Your quick guide on talent and labor compliance norms in Cambodia
Capital
Phnom Penh
Currency
Cambodian Riel (KHR)
Languages
Khmer/Cambodian (Official), English
Payroll Frequency
Monthly
GDP per Capita
$2,018.70
Employer Tax
3.40%
Talent Overview
Cambodia has an emerging economy. The major established industries are tourism and textiles, while agriculture provides a living for the rural population. The garment industry accounts for about 80% of the country’s exports. Investors are attracted to Cambodia for its favorable taxation, low wages, and easy access to the Asian market. Industry 4.0 is getting fast-forwarded in Cambodia and is creating opportunities for economic development.
Major economic hubs:
Phnom Penh, Siem Reap, Sihanoukville
Skills in demand:
Informational Technology Engineer, Developer, Software Engineers
Local Universities
The top local universities in Cambodia are as follows:
Local: 1
World: 5769
Local: 2
World: 7788
Local: 3
World: 8297
Local: 4
World: 8396
Local: 5
World: 8431
Salary Data
An overview of some of Cambodia’s jobs and their respective average salary is given below. To learn more, read here.
| Job Title | Average Monthly Salary (KHR) | Average Monthly Salary (USD) |
| Information Technology Manager | 5,710,000 KHR | 1,384 USD |
| Business Development Manager | 5,320,000 KHR | 1,289 USD |
| Business Analyst | 4,010,000 KHR | 972 USD |
| Project Manager | 3,700,000 KHR | 897 USD |
| Developer / Programmer | 3,370,000 KHR | 817 USD |
| Network Engineer | 2,790,000 KHR | 676 USD |
| Customer Service Representative | 1,300,000 KHR | 315 USD |
Talent Sourcing Tips
Khmer Online Jobs, Pelprek.com, BongThom.com
555,300
Employment in Cambodia is overseen by several legal instruments, from the Constitution to laws on social security schemes. While onboarding an individual, the employer must know about it. The following section mentions the necessary information.
Employment contracts are meant to establish employment relationships legally. Employment contracts in Cambodia are of two types: Fixed duration contracts and unfixed-duration contracts. The contract’s language should be in the local language, Khmer, though it is not legally mandatory. But to obtain a work permit for foreign employees, the employment contract must be translated into Khmer.
The usual probationary period followed in Cambodia is from one to three months.
| Date | Name | Type |
| 1 Jan | New Year | Public Holiday |
| 7 Jan | Victory over Genocide Day | Public Holiday |
| 8 Mar | International Women Day | Public Holiday |
| 14 Apr | Khmer New Year Day (Day 1) | Public Holiday |
| 15 Apr | Khmer New Year Day (Day 2) | Public Holiday |
| 16 Apr | Khmer New Year Day (Day 3) | Public Holiday |
| 1 May | Labour Day | Public Holiday |
| 14 May | King’s Birthday | Public Holiday |
| 22 May | Visak Bochea Day | Public Holiday |
| 26 May | Royal Plowing Ceremony | Public Holiday |
| 18 June | Queens’ Day | Public Holiday |
| 1,2,3 Oct | Pchum Ben Festival | Public Holiday |
| 15 Oct | Commemoration Day of King’s Father | Public Holiday |
| 29 Oct | King’s Coronation Day | Public Holiday |
| 9 Nov | Independence Day | Public Holiday |
| 14 Nov | Water Festival Ceremony (Day 1) | Public Holiday |
| 15 Nov | Water Festival Ceremony (Day 2) | Public Holiday |
| 16 Nov | Water Festival Ceremony (Day 3) | Public Holiday |
| Type of leave | Time Period | Mandatory |
| Annual leave/Earned Leave | 22 days | Yes |
| Sick Leave | 180 days | Yes |
| Maternity Leave | 12 weeks | Yes |
Payroll
Payroll Cycle
Regular employees’ wages are paid monthly. Laborers are paid at least once every 16 days.
Minimum Wage
The monthly minimum wage is USD 198 or KHR 810,612.00/month for probationary workers and USD 200 or KHR 818,800.00/month for regular workers.
Overtime Pay
Overtime is provided at 150% of the regular pay rate. Overtime between 10 pm and 5 am, on public holidays, and on Sundays, the pay rate is 200%.
Bonus
After the first year of service, it is customary to provide the employees a seniority bonus, which ranges from $2 to $11, depending on the years of service, and is a constant at $11 beyond 11 years of service. It may be paid monthly or in the 13th month.
Taxes
| Type of Tax | Contribution |
| Health Insurance | 2.60% |
| National Social Security Fund | 0.8% |
| Total cost on Employer | 3.4% |
No payroll tax from 2018 onwards
| Income Group (KHR) | Contribution |
| 0 – 1,300,000 | 0% |
| 1,300,001 – 2,000,000 | 5% |
| 2,000,001 – 8,500,000 | 10% |
| 8,500,001 – 12,500,000 | 15% |
| Above 12,500,000 | 20% |
Non-residents are taxed at a flat rate of 20%, which constitutes a final tax.
The standard VAT rate is 10%
Offboarding & Termination
The termination procedures depend on the type of employment contract, the position held by the employee, and the reason for termination.
Fixed-Term Contract
An FDC cannot be terminated before its stipulated expiry date unless the employee and employer sign a mutual separation agreement before a labor inspector. If one of the parties disagrees, the employment contract cannot be terminated unless for reasons of gross misconduct.
Unfixed duration Contract
For indefinite employment, written notice must be given. A UDC is terminated with cause when it is terminated on any of the following grounds:
The employer must also notify the Ministry of Labor.
Upon termination, the employee is entitled to request a certificate of employment stating the dates of employment and information about the position held. If the employer refuses to provide this, the employer must pay the employee for damages.
The usual notice period during the probationary period is between 7 to 15 days. In the case of permanent employees, this period is in the range of seven to ninety days.
If the employer fails to give written notice or does not follow the notice period, compensation must be given to the employee for the amount that the employee would have earned during the notice period.
For indefinite period employment, the severance pay is as follows:
| Years of Employment | Severance Pay |
| 6 months – 1 year | 7 days |
| Above 1 year | 15 days’ wages for every year of employment (maximum 6 months) |
For fixed-term contract employment, employees shall receive at least 5% of wages obtained during the contract period.
Visa and Immigration
In order to work in Cambodia, a work permit and an employment card need to be obtained from the Ministry of Labor and Vocational Training (MLVT). A valid business visa or E-class visa is required for foreign employees.
For foreigners working in Cambodia as freelancers and Entrepreneurs – Visa type is EB
For foreigners starting a job or business in Cambodia – Visa type is EP
