A Change of Guard

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Wednesday, 23 November 2011

Clothing and footwear sector gets three-year tax break in exchange for paying worker health benefits

Wednesday, 23 November 2011
Posted by Serath

PHNOM PENH, Nov 23 - Prime Minister Hun Sen announced Wednesday that clothing and footwear companies would be required to pay all workers a monthly healthcare benefit of USD 5 in exchange for a one percentage point reduction in taxes until 2015.

The announcement came at the 16th Government-Private Sector Forum at the Peace Palace attended by hundreds of business leaders, government officials and foreign ambassadors.

“From January, 2012, garment factories including shoe factories will pay an extra USD 5 for heath care for their employees who presently live on a base salary of USD 61.This is a benefit for employees,” Hun Sen said.

Som Aun, president of National Union Alliance Chamber of Cambodia which comprises 20 unions representing 190,000 workers, welcomed the development.

"Health care is a leading concern among employees,” he said. “In the name of workers, I would like to welcome the decision of the prime minister."

Som Aun said the decision may have been made due to recent incidents in which hundreds of garment workers have fainted in factories in and around Phnom Penh.

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