Payroll and Benefits Guide Cambodia

Employer

Employer Payroll Contributions

Employee

Employee Payroll Contributions

There are no employee social security deductions since the 100.00% contribution was moved to the employer in 2018.

Employee

Employee Income Tax

General

The minimum wage is set at 818,800.00 KHR per month.

Payroll Cycle

The payroll cycle in Cambodia is generally monthly, and payments are to be made on the last working day of each month. However, laborers are paid at least every 16 days.

13th Salary

There is no statutory requirement for a 13th-month salary in Cambodia.

General

The standard working week in Cambodia consists of 8 hours a day, 40 hours a week. All employees are entitled to at least one day off per working week, predominantly taken Sunday.

Overtime

All work above the standard working week is paid as overtime and regulated by employment contract/collective agreements. When an employee is requested to work overtime or on holidays, there is a maximum of 2 hours per day.
Overtime hours above 40 hours a week are paid at the rate of 150.00% of the employees’ regular pay rate; this increases to 200.00% of the employees’ regular pay if the overtime is performed on a Sunday or public holiday. For employees who conduct overtime during the night hours of 10.00 pm and 5.00 am, the overtime rate is paid at 130.00% of the employees’ regular pay rate.
To perform additional hours of work, permission needs to be granted from the Ministry of Labor.

Working Week

Monday-Saturday

Paid Time Off

In Cambodia, the paid annual leave entitlement depends on the years of service that the employee has served. The standard paid leave entitlement is 18 days per day; an employee receives 1.5 days leave per month of service after one year of completed service. Employees should receive an additional day of leave for every three years in service following four years of service.

Part-time employees receive leave on a pro-rata basis.

Public Holidays

There are 15 public holidays.

Sick Days

An employee can claim up to six months of leave, providing the employee can provide a certificate of sickness. The employee will receive 100.00% of their regular salary rate for the first month of sickness, the two months that follow are paid at 60.00%, and the remainder of the leave is unpaid.

An employer holds the right to dismiss an employee following more than six months of sick leave.

Maternity Leave

Female employees are entitled to 90 days of paid maternity leave at 50.00% of the employees’ regular salary rate and receive two nursing breaks of 30 minutes each working day until the child reaches the age of 12; this nursing leave is paid.

A Tax deduction of KHR150,000 per month is allowed for each dependent child or spouse. 

Paternity Leave

There is no paid statutory paternity leave, but male employees can use their annual leave entitlement for paternity leave of up to seven days.

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

In Cambodia, in the event of the death of an immediate member, an employee is entitled to bereavement leave. For the death of a father, mother, spouse, or child, an employee is entitled to seven days of unpaid leave.

In addition, an employee is entitled to 7 days of unpaid leave in the event of their wedding.

Termination Process

The termination process is standard in Cambodia with notice periods required, unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, etc.)  Notice of termination must be in writing and sent to the relevant governmental authorities.  In addition, upon termination, the employee is entitled to request a certificate of employment stating the dates of employment and information about the position held.

Notice Period

In Cambodia, an employer must have a reason for terminating the contract and provide notice to the employee. This can include termination for performance, behaviour, or for economic reasons. The notice period depends on the employee’s length of service:

• Seven days of notice for employees with six months or less of service
• 15 days of notice for employees with 6 to 24 months of service
• One month of notice for employees with 2 to 5 years of service
• Two months of notice for employees with 5 to 10 years of service
• Three months of notice for employees with more than ten years of service

Severance Pay

In general, severance payment must be at least 5.00% of the total wages paid to the employee during the length of the contract.

Employees with an undermined duration contract are entitled to statutory severance payments. The amount due is dependent on the number of years’ service the employee has completed.

• For employees with an employment service of between 6 months to 1 year, the employer should calculate the severance payment at seven days of the regular salary rate.
• For employees who have completed more than one year of service, the severance payment should be calculated at 15 days of the regular salary rate for each year of employment, up to a maximum total of 6 months’ salary and benefits.

Probation Period

In Cambodia, the probation period is fixed depending on the skill of the employee. For a regular employee, the probation period is three months, two months for a skilled employee, and one month for an unskilled employee.

General

Study allowance, family health care, child education allowance, accommodation allowance, monthly mobile allowance, and monthly transportation allowance.

VISA

General

The standard rate of VAT in Cambodia is 10.00%.