As of March 2024, the estimated population of Cambodia is 16.9 million.
The currency in Cambodia is the Cambodian Riel (KHR). The currency symbol is ៛.
In Cambodia, the Labor Code defines regular or permanent employees as those who regularly go to work for an indefinite period. Every employee of Cambodian nationality needs an employment card. Employers are not permitted to hire persons who do not comply with this requirement. The contract for permanent employment may include a clause for a probation period of up to 3 months.
An employment contract may be written or oral. For fixed-term contracts, it is mandatory to form contracts in writing, whereas contracts for an undefined duration can be written or verbal. Any contractual clauses that prohibit employees from pursuing any activities after the contract expiry date are null. A written agreement must include the remuneration and other benefits available to employees. Any written or verbal agreement that would remunerate the employee at a rate less than the guaranteed minimum wage is null and void. The Labor Code of Cambodia prohibits restrictive covenants in employment contracts. Any clause of a contract that prohibits an employee from engaging in any activity after the expiration of the contract is null and void.
The Labor Code of Cambodia defines casual employees as individuals who are hired to perform temporary or seasonal jobs, or to perform specific work within a short timeframe. Casual workers are subject to the same rules and obligations and enjoy the same rights as regular employees, except for the clauses stipulated separately. Temporary employment agreements are made in writing. Contracts without a precise termination date can be renewed at will as many times as possible without losing their validity, limited to a 2-year duration. Contracts of daily or hourly workers who are hired for a short-term job and who are paid at the end of the day, the week, or a fortnight period, are considered to be contracts of fixed duration with an unspecified date.
A probationary period allows the employer to determine the professional aptitude level of the employee and for the employee to better understand the conditions of employment. The maximum probationary period depends on the type of employee: Permanent employee - 3 months Specialized fixed-term employee - 2 months Non-specialized employee - 1 month
Employees are required to work for a maximum of 8 hours per day, 48 hours per week, with 1 rest day per week. It is prohibited to employ a person for more than 6 days in a week. Working hours cannot exceed 10 hours per day in case of overtime. Employers can divide a work schedule into 3 shifts (morning, afternoon, and night) with each shift not exceeding the maximum of 8 hours daily. An employee can work for more than 1 shift per day provided that the duration of all daily work shifts does not exceed the total mandated number of working hours per day.
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2027
Employees must receive paid annual leave of 1.5 days per month, for a total of 18 days per year (increasing by 1 additional day for every 3 years of continuous service). The entitlement to annual leave becomes effective after 1 year of service. Paid holidays and sick leave do not count as paid annual leave. Any collective agreement providing compensation in place of paid leave, or waiving the right to paid annual leave, is void. Acceptance by the employee to postpone all or part of their rights to paid leave until the termination of the employment agreement is not considered as renunciation. Postponement of this leave cannot exceed 3 consecutive years and can only apply to leave exceeding 12 days per year.
In Cambodia, employees are entitled to sick leave for up to 6 months if the sickness is certified by a licensed doctor; however, it can be extended until there is a replacement. The employer may dismiss the employee if sick leave extends beyond 6 months. The Labor Code does not have regulations on paid sick leave; however, employers may provide paid sick leave through internal work regulations. An example of sick leave pay is as follows: 100% of wages during the first month of sick leave 60% of salary during months 2 and 3 of sick leave Unpaid leave during months 4, 5, and 6 Employees are also insured under the National Health Service. Those who have paid contributions for either 2 consecutive months or 6 months within the 12 months preceding the month of illness or non-work-related accident are entitled to benefits. Employees must also have been absent from work for at least 8 days due to medical treatment prescribed by a registered medical practitioner. The daily allowance is payable from the first day of suspension of work, and is calculated at 70% of the employee’s average daily wage. It is paid in installments for the actual period of medical leave, up to a maximum of 6 months
Female employees in Cambodia are entitled to a maternity leave of 90 days, with 50% of their wages paid by their employer. There is no restriction on whether the leave must start before or after childbirth. It is prohibited to lay off women in the workforce during their maternity leave or at a date when the end of the notice period would coincide with the maternity leave. During leave, female employees are entitled to 50% of their wages, including perquisites, paid by the employer, as well as any other benefits in kind they were entitled to. In addition to the 50% wage paid by the employer, female employees who are registered with the National Social Security Fund (NSSF) and have at least 9 months of contributions in the 12 months preceding leave are entitled to a maternity benefit of 70% of their reference earnings for 90 days from the NSSF.
The law does not have regulations explicitly related to paternity leave; however, it offers a provision for special paid leave of up to 7 days for events that directly affect an employee's immediate family. This leave is deducted from the annual leave. If the employee has used the entire annual leave for the year, the employer cannot deduct the special leave from the employee's annual leave for the next year.
For permanent employment contracts, the minimum notice period ranges from 7 days to 3 months, depending on the length of service. Notice period is not required for termination during probation or due to gross misconduct. During notice period, employees have a right to 2 fully paid days, at regular rates, per week to look for a new job. For fixed-term contracts between 6 months and 1 year, the employer must give notice at least 10 days prior to the expiration date. If a fixed-term agreement is over 1 year, the organization must give notice at least 15 days before the expiration date. Failure to provide prior notice to the employee will result in the renewal of the fixed-term agreement for a duration equal to the original contract.
