Seniority Payment in Cambodia: How It Works and How to Calculate It
Seniority payment is money an employer pays employees for their length of service. Since 2019, Cambodian employers pay it during employment, twice a year, instead of only when the job ends. This guide explains who receives it, how much, and when.
Who receives seniority payment
Seniority payment applies to employees on an undetermined-duration contract (a permanent contract with no end date). Employees on a fixed-duration contract are covered differently: they receive compensation when the contract ends (see below).
How much and when
An employee on an undetermined-duration contract receives 15 days of wages and benefits per year of service, paid in two instalments:
| When | Amount |
|---|---|
| June | 7.5 days of wages and benefits |
| December | 7.5 days of wages and benefits |
Employees who have worked less than a full half-year receive a proportional amount. The Prakas from the Ministry of Labour sets the details, including which benefits count and how the daily wage is worked out.
Worked example
An employee on an undetermined-duration contract earns $300 a month, and your company calculates the daily wage as the monthly wage ÷ 26:
- Daily wage: 300 ÷ 26 = $11.54
- June payment: 7.5 × $11.54 = $86.54
- December payment: 7.5 × $11.54 = $86.54
- Total for the year: $173.08
Seniority from before 2019
Service before 2019 also earns seniority, often called back-pay seniority. It is capped and paid under separate rules that depend on the sector: some sectors pay it in instalments, others when the employment ends. Check the Prakas for your sector.
Fixed-duration contracts
Employees on a fixed-duration contract don't receive the twice-yearly seniority payment. When their contract ends, they receive compensation of at least 5% of the total wages paid during the contract.
Tax and payroll
Seniority payments go through payroll and appear on the payslip. How they are treated for tax on salary is set by the tax rules; confirm with your accountant.
CheckinMe payroll can include seniority pay on the payslip together with salary, overtime, NSSF and tax, based on each employee's start date and wage. See the payroll system.
This guide is general information based on the Cambodian Labour Law and its amendments, not legal advice. Check the current law and Prakas from the Ministry of Labour and Vocational Training before paying.