Welcome to this edition of DFDL’s Cambodia Law Update. In this issue we present Cambodian regulations and information touching on the following:
- Notification on Procedure of NSSF Contribution Payment
- Promulgation of 2015 Financial Management Law
- Procedures for preparing, changing and cancelling Warrants/Orders of Capital, Provincial, Municipal District-Khan Councils
- Instruction on Implementation of Prakas № 283 KB/Br.K, dated 12 November 2014, on Minimum Wage Determination for Workers in the Textile, Garment and Footwear Industry for the year 2015
- Organization and Functioning of the Ministry of Labor and Vocational Training
- Pronouncement on Minimum Wage determination for workers in the Textile, Garment and Footwear Industry for 2015
- Promulgation of Constitutional Law on Amendment to Article 76 and Articles from New Chapter 15 to New Chapter 16 of the Constitution of the Kingdom of Cambodia
- Promulgation of the Law on Approval on Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization to the Convention on Biological Diversity
- Promulgation of Law on Amendment to Articles 1, 3, 4, 7,8, 9, 11, 13, 14, 15, 17, 18, 19, 20, 21, 22, 23, 24, 30, 34, 37,38, 39, 40, 41, 42, 43, 45, 46, 49, 55, and 56 of the Law on Management of Factory and Handicraft
Notification on procedure of contribution payment, Notice № 10/14 NSSF (NSSF), 22 December 2014
This notification aims to inform procedure of contributions to be paid by all employers and owners of enterprises-establishments to the National Social Security Fund (NSSF) account in the designated banks.
The contribution payment shall be implemented in accordance with the following process: (1) employers or owners of enterprises/establishments can contribute directly to the bank as before or (2) employers or owners of enterprises/establishments can contribute through an internet banking or unity service from 1 January 2015, and all the expenses of the services shall be covered by employers; and (3) employers shall bring an acknowledgement of contribution slip, report of the total number of employees/workers, report of wages or other necessary documents in order to submit to the NSSF office, send through the post office or to the email address: contribution @nssf.gov.kh.
Finance 2014 – Promulgation of 2015 financial management law, Royal Kram № ns/rkm/1214/026 (royal palace) 18 December 2014
This Royal Kram promulgates the Financial Management Law for the Year 2015. For 2015 financial management, the Royal Government shall be allowed to borrow the amount of SDR 600 million. The Minister of Economy and Finance, with approval from the National Bank of Cambodia, will be permitted to issue KHR 100 billion in treasury bonds to address an urgent need for cash. The terms and conditions of the bond sales will be determined by normative acts/ standard legal letters. The Electricité du Cambodge shall be authorized to borrow the amount of KHR 32,400 million for 2015 financial management from the Royal Government.
For the financial management of 2015, Chapter 3 “Provisions on Taxation”, in article 11 this law stated the amendment to the article 47 of the taxation law, promulgated by the Royal Kram № NS/RKM/0297/03, dated 24 February 1997, related to a resident employee the tax to be paid for a resident employee the tax to be paid must be determined on the monthly taxable salary and must be withheld by the employer according to the progressive rate by trench (from 0 to 800,000 Riels, the tax rate is 0%, and from 800,001 Riels to 1,250,000 Riels, the rate is 5%, and the rest of the tax rate remains the same).
Article 12 of the 2015 financial management amended article 29 of the 1995 financial management law, promulgated by the Royal Kram № 11 NS /94, dated 31 December 1994, which the article 29 (new) stated that tax on unused land shall be paid by the owner, for the land which is not subject to tax on real estate.
Administration 2014 – Procedures for preparing, changing and cancelling warrants/orders of capital, provincial, municipal district-khan councils Sub-Decree № 286 ANKr.BK (RGC), 18 November 2014
This Sub-Decree intends to ensure the use of provisions of power issued by the Capital, Provincial, Municipal, District and Khan Councils. This Sub-Decree aims to determine procedures in organizing, modifying and cancelling any warrants/orders related to the general regulations of the Capital, Provincial, Municipal, District and Khan Councils. Any warrant which is a general regulation shall be adopted by the Council and signed by the Chairman of the Council.
A warrant which is contrary to any provisions of the Constitution, laws, Royal Decrees, Sub-Decrees and normative acts in force, shall not be valid. A warrant which the Council has already adopted or approved shall come into effect on the date it was signed or any future specified date for entry into effect of the warrant in part or in whole. A warrant which is enforceable only it has come into effect as stated in Article 9 of this Sub-Decree. A warrant cannot have a retroactive effect.
Instruction on implementation of prakas № 283 KB/Br.K, dated 12 november 2014 on minimum wage determination for workers in textile, garment and footwear industry for the year 2015, Instruction № 029/14 KB/S.N.N (MoLVT), 17 November 2014
The Instruction issued by the Ministry of Labor and Vocational Training aiming to inform all vocational organizations, workers, employees, and employers of factories, enterprises, establishments, of the textile, garment and footwear industry shall implement this instruction as detailed in point A and point B of the instruction relating to providing the minimum wages to the workers and other existing benefits.
