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Cambodia, hassle-free

The minimum wage for 2024 is KHR 1.069.900 per month and can vary depending on the sector. 

Cambodia does not impose income tax, however employees are required to pay contributions based on their salaries, and pay salary tax. Salary tax ranges from 0% to 20%, with a maximum contribution allowed. 

The employer cost is generally estimated at 5.40% of the employee salary.

• Pension Fund - 2%
• Occupational Risk Contribution - 0.80%
• Health Care Contribution - 2.60%

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday. However, employees can have a work week from Monday to Saturday, achieving 48 hours per week.

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 2 hours of overtime per working day. For additional hours, employees are paid:

• 150% of normal working payment rate for overtime work on a normal working day; 
• 200% of normal working payment rate for overtime work between 22:00 to 05:00 and work performed on normal weekly day off;
• 130% of normal working payment for permanent or rotating work performed between 22:00 to 05:00; and 
• 100% of normal working payment is applicable for work performed on public holidays, in addition to normal wage that the employee is entitled to on paid public holidays.

Employees who have worked for 1 year are entitled to 90 days of paid leave. The employee will receive 50% of the salary during this period, and the employer will be responsible for this pay.

Employees are entitled to 5 days of paid paternity leave that must be taken once the child is born. However, it is common practice to provide additional 7 to 15 days of leave paid by the employer.  The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.

In Cambodia, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Employees are entitled to paid sick leave for up to 12 days. If the employee takes more than 3 consecutive days, a medical certificate from an authorized doctor is required. 

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Dismissal must be justified when failing to perform according to reasonable standards made known by the employer to the employee.

In Cambodia, the notice period is based on the length of the labor relationship:

• Up to 6 months of employment - 1 week's notice
• 6 months - 2 years of employment - 2 weeks' notice
• 2 - 5 years of employment - 1 month's notice
• 5 - 10 years of employment - 2 months' notice
• 10+ years of employment - 3 months' notice

If the worker is dismissed for a reason other than serious misconduct, the employer must pay an indemnity for dismissal. The amount of the indemnity depends upon the employee's length of continuous service, and can increase up to 6 months. 

Employees are entitled to 18 working days of paid time off (PTO) a year. PTO accrues monthly at 1.5 days per month. Employees are eligible for annual leave upon the completion of 1 year of continuous employment. Additionally, the employee is entitled to an additional for every 3 years of service. 

It is common practice to provide extra leave called special leave with a length of 7 days.

Cambodia celebrates 15 national holidays that last 21-22 days. 

National public holidays include:

• International New Year Day
• Day of Victory over the Genocidal Regime
• International Women's Rights Day
• Khmer New Year's Day
• International Labor Day
• Visaka Bochea Day
• Royal Ploughing Ceremony
• Birthday of His Majesty Preah Bat Samdech Preah Boromneath NORODOM SIHAMONI, King of Cambodia
• Birthday of Her Majesty the Queen-Mother NORODOM MONINEATH SIHANOUK of Cambodia
• Constitution Day
• Pchum Ben Day
• Mourning Day of the Late King-Father NORODOM SIHANOUK of Cambodia
• Coronation Day of His Majesty Preah Bat Samdech Preah Boromneath NORODOM SIHAMONI, King of Cambodia
• National Independence Day
• Water Festival

Onboarding takes 4 business days. Compliance documents must be completed 1 day before the start date, including the employment agreement. 

As part of the onboarding process, the employee will be required to undergo a medical examination within the first month of employment.

Employment contracts in Cambodia can be both fixed or indefinite terms. The employee's compensation, benefits, termination requirements, as well as the salary and any compensation amounts are the main elements stated in an employment contract.

The contract should have primary information such as Kind of contract, passport, start date, end date, position, salary and other benefit, job description. Any element of an employment contract that fails to do so is considered invalid.

The minimum probation period is 30 days and the maximum probation period is 90 days.