Key Takeaways
- Phnom Penh salaries remain 15–30% higher than provincial averages due to rising urban living costs and talent demand.
- The technology and engineering sectors lead salary growth, with specialized roles earning up to $85,000 annually.
- Employers must adopt segmented pay strategies and compliant fringe benefits to attract and retain skilled professionals.
Cambodia’s economic environment in 2025 reflects a nation undergoing significant transformation, shaped by steady industrial growth, increased foreign investment, and an evolving professional labor market. As the country continues its path toward middle-income status, understanding the salary structure across different industries, job functions, and regions has become vital for both employers and employees. This comprehensive guide on “Salaries in Cambodia for 2025” offers a detailed analysis of the current compensation trends, regional wage variations, and sectoral benchmarks that define the Cambodian workforce today.
Also, check out the Top 10 Best Recruitment Agencies in Cambodia for 2025.
The Cambodian economy, underpinned by sectors such as manufacturing, finance, technology, tourism, and education, continues to demonstrate resilience despite global economic uncertainties. Supported by projections from major financial institutions like the IMF and ADB, Cambodia’s GDP growth rate is forecasted to remain strong, largely driven by its garment and footwear (GFT) sector, expanding service industry, and rising digital economy. However, these macroeconomic strengths coexist with deep wage segmentation — a duality where industrial workers earn minimal regulated wages, while professionals in finance, engineering, and ICT command globally competitive salaries.
In 2025, the national minimum wage for GFT workers saw only a modest increase to 208 USD per month, reflecting the government’s strategy to maintain industrial competitiveness amid inflation stability. Yet, in contrast, professional roles in technology, engineering, and financial services demonstrate significant upward salary mobility, with senior experts earning several times the national average. This growing disparity highlights a labor market increasingly divided between cost-sensitive manufacturing employment and high-value, knowledge-based professional occupations.
Another defining aspect of Cambodia’s 2025 salary structure is the strong regional differentiation in compensation. Phnom Penh, as the capital and economic epicenter, continues to offer a 15–30 percent premium in salaries compared to secondary cities like Siem Reap or Kampot. This pay gap is largely attributed to higher living costs and increased demand for skilled professionals in the capital. Meanwhile, the tourism-focused economy of Siem Reap and the industrial growth in Sihanoukville are creating localized salary variations, reflecting Cambodia’s emerging urban labor dynamics.
Beyond base wages, employers and employees must also consider the Total Cost of Employment (TCE), which encompasses statutory obligations such as the National Social Security Fund (NSSF) contributions, Tax on Salary (ToS), and seniority payments. Fringe benefits like healthcare, housing, and transportation allowances are also gaining importance as companies compete for top-tier local and expatriate talent. Multinational companies, in particular, tend to offer compensation packages that are 20–30 percent higher than local firms, reflecting international standards and skill scarcity in specialized fields.
From a talent acquisition perspective, 2025 marks a critical year where salary benchmarking and data-driven compensation strategies have become essential for organizational sustainability. The rise of high-demand sectors like technology, digital marketing, and EdTech has prompted companies to rethink traditional pay structures and integrate incentive-based or hybrid compensation models. Meanwhile, employees are becoming increasingly aware of market averages and cost-of-living adjustments, leveraging this knowledge to negotiate fair and competitive pay.
This guide provides a data-backed overview of salary progression across different professional levels — from entry-level to senior management — and explores industry-specific pay trends across key sectors such as finance, ICT, manufacturing, education, and services. It also examines the interplay between salary growth, cost of living, and taxation, providing employers with actionable insights for workforce planning and compensation management.
As Cambodia continues its steady march toward digitalization and economic diversification, understanding salary benchmarks and market dynamics in 2025 is no longer optional but essential for business competitiveness and employee retention. Whether you are a multinational corporation looking to expand in the Kingdom or a professional seeking to understand your market worth, this comprehensive analysis serves as an indispensable resource to navigate the evolving Cambodian salary landscape with precision and clarity.
