Country HR Guide

HR Management in Cambodia

Employment in Cambodia is governed by the Labour Law of 1997 and its implementing Prakas issued by the Ministry of Labour and Vocational Training (MLVT). Every employer must also register with the National Social Security Fund (NSSF). Here is what employers need to know about leave, pay, tax and ending employment.

Currency Cambodian Riel (KHR); USD widely used
Capital Phnom Penh
Language Khmer
Maximum week 48 hours
Employer NSSF 5.4%
Figures last reviewed September 2026.

Leave entitlements

The Labour Law sets minimum paid annual leave that grows with seniority. Sick leave is not set out in the Labour Law itself, so employers follow MLVT guidance and the NSSF health care scheme.

18 days
Annual leave

Accrues at 1.5 working days per month of service, with 1 extra day for every 3 years of seniority.

90 days
Maternity leave

Employees with at least 1 year of service receive half pay from the employer. NSSF members can also claim a maternity allowance.

7 days
Special leave

For family events such as a birth, marriage or death. It can be deducted from annual leave or made up later.

Sick leave

MLVT guidance, commonly applied by employers, is that an employee on sick leave with a medical certificate receives full pay for the first month, 60% of pay for the second and third months, and no pay after that. Employees covered by the NSSF health care scheme may also claim sickness benefits from the Fund.

Maternity and paternity leave

Women are entitled to 90 days of maternity leave and cannot be dismissed during it. The employer pays half of wages and benefits to employees with at least 1 year of service, and the NSSF pays a maternity allowance of 70% of average wages to members who meet its contribution conditions. There is no separate statutory paternity leave; fathers usually take special leave.

How IceHrm helps

Set up each Cambodian leave type in IceHrm with its own accrual, carry forward and approval rules, such as annual leave that accrues monthly and grows with seniority. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →

Pay & working hours

Cambodia sets a statutory minimum wage only for the garment, textile, footwear, travel goods and bag sectors. It is reviewed every year and takes effect on 1 January.

US$210
Sector minimum wage per month

For regular workers in the garment, footwear, travel goods and bag sectors, from 1 January 2026.

8 / 48 hours
Maximum daily / weekly hours

Employees must get at least 24 consecutive hours of rest each week, normally on Sunday.

150%
Overtime premium

Rising to 200% for overtime at night (10pm to 5am) or on the weekly day off. Overtime is limited to 2 hours a day.

Paying employees
  • Workers must be paid at least twice a month, no more than 16 days apart; staff at least once a month.
  • Regular night work is paid at a premium of at least 130% of the normal rate.
  • Garment sector workers also receive attendance, transport and seniority bonuses on top of the minimum wage.
  • Wages must be paid in legal tender and recorded in the payroll ledger.
How IceHrm helps

Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so day, night and rest-day overtime reflect what was actually worked. Time & attendance →

Income tax

Cambodia has no annual personal income tax return for employees. Instead, employers withhold tax on salary every month and file it with the General Department of Taxation by the 20th of the following month.

Monthly tax on salary for residents, in force for 2026. Deductions apply for a dependent spouse and children. Non-residents pay a flat 20%, and fringe benefits are taxed at a flat 20%.
Monthly salaryRate
KHR 0 – 1,500,0000%
KHR 1,500,001 – 2,000,0005%
KHR 2,000,001 – 8,500,00010%
KHR 8,500,001 – 12,500,00015%
Over KHR 12,500,00020%

Employer payroll costs

Every enterprise with at least one employee must register with the NSSF and declare and pay contributions monthly through the NSSF online portal. Contributions are calculated on a capped contributory wage.

NSSF rates in 2026. The pension rate is due to rise in stages, starting in October 2027.
SchemeEmployerEmployee
Occupational risk0.8%–
Health care2.6%–
Pension2%2%
Total5.4%2%
Seniority indemnity

Employees on undetermined-duration contracts earn a seniority indemnity of 15 days of wages a year, paid in two instalments of 7.5 days each June and December. Fixed-duration contract employees are instead owed a severance allowance of at least 5% of the wages paid over the contract.

How IceHrm helps

Build Cambodian pay the way you already structure it, with your own salary components, deductions and formula columns, such as NSSF contributions or seniority indemnity, and pay in riel or US dollars with multi-currency payroll. Want to know how well IceHrm handles payroll calculations for Cambodia? Contact us or see Payroll →

Ending employment

An employer can end an undetermined-duration contract only for a valid reason related to the employee’s aptitude or conduct, or to the operating needs of the business, and must give written notice. Serious misconduct allows dismissal without notice.

Common ways employment ends
  • Resignation by the employee
  • Mutual agreement
  • Expiry of a fixed-duration contract
  • Dismissal for a valid reason
  • Dismissal for serious misconduct
  • Layoff for economic reasons
Notice period (undetermined-duration contracts)
Employers can pay in lieu of notice. Fixed-duration contracts over 6 months need 10 days’ notice of non-renewal, or 15 days if longer than 1 year.
Continuous serviceNotice
Less than 6 months7 days
6 months to 2 years15 days
2 to 5 years1 month
5 to 10 years2 months
More than 10 years3 months
Final pay
  • Outstanding wages and any unused annual leave.
  • Pay in lieu of notice if notice was not given.
  • Seniority indemnity due for the current half year (undetermined-duration contracts).
  • Damages if a dismissal is found to be without a valid reason.

Public holidays

The government publishes the holiday calendar each year by sub-decree. For 2026, Sub-Decree No. 167 sets 21 days of paid public holidays for all workers covered by the Labour Law.

International New Year’s Day1 January
Victory over Genocide Day7 January
International Women’s Day8 March
Khmer New Year (3 days)Mid-April
International Labour Day1 May
Visak Bochea DayApril / May (lunar)
Royal Ploughing CeremonyMay (lunar)
King’s Birthday14 May
Queen Mother’s Birthday18 June
Constitution Day24 September
Pchum Ben (3 days)September / October (lunar)
Commemoration of King Father Norodom Sihanouk15 October
Coronation Day29 October
Independence Day9 November
Water Festival (3 days)October / November (lunar)
Peace Day29 December

In 2026 Labour Day and Visak Bochea fall on the same day. The list and number of holidays can change from year to year, so check the new sub-decree each autumn.

How IceHrm helps

Load each year’s holiday sub-decree into a holiday calendar and assign it to a leave group, so every Cambodian office gets the right days off, including multi-day lunar festivals. Holiday calendars →

Hiring & contracts

Employment contracts are either of undetermined duration (UDC) or fixed duration (FDC). A fixed-duration contract must be in writing and specify its end date; otherwise it is treated as undetermined.

Registrations and documents
  • Declaration of opening – register the business with the MLVT before hiring, and declare each hire and departure.
  • NSSF registration – register the enterprise and each employee with the Fund.
  • Employment book and payroll ledger – now kept and registered online through the MLVT system.
  • Internal work rules – required for enterprises with 8 or more employees.
  • Work permits – foreign employees need a work permit and employment card.
Probation and fixed-term limits

Probation may last up to 3 months for regular employees, 2 months for specialised workers and 1 month for non-specialised workers. A fixed-duration contract may not exceed 2 years in total, including renewals.

How IceHrm helps

Send contracts for e-signing, store them with work permits on the employee’s record, and track onboarding with task lists so NSSF and MLVT registrations are never missed. Documents & e-signing →

Official sources Disclaimer

This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.

Manage your Cambodia workforce with IceHrm

Configure leave types, accrual rules and public holidays for Cambodia, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Cambodia? Talk to us.

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