Employment Cost Calculator for Cambodia
Calculate your complete hiring costs for Cambodia employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate (Employer) | Base |
|---|---|---|
| Occupational Risk (NSSF) | 0.8% | Gross Salary |
| Healthcare (NSSF) | 1.3% | Gross Salary (capped at KHR 1,200,000) |
| Pension (NSSF) | 2% (Phased increase) | Gross Salary (capped at KHR 1,200,000) |
| Fringe Benefits Tax | 20% | Fair Market Value of Benefits |
Filing & Compliance
- Register with the General Department of Taxation (GDT) within 15 days of starting operations.
- File monthly Tax on Salary (ToS) and Fringe Benefits Tax (FBT) declarations and remit withheld taxes by the 20th of the following month.
- Pay monthly NSSF contributions by the 15th of the following month.
In Cambodia, employers deduct Tax on Salary (TOS) from employee wages monthly, based on a progressive tax system.
Tax on Salary (TOS)
TOS is calculated on an employee's gross monthly salary after deducting allowances for dependents and, in some cases, specific allowances for factory workers. The applicable tax rates are progressive, meaning higher earners pay a larger percentage of their income in tax.
TOS Rates and Brackets (Effective January 1, 2023)
- KHR 0 – 1,500,000: 0%
- KHR 1,500,001 – 2,000,000: 5%
- KHR 2,000,001 – 8,500,000: 10%
- KHR 8,500,001 – 12,500,000: 15%
- Over KHR 12,500,000: 20%
Allowances and Deductions
- Spouse/Dependent Child Allowance: KHR 150,000 per dependent (spouse or child under 14, or under 25 if a full-time student). Only one parent can claim the deduction for each child.
- Factory Worker Allowances: Additional allowances may be deducted as outlined in Circular No. 011 (October 6, 2016). Documentation supporting these deductions must be maintained.
Example: TOS Calculation
An employee earning KHR 10,000,000 monthly with a non-working spouse and one dependent child:
- Total Allowance: KHR 150,000 x 2 = KHR 300,000
- Taxable Salary: KHR 10,000,000 - KHR 300,000 = KHR 9,700,000
- TOS: (KHR 9,700,000 x 15%) - KHR 600,000 (cumulative deduction threshold) = KHR 855,000
Non-Resident TOS
Non-resident employees are taxed at a flat rate of 20% on their Cambodian-sourced salary. This is a final tax.
Fringe Benefits Tax (FBT)
Fringe benefits provided to employees are taxed separately at a flat rate of 20%.
Other Considerations
- Payment Dates: If payday falls on a public holiday, wages must be paid the next business day.
- Record Keeping: Employers must retain documentation to verify all deductions and allowances applied in TOS calculations.
- Amendments to Tax Declarations: Tax relief on penalties for voluntary amendments to tax declarations for transactions before August 2024 is available if amendments are submitted by June 2025.
General Taxation in Cambodia
Cambodia's tax system is constantly evolving. Recent announcements include new incentives for businesses in various sectors such as real estate, agriculture, tourism, and education, for the period of 2024-2025. Additional updates include a revised stamp duty rate of 4% on real estate company share transfers and updated definitions of "salaries" and "wages" within the context of TOS. Further guidance on these developments has been released by the Ministry of Economy and Finance (MoEF). Staying informed about these changes is crucial for compliance.
