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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.

Employment Contracts

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.

Cambodia Holidays

Holiday Date
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

Vacation

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.

Sick Leave

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.

Maternity/Paternity 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.

Termination/Severance

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

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.

Full Country HR at a Glance

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