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Employer of Record Cambodia | Worker Categories, Minimum Wages and Bonus in Cambodia

Employer of Record Cambodia

Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax

Discover our EOR (Employer of Record) services in Cambodia, designed to help international employers effectively manage their employment records within the country. Gain valuable insights into minimum wage regulations, wage payment methods, benefits entitlement, and other important aspects of employment in Cambodia. Our comprehensive resources provide the necessary information to navigate these areas and ensure compliance with local laws. Whether you're recruiting permanent, fixed-term, seasonal, or casual employees, our EOR services offer the support you need for a smooth and successful employment experience in Cambodia.

CapitalPhnom Penh
Time zoneUTC+07:00
Total Time zones1
Working hours per week40
Working weekMonday–Friday
Typical hours worked8
Personal Tax filing deadlineNA
Financial Year1st January to 31st December
Date formatdd/mm/yyyy
CurrencyCambodian Riel (KHR)
VATthe standard rate is 10%

Employer Payroll Contributions in Cambodia

Employers% of Gross Salary
Health Insurance2.6%
National Social Security Fund0.8%
Total Employment Cost3.4%

Minimum Wages in Cambodia

Minimum Wage
Minimum WageThe minimum wage in Cambodia is 730002 KHR per month.

Employee Payroll Contributions in Cambodia

Employees% of Gross Salary
No contribution needed from employees starting 2018.

Payroll Cycle in Cambodia

Payroll CycleMonthly
13th SalaryNot required by law.

Personal Income Tax in Cambodia

Income Tax
0 - 1,300,000 KHR 0%
1,300,001-2,000,000 KHR 5%
2,000,001- 8,500,000 KHR 10%
8,500,001- 12,500,000 KHR 15%
12,500,000 KHR and over20%

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.

Minimum Wage in Cambodia:

According to Prakas No. 247/22 issued by the MLVT on 21 September 2022, workers employed in the textile, garment, and footwear manufacturing (TGF) sectors, as well as the travel product/bag manufacturing sector, are entitled to minimum wages. Starting from 1 January 2023, probationary workers in these sectors have a minimum wage of USD198 per month, while regular workers have a minimum wage of USD200 per month.

For pieceworkers who are paid based on the quantity of products they produce, their wages are determined by their achieved results. If the work produced exceeds the minimum wage, the worker must receive an additional amount. On the other hand, if the work produced falls below the minimum wage, the employer must top up the employee's wage to meet the minimum threshold.

Workers in the TGF sectors also have access to other mandatory benefits specific to these sectors. These benefits include attendance bonuses, seniority bonuses, travel and accommodation allowances, and overtime meal allowances.

The Law on Minimum Wages, established in 2018, ensures that workers covered by the Labour Law receive a minimum wage. This applies to most employees in the private sector, excluding those in the air and maritime transportation sectors. However, the exact amount of the minimum wage is determined by the MLVT through Prakas.

It is important to note that any agreement, whether written or verbal, that provides a minimum wage lower than the level determined by the MLVT is considered null and void. Currently, the MLVT has not issued any Prakas regarding the minimum wage for sectors other than those mentioned above.


In Cambodia, it is common practice for businesses to reward their workers with contractual or discretionary bonuses. Although Cambodian labor law does not require businesses to provide bonuses, employers have the option to do so as long as they meet the minimum standards set by the Labour Law for remuneration.

If an employer offers benefits to workers that exceed the minimum standards set by the Labour Law, they may be legally obligated to continue providing these benefits on an ongoing basis. This is in accordance with the general principle of contract law as stipulated in the Civil Code. Any modifications to contractual benefits that exceed the benefits outlined in the Labour Law require the employee's consent.

From a taxation perspective, there are no restrictions limiting the amount of bonus that can be awarded to workers. Bonuses are classified as part of a worker's "salary" under Cambodia's tax law. Therefore, any bonuses paid to a worker are included in the calculation of the tax on salary.