The 2026 Cambodia employment guide requires employers to distinguish the sector-specific minimum wage from general market pay. From January 1, 2026, regular workers in the garment, textile, footwear, travel-product and bag sectors must receive at least USD 210 per month, while probationary workers in those sectors must receive at least USD 208. Cambodia has not established the same statutory figure as a universal minimum wage for every industry.

Companies hiring employees in Cambodia must also manage Cambodia payroll, National Social Security Fund (NSSF) registration and contributions, working-time records, paid leave, seniority payments and foreign-work authorization. The exact result depends on the employee’s sector, contract type, remuneration, service, residence and immigration status.

1. 2026 Cambodia Employment Compliance at a Glance

Employers should not combine NSSF occupational-risk, healthcare and pension contributions into one unexplained percentage. Each scheme has a different payer, contribution rule and benefit purpose.

2. Employment Changes Employers Must Implement in 2026

Covered-sector minimum wages increased on January 1, 2026. Prakas No. 214/25 set monthly minimum wages of USD 210 for regular workers and USD 208 for probationary workers in garment, textile, footwear, travel-product and bag enterprises. Piece-rate workers must receive the production-based amount when higher, with a top-up to the applicable minimum when production pay is lower.

The 2026 foreign-work-permit timetable requires active monitoring. Existing foreign workers holding a 2025 permit had to renew by March 31, 2026. Foreign nationals newly entering Cambodia for work or business generally must apply within 90 days after entry. Employers should track both the employee quota and the individual work permit and employment book.

Employers must implement the 2026 paid-holiday calendar. Sub-Decree No. 167 and Ministry of Labour and Vocational Training Prakas No. 216/25 established 21 paid public-holiday dates for workers and employees in 2026. Payroll and scheduling systems should identify work performed on these dates and apply the required holiday compensation.

3. Employment Laws and Regulatory Authorities

The Labour Law is the principal source of minimum employment conditions for covered workers. It regulates employment contracts, wages, working time, leave, workplace representation, discipline and termination. Other important instruments include the Law on Minimum Wage, Law on Social Security Schemes, Law on Trade Unions, Law on Immigration and regulations issued by the Ministry of Labour and Vocational Training (MLVT).

The MLVT administers labour registration, inspection, foreign-employee quotas and work permits. The National Social Security Fund manages occupational-risk, healthcare and pension schemes. The General Department of Taxation administers Tax on Salary and Fringe Benefits Tax.

Employee status depends on the real working relationship. Calling a worker a consultant or independent contractor does not prevent the Labour Law from applying when the business controls the work, schedule and integration of that individual.

Enterprises should maintain required labour registrations, internal regulations and employee-representative arrangements. An enterprise normally employing at least eight workers must facilitate the election of a shop steward under the applicable rules.

4. Recruitment, Offers and Onboarding

Before issuing an offer, confirm the position, workplace, contract type, salary currency, wage components, pay cycle, working schedule, probation, leave, benefits, seniority-payment treatment and work-authorization needs.

Employers should not allow a foreign employee to start merely because a business visa has been obtained. The quota, work permit and immigration status must support the actual employer and activity.

5. Employment Contracts, Contract Types and Probation

Cambodian law distinguishes a fixed-duration contract (FDC) from an undetermined-duration contract (UDC). An FDC must be written, contain a specific ending date and comply with the statutory limits on duration and renewal. A contract that lacks the required characteristics or continues beyond the permitted framework may be treated as a UDC.

A UDC has no predetermined end date and continues until lawfully terminated. This classification affects notice, seniority payments and termination compensation.

A written contract should cover duties, workplace, remuneration, pay dates, normal hours, overtime, weekly rest, holidays, annual leave, probation, benefits, confidentiality, intellectual property, discipline and termination.

Probation commonly varies by role and must remain within the legally permitted period. Frequently cited maximums are three months for regular employees, two months for specialised workers and one month for non-specialised workers. The contract should state the applicable period clearly rather than treating probation as unrestricted employment.

6. Wages, Minimum Wage and Gross-to-Net Payroll

The 2026 statutory minimum wage applies to specified manufacturing sectors rather than every Cambodian employee:

Covered sectors are garment, textile, footwear, travel-product and bag manufacturing. Employers in other sectors must review contractual pay, collective arrangements and any industry-specific rule instead of automatically applying USD 210 as a national minimum.

The increase for a covered regular worker from the 2025 minimum is:

USD 210 − USD 208 = USD 2 per month

Covered workers may also have sector-specific allowances and bonuses. Under the 2026 instrument, existing items include a USD 7 monthly transportation or accommodation allowance, a USD 10 attendance bonus, an overtime meal allowance of USD 0.50 per day or one free meal, and a seniority bonus that may range from USD 2 to USD 11 per month for relevant service years.

A simplified payroll calculation is:

Gross salary + overtime + taxable allowances and benefits − employee pension contribution − Tax on Salary − other lawful deductions = net pay

Manual workers are generally paid at least twice per month, while employees are generally paid at least monthly. Employers should document exchange-rate treatment when contracts or payroll use both USD and KHR.

7. Working Hours, Overtime, Rest Days and Records

Normal working time is generally eight hours per day and 48 hours per week. The same worker may not normally be employed for more than six days per week. Weekly rest must last at least 24 consecutive hours and is, in principle, provided on Sunday.

