Discover how an Employer of Record (EOR) in Cambodia, backed by localized HR support, enables businesses to hire quickly and efficiently. With Employer of Record Cambodia expertise in compliance, onboarding, and local workplace requirements, it will ensure your business expansion is smooth and uninterrupted.
Quick Reference for EOR Cambodia Services:
Why Choose EOR Cambodia in 2026: Cambodia is Southeast Asia's emerging manufacturing powerhouse. With a projected GDP of ~$35 billion in 2026 and a strategic location in the Southern Economic Corridor, it offers a compelling alternative to Vietnam and Thailand for garment, electronics, and assembly operations. An Employer of Record Cambodia eliminates setup complexities while ensuring complete regulatory compliance from day one.
An Employer of Record (EOR) Cambodia is a third-party service that legally employs your workers in Cambodia on your behalf. While you maintain day-to-day management control, the EOR handles all legal employment responsibilities, payroll processing, benefits administration, and compliance with Cambodian labor laws.
The EOR model has become increasingly popular in Cambodia as businesses recognize the country's potential as Southeast Asia's emerging manufacturing powerhouse and digital services hub. With Cambodia's government actively promoting foreign investment through initiatives like the Industrial Development Policy 2015-2025, Digital Government Policy 2021-2035, and preferential trade agreements, international companies are seeking efficient ways to establish presence in this strategic market without the complexities of local entity setup.
The relationship between your company and the EOR creates a seamless employment experience where you retain complete operational control while transferring all legal and compliance obligations to local experts who understand Cambodia's evolving regulatory environment.
Cambodia stands as one of Southeast Asia's fastest-growing economies and an emerging manufacturing hub, offering companies access to a young, motivated workforce, competitive operational costs, and a government actively promoting foreign investment. The country serves as a strategic base for garment manufacturing, electronics assembly, and emerging digital services.
Cambodia's Digital Government Policy 2021-2035 represents a comprehensive initiative focused on digital transformation, e-government services, and technology infrastructure development. The program aims to create over 100,000 digital economy jobs by 2030, positioning Cambodia as a regional technology and business process outsourcing destination.
The country is also benefiting from supply chain diversification, particularly in textiles and electronics manufacturing. Cambodia's Everything But Arms (EBA) trade agreement with the EU and growing trade relationships with ASEAN partners create significant opportunities for export-oriented manufacturing operations.
With Cambodia positioned as a key beneficiary of regional supply chain shifts and supported by substantial infrastructure investment from development partners, the country's business environment continues to attract international investment across multiple sectors.
Cambodia's employment landscape is governed by comprehensive regulations designed to protect workers while supporting economic development. Cambodian employment regulations are based on the Labor Law of 1997, Social Security Law, and various ministerial regulations, creating a structured compliance environment that requires expert guidance.
The regulatory framework emphasizes worker protection, social security contributions, and fair employment practices. The Ministry of Labour and Vocational Training oversees employment regulations and maintains active oversight of workplace conditions and compliance requirements.
In April 2025, the MLVT issued Prakas 103/25, specifically regulating Labor Contractors. This decree requires all EOR and labor hire agencies to hold specific licenses and guarantees that contracted workers receive the same rights and benefits as direct employees. Working with an unlicensed provider now poses a significant legal risk.
Cambodia implements a strictly mandated minimum wage for the Textile, Garment, and Footwear (TGF) sectors. While other sectors are not legally bound by this rate, it serves as the universal benchmark for salary negotiations across the country.
The minimum wage applies to all workers and includes basic salary plus attendance bonus. Regular reviews by the Labour Advisory Committee ensure wages remain competitive while supporting business sustainability.
Cambodia's Labor Law is strict regarding overtime limits. The maximum permissible work duration is 10 hours per day (8 hours standard + 2 hours overtime).
Cambodian employees enjoy strong leave protections. In 2025, the most significant updates involve the National Social Security Fund (NSSF) taking on a larger share of Maternity and Sick Leave payments, reducing direct costs for employers.
Critical updates for 2026:
The choice between establishing a local entity or partnering with an Employer of Record in Cambodia represents a strategic decision that impacts timeline, regulatory complexity, and operational flexibility. Cambodia's developing business infrastructure makes entity setup particularly challenging for international companies.
Traditional entity setup in Cambodia can cost over $ 50,000 and take 12-18 weeks due to complex procedures including registration with the Ministry of Commerce, licensing requirements, and multiple approval processes across different ministries and agencies.
