Work and Wages
Minimum Wage
In accordance with the provisions of the Labour Code 1997, workers' salaries must at least be equal to the minimum wage, ensuring every worker a decent standard of living consistent with human dignity.
Minimum wage rate is set by the Ministry of Labour and Vocational Training in consultation with the Labour Advisory Committee through Prakas (Ministerial Orders). Minimum wage rates must be set without any distinction on the basis of professions or jobs. However, minimum wages may vary according to the region, depending on the economic conditions and cost of living. The same factors are considered while adjusting the minimum wage. Minimum wage is determined by considering the needs of workers and their families in relation to the cost of living, social security allowances, the general level of wages in the country and the comparative standard of living of other social groups. Requirements of economic developments, productivity and achieving and maintaining a high level of employment are also taken into consideration while determining minimum wage.
The minimum wage for piece-rate employees in the garment, textile, and footwear industries is the same as that for regular employees. In case it is less than the above-referred minimum wage, the employer has to add the remaining amount to make it equivalent to the minimum wage.
The 2018 Law on Minimum Wage provides for a National Council on Minimum Wage (a tripartite body with equal representation from all partners) with the following responsibilities: conducting scientific studies on minimum wages; recommending minimum wage rates to the Ministry; and disseminating, raising awareness, and promoting social dialogue on minimum wage.
The key factors in determining the minimum wage include inflation rates, living expenses, productivity, competition, job market status and profitability of a particular industry. The Council is required to discuss minimum wage levels every year. Once the Council recommends a minimum wage rate, the declaration is issued by the Ministry of Labour and Vocational Training through Prakas.
Failure to provide a minimum wage may subject an employer to a fine of up to KHR 40,000,000. In the case of payment lower than the specified minimum wage, employers are required to pay back the full amount to such workers, as well as the interest at a rate applicable by law.
An employer who fails to pay wages at least equal to the guaranteed minimum wage is liable to a fine of 61-90 days of base daily wage or to imprisonment for between six days and one month.
Sources: §104, 107 & 369 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2007; Joint Prakas No. 659 Dated 06 June 2016; Law on Minimum Wage 2018
For more information on recent minimum wage rates, please refer to the section on minimum wage.
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
Wage is the remuneration for the employment or service and is payable in cash as set by agreement or by the national legislation, and is given to a worker by an employer, by virtue of a written or verbal contract of employment or service, either for work already done or to be done or for services already rendered or to be rendered.
The term "wage" includes, in particular actual wage or remuneration; overtime payments; commissions; bonuses and indemnities; profit sharing; gratuities; the value of benefits in kind; family allowance in excess of the legally prescribed amount; holiday pay or compensatory holiday pay; and the amount of money paid by the employer to the workers during disability and maternity leave. The following items are, however, not included in wage calculation: health care expenses; legal family allowance; travel expenses; and benefits granted exclusively to help the worker perform his/her job. Employers are required to inform the workers in a precise and easily comprehensible fashion the wage-related terms before they are assigned to a job or at any time these terms change and the items that make up their wage for every pay period when there is a change in the items.
For piecework or product work that is to be executed for longer than fifteen days, the dates of payment can be fixed by agreement; however, the labourer must receive partial payments every fifteen days and be paid in full in the week following the delivery of the work. In the event of contract termination, wages and indemnity of any kind must be paid within forty-eight hours following the date of termination of the contract. In case of an unjustified delay in the payment of wages, the Labour Inspector shall serve notice on the employer to pay the wages of his workers by setting a deadline by which payment must be made. Employers are prohibited from restricting the worker's freedom to use wages at his/her own disposal.
