Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Cambodia

Your quick guide on talent and labor compliance norms in Cambodia
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Capital
Phnom Penh
Currency
Cambodian Riel (KHR)
Languages
Khmer/Cambodian (Official), English
Payroll Frequency
Monthly
GDP per Capita
$1,751
Employer Tax
3.40%

Supplementary Guide for Employment and Expansion in Cambodia

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 universities in Cambodia, along with their world rankings, are below:

Royal University of Phnom Penh

RANKING

Cambodia : 1

World : 6139

Institute of Technology of Cambodia

RANKING

Cambodia : 2

World : 8160

Paññasastra University of Cambodia

RANKING

Cambodia : 3

World : 8271

École Royale d'Administration (Royal School of Administration)

RANKING

Cambodia : 4

World : 18451

University of Cambodia

RANKING

Cambodia : 5

World : 8529

Salary Data

An overview of some of Cambodia's jobs and their respective average salary is given below.

Job Title Average Salary (KHR) Average Salary (USD)
Customer Service Representative 1,300,000 $320
Software Engineer 2,267,138 $558
Software Developer 6,973,809 $1,718
Data Scientist 3,130,000 $771
UX Designer 2,018,768 $497
Product Manager 2,543,932 $627
Sales Representative 3,620,000 $892

Talent Sourcing Tips

Top Local Job Boards

Khmer Online Jobs, Pelprek.com, BongThom.com

Number of LinkedIn users

460,000 (2022 data)

Top Recruitment Agencies

Top Recruitment Cambodia, Khmer Best Job, CampUP Job

Employing in Cambodia

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.

Employee Contract

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 language of the contract is advisable to 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.      

Probation Period

The usual probationary period followed in Cambodia is from one to three months. 

Public and Provincial Holidays

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 Labor Day Public Holiday
14 May King's Birthday Public Holiday
15 May Visak Bochea Day Public Holiday
19 May Royal Plowing Ceremony Public Holiday
24 Sep Constitutional Day Public Holiday
24 Sep Pchum Ben Festival Public Holiday
25 Sep Pchum Ben Festival Public Holiday
26 Sep Pchum Ben Festival Public Holiday
15 Oct Commemoration Day of King's Father Public Holiday
29 Oct King's Coronation Day Public Holiday
7 Nov Water Festival Ceremony (Day 1) Public Holiday
8 Nov Water Festival Ceremony (Day 2) Public Holiday
9 Nov Independence Day Public Holiday
9 Nov Water Festival Ceremony (Day 3) Public Holiday

Employee Leaves

Type of leave Time Period Mandatory
Annual leave/Earned Leave 18 days Yes
Sick Leave 180 days Yes
Maternity Leave 12 weeks Yes

Payroll

Payroll Cycle

Regular employee's wages are paid monthly. Laborers are paid at least once every 16 days.

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Minimum Wage

The monthly minimum wage is 194 USD or 786,577.58 KHR per month, as of January 2022.

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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%.

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Health Examination Clause

Bonus

13th Month Pay:  

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. 

Employee Benefits:

The employee benefits available to employees in Cambodia are listed below:

  • ~Seniority bonus
  • ~Attendance bonus
  • ~Transportation and accommodation allowance
  • ~Maternity leave
  • ~Paternity leave
  • ~Health Insurance
  • ~Social Security
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Taxes

Employer Payroll Tax:

Type of Tax Contribution
Health Insurance 2.60%
National Social Security Fund 0.8%
Total cost on Employer 3.4%

Employee Payroll Tax: 

Zero percent from 2018 onwards

Employee Income Tax:

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%
> 12,500,000 20%

Non-residents are taxed at a flat rate of 20%, which constitutes a final tax. 

VAT: 

The standard VAT rate is 10%

Offboarding & Termination

Termination Process

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, a written notice must be given. A UDC is terminated with cause when it is terminated on any of the following grounds:

  • ~A reason related to the employee's aptitude or behavior, depending on the requirements of the enterprise
  • ~A force majeure situation
  • ~Serious misconduct from  the employee.

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.

Notice Period

The usual notice period during 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.

Severance Pay

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 month – 1 year 7 days
> 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

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