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Cambodia EOR & PEO

SALARY PAYMENT IN Cambodian Riel (KHL, ៛)

CONTRACT LANGUAGES Khmer / English

PAYROLL TAX 3.40%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

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SIMPLE, COMPLIANT HIRING WITH HORIZONS EOR

Hire in Cambodia

Horizons provides compliance solutions to ensure your business in Cambodia operates in line with Cambodia labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Cambodia in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as a Cambodia Employer of Record, absorb all local employer liabilities. Partnering with our Cambodia EOR is the quickest and most cost-effective way to enter the Cambodia market.

Note, a Cambodia Employer of Record is also known as a Cambodia Professional Employer Organization (PEO).

Facts & Stats

EOR Platform

Hire in Cambodia, and pay employees through our platform or app.

EOR Cost

Our Cambodia EOR solution is the most affordable on the market.

Time-to-hire

Fast onboarding in Cambodia, hire in as little as 24 hours.

Contracts

We draft labor contracts compliant with Cambodian labor law.

Local Benefits

We administer all mandatory benefits and contributions in Cambodia.

180+ Countries

It doesn’t stop with Cambodia — we are an international EOR

stay compliant with Cambodia labor laws

Employment Laws

Employment contracts in Cambodia

Employment contracts should be compliant with statutory and market norms in Cambodia. When hiring workers in Cambodia, it is customary to draft concise, strongly-worded written employment contracts.  These contracts may be fixed-term in duration or indefinite.

Cambodian employment contracts should ideally be written in both English and Khmer. All references to salary and compensation should be made in Cambodian riel (KHR).

Fixed employment contracts can last up to two years in duration, whilst indefinite contracts are for an unspecified period of time.

Fixed-term
Probationary period

Regular employees: 2 months

Skilled employees: 3 months

Termination notice period

Contract duration <6 months: 1 week

Contract duration 6 months – 1 year: 2 weeks

Contract duration 1+ year: 15 days

Severance5% of the total value of the contract
Indefinite
Probationary period

Regular employees: 2 months

Skilled employees: 3 months

Termination notice period

< 6 months of service: 7 days

6 months – 2 years of service: 15 days

2-5 years of service: 1 month

5-10 years of service: 2 months

> 10 years of service: 3 months

Severance5% of the total compensation package of the contract

 

Working hours in Cambodia

In Cambodia, a standard work day consists of eight hours. Typically, Cambodians do not work more than 48 hours per week.

Employers should not request employees to work more than nine hours per day. By law, employees are not permitted to work more than two hour’s overtime per day.

Overtime is paid at 1.5x an employee’s regular hourly wage. If overtime is conducted at night, on a Sunday, or a designated holiday, it is paid at a rate that is 2x an employee’s hourly wage.  

Hire compliantly in Cambodia without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Holidays in Cambodia

Cambodia has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
1 Jan, 2024New Year
7 Jan, 2024Victory over Genocide Day
8 Mar, 2024International Women’s Day
13 Apr, 2024Khmer New Year Day (Day 1)
14 Apr, 2024Khmer New Year Day (Day 2)
15 Apr, 2024Khmer New Year Day (Day 3)
1 May, 2024Labour Day
22 May, 2024Visak Bochea Day
26 May, 2024Royal Plowing Ceremony
14 May, 2024King’s Birthday
18 Jun, 2024King’s Mother’s Birthday
24 Sep, 2024Constitutional Day
1 Oct, 2024Pchum Ben Festival
2 Oct, 2024Pchum Ben Festival
15 Oct, 2024Pchum Ben Festival, Commemoration Day of King’s Father
29 Oct, 2024King’s Coronation Day
9 Nov, 2024Independence Day
14 Nov, 2024Water Festival Ceremony (Day 1)
15 Nov, 2024Water Festival Ceremony (Day 2)
16 Nov, 2024Water Festival Ceremony (Day 3)

 

Employment tax

Employers are required to pay tax of 0.8% of the employees’ monthly wages to social security. In Cambodia, employees do not contribute to the social security fund.

Health benefits

Employees who are injured while working usually qualify to have their associated health care expenses paid by their employer.

Vacation leave

Employees generally receive 1.5 day’s paid leave per year, for every month that they have worked with a company. As an example, if an employee has been employed for 12 months, they are entitled to 18 day’s vacation leave.

After an employee has worked for the same company for more than three years, they receive an extra day’s vacation for each year of service. 

