How to hire and pay employees in Cambodia
With Instahirin, your business can easily hire employees in Cambodia. No more worrying about local laws, complex tax systems, or managing international payroll.
Before hiring
EMPLOYEES IN The Cambodia
Before hiring employees in Cambodia, one key thing employers should be aware of is the country’s data protection obligations, although there is currently no comprehensive personal data protection law. Employers should still follow best practices for handling employee information such as securing data, limiting access, and clearly stating the purpose of data collection especially for cross-border transfers.
Another crucial factor is understanding Cambodia’s Labor Law and required employment benefits. Employers must provide a written contract, register employees with the National Social Security Fund (NSSF), and offer mandatory benefits like paid annual leave (18 days), sick leave, maternity leave, and public holidays. Overtime rules, minimum wage standards (especially in sectors like garments and manufacturing), and severance entitlements are also regulated. Foreign employers hiring locally must comply with work permit and immigration requirements for non-Cambodian employees.
At a glance
CURRENCY
Cambodian Riel (KHR)
OFFICIAL LANGUAGE
Khmer
PAYROLL FREQUENCY
Bi-monthly
EMPLOYER TAXES
4.4%
of gross salary
13th / 14th SALARY
N/A
Good to know
Cambodia has a public healthcare system, but it is under-resourced, so most formal employers provide private health insurance or reimburse medical expenses. The National Social Security Fund (NSSF) covers workplace injuries, maternity, and basic healthcare for employees in registered businesses.
The standard workweek is 48 hours, typically 8 hours per day over 6 days. Overtime is allowed up to 2 hours per day and must be paid at 150% to 200% of the regular wage, depending on timing. Employees are entitled to 18 days of paid annual leave, increasing with tenure, plus public holidays, which are among the highest in the region.
Labor laws in Cambodia
Working hours and overtime
Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday. However, employees can have a work week from Monday to Saturday, achieving 48 hours per week.
Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 2 hours of overtime per working day. For additional hours, employees are paid:
- 150% of normal working payment rate for overtime work on a normal working day
- 200% of normal working payment rate for overtime work between 22:00 to 05:00 and work performed on normal weekly day off
- 130% of normal working payment for permanent or rotating work performed between 22:00 to 05:00
- 100% of normal working payment is applicable for work performed on public holidays, in addition to normal wage that the employee is entitled to on paid public holidays
Employment contracts
Employment contracts in Cambodia can be both fixed or indefinite terms. The employee's compensation, benefits, termination requirements, as well as the salary and any compensation amounts are the main elements stated in an employment contract.
The contract should have primary information such as Kind of contract, passport, start date, end date, position, salary and other benefit, job description. Any element of an employment contract that fails to do so is considered invalid.
Probationary period
The minimum probation period is 30 days and the maximum probation period is 90 days.
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Benefits and leave in Cambodia
Annual leave in Cambodia
Employees in Cambodia are entitled to 1.5 days of paid annual leave per month of continuous service, totaling 18 days per year. After every three years of service, this entitlement increases by one additional day. Employees can typically begin using their accrued leave after completing one year of employment.
Sick leave
Employees are entitled to paid sick leave for up to 12 days. If the employee takes more than 3 consecutive days, a medical certificate from an authorized doctor is required.
Parental leave
In Cambodia, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.
Holidays
Cambodia celebrates 15 national holidays that last 21-22 days.
Employer tax
In Cambodia, employers contribute around 5.4% of an employee’s gross salary to the National Social Security Fund, covering health insurance, occupational risk, and pensions. Rates vary slightly by scheme, with planned increases in pension contributions over time.
Individual tax
In Cambodia, individuals pay progressive income tax ranging from 0% to 20% on monthly salary, with non-residents taxed at a flat 20%. Employees contribute 2% to the National Social Security Fund for pensions, while healthcare is fully covered by employers.
Termination in The Cambodia
Dismissal must be justified when failing to perform according to reasonable standards made known by the employer to the employee.
Notice period
In Cambodia, the notice period is based on the length of the labor relationship:
- Up to 6 months of employment - 1 week's notice
- 6 months - 2 years of employment - 2 week's notice
- 2 - 5 years of employment - 1 month's notice
- 5 - 10 years of employment - 2 month's notice
- 10+ years of employment - 3 month's notice
Start hiring employees in
Cambodia
Setting up a business entity in every country where you want to hire isn’t scalable it’s time-consuming, costly, and legally complex. In Cambodia, navigating labor laws, social security contributions, tax regulations, and mandatory employee benefits can be challenging. Managing contracts, payroll, and compliance manually through spreadsheets and emails often leads to inefficiencies and compliance risks.
With InstaHirin, you can easily manage HR, payroll, and automate compliance in Cambodia and 180+ countries all from one user-friendly platform so you can hire quickly and confidently without setting up a local entity.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While InstaHirin yster strives to provide current and accurate information, InstaHirin makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
