An Employer of Record (EOR) in Cambodia is a company that takes on the responsibility of being the legal employer for a worker. This includes managing payroll, benefits, and other employment-related tasks on behalf of the worker's actual employer.
An employer of record in Cambodia assist you with the following
- Draft local employment contracts
- Register employees with the social security agencies
- Withholding taxes
- Provide Benefits
- Comply with the local labor laws in Cambodia
- End to End Payroll
- Work Permit
- Hiring and Payments
Discover the key considerations and essential details you should be aware of before you hire your remote team in Cambodia.
On this page: Facts about Cambodia | Employment Contracts in Cambodia | Employment Laws in Cambodia | Worker Categories in Cambodia Social Security Contributions in Cambodia | Personal Income Tax in Cambodia | Work Permits & Employment Visas | Employee Benefits in Cambodia | Leave Policy in Cambodia
Facts about Cambodia
Cambodia’s startup scene is growing rapidly, driven by a young, tech-savvy population and improved internet access. Though still developing, the ecosystem benefits from strong government support, investors, and key organizations like Impact Hub, Techo Startup Center, and SmallWorld Ventures. These groups provide funding, mentoring, and training, helping position Cambodia as a rising digital economy in Southeast Asia.
- The ecosystem covers fintech, agritech, e-commerce, logistics, and edtech—leveraging digital solutions to enhance financial inclusion, farming productivity, online retail, delivery services, and education. Local startups are addressing critical gaps across these sectors.
- Cambodia is classified as a “Contender Ecosystem” in the Global Startup Ecosystem Index 2025 by StartupBlink. Phnom Penh ranks 573 globally, with an impressive 40% annual growth rate, showing strong potential to enter the global top 100 soon.
- Young, Digital-Savvy Workforce: Cambodia has a youthful population with a median age of around 25 years. Many are multilingual (Khmer, English, some French or Chinese), and there is a growing talent pool in tech, digital marketing, and design.
- Cost-Effective Talent: Hiring talent in Cambodia is more affordable compared to other Southeast Asian countries like Singapore and Malaysia, making it attractive for startups and companies seeking cost-efficient offshore teams.
- Techo Startup Center, established in 2019 under Cambodia’s Ministry of Economy and Finance, plays a pivotal role in supporting innovation and digital entrepreneurship. Based in Phnom Penh, it offers incubation, mentorship, and digital platform development and leads the Startup Cambodia National Program to nurture the local startup ecosystem.
- Startup Cambodia is a national initiative by the Ministry of Economy and Finance aiming to develop a vibrant entrepreneurial ecosystem by providing mentoring, policy support, co-working spaces, and access to investors.
Employment Contracts in Cambodia
What is an Employment Contract?
An employment contract is a legal agreement between an employer and a worker, where the worker agrees to perform tasks under the employer’s direction in exchange for wages. As stated in Article 664 of Cambodia’s Civil Code, this contract can be either oral or written. An oral contract is made when both parties agree verbally, while a written contract includes the terms in writing and is accepted through signatures or thumbprints.
Types of Employment Contracts
Cambodian labor law recognizes two main types of employment contracts: Fixed-Term Contracts (FDC) and Undetermined Duration Contracts (UDC).
Fixed-Term Contract (FDC)
An FDC is a contract set for a specific time period. It must be in writing and clearly state the start and end dates. Each term cannot exceed two years, but it can be renewed multiple times as long as each renewal also stays within the two-year limit. If the total duration goes beyond this, the contract automatically becomes a UDC. For example, if the first contract is for six months, it can be renewed up to a total of two years and six months. If the first contract is for one year, it can run up to three years. If it starts at one year and six months, the maximum allowed duration becomes three years and six months. If it begins with a full two-year term, the total allowed duration after renewal can reach four years.
FDCs also include contracts for temporary roles, such as replacing an absent employee, seasonal jobs, or handling short-term surges in workload. Even these contracts must not exceed the legal time frame of two years per term.