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Salaries in Cambodia for 2025: A Complete Guide
- Economic Context and Wage Drivers for 2025
- Statutory Compensation and Labor Law Compliance
- General Salary Benchmarks and Experience Segmentation
- In-Depth Sectoral Salary Analysis (Salaries by Industry)
- Regional Salary Disparities and Cost of Living Context
- Total Compensation and Cost of Employment (TCE)
- Strategic Outlook
1. Economic Context and Wage Drivers for 2025
a. Macroeconomic Headwinds and Resilience
Macroeconomic Climate and Resilience
Cambodia’s economic landscape in 2025 presents a blend of resilience and strategic caution. Leading financial institutions, including the International Monetary Fund (IMF) and the Asian Development Bank (ADB), forecast the nation’s GDP growth to stabilize between 4.8 and 4.9 percent. This steady yet moderate expansion underscores the country’s ability to withstand persistent external pressures while maintaining industrial productivity. The slowdown in global trade flows, coupled with geopolitical frictions across Asia—particularly concerning Thailand—has tempered Cambodia’s short-term momentum but not undermined its long-term stability.
Key Economic Catalysts and Sectoral Contributions
- Industrial Output and Export Expansion:
The industrial sector continues to serve as the linchpin of Cambodia’s economic performance. Garment manufacturing, a dominant contributor to export revenue and employment, recorded an impressive 22.2 percent year-on-year surge in the first half of 2025. This growth has been stimulated by increased demand from U.S. importers anticipating future tariff adjustments, positioning Cambodia as a vital supplier in the global apparel chain. - Foreign Direct Investment (FDI) Inflows:
Sustained FDI remains a critical component in supporting industrial diversification and strengthening non-garment manufacturing. Multinational firms continue to view Cambodia as an affordable and strategically located production base, further reinforcing its role within the ASEAN supply network. - Services Sector and Tourism Revival:
The tourism and services industries have shown gradual recovery, primarily driven by the return of visitors from the People’s Republic of China. Nevertheless, this rebound remains partial, with overall service growth projected at 2.8 percent for 2025. Cross-border trade frictions and regional uncertainties continue to exert downward pressure on the pace of recovery.
Fiscal and Policy Landscape
Cambodia’s fiscal policy in 2025 is designed with a dual focus on social protection and economic stability. The government continues to implement targeted relief for vulnerable households and small enterprises impacted by external shocks. Concurrently, there is a strategic pivot toward medium-term revenue mobilization initiatives aimed at rebuilding fiscal buffers and ensuring sustainable public finances.
Rather than employing broad stimulus measures or large-scale public wage hikes, fiscal authorities prioritize disciplined expenditure management. This approach enhances Cambodia’s attractiveness as a cost-efficient manufacturing destination, helping maintain wage stability while preventing inflationary wage pressures that could erode competitiveness.
Comparative Economic Indicators for 2025
| Economic Indicator | 2024 (Estimate) | 2025 (Forecast) | Key Trend / Observation |
|---|---|---|---|
| GDP Growth Rate (%) | 5.1 | 4.8 – 4.9 | Stable but moderated due to global trade headwinds |
| Industrial Growth (%) | 6.5 | 6.2 | Strength driven by garment and FDI inflows |
| Services Growth (%) | 3.4 | 2.8 | Slower recovery, limited by tourism constraints |
| Inflation Rate (%) | 3.0 | 2.7 | Controlled through prudent fiscal policies |
| FDI Inflows (USD Billion) | 3.9 | 4.1 | Continued investor confidence in industrial sectors |
Outlook and Implications for Wages
The wage environment in 2025 is influenced by a confluence of global market shifts, domestic fiscal strategies, and industrial competitiveness goals. Employers across Cambodia are expected to adopt a cautious yet steady approach to salary adjustments, particularly in manufacturing and service-oriented roles. With stable inflation, strong FDI inflows, and a policy focus on cost control, Cambodia’s wage structure remains competitive across the Southeast Asian region.
In essence, while macroeconomic uncertainties persist, Cambodia’s disciplined fiscal governance, resilient industrial sector, and strategic economic diversification collectively provide a foundation for steady income progression and sustainable employment opportunities in 2025.
b. Inflationary Environment and Cost of Living Dynamics
Economic Overview and Inflation Trends
In 2025, Cambodia’s inflationary landscape demonstrates marked stability compared to the volatility seen in preceding years. The early months of the year began with a noticeable spike in consumer prices, reaching a peak of 6.0 percent in January. However, this inflationary pressure subsided rapidly due to the combined effects of falling global fuel prices and a notable deceleration in food price growth. By mid-year, inflation had declined sharply to 1.6 percent, with the national annual average stabilizing at 2.06 percent by September 2025.
