How to Hire Remote Employees In 


The Basics

Cambodian Riel (KHR)
Employer Taxes
Payroll Frequency
Official Language

Employment in 


Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Time savings: Hiring through a subsidiary or EOR can take months of onerous paperwork and legal wrangling. This is only multiplied if you want to hire in multiple countries.
Reduced overhead: You can save tens of thousands of dollars in onboarding costs by hiring through a company like Panther. You also have fewer responsibilities to provide benefits, further reducing overhead.
Greater flexibility: Contractors can be brought on as-needed. If they are not a good fit, you can choose not to renew them without incurring significant additional termination costs.
Reduced legal risk: Contractors generally don't have the host of legal protections that typically cover full-time employees.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: While it's important to understand local contractor law, for most firms, misclassification risk is minimal.
Lack of Control: For a worker to be classified as a contractor, they should be allowed to work independently on their assigned tasks. Hiring full-time employees offers a wider range of management options.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.

Set up a subsidiary in 


A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Cambodia can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Cambodia, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Cambodia.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Cambodia is not the same as paying workers in your own country. Employees have to be paid using Cambodia's employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.


 Specific Information

Working Hours

A standard full-time workweek is 48 hours.


Overtime is paid at the rate of 150% of the regular pay.

For overtime between 10 PM and 5 AM, the pay rate is 200%.

Payroll Tax



  • Health Insurance
  • National Social Security Fund

Minimum Wage

The monthly minimum wage is 730,002.00 KHR for regular employees. For employees who are on probation, the minimum wage is 709,947.00 KHR. The minimum wage for garment workers: For regular workers, USD 192 per month. For probationary workers, USD 187 per month.


Pay Cycle

Laborers are paid at least every 16 days.  Regular employee wages are paid monthly.

13th Salary

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


Paid Time Off (PTO)

PTO is calculated by the:

  • Employees are entitled to 18 days of paid leave per year and are accrued at a rate of 1.5 days per month.
  • For every 3 years of employment, an additional day of paid leave is given.

Public Holidays

There are 15 public holidays.

Sick Days

Employees are entitled to up to 6 months of sick leave per year as long as they are able to provide a medical certificate. 

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.

Maternity Leave

Maternity leave is 90 days and the woman is entitled to 50% of their pay.

Paternity Leave

There are no provisions in the law regarding paternity leave.

Parental Leave

Parental leave falls under special leave.

Other Leave

Special leave– Employees are entitled to up to 7 days per event for matters that affect an immediate family member.

Marriage Leave

An employee is entitled to 7 days of unpaid leave in the event of their wedding.

Bereavement Leave

In the event of the death of an immediate member, an employee is entitled to bereavement leave.

For the death of a father, mother, spouse, or child, an employee is entitled to seven days of unpaid leave.


Termination Process

Fixed-term contracts- If the employer and employee agree, a fixed-term contract can be terminated before the end date.  To do so, both the employee and employee must sign an agreement in front of a labor inspector. If one of the parties does not agree, the employment contract cannot be terminated unless for reasons of gross misconduct or force majeure.

Indefinite employment contracts- Written notice must be given. If the employer initiates the dismissal, then just cause must be provided. The employer must notify the Ministry of Labor

Upon termination, the employee is entitled to request a certificate of employment stating the dates of employment and information about the position held. If the employer refuses to provide this, the employer must pay the employee for damages.

Notice Period

The notice period in Cambodia is based on the duration of employment as well as the type of employment contract:

For indefinite employment contracts:

  • Up to 6 months of employment- 7 days’ notice
  • 6 months to 2 years of employment- 15 days’ notice
  • 2-5 years of employment- 1 months’ notice
  • 5-10 years of employment- 2 months’ notice
  • 10 year of employment- 3 months’ notice

Fixed-Term Contracts:

  • Up to 6 months of employment- no notice is required
  • 6 months to 1 year of employment- 10 days’ notice
  • 1+ years of employment- 15 days’ notice

During the notice period, the employee is entitled to 2 days’ paid leave per week for the purpose of looking for employment.

Severance Pay

The Severance Pay in Cambodia:

If the employer fails to give written notice or does not follow the notice period, compensation must be given to the employee for the amount that the employee would have earned during the notice period.

  • 6 months- 1 year of employment- 7 day’s wages
  • More than 1 year of employment- 15 days’ wages for every year of employment, capped at a total of 6 months’ worth of wages. Maximum 6 months.

Probation Period

The probation period varies depending on the skill level of the employee:

  • 3 months for regular employees
  • 2 months for skilled employees
  • 1 month for unskilled employees