If you’re looking to fill employment gaps, cut payroll costs, or expand into new territories, Cambodian talent can help tremendously. Not only are the people of Cambodia skilled in the textile, agriculture, and tourism industries, but they are also exceedingly creative and can bring fresh perspectives to your company. It also helps that hiring costs in Cambodia are extremely low.

International employers just like you have decided that hiring in Cambodia is the way to go. And we encourage you to do so, but only if you’re prepared with a solid employee benefit plan. The country’s government has enacted benefit-related regulations that all businesses must abide by, and failing to offer the right benefits would invite legal issues into the equation. And then there’s the fact that workers expect to receive the perks they’re entitled to.

Tapping into the Cambodian workforce without a lawful, attractive benefits plan can tank your efforts quickly. We intend to help you avoid that in this employee benefits guide. We’ll touch on Cambodia labor laws, mandatory and supplementary employee benefits in Cambodia, and tips to keep in mind while building your employee benefits plan.

Cambodia Labor Laws

When it comes to employee benefit research, it’s important to start from the source – Cambodia labor laws. They aren’t all compiled in one law; they’re spread out over several pieces of legislation and can be updated at any time. With that in mind, you can find a substantial amount of worker benefits legislation in The Labor Law of Cambodia 1997 on the Council for the Development of Cambodia website. The law covers topics like statutory leaves, social security, overtime, PTO, etc.

A more reader-friendly explanation of the labor law can be found here on the Employment and Labor information page on that same website. Throughout this article, we’ll reference labor laws and scholarly international employment law resources.

Although the information is in English, legalese can be very confusing, especially if you don’t have a background in law. So, don’t hesitate to reach out to a legal professional if you find yourself unclear on a topic or concept.

Mandatory Employee Benefits in Cambodia

Before putting together an employee benefit plan for Cambodian workers, it’s essential to get a good understanding of the mandatory employee benefits in Cambodia.

Minimum Wage

For those who aren’t aware, Cambodia depends heavily on apparel exports, and the bulk of the workforce works in textile-related job areas. Thus, the minimum wage for Cambodians who work in sectors like garment, footwear, or travel is $210 per month. Those who have not yet surpassed their probationary period will receive at least $208 per month. Workers in other industries don’t have a legal wage minimum.

Work Hours and Overtime

Per The Labor Law of Cambodia, employees should not be allowed or asked to work for longer than 8 hours a day or 48 hours a week. This rule applies regardless of the worker’s industry, job position, etc. If an employee is required to work overtime, they should be paid 150% of their regular salary for each hour. If overtime is worked during the nighttime hours or during weekly time off (on Sunday), they get 200% of their regular pay. This information can be found in Articles 138 and 139 of the labor code.

Paid Annual Leave

In Article 166 of the Labor Law, employees should receive paid annual leave at a rate of 1.5 days per month of continuous work for the same employer. The more seniority a worker has, the more paid leave they’ll receive. If an employer wants to give their workers more paid leave, they are welcome to do so, but these terms are the minimum.

Note: Paid leave isn’t available until after a worker has reached one year of service.

You can learn more by reading Section IV of the Labor Law. There are many more stipulations to be aware of as an employer. 

Special Leave

Special leave is a type of leave you can offer an employee if there’s a problem with their immediate family. If the employee hasn’t yet taken their paid annual leave, any days they take for special leave will be deducted from their paid annual leave allotment. There is no set special leave length per the labor law. Learn more about special leave in Article 171 of the Labor Code of Columbia.

Maternity Leave

In Colombia, employees are entitled to maternity leave lasting a total of 90 days. Throughout the maternity leave, the worker should receive half of their normal salary. And for the first two months post-maternity leave, they shouldn’t do any heavy work. Articles 182-187 in the Labor Code go into much more depth regarding women’s work benefits.

Social Security

Social security is handled through the National Social Security Fund (NSSF). Both employers and workers contribute 2% (4% combined) of the employee’s monthly covered earnings to the fund to support the following:

  • Old age pension benefits
  • Invalidity benefits
  • Survivors’ benefits
  • Occupational risk insurance
  • Health insurance

Each benefit comes with eligibility requirements that employees must meet. For instance, they should have been contributing to social security for a set number of years before benefits are dispersed. Some benefits have an age requirement. 

Paid Holidays

Per the government of Cambodia, employees are entitled to take paid time off for holidays, festivals, and memorials. Here’s a list of days the worker won’t be able to work:

  • January 01 – International New Year’s Day
  • January 07 – Victory over Genocide Day
  • March 08 – International Women’s Day
  • April 14, 15, 16 – Khmer New Year Day
  • May 01 – International Labor Day
  • May 11 – Visak Bochea Day
  • May 14 – King’s Birthday, Norodom Sihamoni
  • May 15 – Royal Plowing Ceremony
  • June 18 – King’s Mother’s Birthday, Norodom Monineath Sihanouk
  • September 21, 22, 23 – Pchum Ben Day
  • September 24 – Constitutional Day
  • October 15 – Commemoration Day of King Father Norodom Sihanouk
  • October 29 – King’s Coronation Day, Norodom Sihamoni
  • November 4, 5, 6 – Water Festival
  • November 09 – Independence Day
  • December 29 – National Peace Day

Termination Pay

When an employee is terminated, they should receive termination pay. According to labor law, for fixed-duration contracts, the pay should coincide with what’s decided in the collective agreement. If there’s no termination payment language in the collective agreement, the severance pay amount should be 5% of the wages you’ve paid the employee over the entire employment contract.

There are other guidelines for contracts with unlimited duration, and we outline severance pay for these positions in this chart below:

Length of ServiceSeverance Pay
6 months to 1 year7 days of wages and benefits
Over 1 year15 days of wages and benefits per year

Supplementary Employee Benefits in Cambodia

You’re far from the only employer looking for Cambodian employees – the competition for talent can be fierce. So, pinpointing ways to help your business stand out is essential, and one of the best is to offer supplementary benefits (benefits that aren’t mandatory).

Aside from making your work opportunities more exciting to candidates, they also show candidates that you are an employer who cares. Here are a few supplementary employee benefits to consider offering to your Cambodian employees:

  • Performance bonuses for good work performance.
  • Free or reduced on-site meals.
  • Home office allowance for remote workers.
  • Private health insurance with good benefits and vision/dental coverage.
  • Extra paid annual leave.
  • Paternity leave, even though it’s not mandated by labor law.

These are just a few options to choose from – feel free to come up with your own ideas. While brainstorming, try to narrow your options down to benefits that potential candidates will find most valuable. If a benefit doesn’t make a marked impact, it shouldn’t be included in the benefit plan.

How to Build an Effective Employee Benefits Plan for Workers in Cambodia

Now, as for the benefit plan creation step, it’s best to have a roadmap. Here are some steps to keep in mind as you’re putting your benefits package together for your Cambodian employees.

  • Dive into Cambodian laws. We shared short versions of the benefit regulations above. The full text laws and amendments go into greater detail, especially on special rules and exceptions. So, it’s important for any employer to read them closely. If you need help from a lawyer, reach out to them. They can clarify confusing concepts and provisions and confirm whether you’re on the right track.
  • Note each mandatory and supplementary benefit to be included in the benefits package. Though you can’t alter law-mandated benefits, you have total freedom when it comes to supplementary benefits.
  • Compile the benefits into a document. To ensure that candidates and new hires can clearly understand them, choose a simple document format and use simple language.
  • Distribute the benefits package when appropriate and update it as necessary.

So, there you have it – the basics of employee benefits in Cambodia. We hope you found all the information you were looking for in this employee benefits guide, and we wish you the best as you expand your workforce.