Understanding Employment Norms in Cambodia: A Comprehensive Guide
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Hiring in Cambodia? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Cambodia.

Employment Norms in Cambodia

Cambodia's employment norms govern the relationship between employers and employees. Understanding these norms is essential for compliance and building a positive work culture. In this article, we'll explore some of the key employment norms in Cambodia, including working hours, leave entitlements, and minimum wages.

General Information:

  • The Cambodian currency is the Cambodian riel (KHR).
  • Phnom Penh is the capital of Cambodia
  • Khmer is the official language of Cambodia. Documentation should be done in Khmer.
  • As of 2022, the GDP of Cambodia was reported to be 130.86 Billion USD
Cambodia's labor laws and regulations cover various aspects of employment, including minimum wage, working hours, holidays, and social security.
Cambodia map

Table of Contents

  • Agreements
  • Onboarding Process
  • Visa
  • Minimum Wage
  • Payroll Cycle
  • Annual Bonus
  • Health Benefits
  • Working Hours and Overtime
  • Leaves
  • Social Security
  • Taxes for Employers
  • Taxes for Employees
  • Probation
  • Termination
  • Severance Pay
  • Employees or Contractors
  • Final Words


  • In Cambodia, employment contracts may have fixed or unlimited periods.
  • Providing a written employment contract in Khmer, the country's official language is standard procedure.
  • The primary features of an employment contract are the pay and any other amounts of remuneration, benefits provided to the employee, and conditions for termination.
  • Primary information in the contract should include the type of contract, passport, start date, finish date, position, salary, and other benefits, as well as a work description.
  • Any provision of an employment contract that does not do so is void.
  • A person must perform work, be paid, and be under another person's direction and supervision to be covered by the Labor Law.
Onboarding Process

Onboarding Process

  • During the onboarding procedure in Cambodia, the following papers must be submitted:
    • Name, date of birth, and address details for every employee of the company
    • National ID Employment
    • Employment Handbook
    • Foreign employees' work permits
  • One must have an employment card to work as a worker for any employer if one is of Cambodian nationality.
  • Nobody may continue to employ a person who does not adhere to the requirements of an employment card.


Cambodia has mainly 2 types of Visa:
  • Tourist Visas (T)- These are issued for travel-related purposes.
  • Ordinary Visas (E)- The duration of your initial ordinary (E) visa for Cambodia is equal to that of a tourist visa. Nonetheless, you might extend it after you get to Cambodia concerning your travel objectives:
    • Cambodia Business Visa (EB)- For business travelers or those who intend to work in Cambodia for an extended period. One year may be added to the validity of this visa.
    • Cambodia Retirement Visa (ER)- For foreign nationals who are above 55, retired, and capable of supporting themselves financially without employment. One year may be added to the validity of this visa.
    • Cambodia Student Visa (ES)- For foreign students who are accepted into a Cambodian educational establishment. One year may be added to the validity of this visa.
    • Cambodia Job-Seeking Visa (EG)- For foreigners seeking employment who are in Cambodia. Up to six months may be added to this visa's validity.

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Minimum Wage

Minimum Wage

The current minimum wage in Cambodia is KHR 818,800 per month in 2023.
Payroll Cycle

Payroll Cycle

Cambodia follows a monthly payroll cycle. In some cases, employees are also paid twice a month.
Annual Bonus

Annual Bonus

13th-month bonus: 13th-month pay or bonus is a common practice in Cambodia but wasn't mandatory unless seniority payment was implemented. Some employers have canceled the 13th-month pay when seniority payment was made compulsory by the Ministry of Labor and Vocational Training. Hence, the yearly bonus depends on the employer's decision.
Retention bonus: Employers should know that they need to pay the seniority payment to their employees, hence by paying the retention bonus they cannot make an excuse for paying the seniority payments.
Health Benefits

Health Benefits

Health benefits offered by employers in Cambodia vary depending on the size and type of the company. Some larger companies and multinational corporations offer comprehensive health insurance plans as part of their employee benefits package.
Smaller companies, however, may not offer comprehensive health insurance plans but may provide basic medical coverage for their employees, such as reimbursement for medical expenses or access to a company clinic.
Working Hours and Overtime

Working Hours and Overtime

  • Work hours: Normal working hours are limited to eight hours per day or 48 hours per week under the Labour Law. The Labour Law guarantees employees the right to weekly time off for a minimum of 24 straight hours and forbids companies from using the same worker for more than six days each week. Sunday typically marks the weekly vacation day.
  • Break: According to a common practice in the private sector in Cambodia, employees are entitled to a one-hour lunch break after eight hours of labor. Typically, each organization or corporation has an internal regulation that states this.
  • Overtime: The maximum amount of overtime every workday, in addition to the standard eight hours, is two hours. Workers are entitled to the following overtime compensation: 150% of the regular working payment rate is paid for overtime on a regular workday; 200% of the regular working pay rate will be paid for overtime work that is completed between 10:00 pm and 5:00 am and work done on a regular weekday off.


