HR Software for Cambodia

Leave Policy

Maternity Leave

Employees who have worked for one year are entitled to 90 days of paid vacation. During this period, the employee receives 50% of his salary and the employer is responsible for payment.

Paternity Leave

Employees are entitled to 5 days of paid paternity leave, which must be taken after the birth of the child. However, it is common practice to provide an additional 7 to 15 days of vacation, paid for by the employer. The employee receives 100% of his salary during this period and the employer is responsible for payment.

Parental Leave

There is no parental leave law in Cambodia. However, employees may be entitled to maternity and paternity leave.

Sick Leave

Employees are entitled to paid sick leave for up to 12 days. If the employee takes more than 3 consecutive days, a medical certificate from a licensed doctor is required.

Pay & Tax

Minimum Wage Requirements

The minimum wage for 2024 is KHR 1,069,900 per month and may vary depending on the sector.

Individual Income Tax

Cambodia does not charge income tax, but employees must pay contributions based on their salary and pay payroll tax. Payroll taxes range from 0% to 20%, with a maximum contribution permitted.

Gross Annual Income	Tax Rate (%)	Limit
From 0 to 1.500.000 KHR	0%	0
From 1.500.000 KHR to 2.000.000 KHR	5%	75.000 KHR
From 2.000.000 KHR to 8.500.000 KHR	10%	175.000 KHR
From 8.500.000 KHR to 12.500.000 KHR	15%	600.000 KHR
Over 12.500.000 KHR	20%	1.225.000 KHR

Payroll Cost

Employer costs are typically estimated at 5.40% of employee salary.

Pension fund – 2%
Contribution for occupational risks – 0.80%
Contribution to health care – 2.60%

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday. However, employees can have a work week from Monday to Saturday, achieving 48 hours per week.

Pay for overtime is mandatory. Hours worked outside of normal working hours are considered overtime. Employees can work a maximum of 2 hours of overtime per working day. Employees receive compensation for additional hours:

150% of the normal rate of pay for overtime on a normal working day;
200% of normal wages for overtime between 10 p.m. and 5 a.m. and for work performed on a normal weekday off;
130% of normal wages for permanent or rotating work between 10 p.m. and 5 a.m.; and
100% of normal wages for work on public holidays, in addition to the normal wages to which the employee is entitled on paid holidays.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps in certain termination cases.

Dismissal must be justified if performance does not meet the appropriate standards communicated to the employee by the employer.

Notice Period

In Cambodia, the notice period depends on the length of the employment relationship:

Up to 6 months of employment – 1 week notice period
6 months – 2 years of employment – 2 weeks’ notice
2 – 5 years of employment – 1 month notice period
5 – 10 years of service – 2 months notice period
10+ years of employment – 3 months notice period

Severance for Employees

If the employee is dismissed for a reason other than serious misconduct, the employer must pay dismissal compensation. The amount of the severance payment depends on the length of the employee’s continuous service with the company and can increase up to 6 months.

Statutory Time Off

Paid Time Off

Employees are entitled to 18 days of paid time off (PTO) per year. PTO eligibility is calculated monthly at 1.5 days per month. Employees are entitled to annual leave if they have been employed continuously for one year. In addition, the employee is entitled to an additional vacation for every 3 years of service.

It is common practice to grant special leave lasting 7 days.

Public Holidays

There are 15 national holidays in Cambodia that last 21-22 days.

National holidays include:

International New Year’s Day
Victory Day over the genocidal regime
International Women’s Rights Day
Khmer New Year’s Day
International Labor Day
Visaka Bochea Day
Royal plowing ceremony
Birthday of His Majesty Preah Bat Samdech Preah Boromneath NORODOM SIHAMONI, King of Cambodia
Birthday of Her Majesty the Queen Mother NORODOM MONINEATH SIHANOUK of Cambodia
Constitution Day
Pchum Ben Day
Day of mourning for the late King Father NORODOM SIHANOUK of Cambodia
Coronation Day of His Majesty Preah Bat Samdech Preah Boromneath NORODOM SIHAMONI, King of Cambodia
National Independence Day
Water resistant

Onboarding

Onboarding takes 4 working days. Compliance documents must be completed 1 day before the start date, including the work agreement.

As part of the onboarding process, the employee must undergo a medical examination within the first month of employment.

Additional Info

Employment Contract Details

Employment contracts in Cambodia can be both temporary and permanent. The employee’s remuneration, benefits, termination conditions, as well as the salary and the amount of compensation are the most important elements set out in an employment contract.

The contract should contain the most important information, such as: Such as the type of contract, passport, start date, end date, position, salary and other benefits, and a job description. Any element of an employment contract that fails to do this will be considered invalid.

Probation Period

The minimum duration of the probationary period is 30 days, the maximum duration of the probationary period is 90 days.