New Prakas 443
- Wayward Woods
- I live above an internet cafe
- Reactions: 0
- Posts: 248
- Joined: Mon Dec 04, 2017 1:55 pm
New Prakas 443
What’s everyone doing about the pay twice a month and the seniority prakas? Lack of real info coming out...
Scobienz 3.0
- Lucky Lucan
- K440 Knight Captain
- Reactions: 762
- Posts: 22525
- Joined: Fri Mar 04, 2011 12:24 pm
- Location: The Pearl of the Orient
With getting paid twice a month I'm just getting paid into my bank and there's nothing to do about it. What's this "seniority" thing?
Romantic Cambodia is dead and gone. It's with McKinley in the grave.
- Miguelito
- Ordinary Schmo
- Reactions: 219
- Posts: 7053
- Joined: Tue Jan 13, 2015 11:19 pm
- Location: Penh's Hill
Yea, the paying twice a month isn't a big deal. We're paying half the gross salary mid month, then a second payment at the end with taxes taken out (I think).Lucky Lucan wrote:With getting paid twice a month I'm just getting paid into my bank and there's nothing to do about it. What's this "seniority" thing?
The seniority is the indemnity payment, and a much larger problem. It's the now required bonus of 15 days salary for every 6 months worked, I think -- please correct me if I'm wrong. Moving forward, that's fine, but the prakas declared it was to be applied retroactively for the past six years, which is a huge burden. As far as I know, negotiations are still ongoing with the Royal Government of the Kingdom of Cambodia to clarify the requirements.
Yeah, I will, it's yeah mate, (3rd time you done that. Final Warning). sorry I couldn't help itMiguelito wrote:
Yea, I think -- please correct me if I'm wrong..
- Miguelito
- Ordinary Schmo
- Reactions: 219
- Posts: 7053
- Joined: Tue Jan 13, 2015 11:19 pm
- Location: Penh's Hill
This was a campaign pledge from last year geared to factory/garment workers, with spillover effects to all businesses. You definitely need to be switching to twice a month payments - the seniority issue is a lot more vague with negotiations still under way.
Factories begin new wage planThe Ministry of Labour and Vocational Training issued an announcement on Wednesday indicating that 81 per cent of garment and footwear factories have implemented the government’s new requirement to pay workers’ wages twice a month.
“As of January 16, 2019, the Ministry of Labour and Vocational Training has checked that salaries are being paid twice a month and it found that 81 per cent of factories and enterprises are [following] this policy,” the statement read.
Ministry spokesman Heng Sour labelled the results “acceptable” but said that the government would not allow factories to continue not paying their workers twice monthly in line with the new law.
“If the ministry receives complaints from workers at factories and enterprises that have not implemented the policy, the ministry will fine them and press them to implement Prakas number 442 [the policy],” he said.
Prakas 442, approved on September 21 last year, states that as of January this year garment and shoe factories must pay workers’ wages in two instalments each month. The first payment is to be made between the 16th and 19th of the month and the second one between the 1st and 7th of the month.
The policy states that the first payroll must be equal to 50 per cent of the employee’s net wages per month. While the second payroll must be equal to the remaining wages, including other benefits that employees receive each month. The ministry said it will fine any company found not to be following this procedure.
- ផោមក្លិនស្អុយ
- Daylight, I need Daylight !?!
- Reactions: 688
- Posts: 4725
- Joined: Sun Feb 05, 2017 4:42 pm
I gave my guys the choice, but told them that I was only doing one or the other so they had to meet together to decide if they wanted paid once or twice a month.
My guys still prefer a cash salary which is a bit of a pain & is why I didn’t want to pay some fortnightly and others monthly.
My guys still prefer a cash salary which is a bit of a pain & is why I didn’t want to pay some fortnightly and others monthly.
- Playboy
- 20,000 Posts; I need professional help !
- Reactions: 288
- Posts: 24827
- Joined: Fri Dec 12, 2003 6:30 pm
- Location: Hotel K: Sector ZZ9 Plural Z Alpha
- Contact:
Technically that would still be illegal, you can not chose, or vote, to opt out of the law(s) - it is a matter of public policy.ផោមក្លិនស្អុយ wrote:I gave my guys the choice, but told them that I was only doing one or the other so they had to meet together to decide if they wanted paid once or twice a month.
My guys still prefer a cash salary which is a bit of a pain & is why I didn’t want to pay some fortnightly and others monthly.
$500 fine for infractions I believe.
"We, the sons of John Company, have arrived"
- ផោមក្លិនស្អុយ
- Daylight, I need Daylight !?!
- Reactions: 688
- Posts: 4725
- Joined: Sun Feb 05, 2017 4:42 pm
Yeah, I know.Playboy wrote:Technically that would still be illegal, you can not chose, or vote, to opt out of the law(s) - it is a matter of public policy.ផោមក្លិនស្អុយ wrote:I gave my guys the choice, but told them that I was only doing one or the other so they had to meet together to decide if they wanted paid once or twice a month.
My guys still prefer a cash salary which is a bit of a pain & is why I didn’t want to pay some fortnightly and others monthly.
$500 fine for infractions I believe.
I also told them If I pay fortnightly then we move to an automated bank transfer. They didn’t want that.
- Miguelito
- Ordinary Schmo
- Reactions: 219
- Posts: 7053
- Joined: Tue Jan 13, 2015 11:19 pm
- Location: Penh's Hill
This is an internal update that Eurocham has shared with other heads of chambers:
"Good afternoon, following the promulgation of Prakas 443 on Seniority Indemnity Payment, all members of this forum decided to unify their advocacy efforts under the umbrella of the Cambodian Chamber of Commerce and it chairman, Neak Oknha Kith Meng, to engage the government. Our First Objective was to resolve issues related to the implementation of Prakas 443.
