Employer of Record in Cambodia

Cambodia, situated between Thailand and Vietnam, is increasingly a popular destination for foreign companies looking to expand globally.

The country has developed from an agricultural economy into an important manufacturing, logistics and business services hub. Today, Cambodia attracts significant investment across these industries.

While labor costs are appealing to foreign employers, the advantages of expanding into Cambodia extend beyond costs. Cambodia has a young workforce, improving infrastructure and a business-friendly environment. There is also increasing integration with ASEAN supply chains.

Currently, multinationals operating in Cambodia hire workers in finance, telecommunications, logistics and FMCG. However, demand is also growing for customer support and IT professionals.

Hiring employees in Cambodia, however, requires employers to comply with the country’s labor legislation, payroll regulations and mandatory benefits rules. Also, foreign companies without a local legal entity cannot hire employees.

An Employer of Record (EOR), such as Rivermate, removes this barrier. Instead of establishing a legal presence in the country, the EOR becomes the legal employer on your behalf. This arrangement allows you to maintain management control, while the EOR handles all compliance.

How an Employer of Record (EOR) Works in Cambodia

The EOR uses a simple yet effective onboarding process. This ensures you can enter the market and scale your operations quickly.

• You choose the candidate. You find the talent you want to hire. You also agree on their salary and job duties.
• The EOR drafts compliant employment contracts. The EOR prepares an employment agreement in accordance with labor law requirements. These contracts are often provided in both Khmer and English.
• The EOR onboards your new hire. They handle all the necessary paperwork. This includes registering the employee with the National Social Security Fund (NSSF) and tax authorities.
• The EOR manages payroll and benefits. The EOR processes monthly salaries, making sure to withhold the correct Cambodian income tax and social security contributions. They also handle benefits administration.
• You manage the employee's work. You direct their daily tasks, projects, and performance. The EOR handles the HR and legal side, but you are in charge of the work itself.

Why use an Employer of Record in Cambodia

Global expansion can involve significant financial risks because it often requires setting up a legal entity. With an Employer of Record, this isn't necessary. The EOR helps facilitate your expansion into foreign markets by hiring employees on your behalf.

Here are some key reasons to use an EOR:

• Enter the market faster. You can hire employees and start operations in a few days. Setting up a company in Cambodia can take weeks or even months.
• Reduce costs. You avoid the high fees associated with company registration, which can be over USD 50,000.
• Compliant Hiring. EOR local experts handle full legal compliance. This ensures that your company is protected from regulatory compliance risks.
• HR and benefits management. The EOR takes care of payroll, taxes, and benefits. This frees you up to focus on establishing global infrastructure.
• Gain flexibility. An EOR allows you to test the Cambodian market. You can easily scale your team up or down as your business needs change.

Despite international attention being on China, Vietnam and Thailand for low-cost hiring, Cambodia is quickly becoming the preferred hiring destination.

Foreign companies are finding Cambodia easier to navigate than many larger Asian markets because its employment landscape has greatly improved. Employment legislation is structured, but it's straightforward, and English is widely used in business. This makes it easier for foreign companies to hire in the country.

While Cambodia still has one of the lowest employment costs in Southeast Asia, some jobs offer higher salaries. These jobs are mainly in software development, management, finance, supply chain management and data analytics.

The workforce in Cambodia is young (half the population is under 30), and English proficiency is growing, especially in major economic and tourist centers. For this younger, skilled generation of workers, benefits matter more than most employers expect. Employers who offer market-related perks are often more successful than those who don’t.

Employment contracts & must-have clauses

Employment contracts form the legal foundation of employment relationships in Cambodia. While the country’s labor requirements are simpler than those of several neighboring countries, contracts must still comply with labor regulations.

A defining feature of Cambodian employment law is the distinction between Fixed Duration Contracts (FDCs) and Undetermined Duration Contracts (UDCs). Each one carries different employer obligations.

