Last updated:
October 14, 2026
How an Employer of Record works in Cambodia
When you use an Employer of Record (EOR) in Cambodia, you can hire employees within the country without having to set up a legal entity. The EOR becomes the legal employer, taking care of onboarding employees, dealing with compliance, and managing the employment relationship.
Rivermate provides EOR services in Cambodia, and our HR experts have a deep understanding of the country. We’ll make it easy to hire quickly and compliantly anywhere in Cambodia.
How an Employer of Record, like Rivermate can help with hiring and compliance in Camboya
An Employer of Record (EOR) hires on your behalf through its own local entity, so you can employ in Camboya without registering a company there. Rivermate handles the employment contract, payroll, employer contributions, statutory benefits and filings, and keeps them correct as the rules change.
Cambodia labor market: At a glance
| The hiring market | |
|---|---|
| Greatest hiring activity: | Phnom Penh. |
| Hiring timelines: | 4–6 weeks for entry-level roles; 8–12 weeks for senior roles; about three months for foreign nationals. |
| In-demand sectors: | Manufacturing, tourism, logistics. |
| Sectors with skills shortages: | Specialist IT and engineering roles. |
| The salary market | |
|---|---|
| Employer tax contributions: | 5.4% of the employee’s wage, capped at wages of KHR 1,200,000 per month. Occupational risk (0.8%) Healthcare (2.6%) Pension (2%) |
| Minimum wage: | USD 210 for regular workers and USD 208 for probationary workers (only applies to certain industries). |
| Average gross annual salary: | About KHR 14.4 million. |
| Income tax brackets: | Up to KHR 1.5m: 0% KHR 1.5m–2m: 5% KHR 2m–8.5m: 10% KHR 8.5m–12.5m: 15% Above KHR 12.5m: 20% Non residents: 20% flat rate |
What it costs to hire an employee in Cambodia
Cambodia is known for being a relatively affordable country to hire employees, but there are several important costs you need to know about before entering the country.
Salary
Cambodia has no single minimum wage that covers all sectors. In practice, a statutory minimum applies only to the textile, garment, travel goods, footwear, and bag industries. This is currently USD 210 per month for regular workers and USD 208 for probationary workers. Workers in these sectors also receive extras, including a monthly transport and accommodation allowance of USD 7 and a monthly attendance bonus of USD 10.
The salary ranges considerably. Across all workers, the average monthly wage is about KHR 1.2 million, but this includes informal sector work. You can expect to pay USD 250–500 for an entry-level role up to around USD 2,500–5,000 for a management role.
In practice, salaries are quoted gross. Since 2019, employers have been required to pay employees twice a month, with half of the monthly wage paid in the second week and the remaining half in the fourth week.
The local currency is the riel. However, the US dollar is widely used in the country, and many everyday transactions are even paid in USD. Contracts can reference USD amounts, but contributions and social security must be calculated in riel.
Employer contributions
Employer contributions are quite low in Cambodia. Employers pay 5.4% of the employee’s wage, and this is capped at wages of KHR 1,200,000 per month. It’s made up of occupational risk (0.8%), healthcare (2.6%), and pension (2%). These are paid to the National Social Security Fund (NSSF). Employees also contribute 2% to their own pensions.
Because of the ceiling in place, the most that an employer pays is KHR 64,800 per month for each employee.
Income tax
Employment income is taxed through a monthly salary tax. The employee pays this, and the employer must withhold it. Current monthly rates range from 0% for wages under KHR 1.5m to 20% for wages over KHR 12.5m. Non-residents pay a 20% flat rate for a salary sourced in Cambodia.
Seniority payment
In Cambodia, a seniority payment exists and equals 15 days’ wages plus fringe benefits per year of service. This is only due to employees on undetermined-duration contracts. It’s paid during employment, with half paid in June and half paid in December each year.
When a fixed-term contract ends, you must pay at least 5% of the total wages that were paid during the contract period.
Leave
Cambodian employees receive 18 days of annual leave, equal to 1.5 days per month. They receive one extra day every three years. Although leave accrues monthly, employees can take it only after a full year of service.
Maternity leave is 90 days, and the employer pays 50% of the employee’s wages if the employee has one year of continuous service.
Overtime
Employees receive a 50% premium for overtime on normal days and a 100% premium for overtime at night or on rest days. On holidays, they receive an additional day’s pay.
Employer cost calculator
Use our calculator to get an accurate idea of total employer costs in Cambodia.