Undetermined Duration Contract (UDC)
A UDC has no fixed end date. It can be created either verbally or in writing and is usually used for permanent or long-term roles. If a job continues beyond the legal limits of an FDC, or if it does not meet FDC requirements, it is treated as a UDC. Employers typically use UDCs when hiring workers for ongoing business needs or indefinite positions.
Employment Laws in Cambodia
Minimum wages
As of January 1, 2025, the minimum wage in Cambodia is set at 839,809.00 ៛ per month.
Working Hours
In Cambodia, the standard work schedule is capped at 8 hours a day or 48 hours per week. Employees putting in a full-day shift are entitled to a one-hour lunch break to rest and recharge.
Work between 10:00 p.m. and 5:00 a.m. is considered night duty and must be compensated at 130% of the regular pay rate. To ensure worker safety and comfort during these hours, employers are also obligated to provide transport or accommodation.
Overtime in Cambodia
Overtime is permitted only for exceptional or urgent tasks and is strictly regulated. Employees may not work more than 10 hours in a single day, which limits overtime to a maximum of 2 additional hours beyond the standard 8-hour workday.
Participation in overtime is entirely voluntary—employers cannot compel employees to work beyond regular hours. Any request for overtime must be submitted in advance to the Ministry of Labour and Vocational Training (MoLVT) for approval.
Overtime pay rates vary based on when the extra hours are worked:
- 150% of the regular wage on standard workday
- 200% on weekly rest days or public holidays (22 designated days in 2024)
- 200% for any overtime worked during night hours (10:00 p.m. – 5:00 a.m.)
Payroll Cycle
In Cambodia, the standard payroll cycle follows a semi-monthly schedule as mandated by the Ministry of Labour’s Notification No. 442/18 (effective January 2019). Employers are required to process payroll twice a month: the first payment, amounting to 50% of the basic monthly salary, is made during the second week, while the remaining salary and any additional benefits are paid in the fourth week.
While monthly payrolls remain common, laborers must be paid at least every 16 days, and some companies adopt this semi-monthly structure to comply. Additionally, if a payday falls on a public holiday, wages must be disbursed on the last working day prior to the holiday.
Probation Period
In Cambodia, the probation period applies to all types of employment contracts—both Fixed Duration Contracts (FDC) and Unfixed Duration Contracts (UDC). The maximum length of the probation period depends on the nature of the employee’s role:
- Regular employees: 3 months
- Specialised employees: 2 months
- Non-specialised employees: 1 month
Regular employees typically handle general office or service roles that require basic education and training—such as administrative staff or customer service agents.
- Specialised employees are those in skilled or technical roles that demand specific qualifications or expertise, like engineers, IT professionals, or accountants.
- Non-specialised employees perform general or manual labor that doesn’t require formal training, such as cleaners, helpers, or warehouse workers.
The probation period is intended to assess an employee’s suitability for the role and may not be extended beyond the time limits set by law.
Notice Period
In Cambodia, the notice period required for terminating an employment contract depends on the type of contract and the employee's length of service.
For Fixed Duration Contracts (FDC):
When renewing or ending an FDC, the employer must give advance notice based on the contract’s duration:
- No notice required if the contract is less than 6 months
- 10 days’ notice for contracts lasting 6 months to 1 year
- 15 days’ notice for contracts longer than 1 year
For Unfixed Duration Contracts (UDC):
Notice periods for UDCs are based on how long the employee has continuously worked for the employer:
- 7 days if employed for less than 6 months
- 15 days for 6 months to 2 years of service
- 1 month for 2 to 5 years of service
- 2 months for 5 to 10 years of service
- 3 months for more than 10 years of service
These notice periods apply to both employer- and employee-initiated terminations, except in cases of serious misconduct.
13th Month Salary
The 13th month salary, typically an extra payment made before the New Year, is not legally required for private sector employees under Cambodian labor law. However, if it is explicitly mentioned in an employment contract or company policy, the employer is then obligated to pay it. Additionally, the 13th month salary may be part of agreements negotiated between labor unions and employers. In summary, while the law does not mandate it, the payment may be required based on contracts or union agreements.
