Hiring in Cambodia

The terms set out role, salary (usually in USD), working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Bilingual Khmer and English contracts are common for commercial roles.

Fixed-duration contracts can run for up to 2 years, with renewals capped at a further 2 years in total. A fixed-duration contract that is not in writing, or that runs past those limits, becomes indefinite. The choice affects cost: indefinite contracts carry seniority pay, fixed-duration ones a 5% end-of-contract indemnity.

Set probation from day one. It cannot be extended past the statutory maximum, so build any assessment into the first three months.

Some EORs apply the 3-month cap to every hire by default, while others classify roles as specialised or non-specialised, which shortens it. Ask before you agree a start date.

Overtime is paid at 150% of the normal rate, rising to 200% at night (22:00 to 05:00) or on the weekly rest day, and is generally limited to 2 hours a day.

Overtime is meant to be exceptional and needs Ministry of Labour authorisation, so it is not a routine way to stretch a professional role. Put the position in writing either way.

The statutory 18 days is already generous by regional standards, so the budgeting question is the public holiday calendar. The government resets it by sub-decree each year, and it clusters around Khmer New Year, Pchum Ben and the Water Festival.

Paid sick leave follows Ministry guidance: full pay in month one and 60% in months two and three, alongside an NSSF sickness allowance. Maternity leave is 90 days and is partly employer funded and partly NSSF funded, so confirm which side the EOR carries.

Ending an indefinite contract needs a valid reason and either notice or pay in lieu. Seniority pay is settled as you go, in two instalments of 7.5 days' wages each June and December, rather than as a lump sum at exit.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave, any outstanding seniority pay and, on fixed-duration contracts, the 5% end-of-contract indemnity. Employees also get 2 paid days a week during notice to look for work. Wrongful dismissal claims exist, so keep a documented reason.

Private medical cover, dental and group life are standard for professional roles even though they are not mandatory, partly because NSSF healthcare runs through a set network of facilities.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer NSSF contributions add 5.4% on top of gross salary, but only on wages up to KHR 1.2 million a month, which caps the cost at roughly USD 16 per employee. That is before seniority pay and the EOR fee, and the employer pension share is due to double from October 2027.

Fringe benefits are the trap. Benefits in kind such as housing, a car or school fees attract a 20% fringe benefits tax paid by the employer, on top of the benefit itself, so check how the EOR treats each item before it goes into an offer.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the quota, generally 10% of the Cambodian workforce, applies to the sponsor, not to you.

Quotas are applied for between September and November for the following year, and permits expire on 31 December. Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers have no statutory rules yet, and the draft law would add GDPR-style duties once passed.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation is handled online through the Ministry of Commerce, but the running cost is the point: tax registration, monthly tax returns, accounting, audit thresholds, Ministry of Labour registration, an annual foreign worker quota and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.