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Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

 

  • Overview

Employing in Cambodia

Workers' rights in Cambodia are protected by:

  • the Cambodian Constitution,
  • the Civil Code,
  • The Social Security Law of 2019
  • the Labor Code of 1997 (amended three times so far), and
  • Regulations passed by the Cambodian government and the Ministry of Labor and Vocational Training (MLVT)

— all of which guarantee equal pay for equal work and protections against discrimination based on age, religion, gender, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Cambodia.

Minimum wage

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

Seniority pay

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 bonus

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.

Retention bonus

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.

Onboarding time

We can help you get a new employee started in Cambodia fast. The minimum onboarding time we need is only 19 working days.

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.

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22 Public holidays

Competitive benefits package in Cambodia

health_insurance
Health Insurance
dental_insurance
Dental Insurance
vision_insurance
Vision Insurance
mental_health_support
Mental health support
pension_or_401(k)
Pension or 401(K)
life_and_disability_insurance
Life and Disability Insurance

Facts & Stats

Cambodia is one of the world’s few constitutional monarchies (with 1900 years of verifiable history). This jewel of South East Asia has a rich and tumultuous history and Cambodians are known for their friendliness, kindness, and patience – traits which are synonymous with the country’s dominant Buddhism religion.

The country is famous for the Angkor Wat temple complex which draws around 2.6 million tourists annually as well as the mystical Mekong River Delta. Cambodia also boasts a patchwork of pristine rainforest dotted with a diverse range of over 8000 plant species.

Cambodians tend to value punctuality and may be frustrated by lateness. Often seniority is held in very high regard and those with the most experience in an organization tend to lead meetings.

Cambodia is a growing economy powered by an $8 billion textile industry that is globally competitive, however more knowledge workers are starting to emerge from the country’s educational institutions.

Capital City
Phnom Penh
Currency
Cambodian riel
Languages
Khmer
Population size
17,300,000
Ease of doing business
Medium
Payroll frequency
Twice monthly
VAT - standard rate
10%

Grow your team in Cambodia with Remote

You can pay contractors now in Cambodia with Remote in some currencies (talk to a Remote expert now for more details).

 

Companies hiring in Cambodiaare typically required to either own a legal entity in the country or work with a global employment solutions provider to employ on the company's behalf. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like Cambodia can get complicated fast, especially without localized expertise. If you’re looking to start hiring in a country like this, using a global HR platform like Remote makes it easy to hire workers in full compliance with all local legislation. In the countries where we do offer our Employer of Record product, Remote takes on responsibility for compliance so you can focus on hiring great talent and growing your business.

Risks of misclassification

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.

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Transparent Pricing in Cambodia

Payroll

29

per employee/month
Book a demo
  • Powerful, transparent international payroll
  • Simple self-service platform
  • Personalized support from dedicated specialists
  • Adhere to local payroll regulations in every country
  • Integrated payroll, expense management, and HRIS solution
Contractor Management

29

per contractor/month
Book a demo
  • Only pay for contractors you actively work with
  • Work with international contractors
  • Create, edit, and sign tailored, localized contracts
  • Approve contractor invoices with one click or auto-pay
  • Transparent payments with complete visibility
Employer of Record

699 599

per employee/month
Book a demo
  • Hire without opening a local entity
  • Guided onboarding
  • Local payroll paid on time, every time
  • Built-in security and compliance
  • Flexible, localised benefits
  • Offer equity incentives with tax assistance
  • Dedicated experts for local support