Cambodian employers have warned that making them pay workers twice a month from next year could lead to cash flow problems.
According to the Phnom Penh Post, on breaking the news to more than 14,000 workers that they would no longer be paid on a monthly basis, Prime Minister-designate Hun Sen also warned factory and company owners that they must prepare themselves for the shift, which is compulsory.
The announcement will force both public bodies and private companies to comply with Cambodia’s 1997 Labour Law, which states that wages must be paid at least twice a month, with a maximum interval of 16 days.
But some employers and trade associations are unhappy with the move. The Garment Manufacturers Association of Cambodia’s (GMAC) deputy secretary-general, Kaing Monika warned the twice-monthly payroll approach would create more admin for employers and could generate cash flow problems during the first few months.
Other firms claimed the new system could put them at risk of making more errors and result in their having to employ more payroll staff, thus increasing their costs. According to the GMAC, 90% of its members still pay wages in cash.
Gill Oliver is a business and property journalist who has written for The Daily Mail/Mail Online's This is Money, The Press Association and many national and regional newspapers and magazines.
OTHER ARTICLES THAT MAY INTEREST YOU
ASEAN labour mobility: Current commitments and future limitations
Cambodian employers have warned that making them pay workers twice a month from next year could lead to cash flow problems.
According to the Phnom Penh Post, on breaking the news to more than 14,000 workers that they would no longer be paid on a monthly basis, Prime Minister-designate Hun Sen also warned factory and company owners that they must prepare themselves for the shift, which is compulsory.
The announcement will force both public bodies and private companies to comply with Cambodia’s 1997 Labour Law, which states that wages must be paid at least twice a month, with a maximum interval of 16 days.
But some employers and trade associations are unhappy with the move. The Garment Manufacturers Association of Cambodia’s (GMAC) deputy secretary-general, Kaing Monika warned the twice-monthly payroll approach would create more admin for employers and could generate cash flow problems during the first few months.
Other firms claimed the new system could put them at risk of making more errors and result in their having to employ more payroll staff, thus increasing their costs. According to the GMAC, 90% of its members still pay wages in cash.
Gill Oliver is a business and property journalist who has written for The Daily Mail/Mail Online's This is Money, The Press Association and many national and regional newspapers and magazines.
OTHER ARTICLES THAT MAY INTEREST YOU
ASEAN labour mobility: Current commitments and future limitations