According to projections by regional economists and financial observers, inflation is expected to remain moderate—around 2.0 percent on average—throughout the rest of 2025 and into 2026. This moderation creates a favorable macroeconomic climate that supports predictable salary frameworks and limits excessive cost escalation in key consumer sectors.
The table below summarizes Cambodia’s inflation trend across key months of 2025:
| Month (2025) | Inflation Rate (%) | Key Influencing Factor |
|---|---|---|
| January | 6.0 | High energy prices and import costs |
| March | 3.8 | Decline in crude oil and fuel-related expenses |
| June | 1.6 | Stabilized food supply and local production |
| September | 2.06 | Stable consumer demand and controlled inflation |
| Forecast Avg. | 2.0 | Balanced price environment for 2025–2026 |
Implications for Wage Policy and Employer Strategy
The convergence of resilient industrial output and controlled inflation provides policymakers and business leaders with a rationale to adopt conservative wage adjustment policies. Rather than implementing broad or aggressive wage hikes, Cambodia’s labor authorities and employers are prioritizing incremental increases aimed at maintaining international competitiveness—especially within the manufacturing and export-driven sectors.
- Wage Control and Industrial Competitiveness:
By moderating wage growth, Cambodia ensures that its manufacturing sector remains cost-efficient relative to neighboring countries such as Vietnam and Thailand. This strategy preserves foreign investor confidence and supports long-term employment stability. - Worker Livelihood and Financial Pressure:
Despite controlled inflation, the real purchasing power of workers has not seen proportional improvement. The modest growth in nominal wages continues to fall short of addressing urban living costs, which have been steadily rising due to housing, transportation, and education expenses. - Debt and Financial Vulnerability:
A pressing issue within Cambodia’s labor force is the high prevalence of personal debt. Studies reveal that the average Cambodian worker carries an estimated debt burden of approximately USD 3,804—equivalent to around 18 months of a garment worker’s income. This financial strain significantly undermines economic security, particularly for those in low-wage industries.
Cost of Living and Minimum Wage Gap
While inflation remains subdued, the discrepancy between statutory minimum wages and actual living costs remains a major socioeconomic concern. The statutory minimum wage, though periodically adjusted, continues to lag behind the financial realities faced by workers in urban centers such as Phnom Penh and Sihanoukville. The combination of rising rent, healthcare costs, and daily necessities has resulted in mounting pressure on workers’ disposable incomes.
The table below provides an overview of the relationship between inflation, minimum wage, and estimated living costs in 2025:
| Indicator | Value (USD / %) | Observation |
|---|---|---|
| Annual Inflation Rate (2025) | 2.06% | Stable, low-inflation environment |
| Average Minimum Monthly Wage | 204 | Gradual nominal increase from 2024 |
| Estimated Urban Living Cost | 320 – 360 | Exceeds current minimum wage range |
| Average Worker Debt | 3,804 | Equivalent to 18 months of a garment worker’s salary |
Socioeconomic Outlook for 2025
Cambodia’s stable inflation rate contributes positively to its macroeconomic outlook and international competitiveness. However, the structural imbalance between income levels and cost of living remains a persistent challenge. Addressing this gap requires integrated policy measures—such as enhanced wage-setting frameworks, expanded access to affordable credit, and financial literacy initiatives—to ensure that economic stability translates into tangible improvements in worker well-being.
In summary, while the inflationary environment in 2025 positions Cambodia as a relatively stable economy in the ASEAN region, real wage growth and cost-of-living alignment remain key priorities for policymakers striving to achieve inclusive and sustainable economic progress.
2. Statutory Compensation and Labor Law Compliance
a. The 2025 Garment, Footwear, and Travel Goods (GFT) Minimum Wage
In 2025, Cambodia’s statutory wage framework continues to emphasize the importance of regulated pay standards, particularly within its most labor-intensive sectors—garment, footwear, travel goods, and bag manufacturing. The Ministry of Labour and Vocational Training (MLVT), through Prakas No. 211/24, officially set the minimum monthly wage for regular workers in these industries at USD 208 (equivalent to 836,384 Cambodian Riel), effective from January 1, 2025. This adjustment reflects a moderate increase of USD 4 compared to the 2024 level, aligning with the government’s policy of gradual wage progression aimed at maintaining industrial competitiveness while ensuring worker welfare.