Your employment contracts should be in the Khmer language. Make sure to include these key details:

• Employee's and employer's full details
• Job title and a clear description of the work
• The start date and length of the contract
• Salary and how often it will be paid
• Working hours
• Information on leave, like annual holidays and sick leave
• The notice period for ending the contract

Probation periods

In Cambodia, you can have a probation period to see if a new employee is a good fit. The length of the probation period depends on the type of job:

Employee Type	Maximum Probation Period
Regular employees	3 months
Specialized workers	2 months
Unskilled workers	1 month

During the probation period, either you or the employee can end the employment contract without giving notice.

Working hours & overtime

The standard work week in Cambodia is 48 hours, with a maximum of 8 hours per day. Employees should have at least one full day off each week, which is usually a Sunday.

If you need your employees to work more than the standard hours, this is considered overtime. You can't force an employee to work overtime. Overtime is generally limited to two hours per day. You must pay a higher rate for overtime hours:

• Daytime overtime: 150% of the normal hourly rate
• Nighttime overtime (10 p.m. to 5 a.m.) or on a day off: 200% of the normal hourly rate

Public & regional holidays

Cambodia has a number of public holidays each year. In 2026, there will be 21 paid public holidays. If an employee has to work on a public holiday, you must pay them double their usual daily wage.

Here are some of the key public holidays for 2026:

• January 1: New Year's Day
• January 7: Victory over Genocide Day
• March 8: International Women's Day
• April 14-16: Khmer New Year
• May 1: International Labour Day
• May 5: Royal Ploughing Ceremony
• May 14: King Norodom Sihamoni's Birthday
• June 18: Queen Mother's Birthday
• September 24: Constitution Day
• October 10-12: Pchum Ben Festival
• October 15: Commemoration Day of King's Father
• October 29: King's Coronation Day
• November 9: Independence Day
• November 23-25: Water Festival
• December 29: Peace Day

Hiring contractors in Cambodia

Contractors are widely used across the Cambodian employment landscape. Several key industries use this classification, including IT, construction, tourism, NGOs and digital services.

A contractor’s services are regulated under the country’s Civil Code rather than the Labor Law. Under the Civil Code, a contractor enters into a contract to work, in which the contractor assumes responsibility for achieving the agreed-upon objectives.

An employee signs an employment agreement with an employer. This agreement imposes responsibilities on both the employer and the employee.

For foreign companies, worker classification is a significant compliance risk. These risks increase when contractors effectively work as permanent members of the company. Examples of this include contractors who have set working hours, receive the same perks as employees, and are restricted to working for one company.

An Employer of Record (EOR) can help you avoid these risks. An EOR can legally hire employees on your behalf in Cambodia. This means you don't have to worry about local labor laws, payroll, taxes, or benefits. The EOR takes on the legal responsibility as the employer, so you can focus on managing your team and growing your business.

Compensation in Cambodia is about more than agreeing on a monthly salary. Employers need to understand statutory payroll obligations, the National Social Security Fund (NSSF) and tax withholding responsibilities.

While Cambodia remains a cost-effective employment market, market expectations strongly influence the compensation structures in the country. Professional candidates evaluate employers based on total remuneration rather than just base salary.

Payroll cycles & wage structure

In Cambodia, you generally pay your employees monthly. Your employee's pay includes their basic salary, plus any allowances, overtime, and other benefits. You should provide written employment contracts that clearly state all terms of employment, including salary and working hours. While not required, it's a good practice to have contracts in Khmer, the local language, to ensure clarity.

Overtime & minimums

The standard work week in Cambodia is 48 hours, with a maximum of eight hours per day and a six-day work week. Any work beyond these hours is overtime.

• Overtime Pay: You must pay employees 1.5 times their normal wage for overtime.
• Night Work: Work done between 10 p.m. and 5 a.m. is paid at 130% of the regular rate.
• Holiday & Sunday Pay: If an employee works on a public holiday or a Sunday, you must pay them double their regular wage.
• Minimum Wage: The minimum wage varies by industry. For example, in the garment, textile, and footwear industries, the minimum wage is $210 per month.

Employer taxes and contributions

As an employer in Cambodia, you are responsible for several contributions.

