2026 Edition
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.
WHY THIS GUIDE MATTERS
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. Here is a plain-language overview of what employers need to manage in 2026.
This guide explains:
THE THREE STATUTORY FRAMEWORKS
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.
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.
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.
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
Applying the wrong NSSF ceiling — or missing it entirely for Risk and Health Funds
Including FDC and probation employees in Seniority Pay who are not eligible
Incorrect Seniority Pay calculation — wrong working-day divisor or wrong wage base
Taxing non-resident employees at resident rates instead of the flat 20%
Calculating severance pay on basic salary alone, excluding allowances and benefits
Processing all deductions in one run instead of splitting correctly across 1st Pay and 2nd Pay
Missing the mandatory June and December Seniority Pay cycles
HOW MiHCM HANDLES CAMBODIA PAYROLL
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.
NSSF Pension, Risk and Health Fund rates applied automatically with the KHR 1,200,000 wage ceiling — no manual capping needed.
1st Pay and 2nd Pay scheme templates handle Cambodia’s distinctive twice-monthly processing structure automatically.
Seniority Pay calculated automatically each June and December using the correct 6-month average wage.
NSSF registration files, PIT withholding reports and severance calculations — generated at a click.
Salaries processed in KHR or USD, with automatic conversion for NSSF and PIT statutory calculations.
Malaysia, Singapore, Thailand, Cambodia, Sri Lanka and more — unified HR platform.
