Undetermined-duration contracts (UDCs) are the default; terminable only with a valid reason and tenure-based notice of 7 days to 3 months
Fixed-duration contracts must be written with a specified end date, max 2 years total including renewals, else conversion to UDC.
Hours beyond 8/day or 48/week paid at 150%, rising to 200% for night work and rest days/holidays
3 months for regular employees, 2 months for specialized workers, 1 month for non-specialized workers
No statutory job title restrictions, though job descriptions must be declared for NSSF registration and work permits for foreign staff
NSSF contributions: 2% pension, 2.6% health care and 0.8% occupational risk, on contributory wages capped at KHR 1.2 million/mo
2% of contributory wages (capped at KHR 1.2M/mo) to the NSSF pension scheme. Progressive Tax on Salary (0-20%) varies by income.
In addition to statutory leave, employees are entitled to the following statutory benefits:
Employers are required to make contributions to social security programs on behalf of their employees. Benefits derived from social security are:
Workers' compensation is provided through the employer-funded NSSF occupational risk scheme (0.8% of capped wages), covering medical care, daily allowances, disability pensions and survivors' benefits.
Cambodia does not use conventional severance for undetermined-duration contracts; instead employers pay ongoing seniority payments of 15 days of wages and benefits per year, in two instalments of 7.5 days each June and December. Fixed-duration contract employees receive severance of at least 5% of total wages paid over the contract term.
A 13th-month salary is not legally required in Cambodia, although some employers pay festival bonuses (e.g. Khmer New Year or Pchum Ben) by custom or collective agreement.
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. RemoFirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
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.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.