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visas
Professional Employer Organization (PEO)
& Employee of Record service in Cambodia
An employer of record, also known as an international Professional Employer Organization (PEO) or sponsored work permit, enables you to quickly hire and onboard workers in Cambodia without the cost and risk of establishing a local entity.
What is PEO and employment of record in Cambodia?
Our PEO service can help you legally hire the foreign and local employees your company needs in Cambodia. By taking advantage of our PEO service, clients do not need to worry about major obstacles such as company incorporation, payroll and work permits and are free to focus on other areas of their business.
• Work Permit & Visa provided
The PEO company will provide Visa and work permits to the foreign employees
• Limited investment
No need to set up a company, invest capital and hire local employees.
• Payroll & tax services
The PEO company will handle the payroll and compliance for the Salary tax of the employees
Our team of experts can assist you in the following areas
Register your employees with relevant authorities using a company in Cambodia as the employer of record.
- Proceeding the Human Resource (HR) administrative on-boarding including registration with relevant authorities and processing other payroll protocols following Cambodian Labor Law.
- Preparing the bi-monthly salaries to be paid to staff following Cambodian Labor Law and calculating the tax on salary in accordance with the Cambodia Law on Taxation.
- Organizing and processing the required monthly administrative payment of social insurance contributions to the National Social Security Fund (NSSF).
- Distributing the net income to the employees.
Pricing
FROM
USD 350 *
per month
30 Business days
to obtain work permit and visa for a foreign employee
* Onboarding fees of USD 380 for a Khmer employee and USD 1,140 for an expatriate + 5% fees on salary excluded
Scope of work
- Pre-registration procedures: Coordinate with the client to establish the scope of services to be provided and also obtain the details of the employees position e.g. salary and job title etc.Collecting, preparing and filing all the required documents for onboarding the employee. This will cover areas such
- as Visa & Work Permit (for foreign employees), payroll and compliance (Tax deductions and payments etc).
- Answering questions in relation to the PEO service.
- Advising you on the post onboarding procedure to ensure a smooth working relationship.
Need more?
Explore other PEO Services
What is the process for onboarding a foreign employee as a PEO?
Be prepared for obtaining your BOI Licence with our comprehensive and free registration checklist.
Be prepared for obtaining your BOI Licence with our comprehensive and free registration checklist.
Outsourcing service agreement
The parties enter into an outsourcing service agreement detailing the relationship between the foreign employer, the local employer in Cambodia and the foreign employee.
TIMELINE
1 to 3 working days
Obtaining a Visa and a Work Permit
Foreign employees already in Cambodia: depending on their current Visa type and the remaining length of stay, we may be required to change the Visa type before being able to obtain the work permit and extend their stay in Cambodia.
The duration needed to process the entrance visa varies from one to another depending on the origin country of the foreign employee.
Foreign employee not in Cambodia: We will assist you with obtaining a EB Visa from the relevant Embassy abroad.
The Visa extension and work permit is processed within 5 and 10 working days respectively in Cambodia. Our Visa expert will accompany the foreign employee at the immigration department.
*The work permit can be processed when the Visa has been extended and the foreign employee’s employment contract has been registered with the Ministry of Labor and Vocational Training.
Registration with relevant authorities
The employer of record will register the foreign employees and certify their employment contracts with the Ministry of Labor and Vocational Training, and register social insurance contributions at National Social Security Fund (NSSF).
Post-onboarding duties
The PEO company will invoice the foreign employer on a monthly basis to recover the foreign employee’s salary and his related service fees. The PEO company will prepare the payroll, issue the pay slip, deduct the salary tax and pay the employee the net income.
Frequently asked questions
Who is responsible for the day to day supervision of the employee once the onboarding process has been completed?
Though PEOs is the legal employer, the actual business owners or clients have control of the employees. The clients determine job responsibilities, quality standards, salary, KPIs, working hours etc. in compliance with Cambodian labor law regulations.
How are PEOs different from an employee leasing service?
An employee leasing company usually works on a temporary basis or for specific projects, whereas the role of a PEO is that of a full service provider to its clients’ business and managing the hiring and legal compliance issues for employees.
How do PEOs pay employee wages and payroll taxes?
PEOs are contractually obliged to pay wages and fulfill all taxation rules and regulations in Thailand. The PEOs will invoice the foreign employer on a monthly basis to collect the foreign employee salaries and will ensure that the foreign employee is paid and relevant taxes have been withheld.
What is the minimum wage for foreign employees in Cambodia?
For local garment factory workers, the minimum wage is $192 per month.
What are the social contributions in Cambodia?
Under the Law of Taxation, taxable income, realized by a physical person or a sole proprietorship, or distributed to members of a partnership not classified as a legal entity, is taxed under these progressive tax rates:
| Parts of the annual taxable income | Tax Rate (%) |
| from 0 to 16,000,000 riels | 0% |
| from 16,000,001 to 24,000,00 riels | 5% |
| from 24,000,001 to 102,000,000 riels | 10% |
| from 120,000,001 to 150,000,000 riels | 15% |
| Over 150,000,000 riels | 20% |
For resident employees the tax to be paid is determined on the monthly taxable salary and must be withheld by the registered employer at these progressive rates:
| Parts of the annual taxable income | Tax Rate (%) |
| from 0 to 16,000,000 riels | 0% |
| from 16,000,001 to 24,000,00 riels | 5% |
| from 24,000,001 to 102,000,000 riels | 10% |
| from 120,000,001 to 150,000,000 riels | 15% |
| Over 150,000,000 riels | 20% |
The salary tax of employee is withheld by the employer on a monthly basis (source tax).
For a POE service, the POE company will pay the Social Security Contributions and withhold the Personal Income Tax from the foreign employee.
Can I use PEO service to sponsor my work permit in Cambodia?
Independent workers or digital nomads wishing to live and work in Cambodia can use a PEO service to work in Cambodia. However, they must declare their full income in Cambodia and use a recognised PEO company as their legal employer.
What are the employment regulations in Cambodia?
Cambodian’s employment law regulations cover main areas as listed in link attached, and additional regulations are effective and applied from time to time and can be found in other separate documents (as issued to be implemented by authority).
Link to labor law:
https://www.ilo.org/dyn/travail/docs/701/labour
*Note:In accordance with Cambodia Law on Taxation, as a registered taxpayer, we have the obligation to pay to the General Department of Taxation (GDT) 10% of VAT (Value-Added Tax) on all invoices issued to customers. Therefore, 10% VAT shall be added at each time of invoice issuance and payment.
Question Before You Begin? *
Question Before You Begin? *
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(*) This Conversation is intended to provide basic answers to questions you may have about the PEO Services. But it is not a Lawyer’s Consultation.
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