Cambodia is a country located in the southern part of the Indochinese Peninsula in Southeast Asia. The country’s landscape is characterized by a low central plain that is surrounded by uplands and low mountains. While most people who live in Cambodia speak Khmer, older Cambodians speak French.
Pregnant employees in Cambodia are entitled to 90 days of paid maternity leave (equal to 50% of their regular salary), and there is no provision for paternity leave.
Employees in Cambodia are entitled to 6 months of paid sick leave, receiving their full salary for the 1st month, then 60% of their salary for the next 2 months, and unpaid leave for the last 3 months.
There are 15 public holidays in Cambodia. Paid time off entitlement depends on how long the employee has worked at the company. Typically an employee earns 1.5 days off per month worked at the company, capped at 18 days per year. For every 3 additional years worked at a company, and employee earns another paid day off per year.
An employee in Cambodia is also entitled to 7 days of unpaid leave for bereavement, and 7 unpaid days for their marriage.
The minimum wage in Cambodia varies for probationary workers and regular employees, and is around KHR 789,968 per month. The standard workweek in Cambodia is 40 hours a week at 8 hours per day, and all employees are entitled to at least 1 day off per week, usually on Sunday.
Any work done past the standard working hours is considered overtime and paid at 150% of the regular salary, or 200% for Sundays and holidays, with a maximum of 2 hours per day.
Contracts with indefinite terms may be terminated by an employee at any time, but an employer must have valid cause for termination that is related to the employee’s ability to work, or due to the economic health of the company. If the termination is not of just cause, the employer has to pay a severance.
No notice is required from an employer to terminate an employee during the probationary period. The general notice period for termination varies based on the length of employment. Payments can be made to the employee in lieu of notice.
For fixed-term contracts, employees in Cambodia are generally entitled to a severance payment of at least 5% of the salary received throughout the contract. If an employee is terminated before the end date of their contract, they are also entitled to ****Damages equal to the wages they would have received if they completed the contracted term.
Employees with no-term contracts receive severance pay based on the length of time they worked at the company:
Employees who do not have fixed-term contracts are entitled to seniority payments worth 15 days of wages per year, paid out as 7.5 days in June and 7.5 days in December. While there is no formal requirement to pay a 13th month salary, it is a common practice for employees who do not receive seniority pay.
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.