Payroll outsourcing service in Cambodia.

Employers in Cambodia must withhold and remit Tax on Salary (ToS) and make monthly contributions to the National Social Security Fund (NSSF) on behalf of their employees.

NSSF registration is mandatory for employers with eight or more employees and must be completed before the first contribution is due. ToS must be filed and remitted to the General Department of Taxation (GDT) by the 20th of the following month, and NSSF contributions must be paid by the 15th.

Failure to register or file on time attracts penalties and interest charges. Foreign-owned companies are subject to the same obligations as locally incorporated entities with no exemptions based on ownership structure.

NSSF contributions cover three schemes, each calculated on a capped monthly wage of KHR 1,200,000. The schemes and applicable rates are:

• Occupational risk insurance: 0.8%, paid entirely by the employer
• Healthcare: 2.6%, paid entirely by the employer
• Pension (introduced October 2022): 4% combined, split equally at 2% employer and 2% employee

The total employer-only cost across all three schemes is 7.4% of the capped wage. All contributions must be paid by the 15th of the following month, and late payments attract a 2% interest charge on the outstanding amount.

Tax on Salary (ToS) is a monthly withholding tax deducted by the employer and remitted to the General Department of Taxation (GDT) by the 20th of the following month. For resident employees, the progressive monthly rates are:

• 0% on monthly income up to KHR 1,500,000
• 5% from KHR 1,500,001 to KHR 2,000,000
• 10% from KHR 2,000,001 to KHR 8,500,000
• 15% from KHR 8,500,001 to KHR 12,500,000
• 20% on income above KHR 12,500,000

Fringe benefits provided to employees are also subject to ToS at a flat rate of 20% regardless of residency status. Non-resident employees are taxed at a flat 20% on all Cambodia-sourced salary. Employers are liable for any shortfall if ToS is incorrectly withheld. For a broader overview of personal income tax obligations in Cambodia, including residency rules and annual filing requirements, see the personal income tax guide.

Seniority pay is a statutory cash payment required under Cambodia’s Labour Law for all employees on undetermined duration contracts (UDCs). Employers must pay the equivalent of 15 days of wages and fringe benefits per year of service, split into two equal instalments of 7.5 days paid each June and December. Bonuses are excluded from the calculation.

During an employee’s first calendar year, a pro-rata payment applies if the employee has worked continuously for between one and six months. Seniority pay is a recurring payroll obligation rather than a termination payment and must be factored into total employment costs from the point of hire. For a full breakdown of UDC costs and termination obligations, see the payroll and HR requirements guide.

Cambodia’s statutory minimum wage applies specifically to workers in the garment, textile, footwear and travel goods sectors. Following the 2025 annual review, the minimum wage for regular workers was set at USD 208 per month, with probationary workers receiving USD 206. The rate was increased to USD 210 for 2026. The rate is reviewed annually through a tripartite negotiation process involving the government, employers and worker representatives.

No statutory minimum wage applies to other sectors, though market rates and collective bargaining agreements may set effective floors in practice. Businesses outside the garment sector should base compensation on prevailing market rates and any applicable collective agreements. For further detail on minimum wage provisions and other employment obligations, see the understanding employment and labour law in Cambodia guide.