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.
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.
Accrues at 1.5 working days per month of service, with 1 extra day for every 3 years of seniority.
Employees with at least 1 year of service receive half pay from the employer. NSSF members can also claim a maternity allowance.
For family events such as a birth, marriage or death. It can be deducted from annual leave or made up later.
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.
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.
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 →
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.
For regular workers in the garment, footwear, travel goods and bag sectors, from 1 January 2026.
Employees must get at least 24 consecutive hours of rest each week, normally on Sunday.
Rising to 200% for overtime at night (10pm to 5am) or on the weekly day off. Overtime is limited to 2 hours a day.
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 →
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 salary | Rate |
|---|---|
| KHR 0 – 1,500,000 | 0% |
| KHR 1,500,001 – 2,000,000 | 5% |
| KHR 2,000,001 – 8,500,000 | 10% |
| KHR 8,500,001 – 12,500,000 | 15% |
| Over KHR 12,500,000 | 20% |
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.
| Scheme | Employer | Employee |
|---|---|---|
| Occupational risk | 0.8% | – |
| Health care | 2.6% | – |
| Pension | 2% | 2% |
| Total | 5.4% | 2% |
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.
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 →
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.
| Continuous service | Notice |
|---|---|
| Less than 6 months | 7 days |
| 6 months to 2 years | 15 days |
| 2 to 5 years | 1 month |
| 5 to 10 years | 2 months |
| More than 10 years | 3 months |
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.
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.
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 →
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.
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.
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 →
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.
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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