Easily manage employment in Cambodia

Effective January 1, 2025, the new minimum wage for regular workers is set to USD 2496 per annum.

Seniority payments are only applicable to employees with a UDC.

All employees with a UDC are entitled to receive ongoing seniority payments in an amount equal to 15 days of their wages and other benefits per year. Employers must pay the seniority indemnity to employees as follows:

A new employee is entitled to a full installment of the seniority payment (being equal to 7.5 days of wages and benefits) if the employee worked for at least one month in the applicable period (being from January to June, or July to December).

If an employee has an FDC, they are not entitled to seniority payments, and they will receive severance payments.

13th month pay is a common practice, but not mandatory, before the implementation of seniority payment. Some employers have decided to cancel the 13th month pay when the Ministry of Labor and Vocational Training have decided to have seniority pay as mandatory payment. Therefore, the 13th month pay depends on the company’s individual decision.

The payment of a retention bonus would not contravene Cambodian law. However, the Employer should be aware that an employer has an obligation to pay employees with a UDC a seniority payment, and payment of the retention bonus will not excuse the employer from paying the seniority payments.

We can help you get a new employee started in Cambodia fast.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Cambodia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Cambodia may lead to fines and penalties for the offending company.