Cambodia's Labor Code has different concepts of severance pay for fixed-term contracts and permanent contracts. In case of termination of fixed-term employment contracts before the expiration of their contracts, employees receive: Unpaid wages Payment in lieu of unused annual leave Termination payment is worth at least 5% of the wages paid to the employee during the employment contract period, excluding bonuses Damages worth at least the amount of wages that the employee is entitled to until the end of the employment contract If the contract is terminated due to expiry, employees don't receive damages. Employees don't receive any termination pay or damages if they are dismissed for serious misconduct. In case of termination of an indefinite-term contract without a valid reason and the employee did not commit serious misconduct, employees receive: Unpaid wages Payment in lieu of unused annual leave Payment in lieu of prior notice if the employer fails to give proper prior notice Seniority payment calculated as 15 days' wages and benefits per year of service, paid in 2 installments every year, limited to a maximum of 6 months' wages and benefits Damages 7 days' wages and benefits per year of service for the remaining year, not exceeding 12 months' wages If an employee is dismissed due to gross misconduct, seniority payment and damages are not paid. If employees are terminated due to bankruptcy or illness, damages are not paid. The employer must pay all unpaid wages, indemnities, and unused annual leave within 48 hours of the termination date.
In Cambodia, the National Social Security Fund (NSSF) provides for retirement pensions for insured employees. There are different provisions for public sector employees and private sector employees, including benefits and contributions. For public sector employees, the mandatory contributions are paid by the government and employees. The retirement age is 60 years. To be eligible for retirement pension, employees must have be registered in the pension scheme and paid at least 12 months' contributions. For private sector employees, the contributions are paid by the employees and their employers. The retirement age is 60 and they must have paid contributions for at least 12 months to be eligible for pension. The amount of pension depends on the average wage and accrual rate based on the years of contributions. The maximum accrual rate of old-age pension is equivalent to 1.75% per year of contribution. Both public and private sector employees can contribute in a voluntary pension scheme.
The law in Cambodia provides survivors benefits for dependents, including widows, widowers, and children. Insured employees (both public and private sectors) must have paid at least 60 contributions for their survivors to receive the pension. The minimum rate of Survivors’ Pension is 45% of old-age pensions or invalidity pensions of the person concerned.The pension for survivors is calculated as follows: Surviving spouse - 50% Children - 50% In case the beneficiary is only spouse or children shall be entitled to enjoy 100% pension. If requirements are not fulfilled, the survivors are entitled to the survivors allowance, provided as a lump sum in the amount of not less than the monthly old-age pension of the deceased person.
In Cambodia, NSSF provides invalidity pension for public and private sector employees. an NSSF member is entitled to invalidity benefit before the age of 60 years and with payment of contribution for 60 months prior to the disability. The maximum accrual rate of old-age pension is equivalent to 1.75% per year of contribution. The minimum rate of invalidity pension is equivalent to 45% percent of the average contributory wage of the person concerned.
A physical person resident of the Kingdom of Cambodia must pay tax on salary from Cambodian, as well as foreign income sources. A non-resident physical person is responsible for paying taxes on income from sources in Cambodia only. Tax rates for residents are on a progressive scale from 0% to 20% of income. Non-residents are taxed at a flat rate of 20%, which constitutes a final tax. Fringe benefits are taxable at a flat rate of 20% of the amount paid. The tax year is the same as the calendar year, running from January 1 to December 31. Effective January 1, 2026, Cambodia implemented a flat-rate Capital Gains Tax of 20% on income from capital gains, both within and outside Cambodia. This applies to capital gains from transfers of leases, investment assets, business goodwill, intellectual property, foreign currencies, and shares. The capital gains tax on immovable property (land, houses, buildings) is deferred to January 1, 2027.
All visitors, except citizens of Brunei, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, need a visa to enter Cambodia. Visas may be obtained at Cambodian embassies or consulates, and are also available upon arrival.
Employers who wish to hire foreign employees must first get approval from the Department of Employment and Manpower. After receiving written permission to use a foreign workforce, the employer must apply for a work permit and an employment card for the foreign employees no later than March of each year. Foreign nationals who want to work in Cambodia must hold the following documents: A work permit that is issued by the Ministry of Labour (valid for 1 calendar year and renewable indefinitely); the approved employee also receives a workbook and an employment card. A valid passport, visa, and a residence permit (obtained at the employee’s local Sangkat office) A health certificate issued by the Ministry of Labour or Health Department, verifying that the individual does not have any contagious diseases and is physically fit for a particular job The use of a foreign workforce may not exceed 10% of the total number of employees (3% office, 6% skilled, and 1% unskilled). In special cases, where more than 10% is required, specific reasons must be indicated in the application letter. Foreign employers registered in a Patent Certificate in Cambodia, or foreign employees who are registered in a Patent Certificate or are self-employed, must also obtain a work permit, whether they stay in Cambodia or not.
