Employer of Record in Cambodia

General Information

• Currency: Cambodian Riel (KHR)
• Employer Taxes: 3,4%
• Payroll Frequency: Monthly
• Employee Costs: %
• Capital: Phnom Penh
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The minimum wage is set at 818,800.00 KHR per month.

Payroll

Payroll Cycle: In Cambodia, the standard payroll cycle is monthly, with payments typically made on the last working day of each month. However, laborers are guaranteed to receive their wages at least every 16 days.

13th Salary

There is no statutory requirement for a 13th-month salary in Cambodia.

Working Hours

General: In Cambodia, the standard working week is 40 hours, with 8 hours per day. Employees are entitled to at least one day off per week, usually taken on Sunday.

Overtime: Any work beyond the standard 40-hour workweek in Cambodia is considered overtime and is governed by the employment contract or collective agreements. Employees may work a maximum of 2 hours of overtime per day.

Overtime worked beyond 40 hours a week is compensated at 150% of the regular pay rate. If the overtime occurs on a Sunday or public holiday, the rate is 200%. For overtime worked between 10:00 PM and 5:00 AM, the rate is 130% of the regular pay rate.

Additional work hours require permission from the Ministry of Labor.

Leave

Annual Leave (Vacation):

In Cambodia, the annual leave entitlement varies based on the employee’s years of service and working hours.

For a standard 40-hour workweek, employees are entitled to 15 working days of annual leave, accrued at a rate of 1.25 days per month.

For a 48-hour workweek, employees are entitled to 18 working days of annual leave, accrued at 1.50 days per month.

Employees receive an additional day of leave for every three years of service after completing four years of employment.

Part-time employees receive annual leave on a pro-rata basis.

Public Holidays

There are 15 public holidays. Public holidays falling on a weekend are lost.

Sick Days

An employee can take up to six months of sick leave, provided they submit a medical certificate. For the first month of sick leave, the employee receives 100% of their regular salary. The following two months are paid at 60% of the regular salary, with the remaining leave being unpaid.

After six months of sick leave, the employer has the right to terminate the employee’s contract.

Maternity Leave

Female employees are entitled to 90 days of paid maternity leave at 50% of their regular salary. Additionally, they receive two paid nursing breaks of 30 minutes each workday until the child turns 12.

A tax deduction of KHR 150,000 per month is allowed for each dependent child or spouse.

Paternity Leave

There is no paid statutory paternity leave, but male employees can use their annual leave entitlement for paternity leave of up to seven days.

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

In Cambodia, employees are entitled to bereavement leave in the event of the death of an immediate family member. Specifically, for the death of a father, mother, spouse, or child, an employee is granted seven days of unpaid leave. Similarly, employees are entitled to seven days of unpaid leave for their own wedding.

Would you like to know the approximate cost of employment in Cambodia?