COMPREHENSIVE GUIDE TO SALARIES IN CAMBODIA
Cambodia has experienced rapid economic growth in recent years, leading to rising wages in many sectors. However, salary levels remain relatively low compared to other countries in the region. This guide offers a comprehensive overview of salaries in Cambodia, covering:
-
- Minimum Wage
-
- Average Wage
-
- Salary Differences by Industry
-
- Factors Affecting Salaries
-
- Overtime Compensation
-
- Annual Bonus
-
- Benefits
-
- Taxes
-
- Cost of Living
MINIMUM WAGE
Cambodia has a national minimum wage set by the government. The current minimum wage is $190 per month for public sector workers and $192 per month for private sector workers. However, enforcing the minimum wage can be inconsistent, particularly in smaller businesses and rural areas.
AVERAGE WAGE
The average wage in Cambodia varies depending on industry, skill level, and experience. According to the Ministry of Labor and Vocational Training, the average Cambodian salary in 2023 was $250 per month.
SALARY DIFFERENCES BY INDUSTRY
Significant wage gaps exist between industries in Cambodia. Export-oriented sectors like textiles, food processing, and tourism typically offer higher salaries. Conversely, jobs in agriculture, construction, and domestic services tend to be lower paying.
FACTORS AFFECTING SALARIES
Several factors can influence salaries in Cambodia, including:
-
- Skill Level: Qualified workers generally earn more than non-qualified workers.
-
- Experience: Experienced workers typically command higher salaries compared to fresh graduates.
-
- Location: Salaries are typically higher in major cities compared to rural areas.
-
- Company Size: Employees at larger companies often receive higher wages than those in smaller companies.
OVERTIME COMPENSATION
Cambodian labor law mandates additional pay for hours exceeding the standard work schedule. Overtime rates vary depending on the day worked:
-
- Weekdays: Overtime on a normal working day is compensated at 150% of the base wage.
-
- Holidays & Rest Days: On holidays and rest days, overtime pay jumps to 200% of the base wage.
ANNUAL BONUS
A common benefit offered by some companies in Cambodia is the 13th-month salary, also known as an annual bonus. Typically disbursed around year-end or Cambodian New Year, this bonus adds to an employee’s overall annual compensation.
BENEFITS
While many Cambodian employers offer benefits like health insurance, paid leave, and contributions to retirement plans, these benefits aren’t always standardized and can differ depending on the company you work for. It’s important to note that some benefits, like minimum wage and paid leave for public holidays, are mandated by law.
TAXES
In Cambodia, the salary tax is determined by applying a specific percentage to an employee’s income. The tax rates range from 5% to 20%. It is crucial to highlight that all businesses, residents, government bodies, and organizations must deduct and remit the payroll tax. This obligation extends to both local and foreign staff members working in the country.
COST OF LIVING
The cost of living in Cambodia is relatively low compared to other Southeast Asian countries. Nevertheless, your lifestyle choices and chosen location can influence your cost of living.
Cambodia boasts rising salaries, yet they remain comparatively low in the regional context. Researching the local job market before moving to Cambodia is crucial.
I hope this guide proves helpful. Feel free to reach out if you have any further questions.
