2026 EditionCambodia Payroll Guide
Everything Cambodian HR and payroll professionals need — NSSF, Personal Income Tax (PIT), Seniority Pay, severance pay, leave entitlements, minimum wage and employer obligations. All in one comprehensive guide.
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Why This Guide Matters
Every payroll run carries legal weight.
Every payroll run in Cambodia carries legal weight. Get it right, and your people are paid accurately, your contributions land on time, and your business stays on the right side of Cambodia's statutory frameworks. Get it wrong, and the consequences range from financial penalties to labour disputes. For HR and payroll teams, the challenge is real. Cambodian payroll is not complicated in principle — but it is detailed, and the details matter, especially given the country's dual-currency and semi-monthly pay structure. Here is a plain-language overview of what employers need to manage in 2026.
This guide explains:
The Cambodian Payroll Framework
National Social Security Fund (NSSF)
Personal Income Tax (Tax on Salary)
Seniority Pay
Minimum wage
Leave entitlements and public holidays
Termination, severance pay and probation
Compliance calendar and deadlines
Foreign employee considerations
How MiHCM Payroll meets Cambodia's requirements
The Three Statutory Frameworks
Three obligations. Every cycle. Get all three right.
NSSF
National Social Security Fund
Three funds — Pension, Occupational Risk and Health — administered under one contribution. Combined employer burden is approximately 5.4% of gross wage; employee contributes 2% (Pension only). All capped on the KHR 1,200,000 monthly wage ceiling.
PIT
Tax on Salary
Progressive tax on salary withheld monthly and remitted to the General Department of Taxation. Resident employees are taxed on a progressive scale; non-residents pay a flat 20% on total salary.
Seniority Pay
semi-annual statutory payment
A mandatory payment for all permanent (IDC) employees, paid every June and December. Calculated on the average gross salary over the preceding six months — not the current month's pay.
Most Common Failures
The most common failures are systemic, not dramatic.
These are the mistakes that happen when payroll is managed manually, systems aren't configured for Cambodia's dual-currency and semi-monthly structure, or teams are stretched across too many obligations at once. The consequences — underpayment, labour disputes and audit exposure — are real.
Applying the wrong NSSF ceiling — or missing it entirely for Risk and Health Funds
Incorrect Seniority Pay calculation — wrong working-day divisor or wrong wage base
Calculating severance pay on basic salary alone, excluding allowances and benefits
Missing the mandatory June and December Seniority Pay cycles
Including FDC and probation employees in Seniority Pay who are not eligible
Taxing non-resident employees at resident rates instead of the flat 20%
Processing all deductions in one run instead of splitting correctly across 1st Pay and 2nd Pay
How MiHCM Handles Cambodia Payroll
Built for Cambodia. Every obligation, automated.
MiHCM Payroll handles NSSF, PIT and Seniority Pay calculations automatically for Cambodia. Every pay run applies the correct NSSF ceiling, resident/non-resident PIT treatment, and semi-monthly (1st Pay / 2nd Pay) processing. Seniority Pay is automatically triggered every June and December.
Auto-calculated statutory rates
NSSF Pension, Risk and Health Fund rates applied automatically with the KHR 1,200,000 wage ceiling — no manual capping needed.
Semi-monthly payroll ready
1st Pay and 2nd Pay scheme templates handle Cambodia's distinctive twice-monthly processing structure automatically.
Seniority Pay automated
Seniority Pay calculated automatically each June and December using the correct 6-month average wage.
Statutory reports for Cambodia
NSSF registration files, PIT withholding reports and severance calculations — generated at a click.
Dual-currency support
Salaries processed in KHR or USD, with automatic conversion for NSSF and PIT statutory calculations.
Multi-country platform
Malaysia, Singapore, Thailand, Cambodia, Sri Lanka and more — unified HR platform.
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