Legal and Tax Updates

Legal Update: Prakas 211/24 on Minimum Wage for Textile, Garment, Footwear and Travel Goods and Bags Industry for the Year 2025

Issue: No. 012P/24 – 23 October 2024

The Ministry of Labour and Vocational Training Prakas 211, dated 20th September 2024 establishes the increase of minimum wage for textile, garment, footwear and travel goods and bags industry that will come into effect from 01st January 2025 onwards.

The National Board of Minimum Wage resolute that the textile, garment, footwear and travel goods and bags sectors’ minimum wage for the year 2025 is to be increased by USD2 (Two United States Dollars) on the current amount of USD206 (Two Hundred and Six United States Dollars). Heretofore, the 2025 National Minimum Wage for Regular Employee shall be USD208 (Two Hundred and Eight United States Dollars).

Probationary Period Workers

The 2025 national minimum wage for probationary period workers shall be USD206 (Two Hundred and Six United States Dollars).

Piecework

Piecework-based workers shall receive the remuneration in accordance to the amount produced. Should the worker exceed the par-amount of productivity, the remuneration shall correspond to the additional piecework thereto. If otherwise lower, the remuneration shall be either be:

  • Probationary Period: USD206 (Two Hundred and Six United States Dollars); or
  • Regular Employee: USD208 (Two Hundred and Eight United States Dollars).

Other Benefits

Other benefits that the employees have been receiving shall be maintained.

 

Disclaimer

The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any question or need any assistance, please feel free to contact us:

NOEUM Sokvichhai,

Partner,

Managing Director

sokvichhai.noeum@sithisak-lawoffice.com

+855 12 826 785

 

Mr. Sokvichhai has more than 8 years of experiences in labour, corporate, commercial and investment advisory in Cambodia. He actively advices and assists various businesses in commercial, tax, and labour registration, business licensing, products registration & distribution, business recapitalization & restructuring, and mergers & acquisitions transaction. He also has particular experiences in advising collective investment fund and trust business, initial public offering, bond issuance, investment incentives & qualified investment project, and labour & employment related issues. Sokvichhai also assists major business in preparing various complex commercial agreements.

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