Cambodian state pay to jump under higher 2011 budget

18 Oct 2010
By Prak Chan Thul

PHNOM PENH, Oct 18 (Reuters) - The Cambodian government has drawn up a $2.4 billion budget for 2011, 17 percent higher than this year's, and some of the extra money will go towards a 20 percent pay rise for civil servants and the military, officials said on Monday.

Prime Minister Hun Sen said the increase in the budget would go mainly to the education and health sectors, and to fund the pay rise.

Phay Siphan, secretary of state at the Council of Ministers, told Reuters that details would be published when the budget goes to parliament for approval this week.

"All the increases are due to many factors, such as inflation, a 20 percent salary rise for civil servants, and army reform, which includes training and providing additional equipment," Phay Siphan said.

Phay Siphan said another priority was infrastructure to help farmers. "We will invest in road infrastructure, irrigation and rice seeding," he said.

Cheam Yeap, the chairman of parliament's finance commission, said the government was targetting spending of almost $300 million on the military next year, which he described as a small increase over this year.

The 2010 budget was set at $1.97 billion, of which $274 million was earmarked for defence and security spending.

The International Monetary Fund has criticised the high level of military spending in the past and it could again be a bone of contention with international aid donors, who contribute a large proportion of Cambodia's state budget.

In June, donors promised Cambodia $1.1 billion in aid for 2010, up from pledges of $990 million for 2009.

(Editing by Alan Raybould)

Workers held a procession to demand pay raise

26 July 2010
Everyday.com.kh
Translated from Khmer by Socheata

About 500 workers from several factories around Phnom Penh led by Ath Thun, President of the Coalition of Cambodian Apparel Workers Democratic Union, and Mrs. Mam Nhim, President of the Coalition of Cambodian Textile Unions, have gathered in front of the National Assembly in the morning of 25 July 2010 to demand for a pay raise to at least $75 per month. The gathering was followed up by NGOs and human rights organizations. The Phnom Penh authority and cops have set up forces along entrances to the capital and they issued a strong order not to let cars or moto taxis transport workers into the capital for demonstration. The workers disbanded at around 11AM on the same day. Ath Thun warned that if there is no raise in the workers’ salary, a bigger demonstration by the factory workers will take place. He added that today’s gathering is not political, it’s only to demand for a better standard of living for the workers only.

Cambodia's garment manufacturers and labour unions talk pay rise

Tue, 09 Feb 2010
DPA

Phnom Penh - Cambodia's garment manufacturers have held talks with unions and government officials about sharply increasing the 50-US-dollar monthly minimum wage paid to factory workers, local media reported Tuesday. Unions and the government's National Institute of Statistics have calculated that the country's 358,000 garment workers need to earn at least 93 dollars per month to afford food, housing and travel expenses.

The president of the Garment Manufacturers' Association of Cambodia, an industry body, told the Phnom Penh Post newspaper that he was supportive of the increase "in principle."

"[But] today I want to emphasize to workers that we are only discussing the issue, not agreeing to an increase to 93 dollars," Van Sou Ieng said, adding that the topic required further research before any deal could be reached.

If an agreement is settled on a wage hike, it would be the first increase in two years.

Cambodia's garment-manufacturing industry has been battered by the global downturn with exports to its main US market slumping. The Ministry of Labour reported that 93 factories closed last year for the loss of almost 70,000 jobs. A further 60 factories suspended operations as orders dried up.

In its annual country report released in December, the International Monetary Fund (IMF) noted that garment exports declined 16 percent by volume in the nine months to September. The IMF said Cambodia is hampered by high electricity costs, unreliable product supply and low productivity.

IMF figures showed garment manufacturing accounted for 15 percent of Cambodia's gross domestic product in 2008 and two-thirds of its exports.

The sector is one of the four pillars of Cambodia's economy. Two of the other pillars - tourism and construction - also registered sharp declines last year. The fourth pillar, agriculture, grew by an estimated 5 per cent.

Hun Sen’s election year’s carrot

Sunday, May 13, 2007
20% pay raise starting next year

By Duong sokha
Cambodge Soir
Unofficial Translation from French by Tola Ek

Click here to read Cambodge Soir’s original article in French

Starting from 01 January 2008, the salaries of civil servants will increase by 20% each year, rather than the current 15%. The government explains this measure by the strong economic growth the country saw.

Starting from 01 January 2008, the salaries of civil servants will be re-evaluated to 20% increase per year, rather than the current 15% increase as planned in the government platform. This measure will affect 160,000 civil servants, as well as 160,000 soldiers and police officers in the kingdom. Furthermore, starting from the 2nd semester of this year, soldiers and police officers in the country will benefit from a 25% increase, this in addition to the 15% they also received at the beginning of the year. This exceptional pay raise will be also affect retired civil servants and former soldiers.

Khieu Kanharith, the government spokesman, explained the 20% pay raise by the economic situation of the country. “We fixed the pay raise to 15% because we estimated our growth to be about 6%. Now, it so happens that we have a double digit growth,” he explained. Last year, the kingdom saw a growth rate of 10.5%, slightly lower than the 13.4% growth rate in 2005. “From now until 2013, we plan to bring the base salary of civil servants to $60 per month,” Khieu Kanharith added. Currently, the base salary is at about $25 per month.

Rong Chhun, President of the Cambodia Independent Teachers’ Association (CITA) is happy to see this raise, however, he is not fooled by the carrot handed over by the government and the expectations it wants to get back at next year’s general election. “This raise is good news, but it is still too little. It will not allow any improvement in the living conditions of civil servants, it only allows the adjustment of salaries to price increase. The government must attack the problems of inflation and corruption. The government increases the salaries in view of the upcoming election. It is already chasing after the votes,” he said.

Rong Chhun’s criticism was rejected by Khieu Kanharith who recalled that the 15% pay raise was in effect for several years already as it is part of the government platform which was established after the last general election.