Notice Period
Notice Periods by Employment Contract Type in Cambodia
Fixed Duration Contracts (FDC):
- No notice required if the contract is less than 6 months
- 10 days’ notice for contracts between 6 months and 1 year
- 15 days’ notice for contracts longer than 1 year
Unfixed Duration Contracts (UDC):
Notice periods depend on continuous service length:
- 7 days for less than 6 months
- 15 days for 6 months to 2 years
- 1 month for 2 to 5 years
- 2 months for 5 to 10 years
- 3 months for over 10 years
Severance Pay in Cambodia
Cambodia’s labor law outlines different severance requirements based on contract type—Fixed Duration (FDC) or Undetermined Duration (UDC). As an employer, it's important to apply the correct approach to remain compliant.
For Fixed Duration Contracts (FDC)
Employers must pay severance equivalent to at least 5% of the total wages earned over the contract period.
- This applies at the end of the contract term
- The amount is non-taxable
- Collective bargaining agreements may set higher rates
For Undetermined Duration Contracts (UDC)
Severance pay is replaced with seniority indemnity, payable twice per year:
- 7.5 days’ wages in June
- 7.5 days in December
For employees with less than six months of service, a pro-rated 7.5-day payment applies. The first KHR 2,000,000 of each payment is tax-exempt.
In Cases of Resignation
Severance or seniority indemnity is not mandatory when an employee resigns—unless:
- The resignation was coerced
- The benefit is guaranteed by internal policy, contract, or past company practice
- The employer offers it voluntarily
Best Practices
To manage severance obligations effectively:
- Clearly outline terms in employment contracts
- Align internal policies with labor law
- Maintain accurate payroll and service records
- Review collective agreements if applicable
Worker Categories in Cambodia
In Cambodia, workers are classified into different categories based on the nature of their work. The main categories are employees, labourers, and independent contractors or self-employed individuals. It is important to note that employees and labourers enjoy the same rights and benefits under the law, and the term "worker" collectively refers to both.
According to the Labour Law, an employee is someone who is employed to assist a person or organization in exchange for remuneration. While their work may include manual labour, it is not their sole responsibility. On the other hand, a labourer is predominantly engaged in manual labour under the direction of an employer in return for remuneration.
An independent contractor or self-employed individual operates under a different arrangement. Their relationship is governed by the provisions of the Civil Code. A contract for work is established, where the contractor undertakes the agreed work and the hiring party pays remuneration. Unlike employees or labourers, independent contractors have more freedom in determining the nature and execution of their work. They should not be subject to the direction and supervision of the hiring party.
There is no specific test outlined in the law to determine whether a person is a worker or an independent contractor. However, the Arbitration Council has provided guidance on the interpretation of "direction" and "supervision" in determining the nature of the relationship.
Several factors can be considered when making this determination, including the recruitment process and remuneration, adherence to internal work rules and schedules, and the employer's right to discipline and terminate the worker. If an independent contractor is substantially supervised and directed by the employer to the extent that it can be considered as direction and supervision, the relationship may be classified as an employer-worker relationship. In such cases, the employer would be responsible for fulfilling all obligations imposed by the Labour Law towards the contractor.
Social Security Contributions in Cambodia
Occupational Risks Contribution (ORC) – Employer Responsibilities
As an employer in Cambodia, you are legally obligated to contribute to the National Social Security Fund (NSSF) for various schemes, including occupational risk, healthcare, and pension. These contributions are mandatory if your enterprise employs 8 or more staff.
1. Occupational Risk Scheme
This scheme provides coverage for work-related accidents or occupational diseases. The contribution is entirely borne by the employer—employees are not required to contribute.
