One of the most rapidly growing markets in the world
Cambodia, a unique nation in southeast Asia, is one of the most rapidly growing markets in the world. The country boasts a young workforce and substantial foreign investment driving its economic growth. Cambodia’s growing market has provided a wealth of opportunities for new businesses, particularly international businesses looking to enter the market.
The Cambodian government and private sector have made significant strides in progressing digital transformation in the country, and it embraces many more streamlined digital processes than its southeast Asian neighbours.
Alongside all of this, Cambodia is a beautiful and diverse country which provides a range of unique experiences for its tourists and expats.
Working in Cambodia
Some of Cambodia’s most notable industries include clothing and textiles, fishing, and tourism. However, the country’s economic growth has seen the introduction of many digital and tech-based sectors making headway in the country.
Employment Information
- Cambodian employees are entitled to 18 days of paid annual leave per year. An additional day is added to their entitlement for every three years of completed service.
- Employee leave can be carried over for a maximum of three years, but only a maximum of 12 days can be carried over.
- Maternity leave is available for employees who have completed a minimum of twelve months of service. This provides 90 days of paid leave following the birth of a child, where an employee is entitled to half of their wages.
- Special leave is provided for employees who experience the death of an immediate family member, this is an entitlement of 7 days paid leave.
- The standard working hours in Cambodia are eight hours per day, or 48 hours per week. Most foreign businesses in Cambodia operate on a 40 hour per week schedule.
- Cambodian Labour Law outlines two potential employment contacts, a Fixed Duration Contract (FDC) or an Undetermined Duration Contract (UDC).
- The standard probation periods in Cambodia are three months for regular employees, two months for specialised workers, and one month for non-specialised workers.
Taxation
- Cambodia has a standard VAT tax rate of 10%.
- Employees do not have to pay taxes on their salary to the relevant authorities, this is the employer’s responsibility.
- Cambodia’s corporation tax rate stands at 20%.
- There is no official income tax in Cambodia. Instead, workers receive a monthly salary tax, which is usually 20%.
Visas
- An entry visa in Cambodia lasts for 30 days. Following this, an expat must apply for a 12-month extension.
- After the 12-month visa, expats can apply for a work permit from the ministry of labour.
- Expats are officially unable to work in Cambodia without a work permit.
- A Cambodia PEO can help foreign businesses looking to establish themselves in Cambodia and recruit international talent.
Cultural Information
Cambodia’s religion is mostly Buddhist, with around 80% of the population aligning to the Theravada Buddhist faith. Muslim and Christian groups are also found in Cambodia.
Cambodian people are family-centric, and most keep a strong attachment to the villages where they grew up. Major family events including weddings, funerals and births almost always occur within these villages. Cambodian people are warm and friendly to outsiders and welcoming of foreign expats.
Cambodia has around 12 major languages spoken around the country; however, Khmer is spoken most widely and is the country’s official language.
Impacts from COVID-19
Cambodia has achieved high vaccination rates following COVID-19 pandemic. This, coupled with rapid testing from employees, has enabled many employees to resume going back into their offices.
In some industries, flexible and remote working patterns have also increased significantly.
The Cambodian Market – Did you know?
- Cambodia has one of the youngest populations in southeast Asia
- Cambodia is one of the only countries in the world where you won’t find a McDonalds
- Angkor Wat, found in Cambodia, is the largest religious monument in the world, and it attracts tourists from all around the world every year
- With a predominantly Buddhist population, Cambodia has been practicing Buddhism since the 5th century, and it is the country’s official religion
Cambodia PEO Services
Cambodia PEO Services
Cambodia, a unique nation in southeast Asia, is one of the most rapidly growing markets in the world. The country boasts a young workforce and substantial foreign investment driving its economic growth. Cambodia’s growing market has provided a wealth of opportunities for new businesses, particularly international businesses looking to enter the market.
The Cambodian government and private sector have made significant strides in progressing digital transformation in the country, and it embraces many more streamlined digital processes than its southeast Asian neighbours.
Alongside all of this, Cambodia is a beautiful and diverse country which provides a range of unique experiences for its tourists and expats.
Working in Cambodia
Some of Cambodia’s most notable industries include clothing and textiles, fishing, and tourism. However, the country’s economic growth has seen the introduction of many digital and tech-based sectors making headway in the country.
Employment Information
- Cambodian employees are entitled to 18 days of paid annual leave per year. An additional day is added to their entitlement for every three years of completed service.
- Employee leave can be carried over for a maximum of three years, but only a maximum of 12 days can be carried over.
- Maternity leave is available for employees who have completed a minimum of twelve months of service. This provides 90 days of paid leave following the birth of a child, where an employee is entitled to half of their wages.
- Special leave is provided for employees who experience the death of an immediate family member, this is an entitlement of 7 days paid leave.
- The standard working hours in Cambodia are eight hours per day, or 48 hours per week. Most foreign businesses in Cambodia operate on a 40 hour per week schedule.
- Cambodian Labour Law outlines two potential employment contacts, a Fixed Duration Contract (FDC) or an Undetermined Duration Contract (UDC).
- The standard probation periods in Cambodia are three months for regular employees, two months for specialised workers, and one month for non-specialised workers.
Taxation
- Cambodia has a standard VAT tax rate of 10%.
- Employees do not have to pay taxes on their salary to the relevant authorities, this is the employer’s responsibility.
- Cambodia’s corporation tax rate stands at 20%.
- There is no official income tax in Cambodia. Instead, workers receive a monthly salary tax, which is usually 20%.
Visas
- An entry visa in Cambodia lasts for 30 days. Following this, an expat must apply for a 12-month extension.
- After the 12-month visa, expats can apply for a work permit from the ministry of labour.
- Expats are officially unable to work in Cambodia without a work permit.
- A Cambodia PEO can help foreign businesses looking to establish themselves in Cambodia and recruit international talent.
Cultural Information
Cambodia’s religion is mostly Buddhist, with around 80% of the population aligning to the Theravada Buddhist faith. Muslim and Christian groups are also found in Cambodia.
Cambodian people are family-centric, and most keep a strong attachment to the villages where they grew up. Major family events including weddings, funerals and births almost always occur within these villages. Cambodian people are warm and friendly to outsiders and welcoming of foreign expats.
Cambodia has around 12 major languages spoken around the country; however, Khmer is spoken most widely and is the country’s official language.
Impacts from COVID-19
Cambodia has achieved high vaccination rates following COVID-19 pandemic. This, coupled with rapid testing from employees, has enabled many employees to resume going back into their offices.
In some industries, flexible and remote working patterns have also increased significantly.
The Cambodian Market - Did you know?
- Cambodia has one of the youngest populations in southeast Asia
- Cambodia is one of the only countries in the world where you won’t find a McDonalds
- Angkor Wat, found in Cambodia, is the largest religious monument in the world, and it attracts tourists from all around the world every year
- With a predominantly Buddhist population, Cambodia has been practicing Buddhism since the 5th century, and it is the country’s official religion
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