Employer of Record in Cambodia (EOR Cambodia)
Last updated
- Capital City
- Phnom Penh
- Languages
- Khmer
- Currency
- Cambodian Riel (KHR)
- Population Size
- Approximately 17.6 million
- Employer Taxes
- 5.4%
- Employee Costs
- 5.4%
- Payroll Frequency
- Monthly
Hire Globally, Pay Locally, Expand Effortlessly
We are your Employer of Record in Cambodia. Cambodia represents a serious goal for many companies looking to expand their international presence among the various countries highlighted as holding the most growth potential. Cambodia is the next destination for many U.S. and international companies, a thriving country that’s seen consistent, rapid growth.
An EOR (Employer of Record in Asia) lets companies hire and work with professionals worldwide in as little as 48 hours. As a cost-effective option for companies looking to expand quickly, an INS Global Employer of Record in Cambodia gives companies total compliance assurance in their target market through global mobility expertise.
An EOR (Employer of Record) is a third-party provider of employment outsourcing services that acts as an employer for tax and HR administrative purposes. INS Global’s Employer of Record in Cambodia allows companies to securely and cost-effectively hire and manage employees overseas in less than 48 hours.
However, while it shows many signs of rapid development, Cambodia suffers from many problems related to this development. While Cambodia generally ranks highly for business opportunities, it has overly complex and underdeveloped bureaucratic processes, high levels of corruption, and poorly developed infrastructure.
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Why Choose A Global Employer of Record Over Company Incorporation?
While there are few restrictions on foreign-owned companies in Cambodia, navigating the complexities surrounding every aspect of local regulations is a significant problem. Setting up a separate legal entity requires a lot of time and hassle that could otherwise be put to better use. A Employer of Record skips much of the hassle that comes with company incorporation and allows you to operate in a new market quickly and easily.
A Employer of Record :
- Allows the fastest possible market entry
- Avoids costly setup fees and processes
- Provides expertise in ensuring compliance with local regulations
- Makes the most of local support and resources
PEO/EOR Vs Company Incorporation
The Advantage in Figures
| PEO/EOR | Company Incorporation | |
|---|---|---|
| Price | 80% Less Expensive | |
| Market Entry | 2-5 Days | 6 Months |
| Employee Turnover | Decrease by 14% | |
| Recommendation | 98% of the Current PEO Clients | |
| Administrative Fees | Saves an Average of $450 | |
| Costly Payroll and Compliance Fines | Help Avoid | |
| Company Growth Rate | 7 – 9% | |
| ROI | 27% | |
| Closed During Pandemic | -58% | |
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Advantages to using a Employer of Record in Cambodia
Rapid Market Entry
Begin operations in days instead of months.
Less Distraction
We take care of the complexities of regulatory compliance, leaving you to work on what matters to your success.
Legal Compliance
Enjoy the highest levels of local legal compliance from professional compliance experts
Reduced Time and Cost
Save time and money by avoiding fees, fines, and frustration.
What are the Steps to Forming a Employer of Record partnership in Cambodia?
INS Global has 15+ years in global Employer of Record services. We base our system for organizing and managing employee assignment needs on the following simple steps:
- 1
We meet you to discuss your requirements and together come up with an individualized services plan.
- 2
Our local EOR provides you with the means to hire and pay staff in Cambodia
- 3
INS Global manages as many aspects of HR services for your employees in Cambodia as you require.
- 4
Your team in Cambodia begin operations and get to work on making the most of your new opportunity.
INS GUIDES
Check OurLabor Law Guide
Learn how the Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
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Labor Law in Cambodia
Employment Contracts in Cambodia
There are two types of employment contracts in Cambodia. These are classified as Fixed (Sometimes called Specific) Duration or Unfixed (Sometimes called Undetermined) Duration.
A fixed Duration contract can be anything up to 2 years, after which time it automatically becomes Unfixed. A fixed contract may be made either orally or through a written agreement. However, an Unfixed contract must be defined legally in a written contract.
An employer can set a probationary period at the beginning of the contract lasting up to a maximum of 3 months.
In the case of unilateral termination, the employer must give a notice period of between 7 days to 3 months, depending on the length of the employee’s service.
Reimbursement for termination without a valid reason can be severe.
Working hours in Cambodia may be higher than those in some of its neighbors. According to the WHO, 11.5% of workers in Cambodia work “excessive” hours to the point of it being a health concern.
That being said, typically, the working hours in Cambodia are 8 hours per day or 48 hours per week. Overtime can be up to 2 hours per day. There are no standardized legal specifications for lunch breaks or any kind of break.
Types Of Leave
Cambodia has many national holidays which change yearly. Employers should be aware of official government announcements of annual public holidays as they are announced.
In 2022, there will be 21 days of paid national holidays. This has been reduced since 2020 when the government announced it would be reducing the number of public holidays due to the complications caused by such a large amount of paid days off.
Annual leave is also generous. After 1 year of service, an employee should receive 1.5 days of annual leave per month of service (This is based on a 48-hour work week. Employees working less than 48 hours receive a leave allowance of a pro-rata basis).
Upon getting proper validation by a medical professional, an employee in Cambodia may be eligible for up to 6 months of medical leave. An employer cannot terminate an employee’s contract during this period.
Paid sick leave is not required, though it is generally suggested that employers pay:
In the case of a work-related incident, the employer must pay all necessary bills and treatment costs.
Since 2020, Cambodian Labor Law has allowed for 90 days of maternity leave after a year of service, at least 6 weeks of which must be taken after birth. A worker who uses maternity leave is protected from termination during this period. They should receive 50% of their regular salary.
Currently, there is no paid paternity or parental leave. However, this is a topic of discussion and may change soon.
Tax Law
Tax in Cambodia is paid monthly according to all earned income. Residents (anyone residing in Cambodia over 182 days in a year) are taxed on a progressive scale from 5% on anything above KHR 1.3million to 20% on anything above KHR 12.5 million.
Employers are expected to pay 2.6% of an employee’s monthly earnings above KHR 200,000 towards the employee’s Health Care Scheme and 0.8% towards the Occupational Risk Scheme.
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Frequently Asked Questions
Global Employer of Record is an effective solution for companies looking to expand their workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiently, providing access to a global talent pool while still managing payroll compliance in each country.
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