Structure of Minimum Wage Application
- Regular and Probationary Employees:
The 2025 wage law distinguishes between experienced and probationary employees. Newly hired or probationary workers are entitled to a minimum of USD 206 per month, which increases to USD 208 after successful completion of their probationary period. This approach balances entry-level affordability for employers with progressive earnings potential for workers. - Piece-Rate Employees:
Employees compensated on a piece-rate or production-based system are legally safeguarded under the same minimum wage provisions. Employers must ensure that the total compensation earned meets or exceeds the stipulated minimum wage—USD 208 for regular workers and USD 206 for probationary staff. In cases where production output fails to meet this threshold, employers are mandated to provide a wage top-up to ensure compliance. - Sectoral Limitation:
It is important to recognize that the USD 208 statutory wage applies exclusively to the Garment, Footwear, and Travel Goods (GFT) sector. Cambodia, unlike several of its regional peers, does not implement a universal national minimum wage applicable across all industries. Instead, wage determination in other sectors—such as agriculture, hospitality, retail, and local services—relies on market-driven pay structures or Collective Bargaining Agreements (CBAs) negotiated between employers and labor unions.
Wage Differentiation Across Sectors
This differentiated wage policy contributes to Cambodia’s unique labor market structure. While the GFT sector maintains standardized compensation, non-GFT industries often exhibit wider wage variability depending on skill level, job function, and location. Workers in informal or low-skill service roles, for instance, may earn as low as USD 150 to USD 180 per month, especially in rural areas or small enterprises. This flexibility allows employers in non-GFT industries to align wages with productivity levels and regional economic capacity.
The table below summarizes the official 2025 minimum wage and mandatory allowances under Cambodia’s labor regulations:
Table: Statutory Minimum Wage and Mandatory Monthly Allowances (2025)
| Sector | Minimum Monthly Wage (Regular) | Probationary Wage | Attendance Bonus (Mandatory) | Travel/Accommodation Allowance |
|---|---|---|---|---|
| Garment, Footwear, Travel Goods (GFT) | USD 208 (836,384 KHR) | USD 206 | USD 10 | USD 7 |
| Non-GFT Sector | Not standardized; varies by market rate | Not standardized | Based on CBA agreements | Based on CBA agreements |
Legal and Compliance Considerations for Employers
To ensure adherence to national labor standards, employers operating in Cambodia’s industrial and service sectors must maintain compliance with MLVT wage regulations and related employment laws. Key compliance points include:
- Mandatory Wage Reporting: Employers must document and report all wage structures to the relevant labor authorities, ensuring transparency in compensation practices.
- Allowance and Bonus Requirements: The attendance bonus and travel/accommodation allowance are statutory in the GFT sector and must be disbursed monthly without exception.
- Wage Review and Adjustment Mechanisms: Employers should anticipate periodic government reviews that may lead to future wage adjustments in response to inflation, productivity growth, or changes in living costs.
Economic and Labor Market Implications
Cambodia’s gradual wage escalation strategy demonstrates a deliberate effort to balance economic competitiveness with social equity. The standardized GFT wage strengthens the country’s position as a stable and cost-effective manufacturing destination within the ASEAN region. However, the absence of a universal minimum wage continues to highlight the divide between formal and informal sectors. As policymakers explore broader wage-setting frameworks, future reforms may aim to harmonize compensation standards across industries while sustaining investor confidence and employment growth.
In conclusion, the 2025 wage structure in Cambodia reflects an evolving balance between regulation, competitiveness, and worker protection. The clear delineation between GFT and non-GFT wage policies underscores Cambodia’s pragmatic approach to wage management, enabling sustainable industrial development while gradually improving labor welfare.
b. Mandatory Allowances and Supplemental Compensation
Overview of Allowances and Employee Entitlements
In Cambodia’s 2025 labor framework, the total remuneration of employees extends beyond the basic minimum wage, particularly in the Garment, Footwear, and Travel Goods (GFT) sector. Employers operating within this regulated industry are legally required to provide several supplementary allowances designed to enhance worker welfare and offset living and working expenses. These mandatory benefits play a crucial role in determining the Total Cost of Employment (TCE), ensuring that employee compensation remains equitable while maintaining compliance with national labor regulations.
Key Mandatory Monthly Allowances
The government mandates several fixed allowances that must accompany the statutory minimum wage. These allowances directly contribute to improving workers’ financial well-being and act as incentives for attendance and productivity.
