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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

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Cambodia

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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.

This guide was last updated on 8 May 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Employment contracts in Cambodia may be structured as either fixed-duration contracts (FDCs) or open-ended contracts (UDCs).

  • Fixed-duration contracts (FDCs): Generally limited to a maximum term of 2 years and may be renewed one or more times, subject to applicable labour regulations. FDCs must be executed in writing.
  • Open-ended contracts (UDCs): May be concluded in either written or verbal form, in line with local customs and practices.

Where contract registration is required, it must be completed free of charge.

Statutory Contributions

Scope of Application: Applicable to employees of private enterprises.

Social Security Type Wage Ceiling Employee Contribution Employer Contribution
Work Injury Risk Plan

KHR 200,000

KHR 1,200,000

 – 0.80%
Health Insurance Plan 1.30% 1.30%
Pension Plan

KHR 400,000

KHR 1,200,000

 2% 2%
  • Phase 1 (1 Oct 2022 – 30 Sep 2027): Total contribution 4%
  • Phase 2 (1 Oct 2027 – 30 Sep 2032): Total contribution 8%
  • Phase 3 (from 1 Oct 2032): Total contribution increases by 2.75% every 10 years

Minimum Wage

Scope of Application: Textile, garment, footwear, travel goods & bag industries

Effective Date: 1 January 2026

Category Minimum Wage
Probation USD 208 / month
Permanent USD 210 / month
Piece-rate ≥ Minimum wage Paid as earned
< Minimum wage Topped up to minimum

Public Holidays

The public holidays listed below are national public holidays observed across Cambodia. Please refer to official government announcements for the latest updates.

  • New Year’s Day
  • Victory Over Genocide Day
  • International Women’s Day
  • Khmer New Year (3 Days)
  • Labour Day
  • Visak Bochea Day
  • Royal Plowing Ceremony
  • King’s Birthday
  • King’s Mother Birthday
  • Constitution Day
  • Pchum Ben Day (3 Days)
  • Commemoration of Late King’s Father
  • King’s Coronation Day
  • Independence Day
  • Water Festival (3 Days)
  • Peace Day

Notes

  • If a public holiday falls on an employee’s rest day, the holiday must be observed on the next working day.
  • Public holidays must not result in any reduction in employee remuneration. Employees receiving a fixed salary are entitled to their full pay, while employees paid on a time-rate or piece-rate basis must receive proportional compensation.
  • Overtime compensation: Employees are generally entitled to overtime pay at 200% of their regular wage.
  • Exemptions from Overtime Compensation: Certain employees may be exempt from overtime compensation, subject to the applicable working hours exemptions outlined above.

Working Hours

Normal Working Hours

Daily Weekly
8 hours 48 hours

Work Break

No specific statutory requirements are stipulated under Cambodian labour law.

Weekly Rest

Employees are generally entitled to 1 rest day per week, typically observed on Sunday.

Overtime Compensation

Work Period Work Day Rest Day
Day 1 – 8 hours 100% 200%
> 8 hours 150% Not stipulated

Night

(22:00 – 05:00)

 1 – 8 hours 100%
> 8 hours 200%

Working Hours Exemptions

Working hours exemptions may apply in the following circumstances:

  • Permanent exemptions: Roles involving preparatory, auxiliary, or intermittent work.

  • Temporary exemptions: Certain seasonal or specified operational needs, including:

    • Serious incidents, emergencies, force majeure events, or urgent repair of machinery/equipment to prevent significant disruption to normal operations;
    • Prevention of loss of perishable materials or deterioration of technical outputs;
    • Special operational requirements such as stocktaking, financial closing, account reconciliation, and deadline-driven work;
    • Temporary surges in workload where the employer is unable to implement alternative measures in a timely manner.
  • The competent labour authority may designate specific regions where working hours exemptions are applicable.
  • Exemptions may also be declared in situations of war or other threats to national security.

Leave

Annual Leave

  • Eligibility: Employees with at least 1 year of continuous service with a single employer

  • Entitlement:

    • 1.5 days per month of completed service (equivalent to 18 days per year)
    • Additional 1 day for every 3 years of seniority
  • Pay: Full salary paid by the employer during leave
  • Encashment: Any unused annual leave must be fully compensated upon termination of employment

Sick Leave

  • Eligibility: Submission of a medical certificate issued by a registered medical practitioner

  • Social Security Sick Allowance Eligibility:

    • Registration under the health insurance scheme
    • Either 2 consecutive months of contributions or 6 cumulative months within the past 12 months
    • Hospitalisation for more than 8 days
  • Duration: Up to 6 months

  • Allowance:

    • 70% of wages, paid under the social security system

    • While not explicitly mandated under labour law, Ministry of Labour guidance recommends the following structure:

      • Month 1: 100% of wage
      • Months 2–3: 60% of wage
      • Months 4–6: Unpaid

Maternity Leave

  • Eligibility: Female employees

  • Social Security Maternity Allowance Eligibility:

    • Registration under the health insurance scheme
    • At least 9 consecutive months of contributions within the 12 months prior to childbirth
  • Employer-paid maternity allowance eligibility: At least 1 year of continuous service
  • Duration: 90 days

  • Allowance:

    • 70% of wage paid by social security
    • 50% of wage paid by the employer

Other Leave Types

  • Job-seeking leave: 2 days per week during the notice period, with pay
  • Special (personal) leave: Granted for events affecting immediate family; paid leave and deducted from annual leave entitlement
  • Breastfeeding leave: 1 hour per day (may be taken in parts), with pay

Termination and Compensation

Notice Period

  • Fixed-term contracts (expiry or non-renewal):

    • Contract term > 6 months: 10 days’ notice
    • Contract term > 1 year: 15 days’ notice

  • Open-ended contracts:

    • Less than 6 months: 7 days’ notice
    • 6 months to 2 years: 15 days’ notice
    • 2 to 5 years: 1 month
    • 5 to 10 years: 2 months
    • 10 years or more: 3 months

Compensation

  • Outstanding wages: All salary arrears and outstanding payments must be settled in full upon termination.

  • Seniority indemnity:

    • 6 months to 1 year of service: 7 days’ wages
    • 1 year and above: 15 days’ wages per year of service
  • Damages: Where termination is wrongful, the terminating party is liable to compensate the other party for resulting losses.
  • Fixed-term contract completion compensation: As determined by collective agreement; where none exists, at least 5% of total remuneration paid over the contract term.

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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