Hiring in Cambodia: Complete Guide 2027
Everything you need to know about hiring and managing employees in Cambodia
Overview
Cambodia runs on dollars. Most office salaries are quoted and paid in USD, while Tax on Salary is computed in riel. Statutory costs are light: the employer pays 5.4% to the NSSF on a wage capped at KHR 1,200,000 (about USD 300) and owes seniority pay of 15 days' wages a year, about 5 to 10% above gross in all. The fee weighs more. Platforms publish USD 300 to 600 a month and the Phnom Penh specialists quote on request; on a salary of USD 1,000 to 2,000, the all-in premium runs from roughly 20 to 65%.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Cambodia
The employer registers with the Ministry of Labour and Vocational Training through LaCMS, declares each hire there and enrols every employee with the NSSF. Contributions are computed on a wage between KHR 400,000 and 1,200,000 a month. The employer alone pays 0.8% for occupational risk and 2.6% for health care; pension is 2% from each side since October 2022 and rises to 4% each in 2027. Tax on Salary is withheld monthly in riel: 0% up to KHR 1.5 million, 5% to 2 million, 10% to 8.5 million, 15% to 12.5 million, 20% above. Each dependent child or non-working spouse takes KHR 150,000 off the base. Non-residents pay a flat 20%. Fringe benefits carry a 20% tax paid by the employer. Pay goes out twice a month. The only minimum wage covers garments, footwear and travel goods: USD 210 in 2026, USD 212 for 2027. The EOR files with the GDT and the NSSF and accrues seniority pay.
Key Labor Laws &
Requirements
Employment Contracts
- Fixed-duration contracts in writing, first term up to 2 years
- Probation up to 3 months, 2 for specialised and 1 for unskilled workers
- Pay twice a month: half in the second week, the rest in the fourth
Leave & Time Off
- 18 days of paid annual leave (1.5 per month)
- One extra day of leave for every 3 years of service
- Two paid days a week to look for work during notice
Termination Rules
- Notice of 7 days to 3 months by length of service
- Seniority pay of 15 days' wages a year, in June and December
- Fixed-duration contracts end with at least 5% of wages paid
COMPLIANCE
Registered Employer and Foreign Staff Rules in Cambodia
The employer in Cambodia is the entity registered with the Ministry of Labour and the NSSF, never the foreign client. An EOR, or a local manpower outsourcing firm, signs the contract, declares the hire in LaCMS and pays the contributions. Foreign staff need a work permit and an employment card, filed in the FWCMS portal within 90 days of arrival and renewed every year. The employer also needs a foreign staff quota, capped at 10% of its Cambodian staff (3% office staff, 6% specialists, 1% unskilled) and requested ahead of each year: for 2027, from 1 September to 30 November 2026. Open-ended contracts carry notice of 7 days to 3 months; fixed-duration contracts end with at least 5% of the wages paid.
Figures checked against official sources: Ministry of Labour and Vocational Training (Labour Law, Prakas 196/14 on foreign staff, 443/18 on seniority pay and 214/25 on the minimum wage, Notification 25/26); National Social Security Fund (Prakas 449, Sub-decrees 32/2021 and 144/2021); General Department of Taxation (Tax on Salary). Checked November 2026.
Key Challenges
- Foreign staff capped at 10% of Cambodian staff, each with a work permit and an employment card
- Seniority pay of 15 days' wages a year, paid every June and December
- Pay runs twice a month: half in the second week, the rest in the fourth
- Tax on Salary bands are set in riel while most salaries are paid in dollars
- The NSSF pension rate doubles in 2027, to 4% on each side
Country Highlights
Advantages
- Salaries are quoted and paid in US dollars, so a dollar budget holds
- Employer social security of 5.4%, on a wage capped at KHR 1.2 million
- A top tax rate of 20%, reached above KHR 12.5 million a month
- No minimum wage outside the garment, footwear and travel goods sector
- UTC+7, the same working hours as Bangkok and Ho Chi Minh City
Popular Industries & Roles
Technology
Avg. Salary: $5k-$24k
Phnom Penh's software, fintech and telecom employers hire developers and IT staff; senior engineers sit at the top of this band
Garments & Footwear
Avg. Salary: $2.5k-$3k
Garment, footwear and travel goods workers earn the sector minimum of USD 210 a month in 2026, plus attendance and transport allowances
Banking & Microfinance
Avg. Salary: $4k-$18k
Commercial banks and microfinance institutions hire credit officers, finance and risk staff, mostly paid in dollars
Top 3 Providers in Cambodia
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Aplus Consulting
- Cambodia manpower outsourcing + EOR
- GDT Gold Award since 2020
- ACCA partner; 18 years; 300+ clients
- Labour Compliance Check tool available
AYP Group
- APAC-owned entities in 13+ markets
- From $488/month EOR; $28/month payroll
- JuzTalent HRIS platform included
- No minimum headcount, transparent pricing
Deel
- EOR in 130+ countries; owned entities in 130+
- Contractor and EOR in one platform
- 200+ integrations including Slack, Workday
- AI-powered compliance automation
Frequently asked questions
Hiring in Cambodia through an EOR, in short.
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How much does an employer pay on top of salary in Cambodia?
Employer contributions in Cambodia come to 5.4% (capped); the largest mandatory line is Seniority pay 15 days/yr. With the other statutory benefits and a typical EOR fee, budget ~20–65% on top of gross salary.
What does an EOR charge per employee in Cambodia?
Published EOR fees in Cambodia run $300–600/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Cambodia pay in tax and contributions?
Income tax is 0–20% progressive and employee social contributions are 2% (capped) (2% NSSF pension), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Cambodia?
3-5 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Twice monthly).
Which EOR providers rank best in Cambodia?
Aplus Consulting, AYP Group and Deel hold the first three places in our ranking for hiring in Cambodia. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Cambodia.
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