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Undoubtedly, payroll is a critical process for any organization. The payroll cycle in Cambodia refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

The payroll cycle in Cambodia is generally monthly, and payments are to be made on the last working day of each month.

However, laborers are paid at least every 16 days.

An employee should not be paid on a day off. If a payday happens to fall on such a day, the employee should be compensated the previous day.

There is no statutory requirement for a 13th-month salary in Cambodia.

In Cambodia, the minimum wage is set at 818,800.00 KHR per month.

All hours worked beyond the standard working week are considered overtime and are subject to regulation through employment contracts or collective agreements. When an employer requires an employee to work overtime or on holidays, the maximum duration of work per day is limited to 2 hours.

Overtime hours exceeding 40 hours per week are remunerated at a rate of 150.00% of the employee's regular pay rate. However, this percentage increases to 200.00% if the overtime is performed on a Sunday or public holiday. For employees who work overtime during the night hours of 10.00 pm and 5.00 am, the overtime rate is set at 130.00% of their regular pay rate.

Before engaging in additional hours of work, it is necessary to seek permission from the Ministry of Labor.

In Cambodia, tax records generally must be kept for a minimum of 10 years. Employers must keep payroll records for at least three years.

The Labour Law sets out provisions to ensure that Cambodian employees are given priority over foreign employees in the recruitment process. However, if an employer is not able to find any Cambodian employees to perform specific jobs, the employer may then choose foreign employees who are specialists, technicians or experts to perform such work.

Generally, the MLVT allows the use of foreign employees. However, the number of foreign employees hired by any given company should not be greater than 10%. This rate is divided into three kinds of employees; however, in practice, the 10% cap generally applies to the total number of employees, including 3% for office employees, 6% for specialized employees, and 1% for non-specialized employees. 

The Labour Law prohibits employers from taking into consideration the following characteristics as the basis for making decisions regarding hiring, defining and assigning work, vocational training, advancement, promotion, remuneration, granting of social benefits or discipline or termination of employment contract:

• race
• color
• sex
• religion
• political opinion
• ancestry
• social origin
• union membership or union activities

However, hiring or rejecting employees based on qualifications required for a specific job will not be considered discrimination.

The following documents are to be submitted during the onboarding process in Cambodia:

1. Information about each worker employed by the enterprise, including name, date of birth, and address.
2. National ID
3. Employment handbooks
4. Work permits for foreign workers

Every person of Cambodian nationality working as a worker for any employer is required to possess an employment card.

No one can keep a worker in his service who does not comply with the provision of an employment card.

In Cambodia, a contract for a probationary period cannot be for longer than the amount of time needed for the employer to judge the professional worth of the worker and for the worker to know concretely the working conditions provided.

However, the probationary period cannot last longer than three months for regular employees, two months for specialized workers, and one month for non-specialized workers.

The round travel costs incurred by a worker during the probationary period when working far from his habitual residence is to be covered by the employer.

The public holidays in Cambodia are as follows:

• January 1: New Year
• January 7: Victory over Genocide Day
• March 8: Women's Day
• April 14 to Apr 16: Khmer New Year
• May 1: Labor Day
• May 14: King's Birthday
• May 15: Visak Bochea Day
• May 19: Royal Plowing Ceremony
• June 18: King's Mother's Birthday
• September 24: Constitutional Day
• September 25 - 26: Ancestors Day
• October 15: Commemoration Day of King's Father
• October 29: King's Coronation
• November 7 - 9: Water Festival
• November 9: Independence Day
• December 29: Peace Day

Effective since Oct. 6, 2021, when a paid holiday would occur on a Sunday, workers are not entitled to paid leave on the next workday. Effective until Oct. 5, 2021, when a paid holiday would occur on a Sunday, workers were entitled to paid leave on the next workday.

An employee can claim up to six months of leave, provided the employee can produce a certificate of sickness. The employee will receive 100.00% of their regular salary rate for the first month of sickness, the two months that follow are paid at 60.00%, and the remainder of the leave is unpaid. An employer holds the right to dismiss an employee following more than six months of sick leave.

Female employees are entitled to 90 days of paid maternity leave at 50.00% of the employee's regular salary rate

They also receive two nursing breaks of 30 minutes each per working day.

The exact time of breastfeeding is to be agreed between the mother and the employer. If there is no agreement, the periods shall be at the midpoint of each work shift.

After the maternity leave and during the first two months after returning to work, they are only expected to perform light work.

The employer is prohibited from laying off women in labor during their maternity leave or at a date when the end of the notice period would fall during the maternity leave.

There is no paid statutory paternity leave, but male employees can use their annual leave entitlement for paternity leave of up to seven days.

The employer must grant the employee special leave during the event directly affecting the employee's immediate family.

If the worker has not yet taken his annual leave, the employer can deduct the special leave from the worker's annual leave.

If the worker has taken all his annual leave, the employer cannot deduct the special leave from the worker's annual leave for the next year.

The minimum period of prior notice in Cambodia is set as follows:

Method for calculating the length of service of workers, who are not employed on a monthly basis, shall be determined by a Prakas (ministerial order) of the Ministry in Charge of Labor.

• Seven days if the worker's length of continuous service is less than six months;
• Fifteen days if the worker's length of continuous service is from six months to two years;
• One month if the worker's length of continuous service is longer than two years and up to five years.
• Two months if the worker's length of continuous service is longer than five years and up to ten years.
• Three months if the worker's length of continuous service is longer than then years.

Employers must give notice prior to termination based on the employee's length of service but are generally not required to provide dismissal payments.

Employers are required to give prior notice to termination, which is set as follows:

• Employed for fewer than six months, seven days;
• Employed for six months to two years, fifteen days;
• Employed for two years to five years, one month;
• Employed for five years to 10 years, two months;
• Employed longer than 10 years, three months

Effective from 2019, employers will no longer be required to pay a dismissal payment to dismissed employees who do not have fixed-term contracts.

Effective until Dec. 31, 2018, employers needed to provide dismissed workers with dismissal pay. The amount of the dismissal payment depended on the employee's length of service. If the employee's length of employment was between six and 12 months, employers needed to pay the equivalent of seven days of wages and fringe benefits. If the worker had more than 12 months of service, the severance payment needed to equal 15 days of wages and fringe benefits for each year of service, not to exceed the equivalent of six months of wages and fringe benefits.

However, employees who have fixed-term contracts must be provided severance pay of 5% of the total wages they would have received under the contract.

All foreign nationals coming to Cambodia for work must obtain an E-class visa, previously known as a business or ordinary visa, valid for 30 days. They must also obtain a work permit and employment card through the Ministry of Labor and Vocational Training (MLVT).

Cambodia introduced new E-class visa extension categories in 2016, which include:

• EB visa: The most common option for foreign nationals working in Cambodia. It applies to anyone working in the country, starting a business, freelancing, and staying in Cambodia for more than a month.
• EP visa: EP visas are issued to foreign nationals coming to Cambodia to look for a job, start a business, or remain in the country after their initial 30-day stay under the E-class visa expires.
• EG visa: The general visa that applies to those searching for employment. It can last one, three, or six months.
• ER visa: An ER visa is for those looking to retire in Cambodia. They must show documentation of retirement in their home country and prove they can financially support themselves.
• ET visa: This is the technician visa extension, meant for those who work in specific trades or industries.

There is no comprehensive legislation that regulates the protection of data in Cambodia. However, Cambodia's constitution provides for citizens' rights to privacy. The Civil Code recognizes the personal right to identity, dignity, privacy and other personal interests of an individual. Under the Criminal Code, the disclosure of secrets and the interception of private communication or mishandling of data are criminal offenses.