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Cserve offers complete payroll, PEO and HR services in Cambodia

Cambodia’s rapid economic growth over the last decade places the country as the sixth fastest economy globally. This growth is fuelled by developments in four key sectors: tourism, garments, construction and real estate as well as agriculture. There is also a diversification of the country’s manufacturing base towards other sectors which will continue to support economic growth. Although predominantly rural, this is set to change with increased urbanization and population growth.

Doing Business in Cambodia

Business is strongly supported in Cambodia through a pro-investment environment. The regulatory framework allows for 100% foreign ownership except for certain sectors, enablement of foreign secured lending, zero foreign exchange controls (except in limited circumstances) and the issue of industry-specific licenses in certain sectors. Further, there are a significant number of competitive investment incentives including no trade restrictions, the availability of long-term land leases and zero price control on any products or services. Download PDF

Setting up a new business or expanding an existing one in Cambodia is straightforward. Choose how your company operates from a range of entity types that suit your individual circumstance.

Banking Hours: 8:00 am to 4:00 pm from Monday to Saturday.

The standard working week is from Monday to Saturday from 8:00 am – 5:00 pm.

Cambodia has a strong labor protection regime and many measures have been introduced to reduce production and supply costs and encourage more foreign investment.

Main Industries Tourism, garments, construction, rice milling, fishing, wood and wood products, rubber
GDP Growth -3.1%
Dates & Numbers dd/mm/yyyyy
Official State Name Kingdom of Cambodia
Population 16.71 million
Capital Phnom Penh
Major Languages Khmer
Currency Cambodian Riel
Internet Domain .kh
International Dialing Code +855


The minimum wage as applicable for workers and employees in the textile, garment, footwear and travel sectors has been set as the equivalent of USD$194 per month effective 1 January 2022.

It is acceptable to provide employees with online payslips


Employees must be provided with a minimum of 15 days notice of termination of employment

Employee Termination

Payroll reports must be kept for 5 years


There are no provisions mandated by law regarding the 13th month salary

13th month salary

Employees are entitled to receive paid annual leave of 18 days

Annual Leave

194 USD per month

Minimum Wage

Employees are entitled to receive paid sick leave of 30 days

Sick Leave

Overtime payment is calculated at the rate of 1.5x the employee's ordinary rate of pay


Employees are entitled to 90 days of half paid maternity leave. There are no provisions mandated by law regarding paternity leave

Maternity & Paternity Leave

Employees paid monthly are entitled to 15 days’ pay for each year of employment for the first year of service

Severance Pay

Tax and Social Security

There is no personal income tax in Cambodia. In its place, a monthly salary tax is imposed on individuals who derive income from employment. Employers are required to make ORC (Occupational Risks Contributions) and payments towards healthcare to the NSSF (National Social Security Fund).


Investments in the country are supported through a tax holiday for up to 9 years, full import and export duty exemption for qualified investment projects and no restrictions on capital repatriation.





Corporate Income Tax Personal Income Tax Sales Tax VAT

Social Security

In respect of the ORC, an employer with at least eight employees must register itself and their employees with the NSSF.




Social Security Rate Social Security Rate for Employers Social Security Rate for Employees
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Employment Law

Employment in Cambodia is governed by the Constitution, the Civil Code, the Labor Law as well as international treaties and other labor-related rules and regulations.

Employment Agreement
The employment contract is the primary means through which the employment relationship is governed. There are two types of contracts: fixed and unfixed duration.

Working condition
Overtime may be undertaken when there is special work to be done or owing to unforeseen circumstances. However, prior to any overtime work being carried out, the employer must first get the approval of the employee representative and union.

Any work performed during a public holiday must be under the supervision of a labor inspector. Employees are also no longer entitled to a day off in lieu should a public holiday fall on a Sunday.

Employment termination
In general, terminations must be done with cause. The procedures vary depending on the type of employment contract, the position held by the employee and the reason for such termination.

15 days

Minimum notice period for terminating an employee

48 hours

Working hours per week

8 days

Total number of days for Compassionate & Bereavement Leave

15 days

Total number of public holidays


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Foreign workers enjoy the same protection and mandatory benefits provided to local employees. Employers are required to retain immigration and labor documents on-site for the purposes of labor inspection. Should a foreign worker be employed, the company is required to apply for a foreign employee quota via the MLVT online system.

Residency permits
Foreign workers intending to work in Cambodia are required to obtain a Visa EB. They can apply for an initial Visa E (valid for 30 days from date of arrival into Cambodia) which may be extended to a Visa EB (valid for between six months to a year).

Work Permit validity 1 year
Required Documents

ertificate of incorporation with the relevant company stamp

Copy of the document certifying the registered business address

Tax patent with the relevant company stamp

A list of all foreign and local employees to ensure the ratio is not below 9:1 document certifying the MOC approval

The company’s articles of incorporation

The individual’s name, gender, date of birth, and height

Copies of the individual’s identification cards and passport

Copy of the individual’s E visa

The individual’s current address

The full names of the mother and father of the individual

Documents providing evidence of educational qualifications

Photo Copy of the individual’s health certificate

Information about the individual’s role with the company

Confirmation of the year the individual received their first E visa.

Compliant, reliable, error-free and touchless payroll in Cambodia

Build the best team and hire top talent compliantly in Cambodia. Get in touch with Cambodia payroll outsourcing & PEO specialists for a free consultation!

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