Organization and functioning of the ministry of labor and vocational training, Sub-Decree № 283 ANKr.BK (RGC), 14 November 2014
This Sub-Decree aims to determine the organization of entities of the Ministry of Labor and Vocational Training, and to set the mission of the Ministry, and the functions of the General Departments, General Inspectorates, departments and entities under supervision of the Ministry.
The Ministry of Labor and Vocational Training has been delivered the mission by the Royal Government to lead and manage the labor and vocational training sectors across the Kingdom of Cambodia. Normative acts related to the implementation of Sub-Decree № 52 ANKr.BK, dated 1 April 2005, on the Organization and Functioning of the Ministry of Labor and Vocational Training shall remain valid until new normative acts replace these in accordance with provisions of this Sub-Decree.
Labor 2014 – Pronouncement on minimum wage determination for workers in textile, garment and footwear industries, prakas № 283 KB/Br.K (MoLVT), 12 November 2014
It is decided to add USD 5 on top of the USD 123 proposed by the Labor Advisory Committee as a monthly minimum wage for workers in the textile, garment and footwear industry for the year 2015. The minimum wage for these workers for the year 2015 shall officially be set at USD 128 per month. Workers’ existing benefits shall not change. The minimum wage set in Article 2 of the Parkas shall be implemented from 1 January 2015.
Constitution 2014 – Promulgation of constitutional law on amendment to article 76 and articles from new chapter 15 to new chapter 16 of the constitution of the Kingdom of Cambodia, Royal Kram № NS/RKM/1014/022(Royal Palace) 23 October 2014
This Royal Kram promulgates the Constitutional Law on Amendment to Article 76 and other articles from the new chapter 15 to the new chapter 16 of the Constitution of the Kingdom of Cambodia which has been amended as follows:
Article 76 (New) reads: The National Assembly shall comprise at least
120 members. The Members of the National Assembly shall be elected by a universal, free, equal, direct suffrage and through secret ballot. The National Assembly’s members are re-eligible. Khmer citizens of both sexes, enjoying the right to vote, aged at least 25 years and having Khmer nationality by birth, have the right to be candidates to the National Assembly. Formalities and functioning of the election shall be determined in the electoral law.
For the Article 150 (new) (two) reads: the National Election Committee shall be a competent organization in preparing, organizing and managing the election of members of the senates and the election of the National Assembly as well as other elections as determined by law. The organization and functioning of the National Election Committee shall be determined in a law. The Article 160 (new) stated that laws and normative acts in Cambodia that guarantee the State properties, rights, liberties and legal properties of private persons and that are in conformity with the national interests, shall remain in force until the new texts are made to amend or to abrogate them, except the provisions contrary to the spirit of the present Constitution.
Treaties 2014 – Promulgation of the law on approval on Nagoya protocol on access to genetic resources and the fair and equitable sharing of benefits arising from their utilization to the convention on biological diversity, Royal Kram № NS/RKM/1014/024 (Royal Palace) 23 October 2014
The National Assembly and the Senate have adopted the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their utilization to the Convention on Biological Diversity, which was adopted in Nagoya, Japan, on 29 October 2010, and the Kingdom of Cambodia has signed this Convention at the Office of the United Nations in New York on 1 February 2012. The Royal Government of Cambodia shall continue to implement the procedures of this Protocol.
Business/Commerce 2014 promulgation of the law on amendment to articles 1, 3, 4, 7,8,9, 11, 13, 14, 15, 17, 18, 19, 20, 21, 22, 23, 24, 30, 34, 37, 38, 39, , 40, 41, 42, 43, 45, 46, 49, 55, and 56 of the law on management of factories and handicrafts, Royal Kram № 47 NS/RKM/1014/025 (Royal Palace) 23 October 2014
This Royal Kram intends to promulgate the amendments of 32 articles of the Law on Management of Factories and Handicrafts, and this Law’s scope covers all factories and handicrafts throughout the Kingdom of Cambodia, which is subject to the competence, leadership and management of the Ministry of Industry and Handicraft (“MIH”) (formerly known as the Ministry of Industry, Mines, and Energy (“MIME”)) which shall not affect competence of other relevant ministries-institutions.
Factories and handicrafts which are under the competence, leadership and management of the Ministry of Industry and Handicraft includes as follows: (1) food, beverages and tobacco; (2) textiles, garments, and products made from leather; (3) paper products; (4) chemical parts, products from rubber, plastic, except for the petroleum industry and gas; (5) products made from metallic minerals; (6) basic metal; (7) metal processing, machineries, and equipment; (8) others , such as jewelry, decorative sporting goods for children and office materials.
Establishment of a factory, as stated above in article 3, shall be required to have an prior approval from the Ministry of Industry and Handicraft with prior to obtaining approval/registering from/with relevant ministries-institutions and authorities.
The Ministry of Industry and Handicraft shall grant and provide other certificates related to production on request of the factory owner if it is examined and found necessary. Preparation of all parts in factories shall be done in accordance with the technical manner which is determined by Prakas of the Ministry of Industry and Handicraft.