Key Country Facts
Currency: Cambodian Riel (KHR)
Time zone: GMT +7
Capital city: Phnom Penh
Official language: Cambodia has a single official language which is Khmer. It is spoken by nearly 90% of the country’s population. The language is used in government administration, imparting education at all levels, media, etc. After the Vietnamese language, Khmer is also the second most widely spoken Austroasiatic language.
The contract should have primary information such as, kind of contract, passport, start date, end date, position, salary and other benefit, job description. Any element of an employment contract that fails to do so is considered invalid. To be covered by the Labor Law, a person must:
- perform work, be remunerated, and
- be under the direction and supervision of another person.
In the case of independent contractors, or others under contract to perform a specific task, this second condition might not be satisfied, exempting them from the Labor Law completely. An employment contract is required by law and must be written and signed by both the employee and employer.
There are 2 types of contracts: Undetermined Duration Contract (UDC) and Fixed Duration Contract (FDC).
Under the Cambodian Labor Law, a contract for work to be performed is defined as a fixed duration contract.
|International New Year’s Day||Jan 1st|
|Victory Day over Genocide||Jan 7th|
|International Women’s Day||Mar 8th|
|Khmer New Year Days||Apr 14th to 16th|
|Visak Bochea Day||Apr 26|
|Royal Ploughing Ceremony||Apr 30|
|International Labour Day||May 1st|
|King Norodom Sihamoni’s Birthday||May 14th|
|King’s Mother’s Birthday||Jun 18th|
|Constitution Day||Sep 24th|
|Pchum Ben Festival||Oct 5 to 7|
|Commemoration Day of King’s Father||Oct 15th|
|King Norodom Sihamoni’s Coronation Day||Oct 29th|
|National Independence Day||Nov 9th|
|Water Festival||Nov 18 to 20|
Organizations are required to give their employees paid annual leave of 1.5 days per month, for a total of 18 days per year. For every 3 years of continuous service, employees are entitled to an additional day of leave per year. For example, after the third year of continuous service, the number of paid annual leave days will be 19 days per year, after 6 years it will be 20 days per year, and so on.
The Labor Law is generally silent on the matter of sick leave, other than requiring an organization to suspend a contract for up to six months in case of illness. In other words, the employer is required to hold a sick employee’s position, without pay, for at least six months.
However, the Arbitration Council and certain Prakas have found that every organization must set up internal regulations to provide sick leave to employees when they present certification from a doctor confirming their illness.
This is separate from annual leave.
Expectant mothers are entitled to 90 days of maternity leave after one year of continuous service. There is no restriction on whether the leave must start before or after the birth.
The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. The employer should just give a 7 days prior notice and pay the remaining salary.
Bonus is not compulsory, so it depends on company policy. Most pay a 13th month bonus. In practice, the company pays bonus from 1- 4 month based on performance and company budget.
Cambodia Social Security
National Social Security Fund (NSSF)
The NSSF provides benefits and compensation to all NSSF members not only on the injury treatments of workers but also include the prevention of personal health or non-work injury.
The Occupational Risk Scheme is focused on the treatment of injured workers. The Health Care Scheme is focused on the offering of health care package and health prevention services. Health care package refers to medical care services, patient or victim referral service and corpse transportation, and daily allowance.
The benefits are categorized as (1) Medical treatment benefit, (2) Temporary disablement benefit, (3) Nursing benefit, (4) Permanent disablement benefit, (5) Constant attendance benefit, and (6) Survivors benefit. Injured employee is provided with medical treatment benefits including medical care and transportation.
It is regarded as an employer’s responsibility, hence all contributions to the NSSF are borne by the employer. Contribution of occupational risk scheme is at 0.8% of employee’s gross salary, and contribution of health care scheme is at 1.3% of employee’s gross salary. Maximum contribution per month is approximately USD 10.2 per employee.
Cambodia Health Insurance Law
Supplemental insurances: Beyond the compulsory NSSF, there is no legal requirement for insurance. However, employers tend to offer GPA, H&S and life insurance (rare).
This information does not constitute legal advice.