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What hiring in Cambodia actually looks like
| Market condition | What an employer needs to know |
|---|---|
| Talent availability | Easy to find entry-level and admin staff in cities. Harder to find qualified staff. |
| Top-paying sectors | ICT and finance. |
| Skills shortages | ICT, accounting, and healthcare. |
| Key employer challenge | Finding and keeping skilled employees. |
Cambodia has a young workforce, and more than 60% of the population is under 35. There is a growing number of graduates in IT, finance, and business, and English skills tend to be good in urban areas and in the tourism industry, but they are more limited elsewhere.
Manufacturing is the biggest export industry in Cambodia, led by garments and footwear. Tourism is also important, as is agriculture. Multinationals hire mainly in the telecoms, finance, logistics, and FMCG industries. Demand is growing for customer support, along with online operations and data processing.
Phnom Penh is the main hub for professional and skilled roles. Siem Reap is the second most important hiring hub, and Sihanoukville is important for tourism and logistics.
Many Cambodians go abroad to work, perhaps due to the low wages in the country. It’s therefore important to offer good wages and benefits to keep them. However, general admin staff and entry-level employees are easy to find in cities, even if it’s more difficult to find specialists in engineering and IT.
It takes about 4–6 weeks to recruit entry-level roles, but it can take 8–12 weeks or longer for senior and specialized roles. Rivermate can onboard a local in about a week.
Hiring foreign workers can take about three months. There’s also a cap on how many foreign workers you can hire, currently 10% of your Cambodian workforce, unless the Ministry of Labor approves more. Employers apply for an annual quota, and when the foreign employee arrives, they must apply for a work permit within 90 days.
Remote work may be possible for white-collar roles, but not for factory workers. There is no specific remote-work law, so the general Labor Law applies.
Country-specific problem that employers must know
Cambodia uses both the riel and the US dollar, which can be a source of confusion for foreign employers new to the country. USD is not only used in employment settings, but it’s also used in everyday transactions. The dollar became common in the 1990s, when UN personnel arrived after years of instability, and many have preferred it to the riel since.
One area of confusion arises from the fact that contracts can reference USD amounts, but taxes on salary and social security contributions are calculated in riel. The minimum wage is also set in USD.
If you pay salaries in USD, taxes are converted at the official exchange rate on the 15th of each month. This means deductions, and therefore the employee’s net pay, can vary slightly each month.
It’s generally a better practice to pay wages in the local currency. However, you can pay in USD if you want. The important thing is to stick with what you promise in the offer, whether that’s riel or USD.
Compliance risks employers have to know about
Hiring foreign nationals
There’s a cap on foreign employees equal to 10% of your Cambodian workforce, unless you’re granted more from the Ministry of Labour and Vocational Training (MLVT), and you must also apply for an annual quota first.
Employees need a business E-class visa, plus a work permit and employment card from the MLVT. The work permit must be applied for within 90 days of arriving in the country. Employers can be fined if employees do not have a valid work permit. This can be up to KHR 12.6 million per employee.
Probation and contract type
Probation is allowed, and it’s optional. It lasts up to three months for regular employees, two months for specialized workers, and one month for non-specialized workers. It can’t be extended beyond these limits. No notice is required during probation, and either party can end the contract.
Fixed-duration contracts are allowed, and they can run up to two years. They can then be renewed for up to two years, after which they become ongoing contracts. In practice, employment contracts are written in Khmer and can be bilingual.
Termination
It’s important to keep clear records, and the rules depend on the type of contract. In general, you need lawful grounds to terminate an ongoing contract. This could be a valid reason related to the employee’s aptitude, behavior, or the business's needs. You can’t shorten notice below the statutory minimum, which is seven days up to three months depending on length of service.
The rules for fixed-term contracts are different, and you can only end one of these contracts early for serious misconduct, force majeure, or where you have a written mutual agreement that was signed in the presence of a labour inspector. If you end a contract for any other reason, you may have to pay damages to the employee. These must be at least what they would have earned through the end date.
For all contracts, you must also notify the MLVT within 15 days of the termination and pay dues within 48 hours of termination, as well as providing a work certificate on request.
Backdating
You should not backdate contracts in Cambodia due to social security and statutory contributions. Employers must register every employee with the NSSF within three days of them starting work, and declare the hiring to the MLVT within 15 days. If an employee starts work before NSSF registration, their coverage may be delayed. Failing to pay the contributions by the 15th of the following month can lead to interest being charged and fines.
How Rivermate can help you stay compliant when hiring in Cambodia
Our in-depth understanding of local labor laws means we handle your employment relationship compliantly. You can focus on your business while we handle the rest.
