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Cambodia is a country located in Southeast Asia, bordered by Thailand to the west and northwest, Laos to the north, Vietnam to the east and south, and the Gulf of Thailand to the southwest.
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Cambodia has a growing pool of skilled workers, especially in fields like manufacturing, tourism, and technology. The country also offers a cost-effective labour market with relatively lower wage and operational costs compared to many other countries.
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In Cambodia the minimum wage is at 818,800.00 KHR per month.
Standard Working Hours
In Cambodia, the standard work week consists 8 hours per day and a total of 40 hours per week. Every employee is guaranteed a minimum of 1 day off each work week, with Sunday being the most commonly chosen day for this purpose.
The standard work week is Monday – Saturday.
Any hours worked beyond 40 hours in a week result in compensation at a rate of 150.00% of the employee’s standard pay rate. If the overtime occurs on a Sunday or a public holiday, the rate increases to 200.00% of the regular pay. Employees who work overtime between 10:00 pm and 5:00 am receive an overtime rate equal to 130.00% of their regular pay.
In Cambodia, the payroll cycle is on a monthly basis, with salaries usually paid on the final working day of each month.
Paid time off
In Cambodia, the annual leave allowance varies based on an employee’s length of service.
An employee is eligible to request a sick leave of up to 6 months, however the employee needs to provide a medical certificate. During the initial month of illness, the employee will rceive 100.00% of their standard salary rate, followed by 60.00% for the subsequent 2 months, with no payment for the remaining period of the leave.
In cases where an employee exceeds 6 months of sick leave, the employer retains the authority to terminate the employment.
Women employees have the right to receive 90 days of compensated maternity leave, amounting to 50.00% of their regular salary rate.
Additionally, there is a tax deduction of KHR150,000 per month permitted for each dependent child or spouse.
Paid statutory paternity leave is not provided. However, male employees can use their annual leave allocation for paternity leave, extending up to 7 days.
Termination of Employment
Termination procedures in Cambodia follow a standard protocol, usually involving notice periods, unless the employer can substantiate valid grounds for immediate dismissal, such as misconduct.
In Cambodia, an employer is obligated to provide a rationale for contract termination and give notice to the employee. This may includes termination due to performance, conduct, or economic circumstances. The duration of the notice period varies depending on the employee’s length of service.
In Cambodia, the probationary period is determined based on the employee’s skill level. It is over a period of 3 months for regular employees, 2 months for skilled employees, and 1 month for unskilled employees.
Foreign workers planning to work in Cambodia must possess a valid business visa, known as the E-class visa.
This visa initially has a 30-day validity. Extension options include 1 month, 3 months, 6 months, or a maximum of 1 year, which can be obtained by submitting an application to the Ministry of Interior’s immigration department.
The standard rate of VAT in Cambodia is 10.00%.