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The country provides a strategic location in Southeast Asia, facilitating trade and investment opportunities.
With relatively low labor costs and a skilled workforce, Cambodia presents an attractive option for businesses seeking cost-effective production or service delivery.
Cambodia’s labor market is characterized by a young and increasingly skilled workforce.
Phnom Penh, the capital city, has become a hub for professionals from various backgrounds, contributing to a diverse talent pool.
In Cambodia, employment contracts can be for a fixed or indefinite term and are typically written in Khmer. These contracts cover important details like:
In Cambodia, the maximum probation period is limited to three months. It cannot be extended beyond this period.
The standard working week is typically 8 hours a day, amounting to a total of 40 hours per week
Overtime is restricted to a maximum of two hours per working day beyond the regular eight hours. Employees who work overtime during normal working hours are entitled to receive overtime pay at a rate of 150% of their regular hourly wage. For those engaged in permanent or shift work between 10:00 pm to 5:00 am, the overtime pay rate is set at 130% of their normal pay rate.
The minimum wage in Cambodia is at 818,800 KHR per month.
In Cambodia, there is no statutory requirement for a 13th-month salary.
In Cambodia, individual income tax is calculated based on progressive rates ranging from 0% to 20% as follows:
Companies with employees must register with the National Social Security Fund (NSSF). To get pension benefits, one must be at least 60 years old, registered in the NSSF pension scheme, and have contributed for at least 12 months. Pension contributions are based on monthly earnings, capped at KHR 1,200,000.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Cambodia tailored to your needs.
Dismissal in Cambodia is required to be justified, especially when it results from an employee's failure to meet reasonable performance standards communicated by the employer. Some of the reasons that may lead to termination include:
The termination of an employment contract requires a justifiable reason, and the employer is obligated to provide notice to the employee. The notice period varies depending on the length of the employee's service:
In Cambodia, severance payments are required to be at least 5.00% of the total wages paid to the employee over the duration of their contract. For employees with no fixed contract duration:
The number and dates of paid public holidays in Cambodia are determined annually by a Prakas issued by the Ministry of Labor.
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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