EOR providers offer immediate market entry with comprehensive compliance management, making them ideal for companies testing the Cambodia market or requiring rapid manufacturing capacity deployment.
The EOR model provides particular value for companies entering Cambodia's manufacturing sector, establishing supply chain operations, or testing market viability before committing to permanent infrastructure investments.
The EOR implementation process in Cambodia follows a structured approach designed to ensure compliance while minimizing bureaucratic delays. Leading providers have developed streamlined processes that navigate Cambodia's regulatory environment efficiently.
Selecting the right EOR provider in Cambodia requires evaluation of local regulatory knowledge, government relationships, and operational capability in Cambodia's developing business environment.
Critical evaluation criteria include relationships with Cambodian authorities, understanding of sector-specific regulations (particularly for manufacturing), and proven track record managing the complex approval processes required for foreign workers.
Cambodia's employment contracts must comply with specific legal requirements while accommodating the cultural and practical needs of the local workforce.
Employment contracts in Cambodia must be in Khmer with official English translations permitted. Contracts must specify working conditions, compensation structure, and termination procedures in compliance with the Labor Law.
Cambodia's employee registration process involves multiple government agencies and requires careful coordination to ensure all requirements are met efficiently.
The onboarding process includes NSSF registration for social security benefits, tax identification setup, work permit applications for foreign employees, and comprehensive health insurance enrollment through approved providers.
Cambodia's evolving regulatory environment requires proactive compliance monitoring and relationship management with government agencies for ongoing employment administration.
Professional EOR providers maintain regular communication with Cambodian authorities, monitor regulatory changes, and provide comprehensive reporting to ensure ongoing compliance and operational transparency.
Cambodia's payroll and taxation system combines traditional administrative processes with emerging digital initiatives. The General Department of Taxation oversees tax collection and compliance, while payroll processing requires understanding of local banking systems and government contribution requirements.
Recent developments include improved banking infrastructure, enhanced tax administration systems, and streamlined business registration processes that benefit international companies operating in Cambodia.
Cambodia uses a progressive tax scale for residents. The rates below are applied to the monthly taxable salary after deducting the dependent rebate
Additional Payroll Taxes & Deductions
Cambodia's social security system provides three pillars of protection. The Pension Scheme is now fully operational (Phase 1), requiring mandatory contributions from both parties.
Critical Note: Contributions are calculated in KHR, capped at a monthly ceiling of 1,200,000 KHR (approx. $300)
Cambodia's payroll cycle is strict. While salary payments are flexible (USD/KHR), Tax and NSSF submissions must be precise to avoid penalties.
Cambodia's workplace culture emphasizes respect, hierarchy, and collective harmony, deeply influenced by Buddhist values and traditional social structures. Understanding concepts like "kreng jai" (consideration for others), respect for elders and authority, and the importance of "face" significantly enhances business success.
Cambodian business relationships are built on trust, personal connections, and long-term commitment. Family obligations are paramount, and flexible approaches to traditional celebrations and religious observances are essential for maintaining positive workplace relationships.
Cambodian employment law establishes basic benefit requirements while allowing flexibility for additional competitive offerings.
In 2026, the most distinctive feature is the Seniority Indemnity payment—a mandatory semi-annual bonus that replaces severance for permanent staff.
The NSSF system provides comprehensive healthcare coverage including outpatient treatment, hospitalization, and prescription medications through a network of approved healthcare providers.
Cambodia's competitive manufacturing sector drives employers to offer benefits packages that attract and retain skilled workers in a tight labor market. Learn more about our comprehensive benefits offerings.
Transportation support is particularly valuable given Cambodia's limited public transport infrastructure. Meal programs and festival bonuses demonstrate cultural sensitivity and support employee welfare during important celebrations.
Cambodia's work permit system is designed to balance foreign expertise needs with local employment protection. The Ministry of Labour and Vocational Training oversees work permit issuance, while the Ministry of Interior manages visa and immigration matters. For comprehensive visa and work permit support, explore our visa services.
Recent improvements to Cambodia's visa system include online applications, clearer requirements, and streamlined processing for investors and skilled professionals.
Cambodia separates Immigration (Visas) from Labor (Work Permits). Most expatriates enter on an E-Class (Ordinary) Visa and then extend it based on their purpose of stay.
Critical 2025 Visa Updates
Work permits are required for all foreign employees and must be obtained before commencing employment, with specific quotas and requirements varying by industry sector.
In Cambodia, the Work Permit (issued by the Ministry of Labour) and the Business Visa (issued by Immigration) are separate but linked. You must obtain the Work Permit before you can renew your Business Visa for a long-term stay (6 or 12 months).
