Cambodia: Guidance on back pay in manufacturing sector

Cambodia: Guidance on back pay in manufacturing sector

The Ministry of Labour and Vocational Training issued guidance on the payment of back pay of “seniority payments” for periods before 2019 and on new seniority payments for 2020 and 2021 for the manufacturing sector.

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The guidance –Notification No. 003/21 (21 January 2021)—thus, has two components:

  • Back pay of seniority payment before 2019 (that is, from 2008 to 2018) is to be paid in instalment for up to 156 days, depending on the seniority period of each employee. Currently, the backpay of seniority payment is payable in June and December by enterprises in the textiles, garment, and footwear sector. The back pay of seniority payment by sectors other than the textiles, garment, and footwear sector is postponed until December 2021.
  • New seniority payment (applicable to all sectors and for employment seniority from 2019 onwards) is payable in June and December each year. Because of the coronavirus (COVID-19) pandemic, earlier guidance had postponed the payment of back pay of seniority payments before 2019 (for the textile, garment, and footwear sector) and new seniority payment in 2020 (for all sectors) until 2021.

Read a March 2021 report [PDF 212 KB] prepared by the KPMG member firm in Cambodia

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