Guide to employment, payroll and benefits in

Cambodia

Rivermate offers complete payroll, benefits and compliance services for

Cambodia

01. Overview

Last updated: 

August 19, 2021

Currency
Cambodian Riel
Capital
Phnom Penh
Ease of doing business
53.8
Language
Khmer
Population
16718965
GDP growth
7.10%

02. Grow your team in

Cambodia

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Cambodia

, particularly if you don't have established local relationships. You can hire employees in

Cambodia

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Cambodia, formally the Kingdom of Cambodia, is a Southeast Asian nation situated in the southern part of the Indochinese peninsula. It is 181,035 square kilometers in size and is bordered on the northwest by Thailand, the northeast by Laos, the east by Vietnam, and the southwest by the Gulf of Thailand. Cambodia is a sovereign state with a population of over 15 million people. Buddhism is the official state religion, as stated in the constitution, and is practiced by more than 97% of the population. Vietnamese, Chinese, Chams, and 30 hill tribes are among Cambodia's minority groups. Phnom Penh, Cambodia's capital and largest city, serves as the country's political, economic, and cultural hub. The kingdom is an elective constitutional monarchy with a head of state elected by the Royal Council of the Throne, officially Norodom Sihamoni. The Prime Minister, officially Hun Sen, is the longest-serving non-royal leader in Southeast Asia, having been in power since 1985. Jayavarman II proclaimed himself king in 802 AD, uniting the Chenla's warring Khmer princes under the name "Kambuja." This was the start of the Khmer Empire, which lasted more than 600 years. The Indianized kingdom aided the propagation of Hinduism and then Buddhism in Southeast Asia, as well as undertaking numerous religious infrastructure projects. The most notable of these structures is Angkor Wat, which is a UNESCO World Heritage Site. After the revolt of Ayutthaya, which was formerly controlled by the Khmer Empire, Cambodia experienced a decline in power in the fifteenth century, while its neighbors Vietnam and Thailand grew stronger. Cambodia became a French protectorate in 1863, and was subsequently absorbed into French Indochina in Southeast Asia. In 1953, Cambodia declared independence from France. With the extension of the Ho Chi Minh Trail and the creation of the Sihanouk Trail in 1965, the Vietnam War was expanded into Cambodia. As a result, the United States bombed Cambodia from 1969 to 1973. Following the 1970 Cambodian coup that established the right-wing pro-US Khmer Republic, deposed King Sihanouk backed his former foes, the Khmer Rouge headed by Pol Pot. The Khmer Rouge became a major force after capturing Phnom Penh in 1975 with the support of the monarchy and North Vietnam. The Khmer Rouge then committed Cambodian genocide from 1975 to 1979, when they were defeated in the Cambodian–Vietnamese War by Vietnam and the Vietnamese-backed People's Republic of Kampuchea, which was backed by the Soviet Union. Cambodia was briefly ruled by a United Nations mission following the Paris Peace Accords of 1991. After conducting elections in which approximately 90% of registered voters voted, the UN withdrew. Prime Minister Hun Sen and the Cambodian People's Party, who remain in power, overthrew the government in 1997 due to factional battle.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to 18 days of paid leave per year, which accrue at 1.5 days per month.An additional day of paid leave is provided for every three years of work.

Public holidays

Cambodia recognizes 15 public holidays.

Sick days

Employees are entitled to up to 6 months of sick time each year if a medical certificate can be provided.Sick compensation is calculated as follows:For the first month of sickness, 100%.For the second and third months of sickness, you will get 60% compensation.For the fourth and sixth months of sickness, you will be unpaid.

Maternity leave

Maternity leave is 90 days long, and the woman is entitled to 50% of her salary during that period.

Paternity leave

Cambodia currently has no provisions in the law regarding parental leave.

Parental leave

In Cambodia, parental leave falls under the category of special leave.

Other leave

Special Leave - Employees are entitled to up to seven days off per case if it affects a member of their immediate family.

06. Employment termination

Termination process

A fixed-term contract may be canceled prior to its expiration date if both the employer and employee agree. Both the employee and the employer must sign an agreement in front of a labor inspector to accomplish this. If neither party agrees, the employment contract cannot be canceled save for egregious misbehavior or force majeure.


A written notice must be issued in the case of indefinite employment contracts. If the employer initiates the dismissal, the employer must demonstrate fair cause. Employers are required to inform the Ministry of Labor.


When an employee is terminated, he or she has the right to obtain a certificate of employment detailing the dates of employment and details about the role held. If the employer refuses, the employer must compensate the employee for lost wages.

Notice period

The notice period is determined by the duration of employment and the structure of the employment contract. Employees who work for less than six months on indefinite employment contracts are entitled to a seven-day notice period. For employment lasting between six months and two years, a 15-day notice period will apply. A 15-day notice period will be required for employment spanning six months to two years. Employees who have worked for the organization for two to five years will receive a one-month notice period. After five to 10 years of employment, there will be a two-month notice period. Employees with more than ten years of service must give three months' notice. No notice period will be required for fixed-term contracts of up to six months. For those with six months to one year of employment experience, a ten-day notice period will be required. Employees who have worked for the company for more than a year will receive a 15-day notice period. The employee is entitled to two days of paid leave per week during the notice period to conduct job searches.

Severance pay

If the employer fails to provide written notice or does not adhere to the notice period, the employee must be compensated for the amount earned during the notice period. Severance pay will be tantamount to 7 days' earnings for work lasting more than six months but less than one year. Severance pay for employees with more than one year of service will be 15 days' wages for each year of service. The severance pay is capped at a total of 6 months' worth of wages.

Probation period

Probation periods vary according to the employee's skill level. Regular employees are subjected to a three-month probation. Skilled employees are subjected to a two-month probation. Unskilled employees are subjected to a one-month probation.

07. Working hours

General

In Cambodia, the standard workweek is eight hours per day and 48 hours per week. Employees are entitled to at least one day off per week, or a 24-hour period. This is frequently done on Sundays. Employees should not be required to work more than nine hours per day and should not be required to work more than two hours of overtime per day.


Night work that lasts at least 11 consecutive hours, including the hours between 10 p.m. and 5 a.m., is compensated at 130% of the normal rate during the day.

Overtime

The maximum amount of overtime permitted per day is two hours. Employees are entitled to receive 150 percent of their regular rate of pay for overtime hours worked. If the overtime is worked at night, on a Sunday, or on a public holiday, the rate is increased to 200 percent of the basic pay. Employers must obtain approval from the Ministry of Labour before scheduling overtime.

08. Minimum wage

General

For regular employees, the monthly minimum wage is 730,002.00 KHR. The minimum wage for probationary employees is 709,947.00 KHR.


Regular garment workers earn a minimum wage of USD 192, while probationary garment workers earn a minimum wage of USD 187.

09. Employee benefits

General

Cambodia is in the process of implementing a universal health care system. Employers may provide health insurance. Employees who are injured on the job are usually entitled to have their medical bills covered by their employer.

Employees are generally provided with health care allowances, housing allowances, transportation allowances, and attendance bonuses.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Cambodia

to hire a team takes time, money, and effort. The labor law in

Cambodia

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Cambodia

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Cambodia

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Cambodia

via our Employer of Record / PEO solution.

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