In accordance with the Labour Code, an employer is obliged to pay wages directly to the worker, in legal tender, unless another method is agreed upon and at least twice a month, in sixteen (16) day intervals to the workers (who are involved in manual labour); or at least once a month to the employees; or within a week on delivery of wok for piecework. Commissions of sales representatives must be settled at least once every 3 months. Wages are paid in cash, directly to the workers (unless agreed otherwise) on a working day at or near the workplace, not in places like bars or shops, and never on a rest day. The employer must pay in advance if the payment day falls on a holiday. In accordance with the Prakas on Wage Payment for Workers/Employees, all employers must pay the employees' salaries twice every month. First payment, 50% of the monthly wage, is received during the second week of the month. The second payment, the remainder of the monthly wage, is paid at the end of the fourth week of the month.
Workers are also entitled to a seniority bonus after the first year of service, equal to the year of service, except for those who have seniority beyond 11 years, who receive a seniority bonus of the 11th year. The other bonuses include an attendance bonus, a health care allowance, and a housing/transportation allowance.
Generally, employer is not allowed to deduct wages except to pay for the actual cost for tools and equipment that the employee does not return; or the items and materials under the control and usage of the employee; or the amounts owed to the company store, provided that the amount deducted from an employee's wages must not cause the employee to take home less than the minimum wage. Employers can also make deductions for payment of union dues by the union members. Collective agreements authorising any wage deductions other than in these cases are null and void.
Deduction of wages is prohibited in exchange for job placement, or if workers refuse to eat at the company's canteen, or to punish them for misconduct or refusing to work overtime, or charge employees more than the real cost of replacing lost ID cards, or charge employees any amount for the mandatory medical checks.
An employer should provide pay slips to all employees on each payday. These pay slips should be in Khmer and show the calculation of wages along with items.
Under the newly issued Prakas (No. 111/25), employers must maintain standardised payroll ledgers (or computerised payroll system) with detailed wage, hours, OT, and deductions info, including a QR code linked to the Labour Ministry system. The move aims to improve transparency and ensure workers receive pay slips and accurate records.
While Cambodia does not have 13th or 14th month pay as such, the legislation has introduced a seniority indemnity regime for workers on indefinite-duration contracts and maintained 5% severance for fixed-duration contracts (FDCs) since 2019. Under Prakas No. 443/18 on Seniority Payment for UDCs and FDCs:
- Indefinite term contract workers accrue 15 days of seniority pay per year of service, paid in two instalments each year; 7.5 days’ pay in June and 7.5 days’ pay in December each year (current service), plus transitional “back pay” for pre-2019 service.
- The fixed duration contract workers receive severance pay of at least 5% of total wages paid over the contract period.
Sources: §102-133 of the Labour Law, promulgated by Royal Order No. CS/RKM/0397/ 01 of 13 March 1997 (amended in 2018); §1 of Prakas on Wage Payment for Workers/ Employees (MoLVT No: 442 K. B/Br.K. Kh)
Regulations on Work and Wages
- Labour Law, promulgated by Royal Order No. CS/RKM/0397/01 of 13 March 1997 (amended in 2018)
- Prakas On Wage Payment for Workers/Employees (MoLVT No: 442 K. B/Br.K. Kh)
- Prakas on Overtime Work of Normal Work Hours (80/1999)
- Arbitration Council Awards 78/2004
- Prakas No. 248 K.B/Br.K
- Civil Code, 2007
- Prakas on Special Leave (76/1998; 267/2001)
- Constitution of the Kingdom of Cambodia, of 21 September 1993 (as amended 1999)
- Arbitration Council Awards (25/2008, 23/2008, 08/2007)
- Organization and Functioning of the Ministry of Social Affairs, Labour, Vocational Training and Youth Rehabilitation, 4 October 1999 (Anukret 87/ANKR-BK)
- Prakas 243/2002
- Law on Social Security Schemes for Persons Defined by the Provisions of the Labour Law, 2002
- Protection and Promotion of the Rights of Persons with Disabilities prohibits discrimination on the basis of disability, 2009
- Criminal Code
- Prakas on the Prohibition of Hazardous Child Labour (106/2004)
- Law on Education, 2007
- Prakas on registration procedure, advertisement, and observation on the collective bargaining agreement (287/2001)
- Law on Trade Unions, 2016
