Global EOR Services in Cambodia
Find, Hire & Pay Employees in Cambodia
Expanding into Cambodia offers access to one of Southeast Asia’s fastest-growing economies, driven by manufacturing, agriculture, and tourism. However, setting up a local entity involves complex registration, labor law compliance, and ongoing payroll management.
A Global Employer of Record (EOR) enables businesses to hire employees legally in Cambodia without opening a local subsidiary. The EOR manages employment contracts, payroll, tax filing, and compliance, allowing companies to focus on operations and growth.
🇰🇭 Employer of Record (EOR) Services in Cambodia
Effortless Market Entry: Hire local talent swiftly without the need for entity establishment.
Regulatory Compliance: Ensure adherence to labor, tax, and social security laws.
Cost Optimization: Reduce overhead expenses by avoiding entity setup and administrative burdens.
Operational Focus: Delegate HR and compliance tasks while concentrating on core business activities.
🇰🇭 Cambodia: A Comprehensive Guide to Employment and Labor Practices
Capital: Phnom Penh
Currency: Cambodian Riel (KHR)
Official Language: Khmer
Population: ~17 million
Minimum Wage: USD 204 per month (garment and footwear industry, 2024)
Working Hours: 48 hours per week (8 hours/day, 6 days/week)
Paid Annual Leave: 18 working days (after 3 years of service)
Income Tax Range: 0%–20% (progressive)
Employer Social Security Contribution: 2.6% (NSSF)
Employee Social Security Contribution: 2.6% (NSSF, capped)
Employment Laws and Policies in Cambodia
Employment Contracts
Contracts must be in writing, in Khmer, and include job title, wages, working hours, duration, and termination terms.
Two main types of contracts:
Fixed Duration Contract (FDC): Up to 2 years, renewable.
Undetermined Duration Contract (UDC): For permanent employment.
Probation period:
Up to 3 months for regular employees.
Up to 2 months for skilled workers.
Up to 1 month for unskilled workers.
Working Hours
Standard hours: 8 hours/day, 48 hours/week.
Overtime: Paid at:
150% of normal rate on weekdays.
200% on nights, weekends, or public holidays.
Night shift: Any work between 10 p.m. and 5 a.m. is compensated at 130% of the regular wage.
Leave Entitlements
Annual Leave: 18 working days per year after 3 years of service (start at 12 days and accrue annually).
Sick Leave: Up to 6 months (with varying pay depending on employer policy and NSSF coverage).
Maternity Leave: 90 days paid at 50% of wages for employees with at least one year of service.
Paternity Leave: Generally 1 day (customary).
Public Holidays: Approximately 21 official holidays per year (paid).
Payroll, Tax & Contributions
Income Tax: Progressive from 0% to 20%.
Social Security: Managed through the National Social Security Fund (NSSF).
Employer Contribution: 2.6% of gross salary (health + accident insurance).
Employee Contribution: 2.6% of gross salary.
Payroll Frequency: Monthly, with salaries paid in Cambodian Riel (KHR) or USD.
Employers must file monthly Tax on Salary and NSSF contributions.
Health & Safety
Regulated under the Labor Law and Occupational Safety and Health (OSH) standards.
Employers must ensure a safe working environment and register all employees with the NSSF for workplace injury and health coverage.
Regular workplace inspections and employee training are mandatory in certain industries.
Termination & Severance
Notice Period:
<6 months of service: 7 days
6 months–2 years: 15 days
2–5 years: 1 month
5 years: 2 months
Severance Pay:
For FDC: At least 5% of total wages earned during the contract.
For UDC: Indemnity based on years of service (7 days per year up to a maximum of 6 months).
Dismissal must be for a valid reason—economic, disciplinary, or performance-related.
Non-Discrimination & Equality
The Cambodian Constitution and Labor Law prohibit discrimination based on sex, race, color, religion, political opinion, or social origin.
Equal pay for equal work is legally mandated.
Forced labor and child labor (under 15 years) are strictly prohibited.
Opening a Legal Entity in Cambodia
Foreign companies can establish a presence in Cambodia through one of the following structures:
Private Limited Company (LLC) – most common and flexible form.
Public Limited Company (PLC) – for larger operations or public offering.
Branch Office – represents a foreign parent company.
Representative Office – limited to non-trading activities (market research, liaison).
Requirements:
At least one director and two shareholders (can be foreigners).
Minimum capital requirement: USD 1,000.
Must register with the Ministry of Commerce (MoC) and General Department of Taxation (GDT).
Employer registration with the National Social Security Fund (NSSF).
Timeframe: Approx. 4–6 weeks for complete incorporation.
Global EOR Services as Alternative:
By partnering with a Global EOR in Cambodia, businesses can bypass entity setup, reduce compliance risks, and start hiring within days instead of months—while maintaining full control over operations and team management.
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Popular Global EOR Providers Supporting Cambodia
(They often partner with in-country firms for local compliance.)
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Contact us today to learn more about our tailored solutions and how we can support your business goals.
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