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Cambodia effectively runs on USD for professional employment. Very low NSSF contributions (3.4% employer). Mandatory seniority indemnity (15 days/year, paid June and December). 28 public holidays. Rippling EOR handles GDT, NSSF, and Cambodia Labour Law compliance.
Cambodia is an emerging Southeast Asian digital economy with a growing technology sector in Phnom Penh. Cambodia effectively operates in USD for professional services, eliminating FX risk for US employers. EOR is popular for technology, NGO, and digital economy companies accessing Cambodia's young, cost-competitive workforce. The seniority indemnity (15 days/year from year 1) is the primary employer cost planning item.
Setting up a Cambodian Limited Company requires Ministry of Commerce registration, GDT/NSSF/Ministry of Labour employer registration. EOR is recommended for 1–10 employees, particularly for initial market entry. Cambodia's developing regulatory environment and NSSF registration requirements make local expertise valuable.
NSSF employee: 0.8% (occupational hazard). Income tax (ToP): progressive 0–20% on monthly income; withheld by employer. Very low overall employee deduction burden.
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NSSF employer: 0.8% (occupational hazard) + 2.6% (health care) = 3.4% of gross. Very low by regional standards. Seniority indemnity: 15 days' wages per year of service — paid in two installments (June and December), effectively adding ~6.2% to annual labor cost.
ToP progressive: 0% (up to USD 200/month); 5% (201–400); 10% (401–2,000); 15% (2,001–8,500); 20% (above 8,500). Monthly withholding to GDT.
Annual leave: 18 working days/year (growing by 1.5 days/year of service; capping at 30 days after 8 years). Sick leave: up to 1 month at full pay. Maternity: 90 days at 50% salary. Public holidays: 28 days/year.
Notice: 1 month. Seniority indemnity: full balance paid on termination (15 days/year minus advance payments). Unfair dismissal: 3 months additional compensation. Rippling EOR manages full termination process.
Non-Cambodian nationals require work permits from the Ministry of Labour. Processing: 2–4 weeks. Rippling EOR supports permit applications through its Cambodian entity.
Statutory: NSSF 0.8% + 2.6% health employer (very low), 18 days annual leave (growing with seniority), 90 days maternity at 50%, seniority indemnity (15 days/year paid biannually). Market standard: private health insurance, transport allowance, meal allowance. Phnom Penh is the primary market.
Rippling EOR Cambodia operates through a local Cambodian entity. Key Cambodia-specific handling: NSSF (3.4% employer) monthly contributions, GDT ToP income tax withholding, seniority indemnity biannual payments (June and December), and Labour Law termination calculations.
Cambodia's seniority indemnity is a mandatory payment of 15 days' wages per year of seniority (service), paid twice yearly as advance payments: June and December. After 1 year of service, the employee receives 7.5 days' wages in June and 7.5 days' wages in December. On termination, the full accrued balance (minus advance payments made) is paid out. This is a significant labor cost from year 1 — budget accordingly.
Cambodia effectively operates in USD for professional and technology sector employment. Salaries, invoices, and most commercial transactions are in USD. Rippling EOR pays salaries in USD, eliminating FX risk for US employers entirely.
Cambodia has 28 public holidays per year — one of the highest globally. This includes Khmer New Year (3 days), Water Festival (3 days), and numerous Buddhist and national holidays. Budget for this significant leave entitlement when planning staffing.
Notice: 1 month standard. Seniority indemnity paid on termination: full balance (15 days/year, minus advance payments made). Unfair dismissal: additional 3 months' wages compensation. No reinstatement right. Rippling EOR calculates full termination package.