Contribution	Rate
Corporate Income Tax	20%
Social Security (NSSF)	8.4% of gross salary
Occupational Risk & Healthcare	2.6% of gross salary
Pension	2%

Employee taxes and deductions

You must withhold taxes and social security contributions from your employees' salaries. Cambodia has a progressive income tax system.

Contribution	Rate
Social Security (NSSF)	4.4% of gross salary
Pension	2%

Here are the progressive tax rates for residents:

Monthly Salary (KHR)	Tax Rate
0 - 1,500,000	0%
1,500,001 - 2,000,000	5%
2,000,001 - 8,500,000	10%
8,500,001 - 12,500,000	15%
Over 12,500,000	20%

In Cambodia, benefits are becoming increasingly important for attracting skilled professionals. Statutory benefits establish minimum standards, but competition for experienced employees calls for extended healthcare and retirement benefits. Other common employer-specific benefits are bonuses and performance incentives. Cash allowances for meals and transportation are also popular with Cambodian workers.

Candidates in Cambodia compare healthcare coverage, performance bonuses and flexible work arrangements when evaluating a job offer. Employers that offer benefits beyond statutory requirements are preferred by most top candidates.

Statutory leave

Cambodian law sets minimum standards for employee leave.

• Annual Leave: After one year of continuous work, your employees get 18 days of paid annual leave. This works out to 1.5 days for each month of service. The amount of leave increases by one day for every three years of service.
• Sick Leave: Employees can take up to six months of sick leave if they provide a medical certificate. You pay their full salary for the first month of leave. For the second and third months, you pay 60% of their salary. Any sick leave beyond three months is unpaid.
• Maternity Leave: Female employees who have worked for you for at least one year receive 90 days of maternity leave. During this time, you pay 50% of their regular salary.
• Special Leave: The law allows for special leave for events like marriage or a death in the immediate family, but this leave is typically unpaid.

Public holidays & regional holidays

Your employees are entitled to paid time off for all official public holidays. The government announces the official list each year. If a holiday falls on a Sunday, the following Monday is a day off.

Holiday	Date
International New Year's Day	January 1
Victory over Genocide Day	January 7
International Women's Day	March 8
Khmer New Year	April 14-16
International Labor Day	May 1
Visak Bochea Day	May 11
King Norodom Sihamoni's Birthday	May 14
Royal Plowing Ceremony	May 15
King's Mother's Birthday	June 18
Pchum Ben Day	September 21-23
Constitutional Day	September 24

Typical supplemental benefits

You can separate benefits into two categories: those required by law and those you can offer to create a more attractive workplace.

Statutory Benefits	Non-Statutory (Supplemental) Benefits
Minimum Wage	Private health, dental, or vision insurance
Paid Annual Leave	Performance bonuses
Paid Sick Leave	Allowances for meals or transportation
Paid Public Holidays	Paternity leave
Maternity Leave	Additional paid time off
13th Month Salary	Home office allowance
National Social Security Fund (NSSF)

How an EOR can help with setting up benefits

Setting up employee benefits in a new country can be complex. You have to navigate unfamiliar labor laws and cultural expectations. An Employer of Record (EOR) simplifies this entire process for you.

An EOR acts as the legal employer for your team in Cambodia. We handle all the administrative tasks, including:

• Ensuring your benefits package complies with all local laws.
• Enrolling your employees in the mandatory National Social Security Fund.
• Managing payroll and leave administration accurately.
• Offering competitive supplemental benefits to attract top talent.

By using an EOR, you can build a team in Cambodia quickly and confidently. You get the peace of mind that comes from knowing your benefits and payroll are handled correctly, letting you focus on growing your business.

Terminations in Cambodia require compliance with the country’s statutory labor protections. Employers retain the right to termination in the country, but the Cambodian labor law establishes the procedures and stipulations by which terminations can be done.

The procedure depends on the contract type (Fixed Duration Contracts or Undetermined Duration Contracts), the length of service and the reason for dismissal. Most termination procedures will include notice periods, seniority payments, accrued leave and final payroll calculations.

For any termination, you must notify the Ministry of Labor and Vocational Training (MLVT) within 15 days of the employee's last day.

