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The Cambodia Guide: All About Employment Laws, Taxes & Benefits


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Updated on:
April 11, 2024
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Updated on :

April 11, 2024
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The Cambodia Guide: All About Employment Laws, Taxes & Benefits


Cambodia, or the Kingdom of Cambodia, hosts more than 15 million people. For a region where their culture determines people's ideologies, Cambodia has witnessed many transformations. It is one of the developing countries in Asia, which means most of its potential is still untapped. With an abundance of labor, Cambodia has a lot to offer to the world.  

While there have been many amendments in the labor laws, the governing law is the Cambodia Labor Law of 1997 with the first amendment made in 2007 and the 2002 Law on Social Security. The labor law applies to employment contracts in the Kingdom of Cambodia regardless of contracting, nationality of the parties, or residence.

More details are shared below:

General Information

Currency: Cambodian Riel, 1 KHR (៛) = 0.00025 USD ($)

Economic Capital: Phnom Penh

Spoken Language: Khmer

GDP: 5.517% Growth Rate (2019)

Time Zone: UTC (+7:00)

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Minimum Wage: $190 (approximately 775,659 KHR)

Payroll Cycle: Monthly or bimonthly

Pay Date: 2nd or 4th week of the month

Working Hours: 48 hours per week or 8 hours per day

Night Shift Differential: 110% of regular wage if the working hours are from 10:00 pm to 6:00 am

Overtime Compensation: Overtime should not exceed 2 hours a day. It is paid at 150% of regular pay. If overtime is past 10 pm, on Sunday, or a public holiday, employers must pay 200% of wages.


Public Holidays + List of Holidays: There are 15 public holidays.



New Year

1st January

Victory over Genocidal Regime

7th January

International Women’s Day

8th March

Khmer’s New Year

13-16th April

International Labour Day

1st May

Visak Bochea Day

April or May (Moveable Date)

Royal Ploughing Ceremony

May (Moveable Date)

King Norodom Sihamoni’s Birthday

14th May

Queen Mother Norodom Monineath’s Birthday

18th June

Constitution Day

24th September

Pchum Ben

3 Days, September or October (Moveable Date)

Commemoration Day of King’s Father, Norodom Sihanouk

15th October

Coronation Day of King Norodom Sihamoni

29th October

Independence Day

9th November

Water Festival

3 Days, October or November (Moveable Date)

Annual Leaves: 18 leaves in a year. 1.5 days for every month. After three years of employment, an additional vacation is given every year.

Sick Leaves: Up to 6 months if a medical certificate is provided. 100% payment is given for 1st month of illness, 60% for 2nd and 3rd months, and no fee is given for 4-6 months.

Maternity Leaves: 90 days leave with 50% pay

Paternity Leave: 1 day

Parental Leaves: Can be taken as a special leave

Special leave: 7 days leave for family emergencies


Personal Income Tax: Rates are as follows –

Monthly Income(KHR)

Tax Rate (%)

0 to 1,300,000


1,300,001 to 2,000,000


2,000,001 to 8,500,000


8,500,001 to 12,500,000


Over 12,500,000


*Non-Residents are taxed at a flat 20% rate. Fringe Benefits (food, educational assistance, insurance premiums, pension plan contributions, entertainment expenditure, etc.) are also taxable at this rate.

Corporate Income Tax: 20% (except for Oil and Gas and Mining Companies).

Income Tax Return (ITR): Employees are not required to pay tax on salary directly to authorities. Employers are responsible for withholding taxes monthly.

Value Added Tax (VAT): Standard Rate is 10%. The export rate is 0%.

Employee Statutory Benefits

Bonus: After a year of employment, employees receive a seniority bonus ranging from $2 to $11 per month. This bonus amount is equal to years of service and is capped at $11 after 11 years of service.

Attendance Bonus: Employees who are regular to work are paid a bonus of $10 per month.

Transportation and Accommodation Allowance: Since 2016, employees receive $7 per month for travel and accommodation.

Unemployment: N/A

Employee Voluntary Benefits

Meal Allowance: Employers may give a free meal or an allowance of 2000 KHR per day ($0.49) for voluntary overtime.


Retirement Age: 60 years

Social Security: Employers contribute 0.8% of employees’ monthly wages to social security.

Healthcare: In 2016, NSSF in Cambodia implemented a national social health insurance scheme for formal sector workers. It requires a contribution of 2.6% of employees' monthly wage.

National Pension: Employees in the private sector, who are 55 years old, are eligible if:

  • 1st: Registered in the National Social Security Fund (NSSF) for at least 20 years.
  • 2nd: Pay in contribution at least for 60 months for Social Security Schemes during ten years, up to date of eligibility.

Otherwise, they are entitled to an old-age allowance, paid as a lump sum.


Probation Period: 2-3 months for regular/skilled employees, one month for unskilled workers.

Termination Procedure:

  • Fixed Term Contract – Upon mutual agreement, The employer can terminate the fixed-term contract before the actual date. Otherwise, the employer may terminate an employment contract for miscounting or due to unforeseen circumstances.
  • Indefinite Contract- Requires a written notice (by the initiator) and intimation to the ministry of labor by the employer. An employee can obtain a certificate for services rendered.

Notice Period: As follows –

Contract Type

Employment Duration

Notice Period


6 Months

7 Days

6 Months - 2 Years

15 Days

2-5 Years

1 Month

5-10 Years

2 Months

10 Years

3 Months

Fixed Term

6 Months

No Notice

6 Months - 1 Year

10 Days

>1 Year

15 Days

Separation Payment: Fixed Term Contract Employees receive at least 5% of wages provided during the contract. Indefinite contract employees receive seven days of wages for 6-12 months of service. Post that, 15 days of wages for each year of employment are given but capped at six months of wages.

Office Setup

Types of Business: Limited Liability Company (Single-member private limited company, private limited company, and public limited company), Branch Office, Representative Office, Partnership, and Sole Proprietorship.

Co-working Cost: Costs for a co-working seat would vary depending on the location. However, average costs in the capital are as follows:

  • Open Hot Desk – 60 USD (243300 KHR)
  • Dedicated Desk – 120 USD (486600 KHR)
  • Private Office – 330 USD (1338150 KHR)
  • Daily Pass – 7 USD (28385 KHR)
  • Weekly Pass – 30 USD (121650 KHR)

Employment Visas: To work in Cambodia, a work permit and an employment card are obtained via the Ministry of Labor and Vocational Training (MLVT). All foreign nationals require an E-class visa that is valid for 30 days. Types of E-class visas are listed below –

Visa Type

Who is it for?


Foreigners working in Cambodia, Freelancers, Entrepreneurs


Foreigners starting a job/ business


General, looking for employment


Those who want to retire in Cambodia


School or University Students


Technicians, specific industry

Sources: Deloitte, ShieldGeo, DFDL, Teamwave, Prake.org, ILO.

About the author

Sandeep Patel is a Content Marketing Manager and Strategist. Over the last five years, he has created and managed content for global brands and fintech startups. He is passionate about remote work and using tech for a better work-life balance.

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