Hire in Cambodia

EOR in Cambodia

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Cambodia, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Cambodia ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Cambodia and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Cambodia

The Labor Law is administered by the Ministry of Labour and Vocational Training.

Employment contracts in Cambodia

As you look to hire employees in Cambodia, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The maximum workweek is 48 hours, with the number of hours worked not exceeding eight hours per day. Sunday is the usual day of rest.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Cambodia does not have a national minimum wage for all industry sectors. The clothing, footwear, and textile industry sectors are the only sectors with a minimum wage.
• Effective 2022, the monthly minimum wage for workers in Cambodia’s clothing, footwear, and textile industry sectors is U.S. $194.
• Employers are required to pay at a rate of 50% higher than normal hours for overtime. If the overtime hours are worked at night or during weekly time off, the rate is 100% more than the rate paid for normal hours.

As your employer of record in Cambodia, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

The seniority payment for employees who have worked for at least six months consists of two payments, each equivalent to the employee’s wages and fringe benefits that would be paid for 7.5 days of work. For such employees, one of these payments must be made in June of each year and one of these payments must be made in December of each year, for a total seniority payment equivalent to the employee’s wages and fringe benefits that would be paid for 15 days of work.

However, employees who are in the first year of service receive one seniority payment equivalent to 7.5 days of wages and fringe benefits if they have worked for more than one month and up to six months.

Termination and severance

Employers are required to give prior notice to termination which is set as follows:

• Employed for less than six months - seven days.
• For six months to two years - fifteen days.
• For two years to five years - one month.
• For five years to 10 years - two months.
• More than 10 years - three months.

Employee benefits and paid leave in Cambodia

When negotiating terms of an employment contract with a candidate in Cambodia, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Female employees are entitled to maternity leave of 90 days. There is no restriction on whether the leave must start before or after the birth. During that time, employers are required to pay half of the employee’s wage.

Vacation

Full-time employees are entitled to one and a half days of paid leave per month. For every three years of service, employees are entitled to an additional day of leave per year. The right to use paid leave is acquired after one year of service.

Holidays

The following are the paid public holidays:

• New Year’s Day
• Victory over Genocide Day
• International Women’s Day
• Khmer New Year
• Visak Bochea
• International Labor Day
• Royal Plowing Ceremony
• King Norodom Sihamoni’s Birthday
• Queen Monineath’s Birthday
• Pchum Ben
• Constitution Day
• Commemoration of King Norodom Sihanouk
• Coronation Day of King Norodom Sihamoni
• Water Festival
• Independence Day

Health coverage

The NSSF covers all workers under the provisions of Cambodian labor law.

Effective January 1, 2018, employers' health insurance contribution rate is 2.6% of each employee’s applicable monthly average wage, and employees are not assessed a health insurance contribution.

Additional benefits

In addition to healthcare benefits, employees in Cambodia are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Cambodia, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: August 07, 2024

Employee onboarding with an employer of record in Cambodia

We write and validate all local employment contracts, streamlining the onboarding process for you and your Cambodian employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Cambodia, we will:

• Schedule a welcome call to discuss HR and employment information for Cambodia, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Cambodia employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Cambodia. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.