Notice Periods

When you decide to end an employment contract, you must give the employee advance notice. The length of this notice period changes based on the contract type and how long the employee has worked with you.

For Undetermined Duration Contracts (UDC), the notice periods are:

• 7 days for employees who have worked less than 6 months.
• 15 days for employees who have worked from 6 months to 2 years.
• 1 month for employees who have worked from 2 to 5 years.
• 2 months for employees who have worked from 5 to 10 years.
• 3 months for employees who have worked more than 10 years.

For Fixed Duration Contracts (FDC), the notice requirements are different:

• No notice is needed if the contract is for 6 months or less.
• 10 days' notice is required for contracts longer than 6 months but up to 1 year.
• 15 days' notice is required for contracts longer than 1 year.

If you don't provide the correct notice, the FDC might automatically extend or even become a UDC. During the notice period, employees on a UDC are entitled to two paid days off per week to look for a new job.

Severance Pay

Severance pay is also handled differently depending on the contract.

For Fixed Duration Contracts (FDC), employees receive a severance payment of at least 5% of the total wages they earned during the contract.

For Undetermined Duration Contracts (UDC), employees are entitled to a seniority payment. This amounts to 15 days of wages and benefits for each year of service.

How Rivermate handles compliant exits

Navigating employee terminations and offboarding in another country can be complex. We make sure every step is handled correctly and in compliance with Cambodian labor law.

Here’s how we manage the process for you:

• Contract Review: We start by reviewing the employee’s contract to determine the correct notice period and severance pay calculations.
• Clear Communication: We prepare all necessary documentation, including the written termination notice, ensuring it meets legal requirements.
• Final Payments: We calculate and process all final payments, including unpaid salary, accrued vacation, and any severance or seniority pay due. We make sure these payments are made within 48 hours of termination.
• Ministry Notification: We handle the required notification to the Ministry of Labour and Vocational Training (MLVT) to keep everything compliant.
• Guidance and Support: We provide you with clear guidance throughout the process, so you understand your obligations and can make informed decisions.

By managing these critical steps, we help you offboard employees smoothly and respectfully, while protecting you from legal risks.

Cambodia maintains an accessible immigration system, making it easier for foreign nationals to obtain the necessary immigration documents before commencing employment.

The primary visa for foreign workers is the E-class visa, which can be obtained on arrival or from a Cambodian embassy. This initial visa is valid for 30 days. To work legally, sponsorship is required to get an EB visa, work permit and employment card from the Ministry of Labor and Vocational Training (MLVT). Employers are responsible for handling the work permit application.

Employment visas & sponsorship realities

An Employer of Record (EOR) can sponsor work permits for foreign employees in Cambodia. To do this, the EOR must be a legally registered entity in the country and be registered with the MLVT. This is the most common way for companies to hire full-time foreign talent in Cambodia.

However, there are important limitations to consider. Cambodia has a foreign employee quota system. This means that foreign workers can only make up a certain percentage of a company's total workforce. The standard quota allows for up to 10% of the workforce to be foreign, broken down into specific categories:

• 3% for office staff
• 6% for skilled labor
• 1% for unskilled labor

If a company needs to hire more foreign workers than the quota allows, it must get special approval from the MLVT. This is a key factor that can affect an EOR's ability to sponsor a visa.

The work permit application process requires documents from both the employer and the employee.

Employer Requirements	Employee Requirements
Certificate of Incorporation	Valid passport
Patent Tax Certificate	Health certificate
	4x6 cm photograph
	Signed employment contract
	Proof of residence

The processing time for a work permit is typically between 10 to 30 business days.

Business travel compliance

For short-term business trips, you can enter Cambodia with an E-class visa, which is valid for 30 days. This visa is suitable for activities like attending meetings, conferences, or exploring business opportunities. You can obtain this visa upon arrival at major airports or in advance through a Cambodian embassy or the official e-Visa portal. It's important to remember that you cannot legally work in Cambodia on a tourist visa. If your stay extends beyond 30 days or your activities involve formal employment, you will need to extend your E-class visa to an EB visa and secure a work permit.