Employ
RecruitEmployer of Record in Cambodia
Discover how partnering with a Cambodia employer of record can simplify the hiring process and help you save on employment costs.
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Key Takeaways
- An EOR helps companies by relieving them of their administrative duties.
- The cost of an EOR will depend on the number of employees on the company’s payroll and the complexity of the service provided.
- EORs are responsible for hiring local talent, processing payroll, and ensuring Cambodian labor and taxation laws compliance.
- Companies must consider the provider’s legal expertise and experience when choosing an EOR provider.
Are you considering hiring employees in Cambodia? Find out how you can save money and time in your Cambodia expansion through an Employer of Record (EOR) solution. A Cambodia EOR company acts as the local legal employer for your Cambodia staff, ensuring full compliance with local laws and saving you the cost and effort in setting up a Cambodia subsidiary.
Here we set out the nine steps you need to take to engage a Cambodia EOR company.
What is a Cambodia EOR?
An Employer of Record (EOR) in Cambodia serves as the legal employer for your workforce, managing all employment responsibilities while you oversee daily operations and employee performance. The EOR handles onboarding, payroll in Cambodian Riel (KHR), tax compliance, and employee benefits, allowing businesses to hire in Cambodia without establishing a local entity.
Why Partner with an EOR in Cambodia?
- Seamless Legal Compliance: Ensure adherence to Cambodia’s labor laws and evolving tax regulations without navigating them alone.
- Payroll in KHR: Guarantee accurate, timely payroll while managing statutory deductions and contributions efficiently.
- Quick Market Entry: Expand into Cambodia rapidly without the cost and time involved in setting up a local business entity.
- Reduced Risk Exposure: Mitigate risks around employment disputes, terminations, and contract management.
Partnering with an EOR in Cambodia allows businesses to focus on growth while ensuring workforce compliance and smooth operations in this emerging market.
Start hiring with a Cambodia EOR
Let us handle the complexities of hiring, compliance, and payroll in Cambodia while you focus on growing your team.
- Hire employees in Cambodia with a Cambodia EOR
- No local entity is needed
- Pricing starts at USD 199 per employee
- Remote People can also help you find the best talent in Cambodia
How Does a Cambodia Employer of Record Work?
The Cambodia EOR model is particularly useful in a market known for manufacturing (especially garments), tourism, and agriculture, where companies often need to onboard workers quickly and remain compliant with local rules.
Under this arrangement, the EOR shoulders the main administrative and legal responsibilities required by Cambodia’s labor law (Labor Law 1997) and regulations set by the Ministry of Labour and Vocational Training (MLVT). These duties typically include:
- Drafting and signing employment contracts that align with local labor standards
- Enrolling employees in the National Social Security Fund (NSSF) and administering monthly contributions
- Processing payroll in Cambodian riel, ensuring correct tax withholding and timely salary payments
- Managing mandatory benefits such as annual leave, public holidays, and severance pay
- Supporting add-on HR services such as recruitment in Cambodia or visa support.
Because Cambodia imposes taxes and social security requirements through agencies like the General Department of Taxation (GDT) and the NSSF, the EOR ensures these obligations are met accurately and on schedule. This minimizes the risk of fines or legal complications for companies unfamiliar with local processes. The EOR stays alert to any changes in legislation, adjusting payroll and HR practices so that the client remains fully compliant with evolving regulations.
Meanwhile, the client business retains day-to-day control over employees, directing tasks and managing performance. The EOR’s role is to handle the legal and HR framework, assuming liability for local employer obligations. By using a Cambodia EOR, foreign businesses can test or expand in the Cambodian market more quickly, without navigating the setup of a full legal entity or mastering the intricacies of local labor rules.
Cambodia EOR vs Legal Entity in Cambodia
It is important for any business looking to hire in Cambodia to compare the true costs of EOR versus setting up a new legal entity. When setting up a legal entity, in addition to registering their business, companies will need to pay for office space, workplace facilities, in-country staff, and legal consultants. As EORs do not require companies to have an established legal entity in Cambodia, the service they provide is often more cost-effective for companies looking to expand into Cambodia.
Is an Employer of Record Service in Cambodia Legal?
Under Cambodian Law, it is legal for companies to use an EOR service, provided the service adheres to Cambodian taxation and labor laws.
How Much Does a Cambodia Employer of Record Cost?
Most EOR providers tend to charge a one-time setup fee and a monthly service fee per employee. The former charge can range from $500 to $2000 though this is very dependent on the nature of the complexity of the service provided and the number of employees on the company’s payroll.