System: All applications are processed via the FWCMS (Foreign Workforce Central Management System) online portal.
Document Checklist for 2026
Unlike Vietnam or Thailand, Cambodia does not currently require criminal background checks or apostilled degrees for standard work permits.
Cambodia's immigration costs are generally lower than neighbors like Thailand or Vietnam, but the Foreign Employee Quota system adds a unique administrative layer.
Note: The costs below are market estimates for 2025 including standard agency/EOR service fees.
Cambodia's termination framework provides worker protection while maintaining employer flexibility through defined procedures and compensation requirements. The Labor Law specifies legitimate grounds for termination and required compensation based on length of service.
Understanding Cambodia's termination requirements is essential for maintaining compliance while managing workforce changes in a regulated environment that prioritizes worker protection.
Cambodia's termination procedures require advance notice and compensation based on the reason for termination and employee tenure.
Severance pay calculations are based on length of service, ranging from 15 days' wages for less than 12 months to 90 days' wages for over 5 years of service.
Cambodia's termination framework distinguishes between Fixed Duration Contracts (FDC) and Undetermined Duration Contracts (UDC). The procedures are strictly regulated, and "at-will" employment does not exist.
Cambodia's termination procedures require advance notice and compensation based on the reason for termination and employee tenure.
Severance pay calculations are based on length of service, ranging from 15 days' wages for less than 12 months to 90 days' wages for over 5 years of service.
Cambodia requires specific procedures for different types of termination to ensure compliance with labor law protections.
Proper documentation and government notification are essential to avoid penalties and potential legal challenges from terminated employees.
Cambodia's labor dispute system provides multiple avenues for resolution while maintaining workplace harmony.
The Ministry of Labour encourages mediation and arbitration before formal legal proceedings, emphasizing resolution that maintains employment relationships where possible.
Cambodia's EOR provider market has developed significantly, with both international and specialized regional providers competing to serve growing demand from manufacturing companies, garment producers, electronics assemblers, and emerging technology businesses establishing Southeast Asian operations.
Selecting the right EOR provider in Cambodia requires evaluating local regulatory expertise, government relationships, and operational capabilities in Cambodia's unique business environment with its mix of traditional practices and modernizing systems.
AYP Group leads Cambodia's EOR market through deep local expertise, guaranteed compliance, and comprehensive support tailored to Cambodia's unique regulatory and cultural environment. With extensive experience across Cambodia's key manufacturing sectors and proven relationships with government agencies, AYP Group provides unmatched peace of mind for companies expanding into this strategic Southeast Asian market. Learn more about our transparent pricing structure.
AYP Group's Cambodia operations combine deep understanding of local labor law, NSSF requirements, and work permit complexities with culturally sensitive approaches that respect Cambodian business practices and social customs.
Remote offers EOR services in Cambodia through its global platform, providing standardized processes adapted for Cambodia's developing digital infrastructure. Remote's strength lies in technology integration and multi-currency payroll capabilities suited to Cambodia's USD-accepting business environment.
Deel provides EOR services in Cambodia emphasizing speed and digital integration for Cambodia's emerging technology sector. Deel's platform offers streamlined onboarding and automated compliance monitoring essential for rapidly growing businesses.
Oyster HR delivers specialized EOR services with understanding of Cambodia's cultural dynamics and regional expansion strategies. Oyster provides bilingual contract support and cultural integration guidance for international teams working in Cambodia.
Globalization Partners offers enterprise-grade EOR services focused on large-scale manufacturing deployments and complex organizational requirements suitable for major production operations and regional manufacturing centers.
Cambodia's developing regulatory environment requires EOR providers with proven local expertise, government relationships, and cultural understanding essential for successful operations.
Local expertise assessment involves evaluating provider teams' Cambodia market knowledge, Khmer language capabilities, and relationships with government agencies. Assess their ability to navigate Cambodia's bureaucratic processes and maintain compliance in a changing regulatory environment.
Government relationship evaluation becomes critical given Cambodia's administrative requirements, requiring providers with established connections to relevant ministries and agencies for efficient processing and problem resolution.
Cultural sensitivity assessment involves understanding provider approaches to Cambodian business culture, respect for local customs, and ability to manage multicultural teams effectively in Cambodia's traditional yet modernizing society.
Cambodia's unique combination of traditional culture and rapid economic development requires careful planning and cultural sensitivity for successful EOR implementation and ongoing operations.