Contribution Table (Occupational Risk)
Monthly Wage Range (KHR)
Contributory Wage (KHR)
Employer's Contribution (KHR)
Below 200,000
200,000
1,600
200,001 – 250,000
225,000
1,800
250,001 – 300,000
275,000
2,200
300,001 – 350,000
325,000
2,600
350,001 – 400,000
375,000
3,000
400,001 – 450,000
425,000
3,400
450,001 – 500,000
475,000
3,800
500,001 – 550,000
525,000
4,200
550,001 – 600,000
575,000
4,600
600,001 – 650,000
625,000
5,000
650,001 – 700,000
675,000
5,400
700,001 – 750,000
725,000
5,800
750,001 – 800,000
775,000
6,200
800,001 – 850,000
825,000
6,600
850,001 – 900,000
875,000
7,000
900,001 – 950,000
925,000
7,400
950,001 – 1,000,000
975,000
7,800
1,000,001 – 1,050,000
1,025,000
8,200
1,050,001 – 1,100,000
1,075,000
8,600
1,100,001 – 1,150,000
1,125,000
9,000
1,150,001 – 1,200,000
1,175,000
9,400
Above 1,200,000
1,200,000 (capped)
9,600
Note: Contributions are based on a capped contributory wage of KHR 1.2 million for calculation purposes.
Health Care Contribution Requirements for Employers
Under Cambodia’s social security framework, employers are required to make contributions to the Health Care Scheme administered by the National Social Security Fund (NSSF). Both employers and employees share this contribution responsibility.
Contribution Rates
The contributory wage base for the Health Care Scheme follows the same structure used for Occupational Risk contributions.
Sample Contribution Table (based on total 2.6%)
Rank
Monthly Wage (KHR)
Contributory Wage (KHR)
Total Monthly Contribution (KHR)
1
Below 200,000
200,000
5,200
2
200,001 – 250,000
225,000
5,850
3
250,001 – 300,000
275,000
7,150
4
300,001 – 350,000
325,000
8,450
5
350,001 – 400,000
375,000
9,750
6
400,001 – 450,000
425,000
11,050
7
450,001 – 500,000
475,000
12,350
8
500,001 – 550,000
525,000
13,650
9
550,001 – 600,000
575,000
14,950
10
600,001 – 650,000
625,000
16,250
11
650,001 – 700,000
675,000
17,550
12
700,001 – 750,000
725,000
18,850
13
750,001 – 800,000
775,000
20,150
14
800,001 – 850,000
825,000
21,450
15
850,001 – 900,000
875,000
22,750
16
900,001 – 950,000
925,000
24,050
17
950,001 – 1,000,000
975,000
25,350
18
1,000,001 – 1,050,000
1,025,000
26,650
19
1,050,001 – 1,100,000
1,075,000
27,950
20
1,100,001 – 1,150,000
1,125,000
29,250
21
1,150,001 – 1,200,000
1,175,000
30,550
22
1,200,001 and above
1,200,000
31,200
Contribution Payment Timeline
Employers must begin making NSSF contributions within 30 days from the date the “Certificate of Enterprise/Establishment Registration” is issued.
To remain compliant and avoid penalties, ensure contributions are paid on time each month.
Personal Income Tax in Cambodia
Cambodia doesn’t impose a personal income tax in the traditional sense. Instead, employers must withhold salary tax from employees’ monthly income.
Who Pays Salary Tax?
Salary Tax Rates for Residents:
Monthly Salary (KHR)
Tax Rate (%)
0 – 1,500,000
0%
1,500,001 – 2,000,000
5%
2,000,001 – 8,500,000
10%
8,500,001 – 12,500,000
15%
Over 12,500,000
20%
Salary Tax for Non-Residents:
Fringe Benefits:
Any fringe benefit provided to an employee is taxed at 20%, paid by the employer.
Note: Independent consultants are generally excluded from salary tax but may be classified as employees depending on the nature of engagement. In such cases, salary tax rules would apply.
Work Permits & Employment Visas for Foreign Employees in Cambodia
If you're hiring foreign nationals in Cambodia, both a valid employment visa and a work permit are mandatory. Here's what employers need to manage to stay compliant.
Step 1: Employment Visa (EB Visa)
Before applying for a work permit, foreign employees must enter Cambodia with an EB visa (employment visa).
Note: The E-class business visa is for short-term business activities—not employment.
Step 2: Work Permit Application
Once your company is registered with the Ministry of Labor and Vocational Training (MLVT), you're responsible for securing and renewing work permits for all eligible foreign staff.
