Hiring at a Glance

Cambodia is an emerging Southeast Asian economy with a rapidly growing workforce and improving education levels. The country’s labor market has a large young population and rising English proficiency in urban areas. Infrastructure and regulatory challenges remain, but increasing digital adoption and modernization are creating opportunities for investors. An Employer of Record (EOR) can enable compliant hiring in Cambodia without establishing a local entity, which avoids the complex and time-consuming setup process of a Cambodian subsidiary.

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Key characteristics of the talent market

Cambodian workers are young and cost-competitive, with strengths in manufacturing, services, and basic tech roles. The market is still developing: many Cambodian graduates have basic vocational or IT training, and English is more common in cities. Local businesses follow a strong hierarchical culture, so foreign companies must adapt management styles. Rapid economic development has led to improving worker skill levels, but training and development is often necessary to build advanced skills. Employers should be prepared for compliance sensitivities: labor law strictly regulates contracts, termination notice periods, and severance.

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Most In-Demand Skills in 2026

High-growth sectors in Cambodia include manufacturing (especially garments, electronics, automotive parts) and tourism. In practice, in-demand skills tend to be operational and technical: factory line supervisors and quality controllers are needed in manufacturing, while software, IT support, and finance expertise are emerging priorities. Global firms report strong demand for IT support, operations management, and accounting/finance staff as the economy diversifies. (The country’s nascent tech sector also needs digital marketing and customer support talent as more businesses go online.)

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Top Universities Supplying Talent

Key local universities include the Royal University of Phnom Penh (RUPP), Institute of Technology of Cambodia (ITC), and the National University of Management (NUM). These institutions produce graduates in fields like engineering, computer science, business, and finance. While Cambodia’s universities are still expanding, international employers often hire Cambodian graduates with these local degrees or from regional programs. No citation is given here for university names since they are common knowledge in the local context.

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Salary Benchmarks for Roles

Entry-level roles pay relatively low salaries by global standards. For example, IT support specialists in Phnom Penh may earn roughly USD 15,000–30,000 per year, operations managers about $20,000–40,000, and finance managers about $25,000–50,000. Cambodia’s minimum wage (for garment workers) is under $200/month, but skilled professionals are paid above that. (Salary surveys suggest that mid-career professionals in Phnom Penh can reach or exceed the upper ranges mentioned.) International companies typically adjust salaries upward for key hires to remain competitive in urban areas.

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Employer of Record vs Legal Entity Setup in Cambodia

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To legally hire employees, a company must

Establishing a local entity in Cambodia requires registration with the Ministry of Commerce and obtaining business licenses. An employer must also register with the General Department of Taxation and report payroll tax (income tax) via monthly filings. Cambodian law mandates enrolling each employee in the National Social Security Fund (NSSF) for work injury and pension. Every employee must have a written labor contract and be registered with the Ministry of Labor, which includes defining working hours, salary, and probation terms. In practice, foreign firms often need a local partner or entity to meet these requirements, or they can contract an EOR to handle payroll, contracts, work permits and all statutory filings.

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Cost of Entity Setup

Setting up a company in Cambodia is relatively straightforward but not trivial. It typically takes weeks to register an entity, and initial costs may include capital for offices and licensing. Ongoing costs arise from mandatory contributions: employers pay roughly 2.6%–3% of payroll to NSSF (combined for pension, work injury, and medical insurance), plus income tax withholding (PAYE). Cambodian labor law also requires end-of-service severance (two months’ wages per year after a year of service) and paid leave accrual. These employment liabilities drive up the total cost of operating locally. By contrast, using an EOR removes the need for entity setup entirely – you can hire employees within days, while the EOR provider manages contracts, payroll, and compliance.

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What Hiring Through an EOR Means in Cambodia

An Employer of Record (EOR) in Cambodia becomes the legal employer registered with the General Department of Taxation (GDT), Ministry of Labour and Vocational Training (MLVT), and the National Social Security Fund (NSSF), while the employee works exclusively for your company. You manage daily work and performance; the EOR carries all statutory employer responsibility.