Following our suggestion, a working committee on 443 including MLVT, MEF and members of the PS appointed by CCC was formally formed under the co-chairmanship of CCC and MLVT.
I would like to present you today with the results obtained :
As you may recall, originally, we were presented with two options: to outright oppose its Prakas 443 introduction or to instead negotiate with the Royal Government to attempt to lessen the financial impact that this legislation would have on the business community. Due to the unique conditions that enabled the implementation of this law, and the strong willingness shown by MLVT to cooperate with us to find ways to implement the Prakas so it lessens the financial burden, we took the part to negotiate the implementation of 443 so to find an acceptable solution for all parties.
Following these negotiations, the Ministry of Labour and Vocational Training has just reported back to us last night that they agree for all sectors (except garment) delaying the back payment component of Prakas 443 until late 2021, and has reduced the number of days employers are required to pay yearly workers for their seniority indemnity from 15 days to 8 days. A formal announcement will be made later in March.
Furthermore, at our request and to help us to sustain these unforeseen cost, the MLVT and NSSF are re-considering seriously the pension contribution rate from 8% to 4% and intends to convene a meeting to review the contribution rate. A Prakas should be issued in November for a formal implementation January 2020.
While the introduction of Prakas 443 will still create an unanticipated and significant financial burden, we have achieved some success to minimise this, thanks to our united private sector voice under the leadership of Neak Oknha Kith Meng and also thanks to the understanding of the Royal Government.
Also as result of these ongoing negotiations, we have a hint that we could possibility negotiate on reducing the number of public holidays offered. We would like to suggest that each representative from the private sector should write a letter to His Excellency Deputy Prime Minister, Minister of Economy and Finance, Chairman of the National Committee on Financial and Economic Policy, requesting a meeting to discuss this issue. We intend to prepare a template for all associations to use to ensure our messaging is aligned, using the argument of enhancing Cambodia’s commercial competitiveness."
To me dropping the pension rate from 8% to 4% is extremely short-sighted. 2021 isn't going to be enough time to rescue the basket case companies already running on empty. Reminds me of some of the ABC conversations around implementing new regulations or industry targets and some banks coming back with - "yes let's do that in 5 years so I don't have to think about it now & my successor can deal with that shit"
Also suggestion to rename the subject of this thread to Prakas 443 to make it easier to search for versus other Prakas?
Also suggestion to rename the subject of this thread to Prakas 443 to make it easier to search for versus other Prakas?
Meum est propositum in taberna mori,
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
ut sint Guinness proxima morientis ori.
tunc cantabunt letius angelorum chori:
"Sit Deus propitius huic potatori."
- Miguelito
- Ordinary Schmo
- Reactions: 219
- Posts: 7053
- Joined: Tue Jan 13, 2015 11:19 pm
- Location: Penh's Hill
I don't like that they want to take my holidays away...Spigzy wrote:To me dropping the pension rate from 8% to 4% is extremely short-sighted. 2021 isn't going to be enough time to rescue the basket case companies already running on empty. Reminds me of some of the ABC conversations around implementing new regulations or industry targets and some banks coming back with - "yes let's do that in 5 years so I don't have to think about it now & my successor can deal with that shit"
Also suggestion to rename the subject of this thread to Prakas 443 to make it easier to search for versus other Prakas?
- ផោមក្លិនស្អុយ
- Daylight, I need Daylight !?!
- Reactions: 688
- Posts: 4725
- Joined: Sun Feb 05, 2017 4:42 pm
http://www.eurocham-cambodia.org/post/5 ... -Training-
To those of you who, like me, are struggling to understand the prakas - here is a link which translates it.
In summary it seems to be:
Fixed contract workers: need to get a bonus at the end of their contract. If nothing is mentioned in their contract about severance then they are entitled to 5% of salary.
For open ended contracts there is an obligation to pay annual bonus of 15 days pay, split into two payments.
This bonus need to be back-paid capped at 6 months salary. (6 months current salary??? I have staff members who have worked for me for years, starting on a pittance, until I put them through education and trained them - who are now well rewarded)
This seems to be in addition to 13th month salary, pension contributions plus any other applicable bonus.
Does that seem right? I have to say I still don’t quite get it. For someone like me, who rewards staff fairly it is another unnecessarily complex directive which is going to cost financially and in terms of staff cost to manage it.
Unless I can use the 13 month bonus, which I already pay out in two parts, as a means of satisfying this legislation.
To those of you who, like me, are struggling to understand the prakas - here is a link which translates it.
In summary it seems to be:
Fixed contract workers: need to get a bonus at the end of their contract. If nothing is mentioned in their contract about severance then they are entitled to 5% of salary.
For open ended contracts there is an obligation to pay annual bonus of 15 days pay, split into two payments.
This bonus need to be back-paid capped at 6 months salary. (6 months current salary??? I have staff members who have worked for me for years, starting on a pittance, until I put them through education and trained them - who are now well rewarded)
This seems to be in addition to 13th month salary, pension contributions plus any other applicable bonus.
Does that seem right? I have to say I still don’t quite get it. For someone like me, who rewards staff fairly it is another unnecessarily complex directive which is going to cost financially and in terms of staff cost to manage it.
Unless I can use the 13 month bonus, which I already pay out in two parts, as a means of satisfying this legislation.
-
- Similar Topics
- Replies
- Views
- Last post
-
-
Prakas banning foreigners from small businesses
by OffRoader » Thu Aug 29, 2019 12:22 pm » in Cambodia Speakeasy - 27 Replies
- 8575 Views
-
Last post by newnewnewbie
Fri Nov 01, 2019 11:07 am
-