Employer of Record in Cambodia & PEO | INS Global

PEO in Cambodia

Hire Globally, Pay Locally, Expand Effortlessly

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 international PEO, sometimes called 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 PEO 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 EOR 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. 

Want to have a Team in Cambodia TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to have a Team in Cambodia TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

PEO in Cambodia - Summary

PEO in Cambodia

Advantages to using a PEO in Cambodia

All-In-One Streamlining

Have all necessary HR services taken care of through one platform.

Rapid Market Entry

Begin operations in days instead of months.

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.

Less Distraction

We take care of the complexities of regulatory compliance, leaving you to work on what matters to your success.

Why Choose A Global PEO 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 PEO skips much of the hassle that comes with company incorporation and allows you to operate in a new market quickly and easily.  

  • 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
80% Less Expensive
Market Entry
2-5 Days
6 Months
Employee Turnover
Decrease by 14%
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%
Closed During Pandemic


Manuel Ramos


Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.


What are the Steps to Forming a PEO partnership in Cambodia?

INS Global has 15+ years in global PEO 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 PEO 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.

How do PEO and Employer Of Record Services Differ?

Before deciding on the range of services you require to begin operations in Cambodia, it’s helpful to understand the difference between a PEO and an EOR. In most countries, the two operate almost identically. Still, the two terms may be used to distinguish between the range of services offered. Typically: 

  • A PEO provides HR services to employees of other companies. 
  • These may extend to but aren’t limited to payroll, tax, legal compliance, and benefits management services. 
  • The PEO makes a contract with the original company.
  • An EOR legally and officially hires employees on behalf of another company. 
  • In addition to the services offered by a Global PEO, an EOR takes on all liabilities encompassed by recruiting and employing staff members. 
  • The EOR may make a contract with the employee on behalf of the original company.

As in most countries, the distinction between the two services is limited in Cambodia. PEOs may act as Global Employer Of Records, offering the full range of services open to both.  

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.  

At the end of a contract, the employer must offer a severance payment of 7 days’ wages for 6-12 months of service and 15 days for each year of service up to a maximum of 6 months. 

Working Hours in Cambodia

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.   

Overtime is paid at 150% of standard pay, which rises to 200% if the overtime is at night, on a Sunday, or during a public holiday.  

Holidays and Annual Leave in Cambodia

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).  

Sick Leave in Cambodia

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:

  • 100% salary for the first month 
  • 60% salary during the 2nd and 3rd months 
  • 0% salary during the 4th to 6th months 

In the case of a work-related incident, the employer must pay all necessary bills and treatment costs.  

Maternity and Paternity Leave in Cambodia

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 and Benefits in Cambodia

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. 

Non-residents pay a standard flat rate of 20%.  

All “fringe benefits” related to an employee’s contract are taxed at 20%.  

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.  

As of 2021, the employer and employee are each expected to contribute 2% of an employee’s monthly salary to the National Pension Scheme. 

Check about Severance Pay in Malaysia.

PEO in Cambodia


Discover More Solutions in Cambodia


The price of expert EOR services in Cambodia is determined as a percentage of the monthly compensation of a coworker. This pricing covers all HR tasks required to ensure compliance with all local employment rules.  

Yes, managing employer responsibilities in Cambodia through a Cambodia EOR is a safe, legal, and efficient approach to maintaining compliance without having to set up a special corporate structure there. This is so that an EOR can make use of a legal firm that has already been established and has competent HR support in the target market. 

With an EOR, your team members have access to all available employee benefits in Cambodia, have the chance to receive even better benefits packages, are completely protected according to the law, and receive accurate and on-time payments each month.

While keeping total liberty over their work, independent contractors who collaborate with their clients through a Cambodian EOR framework could make use of many or all of the same employee perks as regular workers, as if they were going through an umbrella company.  

Our team of expert recruiting consultants can find the best local talent in Cambodia for your needs by drawing on their in-depth knowledge of local business resources and benchmarks, wide professional networks, and steadfast commitment to ethical hiring practices. These new hires can then be easily integrated into our EOR structure. 

You can have comprehensive compliance-assured employment outsourcing support from a truly global EOR services provider through INS Global that complies with all local, regional, and national legislation. As a result, you may confidently recruit staff in Cambodia wherever you need them, knowing that all local standards and specifications will be satisfied.  

