Cambodia Aims to Formalize 5% More Informal Economy Workers by 2028

The Cambodian government has announced its policy to integrate an additional 5% of informal economy workers into the social security system by 2028. This measure aims to ensure these individuals can fully benefit from social protection. During a workshop on "Expanding the Scope of Social Security Implementation and Promoting Worker Entry into the System," held on July 22, 2026, at the Cambodia Na Hotel in Phnom Penh, Ms. Sovann Vannarath, Secretary of State of the Ministry of Labour and Vocational Training, stated that the government is preparing numerous policies and incentives to bring informal economy workers into the formal framework. Currently, informal economy workers constitute 75% of the country's labor force, and the government aims to reduce this to 70% by 2028. Ms. Vannarath emphasized, "The 5% figure, in terms of our total workforce, is not small. While it's a percentage, it represents millions of people. This is a matter that the government is thoroughly considering and requires the support of all our citizens." Ms. Helen Kirsch, a technical officer for social protection and labor at the International Labour Organization (ILO), pointed out that promoting informal economy workers to join the formal system is essential for expanding social security. She noted that individuals working in the informal economy face a high risk of significant livelihood challenges when they lose their jobs, fall ill, or encounter other crises. "This is a shared responsibility and a collective effort that requires cooperation from all of us – the government, civil society, and the private sector," Ms. Kirsch added. Ms. Phean Sophon, Country Director of Oxfam Cambodia, stated at the workshop's opening that the large gap between informal and formal economy workers severely impacts their access to social protection and legal employment opportunities. She highlighted the need to focus on the large number of informal economy workers who form the majority of the country's labor force. "This gap signifies the potential for how we must work to ensure social protection for workers in our major sectors, such as agriculture and other areas where they work in places not yet formally organized," Ms. Sophon said. Cambodia is a signatory to the UN Secretary-General's initiative on "Decent Work and Social Protection for a Just Transition" since July 2023 and adopted Cambodia's Roadmap in December 2024, demonstrating its commitment to strengthening social protection for its citizens. Currently, approximately 7 million people, or 41% of the total population, benefit from social security schemes.