of payment (not in right amount), security-related and risky taking for cash carrying (particularly in sub-national level and rural areas), and waste of times and resources (such as people took long queue to get their salary, needed many cashiers to check each name and amount) (Youk Bunna 2019).In responding such problems, the RGC announced the implementation of salary payment through the banking system in December 2008 to release the burden of cash flow, reduce the chance of corruption (ghost employees, informal fee charges) and ensure timely payment. To implement such electronic payment, MEF has selected some private financial institutions such as Acleda Bank, Canadia Bank, and Wing to sign Memorandum of Understanding (MoU) with MEF to deposit salaries and provide payroll service for government officials from early 2014 onward (Acleda 2013; Phnom Penh Post 2013; The Cambodia Daily 2013). The rolling out of salary payment through banking system is seen to be started as pilot phase with some priority ministries at both national and sub-national levels such as the Ministry of Education, Youth and Sports, Ministry of Health, Ministry of Economy and Finance, Ministry of Interior and Ministry of Defence, but excluding police and military. This is because these ministries represent about 84% of the total civil servants in the country. Such reform is believed to make salary payment more accessible (due to the availability of 24-hour basis ATMs), in efficient and timely manner. (The Cambodia Daily 2013; MEF 2014).To deal with the salary payment through the banking system and to have comprehensive coverage of the payment (within all government’s ministries and institutions), an inter-ministerial working group was created in late 2013 through the RGC’s Decision No. 46 (dated 13th November 2013) which is known as the Pay Reform Taskforce or Taskforce for Reforming the Salary System. The Taskforce is seen to be under the new leadership and management of the newly established Ministry of Civil Service (MCS) and with representatives from five ministries such as (RGC 2013a): - - - - -The taskforce was positioned in MCS and used seal, means and resources of MCS to perform key functions as following: - -In this regard, it is also noted that the chair of the taskforce was given some authorities in inviting and consulting with senior and professional staff of relevant ministries, local and international consultants/advisors as well as establishing sub-taskforces to study and review on specific cases of pay reform.With the establishment of the taskforce and the new leadership, there are some expected benefits of the pay reform such as efficient and effective management of civil servant (reduced ghost employees, corruption), budget saving from the elimination of irregular civil servants, cash flow management in the banking system, risk reduction in cash-related issues, timely payment (within the 4th week of each month), accurate and accessible payment. Then, in late 2018 with the smooth and effective payment through the banking system, the government has further reformed the payment to be made in every fortnight for all civil servants (RGC 2018).According to MCS’s 2016 progress report (MCS 2016a), the minimum salary of civil servants from 2013 to 2016 is seen to have double increase, and the high increase is seen in education and health sectors, while the military and police have been aligned and harmonized with the general administration sector. For instance, the minimum salaries for education and health civil servants 50Secretary of State, Ministry of Civil Service (Chair)Representative of Ministry of Economy and Finance (Deputy Chair)Representative of Ministry of National Defense (member)Representative of Ministry of Interior (member)Representative of Ministry of Social Affairs, Veterans and Youth Rehabilitation (member)Review the whole system of government pay system (national and subnational civil servants including retired and disabled civil servants, military, and police,)Propose the package of pay reform (policy and strategy) for 2014-2018 to MCS, MEF and to get approval from the RGC.
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