Benefits of hiring employees through an EOR in Cambodia
Hiring employees directly in Cambodia typically requires a local entity. An EOR removes this barrier while providing several benefits.
Hiring in the country is much faster with an EOR. Setting up a company can take six weeks to several months, depending on the sector and licenses, including registering with the Ministry of Commerce, obtaining a tax ID, opening a bank account, registering with the NSSF and the Ministry of Labor, and more. Using an EOR could let you hire local employees within about a week.
The EOR also handles compliance and admin, dealing with contracts in Khmer and English, payroll, tax withholding, and staying up to date with rule changes. Because of the time advantages of using an EOR, it can give you a flexible way to test the market and gradually scale your team before you fully commit to entering the country.
Ready to hire in Cambodia?
If you want to hire in Cambodia, contact Rivermate today. We’ll handle the entire process, from payroll to taxes, so you can hire with confidence.
Contrata a los mejores talentos en Camboya a través de nuestro servicio de Employer of Record
Reserva una llamada con nuestros EOR expertos para obtener más información sobre cómo podemos ayudarte en Camboya.
Reserve una llamada con nuestros expertos de EOR para saber más sobre cómo podemos ayudarle en Camboya.
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Preguntas frecuentes sobre EOR en Camboya
Sources:
https://goglobal.com/country/hire-in-cambodia/
https://taxsummaries.pwc.com/cambodia/individual/taxes-on-personal-income
https://admin.taftac-cambodia.org/public/pdf_file/regulation_1747624768_vXzGnYmF.pdf
https://www.hcwpolicylab.org/wp-content/uploads/2024/03/1997_Cambodia_-Labour-Law-Code.pdf
https://www.dfdl.com/insights/legal-and-tax-updates/cambodia-official-exchange-rate-update
https://camtech.edu.kh/wp-content/uploads/2025/12/Policy_Brief_Dedollarization.pdf
https://www.bangkokpost.com/business/1708330/cambodia-issues-new-rules-on-contracts-and-compensation
https://emerhub.com/cambodia/annual-compliance-in-cambodia/
https://www.playroll.com/compliance-hub/local-entity-required-to-hire-in-cambodia
https://www.akp.gov.kh/post/detail/380153
https://mlvt.gov.kh/media/k2/attachments/report-on-cambodia-job-outlook-survey_2024-en_1.pdf
https://www.transatlanticlaw.com/content/how-hire-and-fire-global-guide-2021-cambodia/
Escrito por
Lucas Botzen
Lucas Botzen es el Fundador de Rivermate, una plataforma de empleo global que ayuda a las empresas a contratar, emplear y gestionar talento internacionalmente. Desde que fundó Rivermate en diciembre de 2020, se ha enfocado en crear soluciones prácticas que simplifiquen la nómina internacional, los beneficios, los impuestos, los contratos y el cumplimiento laboral para equipos remotos. Antes de Rivermate, Lucas cofundó y co dirigió Boloo, una empresa de aprendizaje en línea y software que ayudaba a los emprendedores a iniciar y hacer crecer negocios de comercio electrónico. Escaló Boloo hasta más de €2 millones en ingresos anuales antes de vender con éxito la empresa en 2020. Lucas tiene una Licenciatura en Innovación Empresarial de la Universidad de Ciencias Aplicadas Avans. Su experiencia en emprendimiento, tecnología, automatización y trabajo remoto continúa formando su enfoque para hacer que el empleo global sea más simple y humano.
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Tun Lin Aung
Tun Lin Aung es Gerente de Operaciones - APAC en Rivermate, con sede en Myanmar, y cuenta con más de una década de experiencia en la industria. Supervisa la contratación y el cumplimiento en una amplia variedad de mercados en Asia-Pacífico, incluyendo China, Laos, Corea del Sur, Singapur, Nueva Zelanda y más allá. Sus contribuciones a estas guías reflejan un conocimiento directo de cómo la contratación, la inmigración y el cumplimiento realmente se desarrollan en algunos de los entornos regulatorios más complejos y diversos de la región.
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Sebastien Wakim
Sébastien Wakim es CEO de Rivermate y ha liderado el grupo Hightekers desde 2024. Como uno de los primeros empleados de Uber, lanzó y escaló las operaciones de la empresa en varios mercados de MENA antes de ocupar cargos de liderazgo senior en OLX Group. Posteriormente, cofundó Wisewell, una empresa de tecnología del agua activa en Estados Unidos y la región del CCG. Tiene un MBA de Columbia Business School y una maestría en ingeniería de UC Berkeley.
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