Sick leave

In Cambodia, employees are given up to six month’s sick leave, so long as they verify their illness with a doctor’s certificate. This sick leave is paid as follows:
  • Month 1 – 100% of wages
  • Months 2 and 3 – 60% of wages
  • Months 4 to 6 – Unpaid

Maternity and paternity leave

Maternity leave is available for female employees that have been with their employer for at least one year. This is paid at a rate that is half the employee’s base salary. Fathers in Cambodia receive one day of paid paternity leave.

Termination and severance

Unlike in the United States, there are additional regulations that protect employees from early termination. If an employer violates these rules, employees may be entitled to significant damages. However, these protections do not apply to all types of employees.

Severance payments

After completing a fixed-term contract, employees are typically entitled to severance pay that is a minimum of 5% of their standard wages. Employees with indefinite contracts are entitled to seven day’s wages, if they have between six and 12 month’s company service. Employees are entitled to 15 day’s wages for each year of employment, up to six month’s worth of wages. 

Probation and notice periods

Cambodia allows probationary periods for up to three months. Employers are free to terminate an employee – without notice – during a probationary period.

Employees who are subject to an indefinite-term contract can be terminated by an employer for any reason. However, for fixed-term contracts, the employer must have a valid termination reason, such as significantly poor employee performance.

Employees are typically entitled to termination notices at the following intervals:

  • 7 days – For employees who have worked up to 6 months
  • 15 days – For employees who have worked between 6 months and 2 years
  • 1 month – For employees who have worked between 2 and 5 years
  • 2 months – For employees who have worked between 5 and 10 years
  • 3 months – For employees who have worked more than 10 years

Employees who have received notice of termination may spend up to two days per week looking for new employment during the notice period.

hassle-free Cambodia compensation & benefits

Compensation & Benefits

Cambodia compensation laws

In Cambodia, an employee’s minimum wage is determined by two factors: the industry in which they’re employed and any collective bargaining agreements (CBA’s). As an example, Cambodia’s textiles industries have recently raised their minimum wage to $204 per month.

Different industries are likely to have their own minimum wage. As such, CBA’s will generally specify separate compensation laws in Cambodia.

For any employees that work more than eight hours per day or 48 hours per week, they are eligible for overtime payments. Standard overtime rates are 1.5x an employee’s regular hourly wage. If an employee works overtime at night, on a Sunday, or a designated holiday, they are entitled to overtime rates that 2x their regular hourly wage.

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Guaranteed benefits in Cambodia

All employees in Cambodia are required by law to receive statutory benefits. Employers should include time off for holidays and annual vacations in their benefit management plan.

There are 19 annual public holidays in Cambodia. Many of these holidays are celebrated over multiple days. When drafting an employment contract, employers should be mindful to include paid holidays and inform employees as to their days off. 

Employees in Cambodia should receive 1.5 day’s annual leave for each month’s company service. Once an employee has been with a company for three years, they are entitled to an additional day off each year. 

Maternity leave is available to female employees that have been with a company for at least one year. Maternity leave is typically for a period of 90 days, with payment half the rate of an employee’s standard salary. Fathers in Cambodia receive one day’s paid paternity leave.

Cambodia benefit management

After an employer has drafted a suitable benefit management plan, it is incumbent on them to discuss the distribution of benefits with their employees. Employers should consider supplemental benefits as part of any compensation packages. Whilst these types of benefits are not mandated by law, they can help to attract and retain high-level talent.

Most employees in Cambodia will also expect a seniority bonus of between $2-11 per month. This bonus is determined by the duration of an employee’s company service, beyond a period of one year. Bonuses are generally capped at $11 – which corresponds to 11 year’s company service.

Employees in Cambodia will often expect the following supplemental benefits:

  • Housing allowances
  • Health care allowances
  • Transportation allowances
  • Attendance bonuses
Benefits and compensation restrictions

For expanding businesses, one of the major restrictions to benefits and compensation involves setting up a local entity. Employers are generally prohibited from hiring and paying employees without first establishing a subsidiary in Cambodia. This process can take months to complete, which causes significant business delays. 

With Horizons’ Cambodia EOR, you can begin operating in Cambodia in as little as 48 hours. We act as your employees’ Employer of Record, which means there’s no need to establish a subsidiary in Cambodia. And as the only Cambodia EOR with an in-house recruitment team, we can help you source, hire, and onboard top local and international talent. 

Hire in Cambodia in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

Generally speaking, the terms “Cambodia PEO” and “Cambodia EOR” are used interchangeably.

An EOR in Cambodia can feasibly hire both local and foreign nationals to work in Cambodia.

However, the ability of Horizons to sponsor your foreign national employee in Cambodia may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Cambodia EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Cambodia.

It is possible to get a work visa in Cambodia. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Cambodia are limited, however—get started today to secure your employees’ visa spot.

Get started with Horizons