Define hiring requirements clearly, including skill levels, cultural fit requirements, and language capabilities. Cambodia's developing market demands comprehensive preparation and culturally appropriate management approaches.
Research EOR providers thoroughly, focusing on local expertise, government relationships, and cultural sensitivity. Cambodia's relationship-based business environment requires providers with deep local knowledge and established networks.
Cambodia's hierarchical society values respect for authority, seniority, and traditional customs. Understanding Buddhist principles, family obligations, and the importance of maintaining harmony enhances workplace effectiveness.
Provide cultural orientation covering Cambodian business etiquette, religious observances, and social customs. Offer flexible benefits accommodating traditional celebrations and family responsibilities that are central to Cambodian culture.
Monitor compliance and employee satisfaction through regular reviews, leveraging local expertise to maintain positive relationships with both employees and government agencies. Track retention rates and cultural integration success indicators.
Plan for scalability while maintaining cultural sensitivity, considering workforce development programs that respect local values while building necessary skills for business growth.
AYP Group distinguishes itself in Cambodia's EOR market through guaranteed compliance, cultural expertise, and comprehensive support tailored to Cambodia's unique opportunities and challenges as an emerging Southeast Asian manufacturing hub.
AYP Group distinguishes itself in Cambodia through our "Boots on the Ground" approach. Unlike digital-only aggregators, we maintain a dedicated Khmer-speaking team that navigates the nuances of Ministry of Labour (MLVT) audits and local banking complexities on your behalf.
AYP Group's Cambodia operations deliver complete employment lifecycle management through local expertise and culturally sensitive approaches that respect Cambodian values while meeting international standards.
Cambodia represents one of Southeast Asia's most compelling manufacturing and business development opportunities, combining competitive costs with strategic location and government support for foreign investment. Companies that establish Cambodia operations effectively gain significant competitive advantages in cost structure and regional market access.
Cambodia offers exceptional growth potential through its competitive manufacturing environment, strategic ASEAN location, and supportive investment policies. Success requires navigating regulatory requirements while respecting local culture and building sustainable operations.
Take the next step in your Cambodia expansion:
Our Cambodia team combines regulatory expertise with cultural sensitivity, ensuring your expansion succeeds from day one while building respectful, productive relationships with local stakeholders.
Client Success Story
"AYP Group enabled our successful Cambodia manufacturing expansion through their comprehensive EOR platform and deep local cultural knowledge. Their transparent pricing and guaranteed compliance gave us confidence while their cultural expertise helped us build strong relationships with our Cambodian workforce and government partners."
— Electronics Manufacturing CEO, expanding from Taiwan to Phnom Penh
Cambodia's strategic advantages and emerging opportunities create exceptional potential for companies ready to establish cost-effective Southeast Asian operations. AYP Group's proven EOR platform eliminates complexity while ensuring cultural sensitivity and regulatory compliance.
Ready to unlock Cambodia's potential? Contact AYP Group today through our global office locations and discover how our comprehensive EOR services can accelerate your success in Southeast Asia's emerging manufacturing hub.
AYP Group has been enabling successful Southeast Asian expansion for over a decade. Our Cambodia EOR services combine regulatory expertise with cultural sensitivity, ensuring rapid market entry with sustainable, respectful operations.
Legal Disclaimer: This guide provides general information about Cambodian employment regulations and EOR services. Specific legal advice should be obtained from qualified professionals. Employment laws and regulations are subject to change, and this information should not be considered as legal counsel. AYP Group maintains current regulatory knowledge and provides updates to clients as part of comprehensive EOR services.
An Employer of Record (EOR) in Cambodia assumes the legal responsibilities for employees, enabling your business to hire talent without the need to establish a local legal entity.
The cost of hiring through EOR services in Cambodia typically ranges from USD 400 to USD 800 per employee per month, depending on the specific services provided.
Using an Employer of Record (EOR) in Cambodia simplifies market entry and expansion with our localized Cambodia HR support, allows you to focus on your core business while we handle HR management, compliance, and local regulations.
Several EOR service providers operate in Cambodia, including AYP. AYP offers comprehensive EOR solutions to help you hire, manage, and pay employees while ensuring full compliance, with no hidden costs for your peace of mind.
AYP’s onboarding process for employees in Cambodia includes:
AYP Employer of Record (EOR) in Cambodia has local support that ensure the employment practises align with the local laws, as such, the local EOR employees will have complete peace of mind to avoid any legal risks and penalties.
Also, our local HR support can provide a faster and seamless response for your local employees to have a better employee experience.
Still have more questions? Contact us today
