Diagnostic of informality in the Cambodian construction sector

The construction sector is one of the key drivers of the Cambodia economy, but it is also characterized by very high levels of informality, leaving workers without access to social protection and more vulnerable to life-cycle risks.

Recognizing the potential and challenges of the informal economy, the Royal Government of Cambodia issued the National Strategy for Informal Economy Development 2023-2028.

The development of the informal economy is identified as a top priority in contributing to the improvement of people’s livelihoods and promoting Cambodia’s economic growth through the protection of workers and firms in the informal economy and strengthening their capacity and productivity, while accelerating efforts for their transition from the informal to the formal economy. Consistent with Cambodia’s strategy regarding the informal economy, the ILO through its Office in Cambodia engaged the project “Promoting the transition to formalization through integrated approaches in Cambodia” which aims to support the formalization of jobs and enterprises.

This study of the Cambodian construction sector aims at providing policy proposals to further the Cambodian Government’s efforts to formalize the sector and to expand the National Social Security Fund coverage among the sector’s growing workforce.