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Expand your global workforce in Cambodia

Your guide to the employment landscape, working customs and local labor laws in Cambodia.

Capital

Phnom Penh

Currency

Cambodian Riel (KHR)

Languages

Khmer/Cambodian (Official), English

GDP per Capita

$2,018.70

Employer Tax

3.40%

Payroll Frequency

Monthly

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

Top local universities in Cambodia

Cambodia Uni1

Royal University of Phnom Penh

Ranking

Local: 1

World: 5769

Cambodia Uni2

University of Puthisastra

Ranking

Local: 2

World: 7788

Cambodia Uni3 1

University of Cambodia

Ranking

Local: 3

World: 8297

Cambodia Uni4 1

Institute of Technology of Cambodia

Ranking

Local: 4

World: 8396

Cambodia Uni5 1

Paññasastra University of Cambodia

Ranking

Local: 5

World: 8431

Top Local Job Boards

Khmer Online Jobs, Pelprek.com, BongThom.com

Number of LinkedIn users

555,300

Top Recruitment Agencies

Top Recruitment Cambodia, Khmer Best Job, CampUP Job

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

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

Employ in Cambodia

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 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.

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 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

 

Employee Leaves

Type of leave Time Period Mandatory
Annual leave/Earned Leave  22 days Yes
Sick Leave 180 days Yes
Maternity Leave 12 weeks Yes

 

Leave Compliance

Payroll in Cambodia

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Payroll cycle

Regular employees’ wages are paid monthly. Laborers are paid at least once every 16 days.

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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.

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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%.

How taxes work

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

No payroll tax 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%
Above 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%

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

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

Employee offboarding

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:

  • 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.

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.

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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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