted from time to time in accordance with the evolution of economic conditions and the cost of living.
Labour Law §107

Enforcement mechanisms


Labour inspection

The Labour Law provides labour inspectors with the authority to enter enterprises to ensure that labour laws are enforced.

In case of an unjustified delay in the payment of wages, the Labor Inspector shall serve notice on the employer to pay the wage of his workers by setting the deadline by which payment must be made. If payment is not made by the deadline, the Labor Inspector shall write up a report and bring the matter, at no cost, before the competent court that may take any measure to keep the asset in the interest of the workers, including appointing a provisional administrator as well.

The Labor Inspector can then take any actions to force the employer to fulfil his obligations toward his workers and employees.

The Labour Law requires employers to keep a payroll ledger recording all information about each worker employed and indications concerning work performed, wage and holidays. The payroll ledger should also contain proof, in the form required by §118, that payment has been made. The employer must make sure the ledger available for inspection by the Labour Inspectorate at any time.
Labour Law §§39, 40, 117, 118, 344
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Fines in national currency for non-respect of legislation

An employer who fails to pay wages at least equal to the guaranteed minimum wage is liable to a fine of sixty-one to ninety days of base daily wage or to imprisonment for between six days and one month. The daily base wage is the minimum wage set by the government by ministerial order. Such an order has only been made for the garment and foot wear sector.
Labour Law §360 and §369

Results generated on: 30th September 2014 at 15:51:31.
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