Overtime should be exceptional, authorized and accurately recorded. It is generally limited to two hours per day. Common statutory pay treatment includes:

Night work is associated with the statutory night interval that includes 10:00 p.m. to 5:00 a.m. Employers should distinguish ordinary night work from overtime performed at night.

Time records should show scheduled hours, actual start and finish times, overtime authorization, weekly rest and public-holiday work. Employers should retain payroll and attendance evidence in a form that can be produced during inspection or a dispute.

8. Public Holidays, Annual Leave and Other Leave

Cambodia’s 2026 schedule contains 21 paid public-holiday dates. One calendar date, May 1, carries both Labour Day and Visak Bochea significance.

Employees accrue paid annual leave at 1.5 working days for each month of continuous service, normally equivalent to 18 days per year. The entitlement increases by one additional day for every three years of service. Annual leave generally cannot be replaced with cash during continuing employment merely for administrative convenience.

Women are entitled to 90 days of maternity leave. An employee with at least one year of uninterrupted service is generally entitled to 50% of wages and benefits from the employer during statutory maternity leave, while eligible NSSF members may separately qualify for NSSF maternity benefits. After returning, protected light-work and breastfeeding arrangements may apply.

Special leave of up to seven days may be available for events directly affecting the employee’s immediate family, subject to the statutory framework and the employer’s implementation.

9. NSSF, Mandatory Benefits and Tax

NSSF and payroll-tax obligations should be separated by scheme:

NSSF contributions are calculated using statutory contributory-wage brackets and caps, not necessarily the employee’s entire cash salary. A commonly applicable upper contributory wage is KHR 1,200,000, but employers should verify the current table and employee classification before payroll setup.

Using the capped contributory wage as an illustration, the employer-side NSSF amount would be:

KHR 1,200,000 × (0.8% + 2.6% + 2%) = KHR 64,800

The employee pension deduction in the same illustration would be:

KHR 1,200,000 × 2% = KHR 24,000

These are illustrative calculations, not a substitute for the current NSSF wage table. Employers must also withhold Tax on Salary monthly and identify taxable cash and non-cash benefits correctly.

10. Local and Foreign Employees

Cambodian nationals can generally work without an immigration work permit. Foreign nationals require the correct immigration status, foreign-employee quota, work permit and employment book.

The standard foreign-worker quota is generally limited to 10% of the local workforce: 3% office employees, 6% skilled workers and 1% unskilled workers. An employer needing to exceed the cap may request special approval from the MLVT but should not assume approval will be granted.

Quota applications for the 2026 calendar year were generally due by November 30, 2025. Existing foreign employees had a March 31, 2026 renewal deadline. A newly entering foreign worker generally must apply within 90 days after entry.

Quota approval and an individual work permit are separate. Employers should also check passport validity, visa or extension status, role, workplace, employment contract, tax residence and NSSF coverage.

An employer of record (EOR) arrangement does not automatically guarantee immigration approval. The employing entity must have the operational and quota capacity to support the role.

11. Remote Work, Data Privacy and Record Keeping

Remote work does not remove Cambodian working-time, wage, tax, NSSF or immigration obligations. The employer should establish written rules for approved locations, availability, time recording, overtime approval, equipment, expenses, confidentiality and information security.

Employee data should be collected for legitimate employment purposes, kept accurate and restricted to authorized users. Cross-border HR systems should use appropriate contractual, technical and access controls even where Cambodia’s privacy framework is less consolidated than the European Union’s GDPR.

Employers should preserve contracts, payroll registers, payslips, attendance, overtime approvals, leave, NSSF filings, Tax on Salary returns, employee-representative records, disciplinary documents, work permits and termination settlements.

If an employee works from another country, the company should assess that location’s payroll, tax, social-security, immigration and permanent-establishment exposure before approving the arrangement.

12. Termination, Seniority Payments and Final Settlement

Termination requirements depend heavily on whether the employee has an FDC or UDC and whether the separation is expiry, resignation, lawful employer termination, serious misconduct or an unlawful early termination.

For a UDC, statutory notice commonly follows service:

UDC employees generally accrue seniority payments equal to 15 days of wages and benefits per year, normally paid as 7.5 days with June wages and 7.5 days with December wages. Termination settlement must account for the current period and any applicable unpaid seniority amounts.

An FDC normally ends on its agreed expiry date if the required advance notice is given. The employee generally receives an end-of-contract indemnity of at least 5% of wages paid during the contract, unless a collective agreement provides more. Early termination without a legally accepted ground or mutual agreement can create damages linked to the remaining term.

Final settlement should address earned wages, overtime, unused annual leave, seniority or FDC indemnity, notice or damages, tax, NSSF reporting, work-permit cancellation and return of company property. Serious-misconduct cases require prompt and procedurally careful action.

13. Choosing an Employment Model: Entity, EOR or Payroll Outsourcing

EOR is an employment model, not an exemption from Cambodian law. The client company must still coordinate performance management, working time, bonuses, leave and termination decisions with the legal employer.

If a company already maintains a Cambodia entity, payroll outsourcing or shared HR administration may be more efficient. Providers should be assessed on local employment capability, payroll controls, NSSF administration, foreign-worker compliance, data protection and exit procedures.

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