Hire in Cambodia

Cambodia PEO &

Employer of Record

Hire & manage teams remotely in Cambodia without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language


Salary Currency

Riel (KHR)

Payroll tax


Payroll Cycle


Time zone


Capital city

Phnom Penh

Hire Employees in Cambodia

NNRoad provides employer of record (EOR)professional employment organization (PEO) services to ensure that your business in Cambodia complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

The NNRoad Advantage ☺

Pay as you go

No set-up or overhead costs to global expansion.

Global account manager

One point of contact for all of our 50+ serviced countries and regions.


Ensured compliant contracts and operations.

Fast Onboarding

Start working with your remote employees/contractors within a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.


Access your payroll reports and employee pay stubs on our portal.

Employer of Record in Cambodia

Employer of Record (EOR) services are for companies who do not have a legal entity in Cambodia, but who want to hire localy. Employment and full liability are outsourced to NNRoad.


Candidate Selection

You interviews & select the candidates you want to hire in Cambodia.


Employee Onboarding

We sign a local labor contract with your employees based in Cambodia.


Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Cambodia.


Payroll Reporting

See all payroll reports on our platform & focus on your business in Cambodia.

Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

On-boarding and off-boarding employees following labor law practice.

Complete payroll solution and benefit administration

Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.

Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.

Payment management (Invoicing customers/clients and vendor payments).

Work VISA application assistance, if needed.

Local individual income tax reporting.

Payroll & PEO in Cambodia

Professional Employment Organization (PEO) services are for companies who have a legal entity in Cambodia, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.


Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Cambodia.


Payroll Reporting

See all payroll reports on our platform & focus on your business in Cambodia.

Registering the necessary company and personnel information for payroll calculation in the payroll software and system

Monthly Payroll Processing

Year-End Adjustment and Annual Declaration

employment in Cambodia

Taxes & Payroll in Cambodia

Employee Income Taxes:

Individual income tax rates in Cambodia are based on progressive tax brackets.

Incomes at or bellow 1,300,000 KHR per year are not taxed.

Individual income taxes in Cambodia are governed by the Law on Taxation, which was last amended in 2019. Under this law, individuals who earn more than a certain amount of income in a year are required to pay taxes. The tax rates for individuals range from 0% to 20%, with higher rates applying to higher levels of income.

Taxpayers are required to file an annual tax return, which must be submitted by March 31st of the following year. In addition, there are various tax deductions and exemptions available, such as for charitable contributions and certain business expenses.

Tax Brackets

0%: 0 to 1,300,000 KHR
5%: 1,300,001 to 2,000,000 KHR
10%: 2,000,001 to 8,500,000 KHR
15%: 8,500,001 to 12,500,000 KHR
20%: >12,500,000 KHR

Sample Calculation

Yearly income = 8,000,000 KHR
10% * 6,000,000 = 600,000
5% * 700,000 = 35,000
0% * 1,300,000 = 0
600,000+35,000+0 = 635,000

Yearly income tax = 635,000 KHR

Employer Costs in Cambodia

Employer costs in Cambodia can be divided into several categories, including mandatory contributions, employee benefits, and other expenses. Mandatory contributions include social security and health insurance contributions, as well as contributions to the National Employment Agency. Employee benefits may include bonuses, annual leave, sick leave, and other benefits that are required by law or provided voluntarily by the employer.

Other expenses may include training and development programs, equipment and supplies, and rent or lease payments. The cost of labor in Cambodia is generally lower than in many other countries in the region, making it an attractive destination for businesses looking to establish operations.

Employer Contribution

Employers must pay contributions based on the salary of their employees:

0.8% – Social security

Employee Contribution


Benefits & Insurance in Cambodia

In Cambodia, employee benefits and insurance vary depending on the type of employment and employer. The labor law requires employers to provide employees with benefits such as paid sick leave, maternity leave, and annual leave. However, the amount of leave and other benefits can vary depending on the employer and the industry. Employers in Cambodia are not required to provide health insurance for their employees, although some companies may offer it as a benefit.

Social security benefits are available to employees who are registered with the National Social Security Fund (NSSF), which provides coverage for work-related injuries, disabilities, and retirement. Additionally, some employers may offer other benefits such as bonuses, transportation allowances, or housing allowances.

In Cambodia, it is common for employers to provide:

  • healthcare allowance
  • housing allowance
  • transportation allowance
  • attendance bonuses
peo in cambodia

Working Hours in Cambodia

Working Hours Per Week

Working hours in Cambodia cannot exceed 48 hours per week, 8-9 hours a day on average. However, there are some exceptions for certain industries, such as tourism and hospitality, where employees can work up to 60 hours per week.

There are also regulations regarding breaks and rest periods, with employees entitled to at least one day off per week and breaks during the workday. Despite these regulations, there are reports of some employers in Cambodia not following these rules, particularly in the garment industry where workers are often overworked and underpaid.


Employees cannot do more than 2 hours of overtime per day. Overtime is compensated at 1.5 times the regular wage. Overtime work performed at night, on a Sunday or on a holiday is compensated at 2 times the regular wage.