Monthly service fees tend to range from $300 to $700 per employee per month, though some Cambodia EOR companies may choose to charge a percentage (typically 10% or 20%) of the employee’s gross salary.
Additional costs pertaining to benefits administration, payroll processing, and tax reporting may also apply.
How Does a Cambodia EOR Help with Payroll and Taxes?
Using their knowledge of Cambodian taxation laws and multi-currency payments, EORs will ensure that all employees are paid accurately, on time and in the correct currency (Cambodian Riels or US Dollars). EORs will also make certain that all end-of-year tax obligations are met and that any mandatory monthly social security contributions are made.
How Does Cambodia EOR Help with Benefits Administration?
Under Cambodian law, workers are entitled to annual leave, sick leave, maternity leave, pension insurance, and healthcare. EORs will ensure that employees receive all of these mandatory benefits and will additionally support companies in creating competitive supplementary benefits packages.
What Labor Laws Apply to Hiring in Cambodia?
The Labor Law 1997 and the Cambodian Constitution govern and regulate labor relations in Cambodia. These legal frameworks determine working conditions, employer obligations, and employee entitlements in Cambodia.
The National Council for Minimum Wage in Cambodia is responsible for reviewing and amending the statutory minimum wage. In the case of Cambodia’s largest economic sector, the garment and textile industry, the minimum wage is set at $210 as of 2026.
Employment Contracts
Employment contracts in Cambodia can be either for an indefinite or a definite period, but written contracts are mandatory for fixed-duration employment. A written agreement is strongly advised as it provides clarity and legal protection for all parties, even if it’s not a legal obligation for indefinite contracts.
The contract must be written in Cambodia’s official Khmer language. Other languages may be used, but the Khmer version will be the legally binding document in the event of a dispute. The contract must clearly state the job description, salary, working hours, leave entitlements, and termination clauses. Employers are also required to include provisions for social security contributions.
Probation Periods
Probation periods in Cambodia are legally permitted and serve as a time for mutual assessment of the employment relationship. The length of a probationary period is strictly regulated. The maximum probationary period is three months, as stipulated by the Cambodian Labour Law. This period is a single-term arrangement and cannot be renewed or extended for the same job.
An employment relationship may be terminated during probation without the statutory notice period requirements that apply to permanent employees. The law allows for termination without a specific reason during this trial phase. However, this does not relieve the employer of its duty of good faith or of adhering to fundamental legal protections against discriminatory termination.
Social Security
Social security in Cambodia is administered by the National Social Security Fund (NSSF) and provides a complete system for pensions, health insurance, and coverage for work-related accidents. Employers and employees must pay monthly contributions to the NSSF, based on the employee’s gross monthly salary.
Contribution rates for 2025 are:
- Pensions: Employers and employees each contribute 2% of the employee’s salary. This will increase incrementally to 4% for both parties by 2030.
- Occupational Risk: Employers contribute 0.8% to 1.2% of the employee’s salary, depending on the risk level of the job.
- Health Insurance: Employers and employees each contribute 2.6% of the employee’s salary.
These contributions are mandatory for all employees, and employers must register their employees with the NSSF before their start date. Public health insurance, funded by the NSSF, covers medical expenses, hospitalization, and maternity costs. The retirement age is 60, and eligibility for pension benefits requires at least 15 years of contributions.
Working Hours
The standard working week in Cambodia is 48 hours, spread over six days, with a general limit of eight hours per day. Employees are entitled to a full day of rest each week on Sunday. Employees who work more than six hours are entitled to a meal break of at least one hour, every working day.
Employees can work overtime, but there are limits to prevent excessive working hours. Overtime must be compensated at higher rates than normal pay. The Cambodian Labour Law mandates the following overtime rates:
| Condition | Rate |
|---|---|
| Hours worked beyond the standard 48-hour week | 150% of the normal hourly rate |
| Night work (between 10 PM and 5 AM) or on public holidays | 200% of the normal hourly rate |
Employers must keep accurate records of working hours and overtime for all employees.
Payroll and Employment Taxes in Cambodia
Minimum Wage
As of 2026, the minimum wage in Cambodia is KHR841,749.38, which is equivalent to $210 per month. This is the rate for workers in the textile, garment, and footwear sectors, which is also used as a national benchmark. The government reviews the minimum wage annually to make sure that all workers can earn a fair and decent salary.
Employers must pay at least the minimum wage for all standard hours of work. Otherwise, they can face penalties and legal issues. The minimum wage is for full-time employees who work the usual 48-hour week, with equivalent rates for part-time work.
Income Taxes
The tax system in Cambodia is progressive, with a personal income tax that is levied on all employment income. The tax year is from January 1 to December 31.