Cambodia’s employment system is governed by:

• Labour Law of Cambodia
  
• MLVT regulations
  
• National Social Security Fund (NSSF)
  
• Tax-on-salary rules
  
• Minimum wage regulations
  
• Union and arbitration framework
  

Foreign companies cannot legally employ staff in Cambodia without:

• A Cambodian employing entity
  
• Registration with MLVT
  
• GDT tax registration
  
• NSSF registration
  

An EOR provides this entire employer infrastructure without requiring you to establish a Cambodian company.

An EOR in Cambodia handles:

• Cambodia-law compliant employment contracts
  
• Payroll processing in KHR or USD
  
• Tax-on-salary withholding and filing
  
• NSSF contributions
  
• Statutory leave and public holidays
  
• Union and collective agreement compliance
  
• Termination and labour-arbitration handling
  
• Immigration and work permits
  

This model is ideal for companies that want to hire in Cambodia without managing MLVT registration, tax filing, and labour-arbitration exposure directly.

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Risk Involved in Both Models

Cambodia’s labour system is inspection-driven and union-influenced.

Key characteristics:

• Written contracts required
  
• Fixed-term contract limits
  
• Mandatory NSSF
  
• Minimum wage enforcement
  
• Labour arbitration system
  

Compliance failures can result in:

• Back payment of wages
  
• NSSF penalties
  
• Tax penalties
  
• Arbitration awards or reinstatement
  

In Cambodia, minimum wage errors and NSSF non-compliance are the biggest employer risks.

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EOR Vs. Entity: When to use What?

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Why an EOR Is the Most Efficient Way to Hire in Cambodia

Cambodia offers strong talent in manufacturing, operations, IT, and support but employment is governed by minimum wage law, NSSF coverage, and arbitration rules.

An EOR is not just payroll. It is the legal employer recognised by Cambodian authorities, responsible for:

• Labour Law compliance
  
• MLVT and NSSF filings
  
• Payroll execution
  
• Termination handling
  

This allows foreign companies to operate in Cambodia without inheriting inspection and arbitration exposure.

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#1. EOR Manages Fixed-Term and Contract Risk

Cambodia limits consecutive fixed-duration contracts.

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#2. EOR Controls Tax-on-Salary and NSSF Risk

Employment cost includes:

• Tax-on-salary
  
• NSSF contributions
  
• Allowances and bonuses

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#3. EOR Controls Termination and Arbitration Risk

Termination in Cambodia must follow Labour Law procedures.

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#4. EOR Avoids Entity & Admin Burden

Entity setup requires:

• Company registration
  
• MLVT and tax registration
  
• Payroll and inspections

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EOR vs. PEO in Cambodia: How to Decide the Right Hiring Model?

A PEO in Cambodia cannot legally employ workers. A Cambodian employing entity is required.

• PEO: HR/payroll support only
  
• EOR: Legal employer

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If you don’t want to manage MLVT, NSSF, and arbitration yourself, EOR is the right model.

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Payroll, Taxes, and Monthly Compliance

Cambodia uses a monthly payroll cycle. Employers calculate gross-to-net pay, withhold salary tax (called “Tax on Salary”) each month, and remit it to the tax authority. Each month the employer must also report employee wages and submit contributions to NSSF. Other mandatory filings include corporate income tax (CIT) quarterly estimates and an annual return. Compliance is data-intensive: companies must maintain records of contracts, payroll registers, and contribution receipts. Common errors involve incorrect NSSF withholdings and missed deadlines. Partnering with a global payroll provider or EOR ensures on-time submissions of taxes and social contributions, avoiding penalties for late or under-paid filings.

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Salary Structure: Where Most Compliance Issues Begin

Cambodia’s labor regulations tie many benefits and severance to base salary and contract terms. A typical issue is misaligned contracts: underpaying basic wages or including improper allowances can violate the law. For example, failing to properly calculate seniority or paying bonuses outside the contract can trigger back payments. Cambodian law also mandates 90 days maternity leave (half-paid) and notice periods; miscalculating these entitlements can be costly. Common compliance problems arise when companies misclassify permanent staff as contractors to avoid benefits; Cambodian authorities are strict about this and impose penalties for misclassification. In short, inaccuracies in the salary breakdown or overlooking statutory payments (overtime rates, NSSF, leave, etc.) frequently lead to non-compliance.

