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CAMBODIA: Employers’ Social Security Contribution Increased to 3.4% of Workers’ Salaries

All companies operating in Cambodia are now required to pay 3.4% of their respective employees’ average monthly salary as a contribution to the National Social Security Fund with the monthly contribution per worker capped at about US$8.50. Previously, the contribution stood at 2.6% of the workers’ monthly pay, with both employers and employees mandated to making a matching contribution of 1.3%.

The change took effect on 1 January 2018, and is in line with a benefits package, which was promised to Cambodian garment workers in August 2017 by Prime Minister Hun Sen. The package also included a monthly pay rise, which was subsequently fixed at US$170 and came into effect on 1 January 2018. For details, see CAMBODIA: Monthly Minimum Wage in the Garment Sector to Increase to US$170 from 1 January 2018.

Content provided by Picture: HKTDC Research
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