Payroll and Benefits Guide - Cambodia

Cambodia
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Currency

Cambodian Riel (KHR)
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Capital

Phnom Penh
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Employer Taxes

3.40%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Cambodia is bordered by Vietnam to the east, the Gulf of Thailand to the southwest, Thailand to the northwest, and Laos to the northeast.

Cambodia’s official language is Khmer, and it is the second most widely spoken Austroasiatic language after Vietnamese.

The Cambodian New Year, Choul Chnam Thmey, is one of the most important traditional festivals in the country.

The official religion of Cambodia is Theravada Buddhism.

Cambodia has a rich and vibrant arts and cultural scene.

The Tonle Sap Lake, located in central Cambodia, is the largest freshwater lake in Southeast Asia.

Cambodia

Contributions

Employee Payroll Tax

Since the employer now contributes 100% of social security benefits, there are no employee deductions.

Employer Payroll Tax

Health Insurance2.60%
National Social Security Fund0.80%

Payroll

Payroll Cycle

Payments must be made on the last working day of each month in Cambodia, where the payroll cycle is typically on a monthly basis. Workers are compensated, nonetheless, at least every 16 days.

13th Salary

In Cambodia, there is no legal obligation for a 13th-month salary.

Work Hours and Week

In Cambodia, a typical workweek is made up of 8 hours each day and 40 hours per week. Every worker is entitled to at least one day off per week, usually on Sunday.

Overtime

Every additional hour worked is compensated as overtime, and contracts for employment and collective bargaining laws govern this payment. There is a daily cap of 2 hours when an employee is asked to work overtime or on a holiday.

If an employee works more than 40 hours per week, they are paid overtime at a rate of 150.00% of their usual salary; if they work extra on a Sunday or a holiday, they are paid 200.00% of their regular income. Employees who work overtime between the hours of 10:00 pm and 5:00 am are compensated at 130.00% of their usual hourly rate.

Permission from the Ministry of Labor is required in order to work more hours.

Cambodia

Leave

Paid Time Off

The amount of paid yearly leave an employee is entitled to in Cambodia is determined by how many years of service they have completed. An employee is entitled to 18 days of paid leave each day as usual; after one year of continuous employment, they are entitled to 1.5 days of leave per month.

Public Holidays

In Cambodia, there are 15 public holidays.

Sick Days

If the employee can present a certificate of sickness, they may request up to six months of absence. The first month of sick leave is compensated at 100.00% of the employee’s usual salary rate, the next two are paid at 60.00%, and the remaining time off is unpaid.

Maternity Leave

In addition to two 30-minute nursing breaks per working day until the child reaches the age of 12, female employees are entitled to 90 days of paid maternity leave at a rate of 50% of their regular wage.

Every dependent spouse or child is eligible for a tax deduction of KHR 150,000.

Paternity Leave

There is no required paid paternity leave, however male employees may take up to seven days of annual leave instead of paternity leave.

Parental Leave

There are no parental leave provisions in the law.

Termination

Termination Process

Unless an employer can demonstrate adequate grounds for termination without notice (due to misconduct, etc.), Cambodia’s termination procedure is conventional and requires notice periods. Notice of termination must be in writing and given to the appropriate government agencies.

Notice Period

In Cambodia, a company must have a good reason to end a contract before giving notice to the worker. This includes dismissal for poor performance, undesirable behavior, or financial considerations. The duration of the notice period is determined by the employee’s tenure:

  • Employees with six months or less of service must give seven days’ notice.
  • 15 days’ notice for those with between six and 24 months’ service.
  • For employees with 2 to 5 years of service, one month’s notice is required.
  • For workers with 5 to 10 years of experience, two months’ notice is required.
  • For workers with more than ten years of service, three months’ notice is required.

Severance Pay

Severance pay typically needs to equal at least 5.00% of the total salary given to the employee over the course of the contract.

Employees having a duration contract that has been undercut are entitled to statutory severance pay. Depending on how many years of service the employee has accrued, a certain sum is required.

Probation Period

Probation Period

The length of the probationary term in Cambodia is set based on the employee’s skill level. The probationary period is three months for regular employees, two months for skilled employees, and one month for unskilled employees.

Immigration

In order to work in Cambodia, foreign nationals must possess a current business visa (E-class visa). The initial 30-day validity period of the E-class visa. By submitting an application to the immigration division of the Ministry of Interior (MoI), the visa may be renewed for one month, three months, six months, or a maximum of one year at a time.

VAT

In Cambodia, the usual VAT rate is 10.00%.