Non-residents are taxed at a flat rate of 20% on their gross employment income, whereas tax residents are subject to the following progressive tax rate:
| Taxable Income (KHR) | Progressive Tax Rate (%) |
|---|---|
| Up to 1,500,000 | - |
| 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 |
Local Tax
There are no local taxes on employment income in Cambodia.
Employers are generally obligated to fully take on the Occupational Risks Contribution and Healthcare Contribution, while Pension Contribution to the National Social Security Fund (NSSF) is equally shared between the employer and employee.
These contributions shall be calculated based on the employee's monthly wage of up to KHR 1,500,000.
| Contribution Rate | |
|---|---|
| Pension | 2% |
| Healthcare | 2.6% |
| Occupational Risks | 0.8% |
| Contribution Rate | |
|---|---|
| Pension | 2% |
Employees' wages shall be paid semi-monthly, with half the month's net wages being paid by the second week, and any remaining amount being paid at the end of the month.
Minimum Wage
| Minimum wage | |
|---|---|
| Probationary employees | KHR 830,652 per month |
| Regular employees | KHR 839,809 per month |
Employees hired on an indefinite term are entitled to receive seniority pay equivalent to 15 days' wages and fringe benefits per year of service, with each half being payable in June and December.
Those who have not completed a year of service shall have their seniority pay prorated as follows:
| Time worked | Seniority pay |
|---|---|
| 1 month, but less than 6 months | 7.5 days' wages and fringe benefits |
| More than 6 months in the year | 15 days' wages and fringe benefits |
Employers may unilaterally dismiss their employees by giving them a written notice, provided that there is a valid reason related to the employee's aptitude or behavior, or based on the enterprise's operational requirements.
Dismissals as a disciplinary sanction can only be done if it is proportional to the seriousness of the employee's misconduct.
| Serious misconduct warranting dismissals | Serious misconduct warranting resignations |
|---|---|
| Stealing, misappropriation or embezzlement | The use of fraudulent measures to entice a worker into signing a contract under conditions to which they would not otherwise have agreed |
| Fraudulent acts committed at the time of signing or during employment | Refusal to pay all or part of the wages |
| Serious infractions of disciplinary, safety and health regulations | Repeated late payment of wages |
| Threat, abusive language or assault against the employer or other workers | Abusive language, threat, violence or assault |
| Inciting other workers to commit serious offenses | Failure to provide sufficient work to a piece-worker |
| Political propaganda, activities or demonstrations in the establishment | Failure to implement labor health and safety measures in the workplace as required by existing laws |
It is important to note that employers can only dismiss their employees for serious misconduct if they take action within 7 days of learning about the misconduct in question.
The following notice period, or payment in lieu, must be observed by the party unilaterally terminating an employment contract:
| Length of service | Notice period |
|---|---|
| Less than 6 months | 7 days |
| 6 months up to 2 years | 15 days |
| Longer than 2 years, up to 5 years | 1 month |
| Longer than 5 years, up to 10 years | 2 months |
| Longer than 10 years | 3 months |
Employees are entitled to 2 days of paid leave per week during their notice period to look for a new job. Those dismissed for reasons other than serious misconduct can leave before the end of their notice period without compensating the employer if they have found a new job.
Notice periods are not required for terminations due to a serious offense on the part of one of the parties or force majeure events that make either party unable to meet their obligations.
Employees on an indefinite-term contract are not entitled to any severance upon termination after the 2018 amendment to the Labor Law. However, those who are dismissed for any reason other than serious misconduct, and after at least a month has passed since their last seniority payment, are entitled to receive 7 days' wages and fringe benefits.
Considering that fixed-term employees are not entitled to any seniority pay, they shall still be granted severance equivalent to 5% of the wage they have received for the duration of their contract upon the expiry of their term.
Probationary period cannot last longer than 3 months for regular employees, 2 months for specialized employees and a month for non-specialized employees. Terminating the employment contract during probation can be done without observing any notice period.
Standard working hours in Cambodia are subject to a maximum of 8 hours per day or 48 hours per week.
Employees who just gave birth are entitled to an hour of breastfeeding break per day during work hours for a year from the date of their child's birth. This break can be taken over multiple 30-minute periods at the time agreed between the employer and employee.
There are no other provisions surrounding break time for employees in the Labor Law, though they are usually granted for up to an hour and go unpaid.
Employees required to work overtime for exceptional and urgent job must be paid at 150% of their regular rate, or 200% for overtime performed at night or during the employee's weekly rest day.
Employees are entitled to at least a consecutive day of rest per week, which shall be on a Sunday in principle.
Weekly time off can be suspended for employees required to perform urgent work, provided that they are granted compensatory break equal to the missed time off and are paid at the proper overtime rate. Employers must usually obtain the authorization from the MLVT before the work commences.
Employees shall generally be granted time off during public holidays without any reduction in wages. There are 22 days of public holidays in Cambodia for 2025.
| Holiday | Date |
|---|---|
| New Year’s Day | January 1 |
| Day of Victory over the Genocidal Regime | January 7 |
| International Women's Rights Day | March 8 |
| Khmer New Year's Day | April 14–16 |
| International Labor Day | May 1 |
| Visaka Bochea Day | May 11 |
| Birthday of the King of Cambodia | May 14 |
| Royal Ploughing Ceremony | May 15 |
| Birthday of the Queen-Mother of Cambodia | June 18 |
| Pchum Ben Day | September 21–23 |
| Constitution Day | September 24 |
| Mourning Day of the Late King-Father of Cambodia | October 15 |
| Coronation Day of the King of Cambodia | October 29 |
| Water Festival | November 4–6 |
| National Independence Day | November 9 |
| Peace Day | December 29 |
In establishments where work cannot be interrupted because of the nature of their activities, employees may be required to work on public holidays, provided that they are given an indemnity in addition to wages for the work performed and the employer has secured the authorization of the MLVT.
Employees are entitled to 18 days of paid annual leave, which accumulates at the rate of 1.5 working days of paid annual leave for every month of continuous service. Moreover, this leave entitlement shall increase by a day for every 3 years of service.
The right to use paid leave is acquired after completing a year of service, and may be deferred by agreement between the relevant parties. Annual leave in excess of 12 days per year can be deferred for up to 3 consecutive years before they expire.
An employment contract shall be suspended for up to 6 months in the event that the employee is absent due to an illness certified by a qualified doctor. This period of absence shall be paid as follows:
| Month | Sick leave pay |
|---|---|
| 1 | Paid at 100% of wages |
| 2–3 | Paid at 60% of wages |
| 4–6 | Unpaid |
Employees are entitled to 90 calendar days of maternity leave and, if they have at least a continuous year of service, they shall also be entitled to half their wages during the leave period.
Although the Labor Law does not have any provisions surrounding the extension of maternity leave, it states that an employment contract shall be suspended during the leave granted to a female worker during pregnancy and delivery, as well as for any post-natal illness. This implicitly grants employees time off in the event of pregnancy or post-natal illness as necessary.
There are no provisions for paternity leave in the Labor Law, though employees can take special leave for occasions affecting their immediate family.
Employees are entitled to take up to 7 days of special leave per year for any event that directly affects their personal lives or their immediate family, including marriage, childbirth, child's marriage, and family member's sickness or death.
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