Pay and Deductions in Cambodia

All staff and employers need to know about Pay and Deductions and the labor rules in Cambodia including payment deduction, payroll deductions when it is legal to deduct pay

What is the lowest pay an employer must pay employees?
At present, there is only a minimum wage for the garment, textiles and footwear industry. The lowest pay that employers musty pay workers in this industry is $66 per month.
Are there other special allowances and benefits that I, as employer, must pay employees?
Employee is in the garment textile and footwear industries who work regularly on each day that must be worked in a month must be paid an attendance bonus of $7 per month. This includes casual, probationary and piece-rate employees.

Workers employed by the employer for more than one year are also entitled to seniority bonus. As of March 2011, the seniority bonus is $1 for each year of work at a factory up to 11 years.

How are wages paid in Cambodia?
Employees can pay wages in the following form:

  • Directly the employee, unless the employee agrees to anther method, in cash,
  • Payment should be at or near the workplace on workdays, not on days off. If the regular payment day falls on day off, then the employer must make payment in advance, and
  • Payment should be made during working hours.

Am I, as an employer, allowed to deduct money from an employee’s salary without his/her consent?
Generally, employers are not allowed to make deductions from employees’wages. In particular, may not charge or deduction from wages for the following reasons:

  • Punish employee or misconduct or refusing to work over time;
  • Require that an employee issue a guarantee of bond in order to get or keep a job;
  • Deduct wages in exchange for job placement;
  • Deduct wages from employees who choose not to eat at a company canteen;
  • Charge employees more than the real cost of replacing lost ID card; or
  • Charge employees any amount for the mandatory medical check.

What are some of the permitted deductions from pay?
Employer may make deductions from an employee’s wage to pay for the actual cost of:

  • Tools and equipment that the employee does return;
  • Tools and materials under the control and usage of the employee; and
  • Amount owed to take company store.

For these deductions, the amount deducted from an employee’s wages must not cause the employee to take home less than the minimum wage.