Some PEO or EOR service providers in Cambodia may have minimum hiring requirements or a limit on the number of employees you may hire at once. INS Global is aware that your strategy for international expansion could at any point require you to scale up or down quickly.  

That’s why, with us, you can hire as many or as few employees as you need for the freedom to work towards your goals. 

The entire cost of hiring in Cambodia should include salary, recruiting service fees, any signing bonuses, as well as other direct and indirect costs including incentive schemes, incentives, and regular tax and social insurance payments.  

The ideal way to get around the challenges of starting a business in Cambodia and do away with the requirement that you have a physical address there is to use Cambodian PEO services.  

However, it’s still advisable to provide your staff the option of working in a shared workspace or allowing them to do so whenever and wherever it’s convenient. 

Yes, when local employment laws, tax regimes, or employee benefits differ for Cambodian or foreign people, we ensure total compliance assurance by matching individuals with the necessary visa and work permit requirements.  

For companies of all sizes, from SMEs to multinational corporations, EOR and PEO solutions are the best options to ensure the efficient and secure hiring of foreign or local workers. This is because they can be swiftly scaled up to meet expanding employment demands as a corporation expands abroad and because they can substitute more complex internal HR requirements.  

The legal expertise provided by PEO and EOR services would be very beneficial for businesses in a variety of industries that either don’t have their own structures in a target country or seek to avoid cost-scaling difficulties while focusing on expansion.  

Staffing firms and umbrella businesses are two instances of third parties that may be used to directly or indirectly engage independent contractors.  

In Cambodia, the majority of independent contractors are either self-employed or own their own small enterprises. Contractors must be hired in accordance with a work agreement rather than an employment contract, as required by Cambodian law. 

Before work starts, an independent contractor can be required to provide a CV, portfolio, verified references, and possibly a signed NDA.  

The typical payroll cycle for employees in Cambodia is once per month. However, for laborers, the maximum amount of time possible between pay periods is 16 days.  

There is no legally mandated 13th-month payment in Cambodia.  

Cambodia’s minimum wage in 2023 is KHR818,800.00 (around USD200).  

Those wishing to enter Cambodia for work purposes will require an E visa. E visas are initially granted for 30 days, which can then be extended for up to a year. A work permit and foreign employment card will then also be required for those seeking to live and take up employment.  

Those who can claim Cambodian ancestry may enter the country with a Khmer visa which grants an unlimited duration of stay.  

In Cambodia, employers are responsible for overseeing and paying a variety of payroll taxes on behalf of their staff members, in addition to making separate employer contributions as part of the payroll procedure. Employers pay into an employee’s pension, Occupational Risk Contribution (ORC), National Social Security Fund (NSSF), and healthcare.  

Employers should expect to pay around 5.4% of an employee’s salary in contributions each month, which rises according to the employee’s length of service. 

Employees in Cambodia are entitled to healthcare, paid leave, and some allowances for travel and housing. These benefits become better after 9 months of continuous employment.  

While performance bonuses are mandatory in Cambodia, they are common and may be expected.  

While any amendments to a contract are supposed to be made through the agreement of employer and employee, employers can add a clause into a contract reserving their right to unilaterally make reasonable changes, so long as these changes don’t contravene basic employment requirements.  

Social security in Cambodia entitles workers to basic medical treatment for free or at minimal expense. However, private healthcare insurance is expected by many workers due to the perceived quality of public healthcare available.  

In general, even local citizens who have the ability may try to seek treatment for serious medical conditions abroad. This may require providing international private medical insurance.

Fixed-term contracts require 10-15 days of notice before termination, and indefinite contracts require 7-90 days depending on the length of the contract. Severance pay requirements in Cambodia are extremely beneficial to the worker, and multiple costs, from paid days of leave when seeking new employment, to seniority payments, must all be considered.  

Many of Cambodia’s labor laws are made by the Ministry of Labour and Vocational Training (MLVT), which regulates much of the relationship between employer and employee.  

Public holidays in Cambodia largely depend on a lunar calendar, meaning they will change each year. As a result, the government announces a list of 26-29 public holidays each year. These public holidays are paid time-off, with substitution days being given for holidays falling on weekends