Providing the right level of compensation and benefits in Cambodia will make a difference for your team and business. Your company needs to meet Cambodia’s compensation laws while providing a competitive benefits plan to attract the right candidates and encourage longevity. However, it can be challenging to source these benefits and ensure you’re meeting the right laws.
But G-P can help. Our experts understand all of Cambodia’s labor laws, and as a global Employer of Record (EOR), we’ll ensure all matters of compliance and compensation are taken care of. When you work with us, you’ll only have to worry about running your company.
Cambodia compensation laws
An employee’s minimum wage in Cambodia depends on 2 factors — industry and Collective Bargaining Agreements (CBAs). For example, the textiles and footwear industries increased their minimum wage to USD 192 a month in 2021. However, different industries may have their own minimum wage, and CBAs will typically outline separate Cambodia compensation laws.
Employees who work more than the standard 8-hour day or 48-hour workweek should get paid for overtime at 1.5 times their regular wage. If they work at night, on a Sunday, or on a holiday, they should make 2 times their regular rate.
Guaranteed benefits in Cambodia
All employees must receive statutory benefits required by law. You can start your Cambodia benefits management plan by including time off for holidays and paid annual vacation. Cambodia celebrates 19 public holidays, many of which extend for multiple days. You should include paid holidays in an employment contract to make sure employees are aware.
Employees should also receive 1.5 days of annual paid leave for each month they work. After 3 years of work for a company, they should get an additional day off per year. Expecting employees who have worked for a company for at least 1 year are entitled to 90 days of maternity leave at half their normal salary. Fathers should get 1 day of paid paternity leave.
Cambodia benefits management
Once you craft your Cambodia benefits plan, you need to determine which supplemental benefits you will offer your team. It can help to provide supplemental benefits that aren’t required by law but will make a difference in employee satisfaction. Most employees expect a seniority bonus between USD 2-11 a month that corresponds to their length of service after working 1 year. After working 11 years, the bonus is capped at USD 11.
Cambodian employees often expect the following fringe benefits as well:
- Healthcare allowances
- Housing allowances
- Transportation allowances
- Attendance bonuses
Restrictions for benefits and compensation
Traditionally, companies looking to expand to Cambodia have to establish a subsidiary in the country before providing compensation and benefits. However, G-P provides an alternative to help you start working faster. You don’t have to set up a subsidiary when you partner with us. As a global EOR, we’ll make sure you meet the country’s compensation laws and provide the right level of benefits to stay compliant.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.