Employer Responsibilities:
Types of Work Permits
1. Temporary Work Permit
For most foreign professionals, including:
Required Documents:
2. Permanent Work Permit
Reserved for:
Required Documents:
Processing Time: Permit approval generally takes 20 working days to 3 months.
Employee Benefits in Cambodia
Employee welfare in Cambodia is governed by the Law on Social Security Schemes for Persons Defined by the Provisions of the Labor Law (2002). The primary agency managing these benefits is the National Social Security Fund (NSSF), which provides support across pensions, health care, occupational risks, and more.
Statutory Benefits Under NSSF
Old-Age Pension & Allowance
Employees who reach the age of 55 and have contributed to the NSSF for at least 60 months over 20 years are entitled to an old-age pension.
If they do not meet the full pension criteria, they may instead receive a lump-sum old-age allowance.
Invalidity Benefits
Should an employee become disabled before age 55, they may be eligible for invalidity coverage—provided they have:
Survivor’s Pension
If an NSSF contributor passes away, dependents may qualify for a survivor's pension if:
Occupational Risk Coverage
Temporary Disability
Employees suffering a work-related injury or illness confirmed by an NSSF-certified doctor can receive daily allowance payments.
On the first day of absence, the employer must cover the full wage.
Permanent Disability
If the disability is assessed at 20% or more, the employee is eligible for a permanent disability pension through the NSSF.
Sickness & Maternity Benefits
Sickness
Employees can claim 70% of their average daily wage (calculated over the past six months) for up to 180 days of certified medical leave.
Maternity
Female employees receive:
Funeral & Survivor Support
In cases where an occupational injury results in death, the NSSF provides:
Leave Policy in Cambodia
Cambodia’s labor regulations outline several types of employee leave—some mandatory, others discretionary. Employers are encouraged to supplement statutory entitlements with flexible policies that support employee well-being and align with international best practices. Below is an overview of the major types of leave:
Annual (Earned) Leave
Employees who have completed at least one year of continuous service are entitled to 18 days of paid annual leave. This accrues at a rate of 1.5 days per month and increases over time—an additional day is added every three years of service.
Key considerations:
Maternity Leave
Women employees are entitled to 90 days (3 months) of paid maternity leave.
Key conditions:
Sick Leave
Employees facing medical conditions or hospitalization may take sick leave for up to six months, with wages paid as follows:
Family and Special Leave
Cambodia’s labor framework allows seven days of paid special leave per year for immediate family-related events such as weddings or funerals. This leave can also serve as:
Employers are encouraged to reflect modern family needs by adapting these provisions for broader parental support.
Casual Leave
When annual leave balances remain unused, employers may grant casual leave. This can also be supplemented with the seven-day special leave for unplanned or urgent personal matters.
Parental and Adoption Leave
While Cambodian law does not currently recognize parental or adoption leave, organizations may introduce inclusive policies by:
Unpaid Leave
There are no legal requirements for unpaid leave in Cambodia, but employers may choose to offer it as part of their internal policy. This could include sabbaticals, career breaks, or extended family care leave.
While Cambodia's labor law covers several core leave types—especially annual, maternity, and sick leave—employers are encouraged to bridge the gaps in adoption, paternity, and parental leave by implementing supportive, forward-thinking policies. This not only ensures compliance but also contributes to employee satisfaction and retention.
In conclusion, partnering with an Employer of Record (EOR) in Cambodia can be a smart move for companies aiming to enter or grow in the Southeast Asian market without setting up a local entity. EOR services in Cambodia offer end-to-end support with employment compliance, payroll management, and local HR administration. By leveraging an EOR, businesses can confidently navigate Cambodia’s evolving labor laws and regulatory requirements, minimizing risk and ensuring full legal compliance. This approach allows companies to streamline operations, accelerate market entry, and focus on strategic growth while the EOR handles the complexities of workforce management. With Cambodia’s emerging economy and increasing openness to foreign investment, EOR services provide a valuable foundation for successful and compliant expansion.