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Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
KHR ៛ (Cambodian Riel) / USD
Employer contributions
0.8% employer NSSF (occupational risk) + 1.3% maternity
Minimum wage
USD 204/month (2026 garment sector minimum)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Phnom Penh
Timezone
ICT (GMT+7)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~USD 1,021 total
/month
For a gross salary of
USD 1,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
0.8% employer NSSF (occupational risk) + 1.3% maternity
Mandatory extras
Annual Bonus (Seniority Indemnity)
Monthly admin
Monthly payroll - ToS by 20th - NSSF by 20th - semi-annual seniority payment
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~USD 1,021 total
Example gross salary
USD 1,000 gross/month
~USD 872 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~USD 21 NSSF
Employer contributions on that salary
Employer contributions
0.8% employer NSSF (occupational risk) + 1.3% maternity
Employee contributions
0% employee NSSF + income tax (ToI)
Total cost above gross
~0.8% above gross (NSSF)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~USD 400
Per month
Phnom Penh
USD 500 - 2,000
~40%
Siem Reap
USD 400 - 1,500
~15%
Monthly gross. National average salary per year:
~USD 4,800
Minimum wage
USD 204/month (2026 garment sector minimum)
Paid:
Monthly
Extra pay
Annual Bonus (Seniority Indemnity)
Mandatory seniority payment: 7.5 days every 6 months (2019 reform)
Every 6 months
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to KHR 1.3M / 5% / 10% / 15% / 20%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by 20th
Social security payments
March 31 (annual Tax on Income)
Income tax
End of January
Employee tax certificate
Annual salary declaration certificate
March 31
Annual return
Annual Tax on Salary (ToS) Reconciliation
Late payment penalties
Late ToS: 10% penalty + 2% monthly; late NSSF: 2% monthly
Who collects what
General Department of Taxation (GDT)
Tax on Salary (ToS)
NSSF
Social security (occupational risk, health, pension)
Ministry of Labour and Vocational Training (MLVT)
Labor law enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
15 days/year (1.25 days/month)
Public holidays
~28 public holidays (one of the world's highest)
Sick leave
Sick Leave
Full pay from employer for sick days (with certificate)
Maternity leave
13 weeks (90 days) maternity
NSSF pays 70% of contribution wage
The contracts you can use, and what ending an employment relationship costs.
Permanent
Undetermined Duration Contract
Fixed term
Determined Duration Contract (max 2 years)
Independent contractor
Service Contract
Collective agreements
Collective Agreement (CBA in garments)
Ending employment
Seniority Indemnity
How it is calculated
7.5 days wage every 6 months of service (since 2019)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Seniority Indemnity Calculation Errors
Risk Level: HIGH
Cambodia's mandatory seniority indemnity (7.5 days per 6 months) must be paid twice yearly to all employees regardless of contract type. The calculation base includes basic wages plus seniority from previous cycles. Many foreign employers are unaware this replaces (not supplements) traditional severance. MLVT inspections are frequent in manufacturing.
Determined Duration Contract (DDC) Abuse
Risk Level: HIGH
Cambodian law permits DDC only for specific temporary activities. The maximum DDC duration is 2 years including renewals. Chaining multiple DDCs for the same role triggers automatic permanent employment conversion. MLVT has increased DDC compliance inspections since 2023.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
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$49
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FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.