Rivermate | Cambodia flag


Benefits and Entitlements Overview

Learn about mandatory and optional employee benefits in Cambodia

Mandatory benefits

In Cambodia, labor law mandates a comprehensive set of benefits that employers must provide to their employees. These benefits are designed to ensure employee well-being, protect their rights, and promote fair labor practices.

  • Annual Leave: Employees accrue paid annual leave based on their tenure. After one year of service, full-time employees (working 48 hours per week) are entitled to 1.5 days of leave per month, translating to 18 days of leave annually. Employees working less than 48 hours receive 15 days of leave in the first year. With every three years of consecutive service, employees earn an additional day of annual leave. Part-time employees receive leave on a pro-rata basis.

  • Public Holidays: Cambodia observes 15 public holidays throughout the year, many of which extend for multiple days. Employees are entitled to paid time off on these public holidays.

  • Sick Leave: Employees can claim up to six months of sick leave, provided they can furnish a medical certificate from a qualified doctor.

  • Maternity Leave: Female employees are entitled to 90 days of paid maternity leave at 50% of their regular salary. Additionally, they receive two paid 30-minute nursing breaks per workday until their child reaches 12 years old.

Social Security

Cambodia has a mandatory social security scheme that provides employees with benefits like healthcare coverage, pensions, and unemployment benefits. Employers and employees contribute a set percentage of the employee's salary towards social security.

Other Mandatory Benefits

  • Probationary Period: The law allows employers to establish a probationary period for new hires. The duration of the probationary period can vary depending on the employment contract but cannot exceed six months.

  • Notice Period: Both employers and employees are required to provide a notice period before terminating the employment contract. The notice period depends on the employee's length of service.

  • Severance Pay: Under specific circumstances, such as termination by the employer without cause, employees are entitled to severance pay. The amount of severance pay is calculated based on the employee's salary and length of service.

  • Overtime Pay: Employees working overtime hours are entitled to overtime pay at a higher rate than their regular salary.

Optional benefits

In Cambodia, beyond the mandatory benefits, employers offer a range of optional benefits to attract and retain talent. These benefits can significantly enhance employee well-being, boost morale, and create a more competitive employer brand.

Health and Wellness Benefits

  • Health Insurance: Employers may provide health insurance plans to their employees, offering coverage for medical expenses beyond what basic social security healthcare provides.
  • Life Insurance: Some employers offer life insurance as a benefit, providing financial security to the employee's family in case of death.
  • Wellness Programs: Companies might implement wellness programs that encourage healthy habits through gym memberships, fitness classes, or on-site health screenings.

Financial Benefits

  • Housing Allowances: Due to the rising cost of living, some employers offer housing allowances to help employees with rent or mortgage payments.
  • Transportation Allowances: To offset commuting costs, employers may provide transportation allowances or even company transportation services.
  • Meal Allowances: Meal allowances can help employees cover the cost of daily meals.
  • Performance-Based Bonuses: Employers can incentivize performance by offering bonuses based on individual or team achievements.

Work-Life Balance Benefits

  • Flexible Working Arrangements: To promote work-life balance, companies may offer flexible work arrangements like remote work options or compressed workweeks.
  • Paid Time Off (PTO): Some employers offer additional paid time off beyond the mandatory leave allowances.
  • On-Site Amenities: Providing on-site amenities like daycare facilities, relaxation areas, or subsidized meals can improve employee convenience and satisfaction.

Other Benefits

  • Professional Development: Employers may invest in their employees' growth by offering training programs, conference attendance opportunities, or tuition reimbursement.
  • Employee Recognition Programs: Implementing programs that recognize and reward employee achievements can foster a positive work environment.
  • Company Discounts: Offering employees discounts on company products or services can be a valuable perk.

Health insurance requirements

In Cambodia, health insurance is currently not a requirement for employees. However, the situation is changing, with a new mandatory health care scheme in the pipeline.

Current Scenario

  • Employer-Provided Health Insurance: There is no legal obligation for employers to provide health insurance to their employees.

  • Social Security Health Coverage: The National Social Security Fund (NSSF) provides basic health coverage as part of the mandatory social security scheme. However, this coverage may not be as comprehensive as private health insurance plans.

  • Private Health Insurance: Employees have the option to purchase private health insurance plans to supplement their social security coverage or to access a broader range of healthcare services.

Upcoming Mandatory Health Insurance Scheme

  • New Scheme in Development: The Cambodian government is developing a mandatory health insurance scheme.

  • Details Yet to be Finalized: The specifics of the scheme, such as contribution rates, registration methods, and benefits offered, are still under consideration.

  • Expected Impact: The new scheme is anticipated to significantly increase health insurance coverage for Cambodian employees, offering them greater financial protection and access to quality healthcare.

Retirement plans

Cambodia's retirement landscape is undergoing a transition with the introduction of a mandatory social security scheme. Here's a comprehensive look at the current and future retirement options for Cambodian employees:

National Social Security Fund (NSSF) Pension Scheme

Launched in October 2022, the NSSF pension scheme mandates contributions from both employers and employees. Contribution rates will gradually increase over time. Currently, the combined contribution is 4% of the employee's salary, rising to 10.75% after ten years. Employees who register with the scheme, reach the retirement age (currently 60), and contribute for at least twelve months qualify for a pension. The NSSF pension offers a monthly payout based on the employee's final six months' salary.

Other Retirement Options

Some larger companies may offer their own pension plans in addition to the NSSF scheme. These plans can vary significantly in terms of benefits and eligibility criteria. Employees can also choose to save for retirement independently through personal savings plans or investments in stocks, bonds, or real estate.

Future Considerations

As the NSSF scheme is relatively new, it's too early to determine how effective it will be in providing adequate retirement security for Cambodian employees. The scheme's future effectiveness will depend on factors like contribution rate increases, investment returns, and overall economic growth.

Rivermate | A 3d rendering of earth

Hire your employees globally with confidence

We're here to help you on your global hiring journey.