What are the statutory contributions for employees and employers in Cambodia?
Employee Income Tax
The Cambodian tax system applies a progressive tax structure with rates as follows:
| Taxable Income | Tax Rate |
|---|---|
| less than KHR 1,200,000 | 0% |
| KHR 1,200,001 – KHR 2,000,000 | 5% |
| KHR 2,000,001 – KHR 8,500,000 | 10% |
| KHR 8,500,001 – KHR 12,500,000 | 15% |
| KHR 12,500,001 – KHR 17,500,000 | 20% |
| above KHR 17,500,000 | 25% |
Employer Payroll Contributions
Employers are required to contribute 1.3% of their employees’ gross salary to the National Social Security Fund (NSSF).
Employee Payroll Contributions
Employees are required to contribute 0.8% to 1.3% of their gross salary to the National Social Security Fund (NSSF), depending on their income tier.
What is the minimum wage in Cambodia?
Cambodia sets a minimum hourly wage of KHR 18,800 per month, effective from January 1st 2023.
What is the payroll cycle in Cambodia?
The standard payroll cycle in Cambodia is monthly. The standard salary date typically falls on the last working day of the month.
How long is the working hours in Cambodia?
Full time employees customarily work 48 hours per week. However, the maximum number of hours an employee can be requested to work per week is 60, including overtime.
How many leaves are employees entitled to?
- Standard paid time off — employees in Cambodia are entitled to 15 days of paid annual leave per year on the condition that they complete a year of service.
- Compulsory annual public holidays — there are 28 national public holidays in Cambodia.
- Minimum paid sick leave — employees in Cambodia are entitled to paid sick leaves; however, the amount of leave and pay vary depending on the employer and length of contract.
How long is the maternity and paternity leave in Cambodia?
- Statutory maternity leave — eligible female employees in Cambodia are entitled to 90 days of paid maternity leave.
- Statutory paternity leave — male employees in Cambodia are not entitled to paternity leave.
- Statutory parental leave — there is no mandated parental leave in Cambodia.
What rights do employees have upon leaving employment due to certain conditions?
Employers can terminate employees for valid reasons such as poor performance or misconduct, but this must be done through a fair evaluation process. When an employee’s service with a company is terminated for certain reasons, they are entitled to certain rights and benefits, including:
- Notice period — the minimum notice period for termination varies based on the length of service, ranging from one week to one month.
- Severance pay — employees with at least a year of service are entitled to severance pay, which is calculated based on the length of service.
- Probation period — employees can have 3 months of probation period at maximum.
What is the type of visa for employees in Cambodia?
In order to be granted an employment visa in Cambodia, the applicant must have a valid job offer from a Cambodian employer while the employer obtains a work permit from the Cambodian Ministry of Labor and Vocational Training.
Cambodia offers a variety of employment visas, including the Ordinary Visa (E) and the Multiple Entry Visa (EB).
Standard VAT Rate
The standard VAT rate in Cambodia is 10%.