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Overview
Cambodian Riel (KHR)
CURRENCY
Phnom Penh
CAPITAL
monthly
PAYROLL FRECUENCY
15
PUBLIC HOLIDAYS
0 to 3.40%
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Cambodia
Employer
Company payroll contributions
- 2.60%
Health Insurance
- 0.80%
National Social Security Fund (maximum 1,200,000 KHR)
0% - 3.4%
Total Employment Cost
Employee
Worker Payroll Contributions
There are no employee social security deductions since the 100.00% contribution moved to the employer in 2018.
0.00%- 0%
0% - 0%
Total Employee Cost
Employee Income Tax in Cambodia
Employment Income Taxes
0%
0 - 1,300,000 KHR
5%
1,300,001 - 2,000,000 KHR
10%
2,000,001 - 8,500,000 KHR
15%
8,500,001 - 12,500,000
20%
12,500,000 KHR and over
Minimum Wage in Cambodia
General
The minimum wage in Cambodia depends if the person is a probationary employee or a regular employee. In this case, the wage for a probationary worker is KHR 787,000.00. Instead, regular employees receive a minimum salary of KHR 786,000.00.
$186.35 Minimum Wage per month
Payroll Contributions in Cambodia
Payroll Cycle
The payroll outsourcing will allow you to make the payment in each cycle which in Cambodia is monthly. Besides, the employer must pay wages on the last day of each month but workers receive a payment every 16 days.
13th Salary
In the country, there is no legal requirement to make this payment.
Employee Benefit in Cambodia
- Study allowance
- Family health care
- Child education allowance
- Accommodation allowance
- Monthly mobile subsidy
- Monthly transportation allowance
Visa and work permit in Cambodia
Foreigners who wish to work in the country must obtain a business visa, known as a class E visa. In this case, contractor management services can assist you in processing this visa, which is valid for 30 days. Also, you can extend it for 1, 3, 6 months, or a maximum of one year, with authorization from the Ministry of the Interior (MoI).
Alternatively, employees can obtain an e-Visa at the Cambodian embassy or Phnom Penh International Airport. Likewise, with the 6 and 12-month visas, applicants can make multiple entries into the country. However, the 1 and three-month visas can only make a single entry.
Otherwise, an employee can apply for a work permit and employment card instead of an e-Visa. In this case, it is the responsibility of the employer to apply for this type of permit through the MLVT.
Also, companies can apply for an increase in the employment limit under the Labour Law, if they cannot find qualified Cambodian citizens. In this case, is according to the Prakas No 277/20 issued by the MLVT in 2020, which allows companies to exceed the 10% limit.
VAT in Cambodia
VAT in Cambodia is 10.00%.
Working Hours in Cambodia
General
As in many countries, in Cambodia working hours consist of 8 hours per day and 40 per week. Cambodian workers are also entitled to one day off per week, which is usually on Sundays.
Overtime
With the Employer of Record in Cambodia, you will be able to cancel the wage duties with overtime. In this case, both work contracts and collective agreements define these hours. Thus, overtime is those that exceed the weekly hours and a worker cannot exceed 2 extra hours per day.
In addition, for hours that exceed the legal maximum of 40 hours, the employer must pay 150.00% of the salary. Likewise, if these hours are worked by the employee on a Sunday or holiday, the payment is 200.00% of the salary. Also, if the hours are between 22:00 and 5:00, the pay rate is 130%.
However, the Employer of Record in Cambodia can apply for approval to do extra hours of work at the Ministry of Labor.
Working Week
Monday to Saturday.
Employee Termination in Cambodia
Termination Process
In Cambodia, this process is standard and needs a notice period. However, the employer does not need this period if they can provide valid cause for the firing. Moreover, the termination must be in writing and sent to the right government authorities.
Then, after termination, the employee has the right to request a work certificate that indicates the start and end dates. You must also include all relevant service information.
Notice Period
In Cambodia, the employer must have a valid reason to terminate a contract and properly notify the employee. In this case, a PEO can assist you in determining the cause, which may be performance, behavioral, or economic reasons. This period, as in other countries, will depend on the length of service of the employee as follows:
- 7 days notice if the employee has worked for less than 6 months.
- 15 days notice if the employee has worked for between 6 and 24 months.
- 1-month notice, if the employee has worked for between 2 and 5 years.
- 2 months notice if the employee has worked for between 5 and 10 years.
- 3 months notice if the employee has worked for more than 10 years.
Severance Pay
An Employer of record in Cambodia is also essential in calculating and making these payments. Thus, in Cambodia, this compensation must be at least 5.00% of the total salary of the employee for the entire duration of the contract.
On the other hand, employees with an undermined duration contract must receive this payment on a mandatory basis. In addition, the amount depends on the years of service completed by the employee as follows:
- Employees with a service of between 6 months and one year must be paid based on 7 days of a regular salary.
- Employees with a service of more than one year must be paid based on 15 days of regular salary for each year. But this amount should not exceed 6 months of wages and benefits.
Probation Period
This trial period in the country depends on the capabilities of the employee. Thus, for a regular employee, the period is 3 months, for a qualified employee, 2 months, and 1 for the unqualified.
Employee Leaves in Cambodia
Paid Time Offs
International PEO services are your best way to pay for these vacations, that depend on the years of service of the employee. Thus, it is common to pay 18 days for each year of service, they also receive 1.5 days per month after 1 year of service. In addition, employees must receive 1 additional day of leave for every 3 years of service after 4 years.
In contrast, part-time workers receive this prorated leave.
Public Holidays
There are 15 national holidays throughout the year.
Vacation Holidays
There are 18 vacation holidays throughout the year.
Sick Days
Cambodian employees are entitled to receive 6 days of sick leave, if they provide a sick certificate. In this case, the Employer of record in Cambodia is also helpful in calculating these payments properly. Thus, you must pay the employee 100.00% of the salary during the first month of the illness.
In the same way, the employee must receive 60% of the salary during the following 2 months. But the rest of the license will not receive any payment. Additionally, an employer may terminate an employee after more than 6 months of sick leave.
Paternity Leave
In Cambodia, there is no legal provision for paid paternity leave. Yet, male employees can request seven days of leave in substitution for their right to annual vacation.
Paternal Leave
Employment laws have no provision for parental leave.
Other Leave
Employees are entitled to bereavement leave for the death of an immediate family member. Thus, for the death of a father, mother, spouse, or child, the employee receives 7 days of leave without pay.
Likewise, if an employee gets married, they are entitled to receive 7 days of unpaid leave.
Maternity Leave in Cambodia
Workers are entitled to receive 90 days of paid leave at 50.00% of the regular salary they receive. Also, the employees receive 2 daily breaks of 30 minutes each for breastfeeding until the child turns 2 years old. Also, this nursing leave is paid.
However, the business can take a tax deduction of KHR 150,000 per month for each child or dependent spouse.
There are 90 leave throughout the year.