Cambodia Employment Law & Compliance Guide for Employers
Key employment laws in Cambodia: what employers need to know
Employment in Cambodia is governed by the Labour Law of 1997 (amended in 2007 and 2018), with social insurance under the Law on Social Security Schemes and the National Social Security Fund (NSSF). Foreign employers are most often surprised by the seniority indemnity paid twice a year to permanent staff, by the 2-year limit on fixed-duration contracts, and by the annual foreign worker quota and work permits filed online through FWCMS. This page summarises the core employer rules with official sources.
Cambodia employment rules at a glance
| Topic | What the rule is | Official source |
|---|---|---|
| Minimum wage | No general national minimum wage. A statutory minimum applies only to the textile, garment, footwear, travel goods and bag sectors: USD 210 a month in 2026 (USD 208 on probation) under Prakas No. 214/25. A rise to USD 212 from 1 January 2027 has been announced. Other sectors set pay by contract. | DFDL – Cambodia minimum wage for 2026, garment and related sectors (law-firm publication) |
| Standard working hours | 8 hours a day and 48 hours a week (Labour Law Art. 137). Employees get a weekly rest of at least 24 consecutive hours, normally on Sunday. | Labour Law 1997, English text (Open Development Cambodia) |
| Overtime pay | 150% of normal pay, or 200% for overtime between 10 p.m. and 5 a.m. or on the weekly rest day (Labour Law Art. 139; Prakas No. 112/25). Overtime must be filed with the Ministry through LACMS at least 3 working days ahead, with staff consent. | Tilleke & Gibbins – Prakas No. 112/25 on overtime, paid holidays and weekly days off (law-firm publication) |
| Paid annual leave | 1.5 working days per month of continuous service, about 18 days a year, plus 1 extra day for every 3 years of service (Labour Law Art. 166). Special leave for family events may be deducted from annual leave. | Labour Law 1997, English text (Open Development Cambodia) |
| Public holidays | Paid public holidays are fixed each year by Ministry of Labour Prakas (Prakas No. 216/25 for 2026). They include Khmer New Year, Pchum Ben and the Water Festival. Work on a public holiday follows Prakas No. 112/25. | Ministry of Labour and Vocational Training – Prakas list (paid public holidays 2026) |
| Sick leave | Illness certified by a doctor suspends the contract for up to 6 months, extendable until a replacement is hired; the employee cannot be dismissed for it. The Labour Law sets no number of paid sick days; NSSF health care insurance covers insured employees. | Labour Law 1997, Art. 71, English text (Open Development Cambodia) |
| Maternity and parental leave | 90 days' maternity leave; the employer pays half wages if the employee has 1 year of service, and only light work is allowed for 2 months after return. Dismissal during maternity leave is banned. No statutory paternity leave. | Labour Law 1997, Arts. 182–183, English text (Open Development Cambodia) |
| Probation period | Up to 3 months for regular employees, 2 months for specialised workers and 1 month for non-specialised workers (Labour Law Art. 68). | Labour Law 1997, English text (Open Development Cambodia) |
| Notice period | Indefinite contracts: 7 days (under 6 months' service), 15 days (6 months–2 years), 1 month (2–5 years), 2 months (5–10 years), 3 months (over 10 years). Fixed-duration non-renewal: 10 days (over 6 months) or 15 days (over 1 year). | Labour Law 1997, Arts. 73 and 75, English text (Open Development Cambodia) |
| Severance pay | Fixed-duration contracts end with severance of at least 5% of total wages paid. Indefinite-contract staff receive a seniority indemnity of 15 days' wages a year (7.5 days each June and December) since 2019 under Prakas No. 443/18, plus capped back-pay for earlier service. | VDB Loi – Prakas No. 443/18 on seniority payments (law-firm publication) |
| Employer social contributions | About 5.4% of the contributory wage to NSSF: occupational risk 0.8%, health care 2.6% and pension 2%. The pension rate is due to double to 4% each after the scheme's first 5 years (it began in October 2022). Contributions use a capped contributory wage. | PwC Worldwide Tax Summaries – Cambodia, other taxes (professional source) |
| Employee social contributions | 2% of the contributory wage to the NSSF pension scheme, deducted from pay, due to rise to 4% after the scheme's first 5 years. The employer funds occupational risk and health care in full. | PwC Worldwide Tax Summaries – Cambodia, other taxes (professional source) |
| Income tax on salaries | Employer withholds monthly tax on salary: residents pay 0% up to KHR 1,500,000 a month, then 5%, 10%, 15% and 20% above KHR 12,500,000. Non-residents pay a flat 20%. Fringe benefits are taxed at 20%. | PwC Worldwide Tax Summaries – Cambodia, individual taxes (professional source) |
| Mandatory bonuses and 13th-month pay | None required by law; there is no 13th-month pay. The seniority indemnity paid each June and December is the main extra statutory payment. Garment, footwear and travel goods employers must also pay sector allowances, such as a USD 10 monthly attendance bonus and USD 7 transport or accommodation allowance. | DFDL – Cambodia minimum wage for 2026, garment and related sectors (law-firm publication) |
| Work permits for foreign nationals | Foreign employees need a work permit and employment card from the Ministry of Labour, applied for online through FWCMS, and an employment-category visa extension. Employers must request a foreign worker quota each year; permits run for the calendar year. | Ministry of Labour and Vocational Training – Foreign Workers Centralized Management System (FWCMS) |
| Employment contract requirements | Contracts may be written or oral, but a fixed-duration contract must be in writing and last no more than 2 years, or it becomes indefinite. Declare each hire and departure to the Ministry of Labour and register staff with NSSF. | Labour Law 1997, Arts. 65–67, English text (Open Development Cambodia) |
Employer obligations in Cambodia, topic by topic
Filter by primary service relevance
Should a company use a fixed-duration or an indefinite contract in Cambodia, and how long can probation last?
