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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)

employment guide_language

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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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 16 May 2025. The content in this guide is current as of this date and based on common business practices.

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.)I

Statutory Contributions

ItemDetailEmployer ContributionEmployee Contribution
Pension Scheme (PS)Elderly care, disabled care and funeral services2% (Minimum: 400,000, Maximum: 1,200,000)2% (Minimum: 400,000, Maximum: 1,200,000)
Occupational Risk Scheme (ORS)Occupational diseases, work injury0.8%
(Minimum: 400,000,
Maximum: 1,200,000)		–
Health Care Scheme (HCS)Medical benefits2.6% (Minimum: 400,000, Maximum: 1,200,000)–
 TotalAbout 5.4%About 2%

The Pension Scheme has been officially in effect since 1 October 2022.

  • Years 1–5: Total contribution rate of 4%.
  • Years 6–10: Total contribution rate increases to 8%.
  • Year 11 onwards: Total contribution rate increases to 10.75% and will subsequently rise by 2.75% every 10 years.

Minimum Wage

Effective 1 January 2025, the minimum wage for workers in Cambodia’s clothing, footwear, and luggage manufacturing sector has been increased to USD 208 per month. This increase does not apply to other sectors.

Public Holidays

The public holidays in Cambodia for 2025 are listed below. Please refer to official announcements from the Cambodian government for the latest updates.

Holiday NameDate
New Year’s Day1 January 2025
Victory over Genocide Day7 January 2025
International Women’s Day8 March 2025
Khmer New Year14 April 2025
Khmer New Year15 April 2025
Khmer New Year16 April 2025
Labour Day1 May 2025
Visak Bochea Day11 May 2025
King Norodom Sihamoni’s Birthday14 May 2025
Royal Plowing Ceremony15 May 2025
King’s Mother’s Birthday18 June 2025
Pchum Ben21 September 2025
Pchum Ben22 September 2025
Pchum Ben23 September 2025
Constitution Day24 September 2025
Commemoration of Late King Father15 October 2025
King’s Coronation Day29 October 2025
Bon Om Touk4 November 2025
Bon Om Touk5 November 2025
Bon Om Touk6 November 2025
Independence Day9 November 2025
Peace Day29 December 2025

Working Hours

Normal Working Hours

Employees may work up to 8 hours per day and 48 hours per week.

Rest Time

  • Cambodian labour law does not specify mandatory rest periods. In practice, employers typically provide lunch breaks of 30 minutes to one hour, which are usually unpaid.
  • Employees are entitled to at least one rest day (24 hours) per week, typically on Sunday. If operational requirements prevent rest on Sunday, employers may provide an alternative rest day or a rest period from Sunday noon to Monday noon, or implement a rotating time-off-in-lieu system. Such arrangements require approval from the Ministry of Labour.

Night Work

Night work is defined as work performed between 10:00 pm and 5:00 am the following day. Employees performing night work are entitled to a 30% premium on their ordinary wage.

Overtime

  • Any work performed beyond normal working hours is considered overtime. Overtime must not exceed 2 hours per day.

  • Overtime pay:

      • Monday to Saturday (daytime): 1.5 times the ordinary wage rate.
      • Monday to Saturday (night work): 2 times the ordinary wage rate.
      • Public holidays: 2 times the ordinary wage rate.

Other Regulations

  • The minimum employment age is 15.
  • Employers are prohibited from employing individuals aged 15 to under 18 in hazardous work.
  • Minors are not permitted to work night shifts.

Probationary Period

  • Regular (permanent) employees: Maximum of three months.
  • Specialised (skilled) workers: Maximum of two months.
  • Non-specialised (unskilled) workers: Maximum of 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 ServiceNotice Period
≤ 6 monthsNot applicable
> 6 months, < 1 year10 days
> 1 year15 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 ServiceNotice Period
≤ 6 months7 days
> 6 months, ≤ 2 years15 days
> 2 years, ≤ 5 years1 month
> 5 years, ≤ 10 years2 months
> 10 years3 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 ServiceCompensation
≥ 6 months, < 1 year7 days’ wages
> 1 year15 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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