Termination Laws in Cambodia

Termination laws in Cambodia are outlined in the Labor Law, which provides guidelines and regulations for terminating employment contracts. Employers are required to provide written notice to employees before terminating their employment, and the notice period varies depending on the length of employment. For example, employees who have worked for less than six months are entitled to seven days’ notice, while those who have worked for more than two years are entitled to three months’ notice.

Employers can terminate employment contracts for various reasons, including misconduct, incompetence, and redundancy. In cases of termination, employees are entitled to receive severance pay, which is calculated based on the length of service and the employee’s salary.


Employees at the end of a fixed-term contract and entitled to severance of at least 5% of the total salaries received during the contract.

Employees with indefinite contracts receive severance based on their time employed:

  • Employed for 6 to 12 months: 7 days wages
  • Employed for each year of employment: 15 days (capped at 6 months of salary, 12 years of service)

Notice Period

No notice is required to terminate an employee on probation in Cambodia.

Employees can terminate contracts for any reason while the employer must have a valid reason related to the employee’s performance or the company’s financials to terminate the contract.

A notice of termination is mandatory:

  • Employed for up to 6 months: 7 days
  • Employed for 6 months to 2 years: 15 days
  • Employed for 2 to 5 years: 1 month
  • Employed for 5 to 10 years: 2 months
  • Employed for 10+ years: 3 months
  • Employees may spend 2 days per week to look for a new job.

Employment Contract in Cambodia

In Cambodia, an employment contract is a legal agreement between an employer and an employee that outlines the terms and conditions of the employment relationship. The Labour Law of Cambodia requires that employers provide a written employment contract to all employees, which must include information such as the job title, duties and responsibilities, working hours, salary and benefits, and duration of the contract.

The contract must also specify the conditions under which the employment can be terminated by either party. In addition, employers are required to provide certain benefits to their employees, such as social security, health insurance, and paid annual leave.

Employment Contract

Labor contracts in Cambodia can be fixed-term or indefinite. Fixed-term contracts must be in writing and may not last longer than 2 years. Indefinite contracts may be oral or written. It is recommended to provide a written labor contract in the official language of Cambodia, Khmer. This contract should state the employee’s salary in riel (KHR), benefits, and termination clause.

Probation Period

Probation periods in Cambodia cannot be longer than 3 months. The employers must pay for the transportation cost of the employee. Employees on probation can be terminated “at will”.

PEO in Cambodia Employer of Record

Types of Leaves in Cambodia

In Cambodia, employees are entitled to several types of leave as specified in the Labour Law. The most common types of leave are annual leave, sick leave, and maternity leave. Annual leave is provided to employees for the purpose of rest and relaxation and is typically calculated based on the length of service. Sick leave is provided to employees who are unable to work due to illness or injury, and the number of days granted depends on the length of service and the severity of the illness.

Maternity leave is provided to female employees who are pregnant and is typically 90 days, although it can be extended in certain circumstances. In addition to these types of leave, employees may also be entitled to other types of leave, such as bereavement leave, study leave, and public holiday leave.

Annual Leave

In Cambodia, employees are entitled to paid leave for certain reasons as outlined in the Labour Law. The most common type of paid leave is annual leave, which is provided to employees for the purpose of rest and relaxation. The amount of annual leave varies depending on the length of service, with employees who have worked for less than one year typically entitled to 15 days of leave, and those who have worked for more than ten years entitled to 20 days of leave.

In addition to annual leave, employees may also be entitled to paid sick leave if they are unable to work due to illness or injury. The amount of sick leave granted depends on the length of service and the severity of the illness. Female employees who are pregnant are entitled to 90 days of paid maternity leave. Other types of paid leave that may be available to employees include public holiday leave, study leave, and special leave for bereavement or family emergencies.

Sick Leave

Employees in Cambodia are entitled to up to 6 months of sick leave (with a doctor’s certificate) compensated at 100% of salary for the 1st month and 60% of salary for the 2nd & 3rd month. After the 3rd month, sick leaves becomes unpaid leave.

Maternity Leave

Female employees who have worked for at least 1 year are entitled to 90 days of maternal leave at half of their normal salary.

Paternity Leave

Fathers are entitled to 1 day of paid paternity leave.

Public Holidays in Cambodia

In Cambodia, there are 28 public holidays, including national and international holidays. Some of the most significant holidays include Khmer New Year, the King’s Birthday, and the Water Festival. These holidays are recognized by the government and most businesses are closed on these days. Additionally, there are several religious holidays, including Chinese New Year and Eid al-Fitr, which are also recognized in Cambodia.

Private sector employees are entitled to 15 days of paid annual leave per year, which can be taken in addition to public holidays. However, there are reports of some employers in Cambodia not providing adequate time off for public holidays, particularly in the garment industry.

Public Holidays

  • International New Year Day
  • Victory Over Genocide Day
  • Meak Bochea Day
  • International Woman’s Day
  • Khmer New Year (3 Days)
  • International Labor Day
  • King Birthday (3 Days)
  • Visak Bochea Day
  • Royal Plowing Ceremony
  • Children’s Day
  • King Mother’s Birthday
  • Constitutional Day
  • Phum Ben Day (3 Days)
  • The commemoration of Former King Norodom Sihanouk
  • Paris Peace Agreement Day
  • King’s Coronation Day
  • Independence Day
  • Water Festival (3 Days)
  • International Human Rights Day