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Population
Cambodia has a population of approximately 17 million people (as of 2023). The majority of the population belongs to the Khmer ethnic group. There are also minorities such as Vietnamese, Chinese, and Cham people. Cambodia is a young country with a relatively young population structure, as many older people perished during the civil war and under the Khmer Rouge regime.
Capital
The capital of Cambodia is Phnom Penh, a vibrant city located at the confluence of the Mekong and Tonle Sap rivers. Phnom Penh is the political, economic, and cultural center of the country and home to important historical landmarks such as the Royal Palace and the Tuol Sleng Genocide Museum.
Economic Strength
Cambodia’s economy relies heavily on the textile industry, construction, agriculture, and tourism. The garment industry accounts for a significant portion of exports. Cambodia is also a popular tourist destination, known for the Angkor Wat temple complex, which strengthens its tourism sector. The country has experienced strong economic growth in recent years but continues to face significant challenges, including poverty and corruption.
Culture
Cambodia’s culture is deeply rooted in Buddhist traditions, with about 95% of the population adhering to Buddhism. Temples and religious festivals play a central role in daily life. Major cultural and religious festivals include Chaul Chnam Thmey (Cambodian New Year) and Bon Om Touk (Water Festival). Khmer culture is also reflected in classical music, dance, and unique architecture, as seen in the temples of Angkor.
Currency
The official currency in Cambodia is the Cambodian Riel (KHR). However, the US Dollar is widely used in everyday transactions, especially in urban areas.
Health Insurance and Social Security System
Cambodia has started building a social security system in recent years. A national social security system provides basic coverage for pensions and healthcare for workers in formal sectors. However, many workers, particularly in the informal sector, do not have access to comprehensive healthcare or social benefits. Employers are required to contribute to the national social security system, covering health care, occupational accidents, and pensions.
Employer Costs
Employer costs in Cambodia include contributions to social security, which amount to around 3.4% of an employee’s gross salary. These contributions cover insurance for work accidents and healthcare. Employers may also voluntarily offer additional benefits such as transportation or meal allowances, which can increase overall costs.
Salary and Bonuses
The minimum wage in Cambodia for the garment and textile industry is approximately 200 USD per month (as of 2023). The minimum wage varies across other sectors. Bonuses are common, especially around traditional holidays such as Khmer New Year when many employers give extra payments or gifts to their employees.
Payroll
Employers must provide a monthly payslip detailing the base salary, allowances, bonuses, and deductions such as social security contributions and taxes. The payslip is essential for transparency and compliance with legal regulations.
Public Holidays
Cambodia has a large number of public holidays, both religious and national. Key holidays include:
- Chaul Chnam Thmey (Khmer New Year, April 13-15)
- Pchum Ben (Ancestor’s Day, September/October)
- Independence Day (November 9)
- Bon Om Touk (Water Festival, November)
There are around 20 public holidays each year, making Cambodia one of the countries with the most holidays worldwide.
Working Hours
The standard working hours in Cambodia are 48 hours per week, typically spread over 6 days with 8-hour shifts per day. Overtime is allowed but must be compensated at a premium rate. In many formal sectors, shorter workweeks with 5 working days and a 40-hour week are becoming common.
Vacation
Employees are entitled to 18 days of paid annual leave after completing one year of employment. Additionally, employees receive paid leave on public holidays. Employers may also grant additional leave for special occasions such as weddings or family events.
Sick Leave
In cases of illness or injury, employees are entitled to sick leave. The duration and payment for sick leave depend on the employment contract. Generally, employees continue to receive their salary during sick leave, although the exact system varies by company and sector. The national social security fund may cover medical expenses and compensation for work-related injuries.
Termination/Severance
Termination notice periods in Cambodia depend on the length of employment. For employees with less than six months of service, the notice period is typically 7 days. For those with longer service, the notice period can range from 15 days to one month. Employees who are terminated without cause are entitled to severance pay, which is usually based on the length of employment. Severance is typically 7 days per year of service, though it may be higher depending on the contract and length of service.