Cambodia
Payroll Compliance Overview (ASEAN Expansion)
UniqHRM automates statutory payroll compliance so your team can process payroll with confidence — accurate calculations, on-time submissions and full audit trails.
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Register Interest →Cambodia Payroll Regulatory Framework
Cambodia’s payroll compliance environment is governed by two primary bodies: the General Department of Taxation (GDT) under the Ministry of Economy and Finance for income tax obligations, and the National Social Security Fund (NSSF) under the Ministry of Labour and Vocational Training for social security contributions. The Labour Law (2007 and amendments) sets out leave entitlements, working hours, minimum wage and the Seniority Indemnity obligation.
Cambodia is unique in ASEAN for its high number of public holidays (approximately 28 per year), relatively generous leave entitlements and the Seniority Indemnity payment — a semi-annual service recognition payment that replaced the end-of-contract indemnity under 2019 amendments to the Labour Law.
Tax on Salary (ToS)
Cambodia’s Tax on Salary (ToS) is a monthly withholding tax levied on employment income. Employers must withhold ToS from employee salaries and remit it to the General Department of Taxation by the 20th of the following month.
| Monthly Salary (KHR) | Tax Rate |
|---|---|
| 0 – 1,500,000 KHR | 0% — Exempt |
| 1,500,001 – 2,000,000 KHR | 5% |
| 2,000,001 – 8,500,000 KHR | 10% |
| 8,500,001 – 12,500,000 KHR | 15% |
| Above 12,500,000 KHR | 20% |
- Fringe benefits provided to employees (housing, cars, meals) may also be subject to ToS
- Non-resident employees are subject to a flat 20% withholding tax on Cambodian-source income
- Foreigners working in Cambodia under an employment contract are generally treated as residents for tax purposes after 182 days in a calendar year
National Social Security Fund (NSSF)
The NSSF operates three schemes — Health Care, Occupational Risk and Pension — each with separate contribution rates and implementation timelines.
| NSSF Scheme | Employer Rate | Employee Rate | Status |
|---|---|---|---|
| Health Care (NHCS) | 1.3% of gross wage | 0% | Active |
| Occupational Risk | 0.8% of gross wage | 0% | Active |
| Pension Fund | 4% of gross wage | 4% of gross wage | Phased — confirm current status |
- NSSF contributions are payable on the 15th of the following month
- Health Care and Occupational Risk contributions are employer-only — no employee deduction required
- Pension Fund contributions (Phase 2) are being phased in — confirm current implementation requirements with the Ministry of Labour
- All private sector enterprises with one or more employees are required to register with NSSF
Minimum Wage (2025)
Cambodia’s minimum wage is reviewed annually by the Labour Advisory Committee and set by Prakas (ministerial order). The minimum wage applies specifically to the garment, textile and footwear sector — Cambodia’s largest formal employer.
| Sector | Monthly Minimum Wage (2025) |
|---|---|
| Garment, Textile & Footwear | USD $204/month |
| Other sectors | No national minimum — governed by employment contracts and Labour Law general provisions |
For non-garment sectors, minimum compensation is effectively determined by negotiation, market rates and collective bargaining agreements where applicable.
Annual Leave & Public Holidays
Cambodia’s Labour Law is notably employee-friendly in terms of leave entitlements and public holidays. Employers must plan rosters and payroll around a significant number of non-working days each year.
- Annual Leave: Employees are entitled to 18 working days per year after 12 months of continuous service. Leave is pro-rated for shorter service periods at 1.5 days per month.
- Public Holidays: Cambodia observes approximately 28 public holidays per year — among the highest in ASEAN. Key holidays include Khmer New Year (3 days in April), Pchum Ben (3 days) and Water Festival (3 days).
- Public Holiday Work: Employees required to work on a public holiday are entitled to double their daily wage plus an additional compensatory rest day.
- Special Leave: 7 days for marriage, 7 days for childbirth (paternity), and bereavement leave for close family members.
- Maternity Leave: 90 days (3 months) with 50% of wages paid by employer and 50% potentially covered by NSSF maternity benefit.
Seniority Indemnity (SI)
The Seniority Indemnity is one of Cambodia’s most distinctive labour law obligations. Under 2019 amendments to the Labour Law, employers must pay a semi-annual Seniority Indemnity to all employees on indefinite-term contracts who have completed 6 or more months of continuous service.
| Service Period | Seniority Indemnity Amount | Payment Schedule |
|---|---|---|
| 6 – 12 months | 7.5 days of average wages | Paid in June and December |
| Each additional year | 15 days of average wages per year (7.5 days per payment) | Paid in June and December |
The SI replaced the previous end-of-contract indemnity (termination indemnity) for indefinite-term contracts. Employees on fixed-term contracts (CDD) are not subject to SI but are entitled to an end-of-contract indemnity upon completion of their contract.
Cambodia Payroll Filing Calendar
UniqHRM Cambodia Support — Coming Soon
UniqHRM is actively developing full Cambodia payroll compliance support as part of our ASEAN expansion. The planned feature set includes:
- GDT Tax on Salary calculation in both KHR and USD
- NSSF Health Care and Occupational Risk contribution automation
- Seniority Indemnity tracking and semi-annual payment calculation
- 28-day Cambodia public holiday calendar integration
- Leave entitlement management under Cambodia Labour Law
- Multi-currency payroll (KHR and USD) for Cambodian businesses