Income Tax in Cambodia for 2025:
| Monthly Taxable Income (KHR) | Tax Rate |
|---|---|
| Up to 1,500,000 | 0% (Tax-free) |
| 1,500,001 – 2,000,000 | 5% |
| 2,000,001 – 8,500,000 | 10% |
| 8,500,001 – 12,500,000 | 15% |
| Over 12,500,000 | 20% |
Salary payments are made monthly. The employer calculates and deducts income tax and any mandatory social security contributions from salary payments and transfers these directly to the Cambodian taxation authorities.
13th-Month Pay
In Cambodia, the payment of a 13th-month bonus is not a statutory requirement. Some employers may offer it as an additional benefit, but it is not a mandatory obligation under Cambodian labor law. The 13th-month pay must be specifically provided for in the employment contract if it is to be paid.
Work Permits and Visas in Cambodia
Foreign citizens who wish to work in Cambodia must have the proper work authorization, consisting of both a visa and a work permit. Work permits are based on Cambodia’s need for a skilled workforce. The Ministry of Labour and Vocational Training (MLVT) must approve a work permit.
The main work authorization for foreign workers is the E-type visa, referred to as an ordinary visa, which allows the worker to obtain a work permit and a long-term stay. Upon arrival, the worker must apply for an extension of the visa and a work permit. Employers must demonstrate that no Cambodian national can do the job and must provide a quota for local hires.
Remote People can support companies with the work permit and visa application process in Cambodia. Our knowledge of local immigration can simplify work visa applications so everything runs smoothly.
Hiring Contractors in Cambodia
Contractors are sometimes preferred over permanent employees as they can be more flexible for companies in Cambodia, but this also comes with legal regulations. Employers must ensure they are properly classified as contractors, as they are not covered by the same labor laws and must pay their own income tax and social security. Misclassification of a contractor is against the law and can lead to fines.
The standard Value Added Tax (VAT) rate in Cambodia is 10%.
Workers' Compensation in Cambodia
Workers’ compensation in Cambodia is administered by the NSSF and is financed by mandatory social security contributions. Coverage includes all healthcare costs and disability benefits when an accident or illness makes it difficult for employees to return to work. Employers are required to register all employees with the NSSF to make sure they are covered.
Time Off and Leave in Cambodia
Cambodia provides leave entitlements that ensure employees can maintain a work-life balance while meeting personal and family responsibilities.
Mandatory Leave Entitlements
Employees in Cambodia are entitled to annual paid leave of at least 1.5 days per month of service, which adds up to 18 days of leave per year after one year of continuous service. The worker earns leave credits throughout the year. Unused leave days may be carried over to the next year or, at the employer’s option, be paid out. Public holidays are treated separately.
Sick Leave
All employees are entitled to paid sick leave. The duration of sick leave is determined by years of service and can be for up to 6 months (100% of wages for the first month, 60% for the second, 40% for the third, and 20% for the remainder of the sick leave). Sick leave must be backed by a medical certificate.
Maternity & Paternity Leave
Mothers of newborn babies in Cambodia are entitled to a total of 90 days of maternity leave. The leave is fully paid by the employer.
Paternity leave for fathers is not a statutory right but may be offered as a company benefit.
Other Leave
Other forms of leave, such as special leave for bereavement or family matters, are typically provided in the employment contract or through a collective agreement. The Labour Law provides for certain types of leave, such as marriage leave of 3 days and compassionate leave of 3 days.
Terminations and Severance in Cambodia
Termination of employment should be fair to employers and employees and should not impede necessary workforce changes. Notice period for termination depends on the length of service, and employees are entitled to severance pay in certain situations.
Notice Periods
The statutory minimum notice period for termination is determined by the employee’s years of service:
| Length of Service | Notice Period |
|---|---|
| Less than 6 months | 7 days’ notice |
| 6–12 months | 15 days’ notice |
| More than 12 months | 1 month’s notice |
Immediate termination is only possible for serious misconduct, such as theft, fraud, or gross negligence.
Severance Pay
Severance pay or “indemnity for dismissal” is obligatory for employees who are terminated without a valid reason. The amount of severance pay is determined by years of service:
| Length of Employment | Severance Pay |
|---|---|
| Up to 6 months | 7 days’ wages |
| 6–12 months | 15 days’ wages |
| Over 12 months | 7 days’ wages for each year of service |
Engage an Employer of Record in Cambodia with Remote People
An Employer of Record may be exactly the type of partner you need to hire employees quickly. If you want to get Cambodian workers on your team efficiently, contact Remote People today for professional EOR services.
Reach out today to learn how our Cambodia EOR solution can support your expansion goals.
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