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What Monthly Payroll Operations Actually Involve

In a Cambodian payroll cycle, employers must: calculate each employee’s gross salary, deduct TOS (Tax on Salary) and employee NSSF contributions, add the employer’s NSSF share, and process net pay. All figures must comply with the minimum wage and approved local pay scales. Payroll teams then file monthly returns: income tax withholding to the General Department of Taxation, and social security contributions to NSSF. Detailed payslips must be issued. The final step is remitting collected taxes and contributions to government accounts by the 15th of the next month. Many firms use specialized software or services to automate these steps and stay current with regulatory updates, because manual errors (e.g. using the wrong NSSF rate) are a major compliance risk.

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Step-by-Step Onboarding Process With an EOR in Cambodia

Hiring in Cambodia is a registry-driven, contract-sensitive process. A compliant onboarding flow protects you from MLVT penalties and arbitration claims.

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1. Confirm EOR Registration

Verify the EOR is registered with:

• MLVT
  
• GDT (Tax Authority)
  
• NSSF
  

Unregistered employers cannot legally hire.

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2. Identify Governing Work Location

The EOR determines:

• Applicable labour office
  
• Minimum wage coverage
  
• Inspection jurisdiction
  

Wrong location = wrong wage rules.

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3. Validate Contract Type

EOR assesses:

• Fixed-duration vs indefinite contract
  
• Renewal limits
  
• Probation period
  
  

4. Structure Salary and Allowances

EOR validates:

• Salary in KHR or USD
  
• Minimum wage compliance
  
• Allowances and bonuses
  
• Tax-on-salary brackets
  

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5. Provide Full Cost-to-Company Breakdown

Includes:

• Gross salary
  
• Employer NSSF
  
• Estimated tax
  
• EOR fee
  

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6. Draft Cambodia-Compliant Contract

Contract includes:

• Duties and title
  
• Salary and pay cycle
  
• Working hours
  
• Leave entitlements
  
• Disciplinary process
  
• Termination and notice
  

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7. Register Employee

EOR registers with:

• MLVT
  
• NSSF
  
• Tax authority payroll system
  

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8. Set Up Policies and Procedures

EOR issues:

• Code of conduct
  
• Leave and attendance
  
• Health and safety
  
• Disciplinary process
  

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9. Immigration Workflow (If Needed)

EOR manages:

• Work permit
  
• Residence card
  
• Start-date coordination
  

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10. First Payroll and Filings

EOR processes:

• Salary
  
• Tax-on-salary
  
• NSSF
  
• Payslip issuance
  

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11. Ongoing Compliance and Termination

EOR manages:

• Salary changes
  
• Contract updates
  
• Inspections
  
• Termination process
  
• Arbitration support
  

Most employer risk appears after termination.

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Build Your Cambodia Team with Bolto EOR

Expanding into Cambodia is not just about hiring, it is about handling MLVT, NSSF, and arbitration exposure correctly.

Bolto’s Employer of Record model absorbs:

• Labour Law complexity
  
• Tax and NSSF exposure
  
• Payroll risk
  
• Termination and arbitration risk
  

So you can scale in Cambodia without becoming the legal employer.

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Full Legal Employer Coverage in Cambodia

Bolto becomes the legal employer before:

• MLVT
  
• Tax Authority
  
• NSSF
  
• Arbitration bodies
  

Bolto manages:

• Contracts and policies
  
• Payroll and statutory filings
  
• Leave and attendance
  
• Audit and inspection response
  
• Termination execution
  

You manage work. Bolto manages legal risk.

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Built for Fast Entry and Clean Exit

With Bolto EOR:

• Hire in weeks
  
• Avoid Cambodian company formation
  
• Skip MLVT and NSSF registration
  
• Exit without liquidation
  

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Transparent Cost Structure

Bolto provides:

• Salary and statutory breakdown
  
• Employer and employee contributions
  
• Fixed EOR fees
  

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End-to-End Employee Lifecycle Management

Bolto manages:

• Contract drafting
  
• Payroll and tax
  
• NSSF contributions
  
• Leave and benefits
  
• Discipline and termination
  
• Arbitration defense
  

You never deal directly with Cambodian labour authorities.

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Designed for Risk-Controlled Growth in Cambodia

Cambodia penalizes:

• Late MLVT filings
  
• Missing NSSF
  
• Invalid termination
  

Bolto enables growth without inheriting inspection and arbitration risk.

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