On 30 September 2020, the Royal Government of Cambodia (“RGC”) issued a press release and rolled out ‘Round 6’ of measures aimed at mitigating the impacts of COVID-19 on businesses and workers in Cambodia. These represent a combination of new and existing measures (that have been extended). In addition to providing relief to businesses and workers amid the COVID-19 outbreak, this new round of measures is also geared towards promoting economic growth and helping businesses rebound in the wake of the unprecedented disruption caused by COVID-19.
Round 6 of the RGC’s measures are summarized below:
The RGC will continue to implement measures that provide aid to suspended employees and workers in certain segments of the private sector. This includes those in the garment, textile and footwear (“GTF”) sectors, as well as certain segments of the tourism sector, that are registered with the Department of Labour and Vocational Training (“DLVT”), the Ministry of Commerce (“MOC”), the General Department of Taxation Cambodia (“GDT”) and, where applicable, the Ministry of Tourism (“MOT”).
Those suspended workers, subject to their current status being certified with appropriate documentation, will continue to be eligible to receive government subsidies of USD 40 per month for a further period of three months, until the end of December 2020. An additional USD 30 per month contributed by the factories and enterprises will be available to GTF sector workers (amounting to a total of USD 70 per month for such workers).
Hotel, guest house, restaurant and tourism workers will be eligible to receive USD 40 per month for a further period of three months, until the end of December 2020. In addition to the Government subsidies, enterprises and businesses in the tourism sector may provide financial contributions to their employees on a voluntary basis or subject to their financial capacity.
The program to provide cash benefits to poor and vulnerable families that were hit particularly hard during the COVID-19 pandemic is extended by three more months (October 2020 until the end of December 2020).
All relevant ministries are directed to implement these instructions immediately, efficiently and without delay.
The RGC will continue to monitor the COVID-19 situation along with the economic and financial climate both locally and globally, in order to assess and take action where necessary to ensure the welfare of all priority sectors of the Cambodia economy. This is in keeping with the RGC’s aims to stabilize and revitalize the national economy and restore economic growth as the effects of the COVID-19 pandemic gradually begin to subside.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
Partner, Cambodia Deputy Managing Director & Head of the Cambodia Tax Practice
Partner, Cambodia Deputy Managing Director & Head of Corporate & Commercial Practice