Remote’s guide to employing in Cambodia.
Remote-Owned Local Entity
We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
Cambodia is one of the world’s few constitutional monarchies (with 1900 years of verifiable history). This jewel of South East Asia has a rich and tumultuous history and Cambodians are known for their friendliness, kindness, and patience – traits which are synonymous with the country’s dominant Buddhism religion.
The country is famous for the Angkor Wat temple complex which draws around 2.6 million tourists annually as well as the mystical Mekong River Delta. Cambodia also boasts a patchwork of pristine rainforest dotted with a diverse range of over 8000 plant species.
Cambodians tend to value punctuality and may be frustrated by lateness. Often seniority is held in very high regard and those with the most experience in an organization tend to lead meetings.
Cambodia is a growing economy powered by an $8 billion textile industry that is globally competitive, however more knowledge workers are starting to emerge from the country’s educational institutions.
Ease of doing business
Cost of living index
VAT - standard rate
GDP - real growth rate
To employ Cambodian talent, companies must own a local legal entity in Cambodia or work with a global employment solution provider like Remote. Managing payroll, benefits, taxes, and compliance in Cambodia can get complicated, especially without established local relationships.
Remote’s EOR services make it easy for your company to employ and pay workers in Cambodia quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility of employing and paying your team so you can focus on hiring great talent and growing your business.
Workers' rights in Cambodia are protected by:
— all of which guarantee equal pay for equal work and protections against discrimination based on age, religion, gender, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Cambodia.
Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.
|Saturday, January 1, 2022||International New Year Day|
|Friday, January 7, 2022||Victory Day Over Genocide|
|Tuesday, March 8, 2022||International Women’s Day|
|Thursday, April 14, 2022||Khmer New Year Days|
|Friday, April 15, 2022||Khmer New Year Days|
|Saturday, April 16, 2022||Khmer New Year Days|
|Sunday, May 1, 2022||International Labor Day|
|Saturday, May 14, 2022||King Norodom Sihamoni’s Birthday|
|Sunday, May 15, 2022||Visak Bochea Day|
|Thursday, May 19, 2022||Royal Plowing Ceremony|
|Saturday, June 18, 2022||Queen Monineath’s Birthday|
|Saturday, September 24, 2022||Constitutional Day; Pchum Ben Festival|
|Sunday, September 25, 2022||Pchum Ben Festival|
|Monday, September 26, 2022||Pchum Ben Festival|
|Saturday, October 15, 2022||Respect the spirit of the late King Father|
|Saturday, October 29, 2022||Coronation Day of King Sihamoni|
|Monday, November 7, 2022||Water Festival|
|Tuesday, November 8, 2022||Water Festival|
|Wednesday, November 9, 2022||Water Festival, National Independence Day|
Cambodia's monthly minimum wage rate for regular workers is US$194. The rate for probationary workers is set at US$ 192 per month.
Cambodia law specifies that businesses must pay wages “commensurate with human dignity” — a viewpoint Remote stands behind as well. For instance, Remote employees earn a minimum of $40,000 no matter where they’re based in the world.
Seniority payments are only applicable to employees with a UDC.
All employees with a UDC are entitled to receive ongoing seniority payments in an amount equal to 15 days of their wages and other benefits per year. Employers must pay the seniority indemnity to employees as follows:
A new employee is entitled to a full installment of the seniority payment (being equal to 7.5 days of wages and benefits) if the employee worked for at least one month in the applicable period (being from January to June, or July to December).
If an employee has an FDC, they are not entitled to seniority payments, and they will receive severance payments.
13th month pay is a common practice, but not mandatory, before the implementation of seniority payment. Some employers have decided to cancel the 13th month pay when the Ministry of Labor and Vocational Training have decided to have seniority pay as mandatory payment. Therefore, the 13th month pay depends on the company’s individual decision.
The payment of a retention bonus would not contravene Cambodian law. However, the Employer should be aware that an employer has an obligation to pay employees with a UDC a seniority payment, and payment of the retention bonus will not excuse the employer from paying the seniority payments.
We can help you get a new employee started in Cambodia fast. The minimum onboarding time we need is only 20 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Cambodia are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Learn how employment taxes affect your payroll and your employees’ paychecks in Cambodia. All employment taxes and payroll contributions have been paid by the employer since 2018.
Cambodian employees earn 1.5 days of paid vacation for every month they’re employed at a company, capped at 18 days off per year.
Workers earn an extra day off every three years and longer annual vacations can be negotiated collectively.
Cambodia observes 15 national public holidays for 2022 which will last 21 days. Any public holiday that falls on a Sunday automatically extends until the next working day.
Sick employees are entitled to six months of sick leave, with their full salary for the first month, 60% of their normal wages for the next two months, and no further benefits for the remaining three months.
Female employees are entitled to 90 days of job-protected, paid maternity leave (with benefits equal to 50% of their normal salary) and two paid nursing breaks of 30 minutes each until their child turns 12 months.
Cambodia’s employment law doesn’t mention any provisions for paternity leave. Workers are allowed a KHR 150,000 ($36.94) tax deduction for dependent minors (up to age 14, or 25 if the minor is still schooling), and a dependent spouse.
An employee is entitled to seven days of unpaid leave in the event of the death of an immediate family member.
Employees who are getting married can apply for seven unpaid days off.
Fixed Duration Contracts: Cambodian Labor Law recognizes three grounds for terminating a fixed duration contract before the end date without a severance payment:
If one of the above reasons do not apply to the termination, the employer is legally obligated to pay severance to the employee on termination.
Undetermined Duration Contracts (UDC): Colombian employment law recognizes two grounds for terminating a UDC without notice and without payment of damages:
Otherwise, a UDC can be terminated by either party provided:
The notice period varies based on the duration of employment as well as the type of employment contract.
Like stated above, payments can be made in lieu of notice and workers who have been notified of their pending termination are entitled to take two paid days off per week (during the notice period) for a job search.
Severance payments under Cambodian law depend on the nature of the contract between the employer and the worker and are only required if an employee is dismissed without cause.
Workers employed with a fixed duration contract are entitled to:
If the employee is terminated before the expiration date of the employee's contract, the employee is also entitled to the following payment:
There is no compulsory obligation to provide probationary periods when engaging new employees. Many employers do choose to impose a probationary period and this is expected by Colombian employees.
The probationary period does have some stipulations if applied:
Whether an employee is a specialized worker or otherwise must be decided on a case-by-case basis depending on the level of professional skills required by the job in question. No prior notice is required to terminate the probationary period, either during or at the end of its intended duration.