Sick Leave

  • Employees who become ill are entitled to six months of paid sick leave, with the first month's pay at their regular rate, the next two months' pay at 60% of that rate, and the last three months' pay at no additional expense.

Parental leaves

  • Maternal Leave- Female employees are entitled to two paid nursing breaks of 30 minutes each until their kid becomes 12 months old, as well as 90 days of job-protected, paid maternity leave (with benefits equal to 50% of their regular income).
  • Paternal Leave- Cambodia does not have any provision for paternity leave.

Marriage leaves

  • 7 days of unpaid leave is provided to employees who are getting married

Annual leaves

  • Every month that a Cambodian employee works for a company, they are entitled to 1.5 days of paid vacation, with a maximum of 18 days per year.
  • Every three years, employees are given an extra day off, and extended annual vacations can be negotiated collectively.

Public Holidays (for the Calendar year 2023)

  • International New Year's Day (1st January)
  • Victory Day over Genocide (7th January)
  • International Women's Day (8th March)
  • Khmer New Year Day (14th April)
  • Khmer New Year Day (15th April)
  • Khmer New Year Day (16th April)
  • International Labor Day (1st May)
  • Visak Bochea Day (4th May)
  • Royal Plowing Ceremony (8th May)
  • King Norodom Sihamoni's Birthday (14th May)
  • Queen Monineath's Birthday (King's Mother) 18th June
  • Constitutional Day (24th September)
  • Pchum Ben Festival (13th October)
  • Pchum Ben Festival (14th October)
  • Pchum Ben Festival (15th October)
  • Commemoration Day of King's Father (15th October)
  • Coronation Day of King Sihamoni (29th October)
  • Independence Day (9th November)
  • Water Festival Ceremony (Day 1) (26th November)
  • Water Festival Ceremony (Day 2) (27th November)
  • Water Festival Ceremony (Day 3) (28th November)

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Social Security

Social Security

In Cambodia, the National Social Security Fund (NSSF) introduced a nationwide social health insurance program in 2016. 0.8% is the employer's contribution towards the same.
Taxes for Employers

Taxes for Employers

  • 2.6%: Health Insurance
  • 0.8%: National Social Security Fund

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Taxes for Employees

Taxes for Employees

  • Income tax paid for 0 - 1,300,000 KHR is 0%
  • For KHR 1,300,001 - 2,000,000 5% tax is paid
  • Those who are earning between KHR 2,000,001 - 8,500,000 have to pay 10% tax
  • 15% tax needs to be paid for the income ranging between KHR 8,500,001 - 12,500,000
  • For income above KHR 12,500,000, the tax is 20%.


The provision of probationary periods is not mandatory in Cambodia. Because it is a common practice, hence probation period ranges between one to three months.

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Depending on the type of employment contract, the employee's position, and the reason for termination, several termination procedures may apply.
  • Fixed-Term Agreement- A mutual separation agreement between the employee and employer must be signed in front of a labor inspector before an FDC can be terminated before its designated expiration date. The employment contract cannot be dissolved until there has been significant misbehavior, even if one of the parties objects.
  • Unfixed Duration Contract- Written notice must be given in cases of indefinite employment. If a UDC is terminated for one of the reasons listed below, it has been terminated with cause.
    • Based on a worker's abilities or actions that are suitable for the demands of the company
    • A situation involving force majeure
    • The employee's serious misconduct.
Also, the employer must inform the Ministry of Labor about the termination.
Severance Pay

Severance Pay

According to Cambodian law, severance benefits are only necessary if an employee is fired without justification and depend on the specifics of the employment contract.
Employees with fixed-term contracts are entitled to severance pay that is at least 5% of their total compensation for the duration of the contract. This is determined by adding up all of the pay and bonuses that were paid throughout the contract. To calculate the severance payment, this amount is multiplied by 5%.
Employees or Contractors

Employees or Contractors

  • A person may be regarded as a full-time employee or worker under Cambodian law, depending on the type of work they do. Both are entitled to the same privileges and benefits. A person who is hired to assist an organization in exchange for payment is referred to as an employee. A laborer is a person who works for an employer under their supervision and primarily does manual labor for pay.
  • An independent contractor, on the other hand, operates under an agreement wherein one party (the contractor) assumes responsibility for carrying out a certain task, and the employing party agrees to pay compensation for the successful completion of the task. Independent contractors are not subject to the hiring party's subordination and continue to enjoy their legal freedom. However, under Cambodian law, the independent contractor is not provided with any employment protections or rights.
  • Full-time employees are treated differently than contractors in Cambodia, hence it is important to classify them accordingly. Misclassifying both categories can lead to fines.
Final Words

Final Words

Cambodia's growing economy and favorable demographics make it an attractive destination for companies looking to expand their operations in Southeast Asia. Companies that can partner with an EOR provider can be an effective way to overcome challenges related to employment norms and opportunities in Cambodia.

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