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Global Expansion Guide

Cambodia

Manage and pay your employees easily with BIPO in Cambodia and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Cambodian Riel (KHR)

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Language

Cambodian

employment guide_capital

Capital

Phnom Penh

Employer of Record Cambodia

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Other Regulations

Probationary Period

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Cambodia

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  • Global Hiring Guide
  • Cambodia

Employer of Record Cambodia

Embark on your business expansion in Cambodia with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Cambodian market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

  • There are two types of contracts for regular employees.

    • Fixed Duration Contract (FDC): in written form, no more than two years, with start and end dates.
    • Unfixed Duration Contract (UDC): in written form, no end date.

  • An employment contract should include the following contents:

    1. Wages
    2. Working hours
    3. Other work conditions (including leave entitlements, rest time and wages etc.)

Statutory Contributions

Item Detail Employer Contribution Employee Contribution
Pension Scheme (PS) Elderly care, disabled care and funeral services 2% (Minimum: 400,000, Maximum: 1,200,000) 2% (Minimum: 400,000, Maximum: 1,200,000)
Occupational Risk Scheme (ORS) Occupational diseases, work injury 0.8% (Minimum: 400,000, Maximum: 1,200,000) –
Health Care Scheme (HCS) Medical benefits 2.6% (Minimum: 400,000, Maximum: 1,200,000) –
Total About 5.4% About 2%

The Pension Scheme had been officially implemented from 1st October 2022.

  • From the 1st year to the 5th year, the total contribution rate is 4%.
  • From the 6th year to the 10th year, the total contribution rate will be increased to 8%.
  • From the 11th year onwards, the total contribution rate will be increased to 10.75% and then will be increased by 2.75% every 10 years thereafter.

Minimum Wage

Starting 1st of January 2025, the minimum wage in Cambodia for workers in clothing, footwear and luggage factories has been increase to 208 USD. Other sectors are not applicable.

Public Holidays

The National Public Holidays in Cambodia in 2025 is shown as following. Please refer to the announcement of the Ministry of Economy and Finance of Cambodia.

Holiday Name Date
New Year’s Day 1 January 2025
Victory over Genocide Day 7 January 2025
International Women’s Day 8 March 2025
Khmer New Year 14 April 2025
Khmer New Year 15 April 2025
Khmer New Year 16 April 2025
Labour Day 1 May 2025
Visak Bochea Day 11 May 2025
King Norodom Sihamoni’s Birthday 14 May 2025
Royal Plowing Ceremony 15 May 2025
King’s Mother’s Birthday 18 June 2025
Pchum Ben 21 September 2025
Pchum Ben 22 September 2025
Pchum Ben 23 September 2025
Constitution Day 24 September 2025
Commemoration of Late King Father 15 October 2025
King’s Coronation Day 29 October 2025
Bon Om Touk 4 November 2025
Bon Om Touk 5 November 2025
Bon Om Touk 6 November 2025
Independence Day 9 November 2025
Peace Day 29 December 2025

Working Hours

Normal Working Hours

Not exceed 8 hours per day, 48 hours per week.

Rest Time

  • There is no legal requirement on rest time in Cambodia. In practice, employers provide lunch breaks to employees, which is usually 30 minutes to one hour without pay.
  • Employees are entitled to no less than one rest day (24 hours) per week, normally it should be Sunday in principle required by the labour law. If employees cannot take a rest day on Sunday due to the nature of their work, the employers can provide employees with an alternative rest day other than Sunday or a rest day from Sunday noon to Monday noon; or take time-off-in-lieu in turns. However, such days off arrangement must be approved by Ministry of Labour, Cambodia.

Night Work

The night working hours are between 10:00 pm one day and 5:00 am the next day. An employee should be paid an extra 30% of his or her ordinary wage rate as night shift allowance if he or she performs night work.

Overtime

  • Any hours worked in excess of standard working hours are considered overtime.
  • Overtime restriction: no more than 2 hours per day.

  • Overtime pay:

    • Overtime on Monday to Saturday (not worked at night): 1.5 times the ordinary wage rate.
    • Overtime on Monday to Saturday (worked at night): 2 times the ordinary wage rate.
    • Overtime on public holidays: 2 times the ordinary wage rate.

Other Regulations

  • The minimum age for employment is 15. Employers are prohibited from employing a child from 15 years of age to under 18 years of age in dangerous working.
  • Minors are not allowed to work at night.

Probationary Period

  • Regular (permanent) employees: no more than three months.
  • Specialised (skilled) workers: no more than two months.
  • Non-Specialised (unskilled) workers: no more than one month.

Leave

Statutory leaves in Cambodia include:

Type Applicable to Details
Paid Annual Leave Employees who have served for one year 9-18 days (vary by weekly working hours and length of service)
Pregnancy and Maternity Leave Female Employees who have served for one year 3 months (fully paid during maternity leave period)
Breastfeeding Time Female Employees with children under one year of age 30 minutes per each, two times per day.
Paid Sick Leave All Employees 6 months (the 1st month; full pay; from the 2nd to the 3rd month: 60% of wages; from the 4th to the 6th month: unpaid)
Seniority Leave Employees who have served for three years One day per every 3 years
Family Care Leave All Employees 7 days (for personal reasons that affect employees’ immediate family members, such as marriage, birth of children, funerals etc.)

Termination and Compensation

Notice Period

  • Termination of Fixed Duration Contract (FDC): According to the employees’ length of service, please refer to the rules shown below:
Length of Service Notice Period
≤ 6 months Not applicable
> 6 months, < 1 year 10 days
> 1 year 15 days
  • Termination of Unfixed Duration Contract (UDC): written notice should be provided. According to the employees’ length of service, please refer to the rules shown below:
Length of Service Notice Period
≤ 6 months 7 days
> 6 months, ≤ 2 years 15 days
> 2 years, ≤ 5 years 1 month
> 5 years, ≤ 10 years 2 months
> 10 years 3 months

Payment-in-lieu can be paid to the affected party instead of notice period of termination.

Compensation

  • Termination of Fixed Duration Contract (FDC): At least 5% of the total wages paid to the employee during the fixed-term contract period.
  • Termination of Unfixed Duration Contract (UDC): According to the employee’s length of service, please refer to the rules shown below:
Length of Service Compensation
≥ 6 months, < 1 year 7 days’ wages
> 1 year 15 days’ wages for every service year

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Cambodian regulations.
  • Contributions and Taxes: Our expertise in managing local social statutory contributions and local income tax ensures your business complies with Cambodia’s financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Cambodia’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Cambodia’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Cambodia

Unlock your growth potential with BIPO’s Employer of Record service in Cambodia. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees. 

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from: 

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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