- Attendance Bonus:
Employees who maintain consistent attendance throughout the month are entitled to a mandatory attendance bonus of USD 10. This policy encourages punctuality and reliability, essential in high-volume manufacturing environments. - Travel and Accommodation Allowance:
Workers are also entitled to an additional USD 7 monthly allowance to support transportation and accommodation costs. This allowance is especially important for workers commuting from distant provinces or residing in industrial zones with high rental costs. - Meal Allowance or In-Kind Provision:
Employers are obligated to provide a daily meal allowance of USD 0.50 or offer one complimentary meal for employees performing overtime work. This regulation promotes worker health and ensures adequate nutrition for those engaged in extended working hours.
The table below outlines the standardized mandatory allowances applicable in the GFT sector for 2025:
Table: Mandatory Monthly Allowances and Supplemental Benefits (2025)
| Allowance Type | Value / Amount (USD) | Description / Purpose |
|---|---|---|
| Attendance Bonus | 10 | Reward for full and consistent attendance |
| Travel/Accommodation Support | 7 | Compensation for daily commuting and housing costs |
| Meal Allowance | 0.50 per day or one free meal | Nutrition support, particularly during overtime |
Seniority Benefits and Long-Term Compensation
Seniority benefits form another cornerstone of Cambodia’s labor compensation system, ensuring that long-term employees receive fair recognition for their sustained contribution.
- Annual Seniority Payments:
Workers under Undetermined Duration Contracts (UDC) are entitled to annual seniority payments equivalent to 15 days of wages for each year of service. This provision is legally mandated to strengthen employee retention and reward loyalty within organizations. - Monthly Seniority Bonuses:
Employees with continuous service between 2 and 11 years are typically granted additional monthly seniority bonuses ranging from USD 2 to USD 11. These payments are both a legal requirement in some sectors and a customary industry standard in others. The gradual increase in seniority benefits over time reflects a structured approach to compensating tenure and experience.
The following table presents the seniority-related compensation framework observed in Cambodia’s formal employment sectors:
Table: Seniority Compensation Framework (2025)
| Length of Service (Years) | Annual Seniority Payment (Days) | Typical Monthly Bonus (USD) | Key Objective |
|---|---|---|---|
| 0–1 | 15 days per year | — | Reward for completion of service year |
| 2–5 | 15 days per year | 2–5 | Strengthen employee loyalty and retention |
| 6–11 | 15 days per year | 6–11 | Acknowledge experience and tenure value |
Impact on Total Cost of Employment (TCE)
When combining wages and allowances, the overall compensation cost to employers is significantly higher than the base wage alone. For example, a regular GFT worker earning USD 208 in base salary may receive an additional USD 17–22 monthly through attendance, travel, and meal allowances, resulting in an effective monthly income closer to USD 225–230. Including seniority and other social benefits, the Total Cost of Employment per worker can reach approximately USD 240–250.
Table: Example of Estimated Total Monthly Compensation (GFT Worker, 2025)
| Compensation Component | Amount (USD) | Share of Total Compensation (%) |
|---|---|---|
| Base Minimum Wage | 208 | 84% |
| Attendance Bonus | 10 | 4% |
| Travel/Accommodation Allowance | 7 | 3% |
| Meal Allowance (Avg. 20 Days) | 10 | 4% |
| Seniority/Other Benefits | 8–15 | 5% |
| Estimated Total | 243–250 | 100% |
Broader Economic and Labor Implications
The inclusion of mandatory allowances and seniority payments reflects Cambodia’s evolving labor policy framework aimed at promoting fair compensation and social protection. These measures not only improve living standards for industrial workers but also foster greater workforce stability, productivity, and morale. For employers, while these statutory costs increase the overall wage burden, they contribute to long-term economic efficiency by reducing turnover and enhancing labor relations.
In conclusion, the combination of fixed allowances, seniority benefits, and compliance obligations forms a vital component of Cambodia’s 2025 salary landscape. This comprehensive compensation model reinforces Cambodia’s reputation as a country balancing competitiveness with worker welfare in the Southeast Asian labor market.
c. Overtime, Night Work, and Public Holiday Pay
Overview of Extended Work Compensation
In 2025, Cambodia’s labor law continues to enforce stringent guidelines governing compensation for overtime, night work, and work conducted during rest days or public holidays. These regulations form a critical component of the nation’s employment framework, ensuring equitable pay for workers while maintaining compliance standards for employers. The Ministry of Labour and Vocational Training (MLVT) strictly monitors adherence to these laws to safeguard employee welfare and prevent wage exploitation in both formal and informal sectors.
