Hire in Cambodia

Employer of Record(EOR) in Cambodia

Cambodia Workforce Unlocked: How Employer of Record Makes Hiring Easy

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At a Glance

Capital City
Phnom Penh
ChaadHR entity


Hire employees
$299.00 / month
Hire contractors
$49.00 / month


Cambodia has an emerging economy. The major established industries are tourism and textiles, while agriculture provides a living for the rural population. The garment industry accounts for about 80% of the country's exports. Investors are attracted to Cambodia for its favorable taxation, low wages, and easy access to the Asian market. Industry 4.0 is getting fast-forwarded in Cambodia and is creating opportunities for economic development.

Major economic hubs:

Phnom Penh, Siem Reap, Sihanoukville

Skills in demand:

Informational Technology Engineer, Developer, Software Engineers

Public and Provincial Holidays

Employee Leaves


Resident Tax Information

Resident individuals of Cambodia are taxed on their worldwide income. Cambodia follows  

a progressive tax model of up to 20%.  

The income tax rates in Cambodia are as below –

Social Security

The contribution that both employers and employees pay toward social security is a mandatory requirement in Fiji.                                          

The rate of contributions are as below —

Statutory Benefits

Statutory benefits in Cambodia include –

The maximum number of hours that a Cambodian employee can work in one week is 48.

The Cambodia employment law requires that employees who work more than 48 hours per week be paid overtime salary.

Statutory leaves as stipulated by the employment law as above.

In addition to paying income tax, employers must also contribute towards social security. The Cambodian law dictates that all workers are responsible for their own payments into the system

  1. Working hours
  2. Overtime pay
  3. Statutory leaves
  4. Social security

Normal working day – 150% of gross salary

Overtime between 10:00 pm to 5:00 am – 200% of gross salary

Fringe Benefits

Employers commonly provide fringe benefits that do not form a part of an employee’s compensation. Fringe benefits are provided to an employee in addition to their regular salary.

Exempt Benefits

Monetary fringe benefits in Cambodia are taxable. Exempt benefits in Cambodia include –  

Employment-related expenses reimbursed by employers

Travel allowances  

Severance pay/Redundancy pay

Salaries of government-approved diplomats

Long-term Incentives

The best way for an employer to show their appreciation of hard work and dedication is through long-term benefits. Employees will often be rewarded with company specific goals, such as stock options or other forms of equity ownership that provide incentives over time horizons greater than one year when they achieve certain performance milestones within the business unit/organization where employed.

The tax incentives provided by companies that offer stock option plans make it an attractive alternative to retain employees and benefit the employer in terms of paying taxes.The most commonly provided stock options are –  

  • Phantom stocks
  • Roll-over stocks

Termination/Severance in Algeria

Termination Process

The termination procedures depend on the type of employment contract, the position held by the employee, and the reason for termination.

Fixed-Term Contract

An FDC cannot be terminated before its stipulated expiry date unless the employee and employer sign a mutual separation agreement before a labor inspector. If one of the parties disagrees, the employment contract cannot be terminated unless for reasons of gross misconduct.

Unfixed duration Contract

For indefinite employment, a written notice must be given. A UDC is terminated with cause when it is terminated on any of the following grounds:

  • A reason related to the employee's aptitude or behavior, depending on the requirements of the enterprise
  • A force majeure situation
  • Serious misconduct from  the employee.

The employer must also notify the Ministry of Labor.

Upon termination, the employee is entitled to request a certificate of employment stating the dates of employment and information about the position held. If the employer refuses to provide this, the employer must pay the employee for damages.

Notice Period

The usual notice period during probationary period is between 7 to 15 days. In the case of permanent employees, this period is in the range of seven to ninety days.

Severance Pay

If the employer fails to give written notice or does not follow the notice period, compensation must be given to the employee for the amount that the employee would have earned during the notice period.  

For indefinite period employment, the severance pay is as follows:

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