What are the legal working hours and overtime rules in Cambodia?
Is there a minimum wage in Cambodia, and what must payroll include?
How much paid leave do employees get in Cambodia?
What does an employee cost in Cambodia on top of gross salary?
Can an employer dismiss an employee in Cambodia, and what must be paid?
How does a company hire a foreign national in Cambodia?
Can a company engage contractors instead of employees in Cambodia?
Key employment laws in Cambodia and official sources
- Labour Law (1997, amended 2007 and 2018) — The core statute on contracts, probation, hours, leave, termination and foreign workers.
- Law on Social Security Schemes (2019) — Sets NSSF occupational risk, health care and pension schemes and employer contributions.
- Law on Minimum Wage (2018) — Sets how the National Council for Minimum Wage and the government fix minimum wages.
- Prakas No. 214/25 on the minimum wage for 2026 — Fixes the 2026 minimum wage for textile, garment, footwear, travel goods and bag workers.
- Prakas No. 443/18 on seniority payments — Replaces the dismissal indemnity with a seniority payment of 15 days’ wages a year for indefinite-contract staff, paid in June and December.
- Prakas No. 112/25 on overtime, work on paid holidays and suspension of weekly days off — Requires advance filing and staff consent for overtime, holiday work and weekly rest suspension.
- Law on Taxation (tax on salary provisions) — Sets the monthly tax on salary and fringe benefit tax withheld by employers.
FAQs: hiring employees in Cambodia
Can a foreign company hire employees in Cambodia without a local entity?
Not directly in most cases. Registering as an employer with the Ministry of Labour, NSSF and the General Department of Taxation, and sponsoring foreign worker permits, require a registered business in Cambodia, such as a subsidiary, branch or representative office. A foreign company without one can use an Employer of Record, which employs the staff locally, runs payroll, NSSF and seniority indemnity, and holds work permits.
How much does an employee cost in Cambodia on top of gross salary?
Employer NSSF contributions are about 5.4% of a capped contributory wage: occupational risk 0.8%, health care 2.6% and pension 2%, with the pension share due to rise to 4% after the scheme’s first 5 years. Indefinite-contract staff also earn seniority indemnity of 15 days’ wages a year, paid in June and December, which adds roughly 4% to annual pay. Fringe benefits are taxed at 20%, which the employer pays.
What is the minimum wage in Cambodia in 2026?
Cambodia has no general minimum wage. A statutory minimum applies only to the textile, garment, footwear, travel goods and bag sectors: USD 210 a month in 2026, or USD 208 during probation, under Prakas No. 214/25. The government has announced USD 212 from 1 January 2027. Employers in these sectors also pay allowances such as a USD 10 attendance bonus. In other sectors, wages are agreed in the employment contract.
How much notice and severance does an employer owe when dismissing an employee in Cambodia?
For indefinite contracts, notice ranges from 7 days (under 6 months’ service) to 3 months (over 10 years), and a valid reason is required. Since 2019 these staff receive seniority indemnity of 15 days’ wages a year, paid as 7.5 days each June and December. Fixed-duration contracts end with severance of at least 5% of total wages paid during the contract.
Can a company hire a foreign national in Cambodia, and what permit is needed?
Yes. The employer requests an annual foreign worker quota, generally limited to 10% of its Cambodian workforce, and applies for a work permit and employment card for each foreign employee through the Ministry of Labour’s FWCMS online system. The employee also extends their visa in the employment category. Permits cover a calendar year and must be renewed.
Is it risky to engage contractors instead of employees in Cambodia?
Yes, if the contractor works under the company’s direction. The Labour Law applies to anyone working for pay under an employer’s management, and contracts can be oral or implied. A reclassified contractor can claim notice, seniority indemnity, leave, overtime and NSSF coverage. Foreign contractors working in Cambodia still need a work permit.
Related NNRoad resources for Cambodia: Employer of Record in Cambodia · Payroll in Cambodia · Hiring foreign employees in Cambodia · Contractors and on-demand talent in Cambodia · Cambodia employer cost calculator
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Regulation Updates in Cambodia
Discover the latest employment and compliance updates in Cambodia — helping you stay ahead in a changing regulatory landscape.
Press Release: Solutions to Demands of Technology-Based Drivers
What it is: A government press release directs technology-platform transport companies to limit commission deductions from drivers’ earnings, creating a direct obligation affecting payroll for platform employers.
What it changes: The policy requires technology-platform transport companies to limit commission deductions from drivers’ earnings, impacting how payroll is calculated for platform employers.
Who is affected:
- Technology-platform transport companies (e.g., ride-hailing and delivery platforms) that employ drivers
What employers should do:
- Ensure payroll practices reflect limited commission deductions from drivers’ earnings as directed by the press release
- Review and adjust payroll processes to align with the new requirement
Notes: Effective month: 2026-05.
Paid Holiday for Sham El-Nessim
What it is: A circular designates a paid holiday for Sham El-Nessim, requiring private-sector employers to treat Monday 2026-04-13 as a paid holiday.
What it changes: If staff are needed to work on that day, employers must provide double pay or grant a compensatory day off.
Who is affected:
- Workers in private-sector employment
- Employers in the private sector
What employers should do:
- Classify Monday 2026-04-13 as a paid holiday for eligible staff.
- If staff work on that day, ensure either double pay or a compensatory day off is provided.
Notes: Effective month: 2026-04.