Prime Minister Hun Sen today said the minimum wage for government employees, including civil servants, teachers, doctors, and armed forces as well as workers is exempt from income tax.
Speaking in a cabinet meeting held at the Peace Palace, the premier said the government strives to ensure that minimum wage for both government employees and workers will be increased without having to pay for income tax in order to improve their livelihood.
“The government has put efforts to implement policies to improve the lives of civil servants, teachers, doctors, national police, soldiers and garment workers since the 5th mandate of the National Assembly,” he said.
Mr Hun Sen said the minimum wage for civil servants will be increased from USD 275 to USD 293, and from USD 300 to USD 318 for teachers and doctors.
The government will also increase the minimum wage from USD 296 to USD 314 for national police (staff sergeant), from USD 264 to USD 295 for military police (first sergeant), and the contractual officer’s wage will also increase to USD167, he said. These salary increases will be effective in 2020.
Mr Hun Sen noted that the new sub-decree will determine that wage below 1.30 million Riel (USD 325) will not be taxed, effective from 2020.
“As long as Cambodian People’s Party continue to win the elections, the government will not charge any taxes on farmlands and on minimum wage workers,” he added.
Government spokesman Phay Siphan said the cabinet meeting has also agreed to enact a draft budget law 2020, in which the government has set USD 8.2 billion as the budget for expenditure in 2020, an increase of 22.7 percent compared to 2019.