Op-Ed: The Push for Subsidized Childcare in Cambodia

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For many families in Cambodia, especially in urban centers, the rising cost of living presents a significant challenge.

Due to the financial burden of childcare, parents, particularly mothers, often face a difficult choice:

"Pursue their careers vs. Stay home to care for their children".

This dilemma only exacerbates gender disparities in employment and income, forcing women to rethink their participation in the workforce (Ciciolla et al., 2017).

Scarcity of Affordable Childcare

As Cambodia’s urban areas become more populated, the number of dual-income families continues to grow. In Phnom Penh and other metropolitan regions, more parents are entering the workforce, driven by economic necessity. However, with this rise comes an increased demand for affordable and quality childcare.

Yet, the existing childcare infrastructure struggles to keep up.

Research shows a shortage of available spaces in reputable childcare centers, with demand far exceeding supply. As one study highlighted, this shortfall is particularly severe in low-income neighborhoods where parents often find themselves on long waiting lists or forced to resort to informal, less reliable childcare options.

The lack of adequate, affordable childcare services disproportionately affects lower-income families, who face even greater financial pressure as prices rise in response to the demand.

A report by the International Finance Corporation surveyed 23 childcare centers in Cambodia’s urban centers, revealing that only six catered to low-income families. Of those, four were run by NGOs or charitable organizations, primarily serving children from marginalized communities, including slums.

The High Cost of Childcare

This scarcity has driven up the cost of quality childcare. Operating a reputable center requires well-trained staff, proper facilities, and educational resources—all of which increase operational costs.

For example, according to the Tackling Childcare study, the average monthly fee for full-day preschool programs catering to children aged three to five in urban centers is $100. In Khan Daun Penh, a central district in Phnom Penh, fees range from $50 to $200 per month.

For many families, especially those with lower incomes, these fees are simply too high. One parent shared:

“Even though we both work, half our income goes to our child’s daycare. It’s stressful to think about, but we have no other choice.”

This financial burden often forces mothers to reduce working hours or drop out of the workforce altogether, further deepening gender disparities in employment. Without affordable childcare options, the situation continues to disadvantage women in their professional pursuits.

Final Thoughts

Cambodia’s rising cost of living and limited access to affordable childcare are placing significant financial strain on families, particularly in urban areas. The demand for quality childcare has grown as more parents join the workforce, but the supply remains scarce, driving up costs and leaving lower-income families with few options.

To address these challenges, a subsidized childcare voucher program could offer a much-needed lifeline to families in need. By tailoring the program to income levels, such an initiative could provide access to quality childcare, easing the financial strain on working parents.

Developing this type of program requires careful planning.

First, establishing clear eligibility criteria is essential to ensure that the program reaches the families who need it most. Second, it’s important to determine voucher amounts. Using a sliding scale, families with lower incomes could receive higher subsidies to cover a larger portion of their childcare costs, while families with higher incomes could receive smaller amounts. This would make the program equitable and allow more families to benefit from it.

Finally, the program should offer consistent and predictable support by defining the duration of assistance. Whether through time limits or renewal processes, the program should reassess eligibility periodically to ensure that families continue to receive appropriate support as their circumstances change.