Royal Government Decided to Continue Providing Allowance to Workers in Garment and Tourism Sectors for another 3 Months

(Phnom Penh): Cambodian Royal Government on 25 March 2021 decided to lay out an additional measure to manage the impacts on the main sectors, to recover and drive Cambodian economic growth from the crisis of COVID-19 (round 8). The additional measure, the government decided to continue providing allowance to the workers in the garment, textile, footwear, travel products, bags and tourism sectors for another three months from April to June 2021. At the same time, tax incentives continue to be applied.

A press release by the Royal Government received on 25th March 2021 clarified that after factories, enterprises and businesses in the garment, textile, footwear, travel, bag, and tourism sectors obtained a permission letter to suspend the contract, or a permission letter to extend the suspension from the Ministry of Labor and Vocational Training after meeting the criteria and conditions for the suspension of the employment contract, the Royal Government of Cambodia will:

  • Continue providing a USD 40 allowance per month for each worker – employee working in the field of garments – textiles, footwear, travel products and bags for an additional 3 months from April to June 2021. Owners of the factory – enterprise in these sectors must add USD 30 for one worker – employee (in total, one worker or employee receives USD 70 per month).
  • Continue providing a USD 40 allowance per month to a worker – employee working in the tourism field such as: hotels, guesthouses, restaurants and travel agencies for an additional 3 months from April to June 2021. Enterprises and businesses in the tourism sector must contribute on a voluntary and practical basis in addition to what the Royal Government offered.
  • Continue to exempt all types of monthly taxes for hotels, guesthouses, restaurants and travel agencies registered with the General Department of Taxation and have business activities in Phnom Penh, Siem Reap, Sihanoukville, Kep, Kampot, Bavet and Poipet for an additional 3 months from April to June 2021. These businesses are still required to file tax returns and use the online value-added tax (E-VAT) system on a monthly basis during the exemption period.
  • Continue to waive the payment of social security contributions for occupational risk and health care of the National Social Security Fund during the suspension or suspension of business operations.