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2023/05/04

Low labor cost

     



◎ Cambodia is a traditional agricultural country, which has a weak industrial base. It is one of the least developed countries in the world. Cambodia has a population of 14 million, population age structure tend to be younger. More than half of the population is among age from 10 to 35, with abundant workforce resources. The population of workforce is 7.5 million with annual growth rate of 2.7%.

◎ Though, most of the Cambodian is under low education, the labors source has great potential. Compare to other countries in ASEAN, the labor cost in Cambodia is the lowest. On May 2013, The legal salary was increased from 61 USD per month to 80 USD per month. According to the law of Cambodia, the number of hours worked by workers cannot exceed eight hours per day, or 48 hours per week. If workers are required to work overtime, the overtime hours shall be paid at a rate of 50%-100% higher than normal hours.