Standard Working Hours and Legal Thresholds
The legal standard work limit remains fixed at 8 hours per day and 48 hours per week. Any work performed beyond this limit qualifies as overtime and is subject to enhanced pay rates. Employers are required to maintain accurate timekeeping and payroll records to verify compliance, particularly in manufacturing, hospitality, and service industries where extended hours are common.
Overtime Compensation Framework
Cambodia’s labor law differentiates pay rates based on the nature and timing of additional work. The structured approach ensures fair remuneration while recognizing the increased strain of extended or irregular hours.
- Standard Overtime:
Employees working beyond 48 hours per week must be compensated at a rate of 150 percent (1.5 times) of their regular hourly wage. This provision applies to all sectors, including garment manufacturing, retail, and hospitality. - Night Work:
Work performed during the designated night period—between 10:00 PM and 5:00 AM—must be paid at a premium rate of 130 percent of the normal wage. This premium acknowledges the physical and psychological demands of night shifts and compensates for the disruption of normal rest cycles. - Rest Day and Public Holiday Work:
Employees who work on weekly rest days, typically Sundays, or on official public holidays must receive at least 200 percent (double pay) of their regular wage. This rule applies uniformly across industries and is designed to respect workers’ entitlement to rest while ensuring fair pay for essential operations.
The following table outlines Cambodia’s standard overtime and supplementary pay rates under 2025 regulations:
Table: Overtime and Premium Pay Rates (2025)
| Work Type | Applicable Period | Minimum Compensation Rate | Equivalent Multiplier |
|---|---|---|---|
| Standard Work | Up to 8 hours/day, 48 hours/week | 100% of regular wage | 1.0x |
| Overtime Work | Beyond 48 hours/week | 150% of regular wage | 1.5x |
| Night Work | 10:00 PM – 5:00 AM | 130% of regular wage | 1.3x |
| Rest Day / Public Holiday Work | Sundays or official holidays | 200% of regular wage | 2.0x |
Annual Leave and Paid Holiday Entitlements
In addition to premium pay regulations, Cambodian labor law provides generous provisions for paid leave to ensure work-life balance and employee retention.
- Annual Leave Accrual:
Employees earn 1.5 days of paid annual leave for each month of service after completing their first year of employment. This equates to 18 days of paid leave per year for standard full-time workers. - Long-Term Service Benefits:
For every three consecutive years of employment, an additional day of annual leave is granted, rewarding loyalty and long-term service continuity. This cumulative system allows senior employees to enjoy progressively extended rest periods. - Public Holidays:
Cambodia observes approximately 19 national public holidays each year—the highest among ASEAN nations. Employees are entitled to full pay on these days, whether they work or rest. If employees are required to work during a public holiday, they must receive double pay (200 percent) in accordance with statutory provisions.
The following chart illustrates the relationship between years of service and annual leave entitlement:
Table: Annual Leave Entitlement Based on Tenure (2025)
| Years of Service | Monthly Accrual (Days) | Annual Leave Entitlement (Days) | Additional Days per 3 Years |
|---|---|---|---|
| 1–3 | 1.5 | 18 | — |
| 4–6 | 1.5 | 19 | +1 |
| 7–9 | 1.5 | 20 | +2 |
| 10+ | 1.5 | 21+ | +3 or more |
Implications for Employers and Workers
The structured overtime and leave framework in Cambodia promotes a fair balance between productivity and employee welfare. For employers, compliance with these laws is essential not only to avoid penalties but also to maintain workforce satisfaction and operational stability. For employees, the consistent enforcement of premium pay and leave entitlements ensures that extended labor contributions are properly valued and compensated.
Overall, Cambodia’s overtime, night work, and public holiday pay policies in 2025 reinforce its reputation as a nation that prioritizes both industrial efficiency and equitable labor practices, aligning with international standards of fair employment.
3. General Salary Benchmarks and Experience Segmentation
a. The Professional Salary Landscape: Averages vs. Reality
The Cambodian labor market in 2025 exhibits a dualistic structure that significantly affects salary distribution and compensation planning across sectors. Understanding these variations is crucial for employers, HR professionals, and foreign investors seeking to benchmark fair and competitive pay scales.
The Professional Salary Landscape: Averages vs. Reality
When analyzing average salary levels in Cambodia, it is essential to distinguish between statistical averages and practical earnings. The reported average monthly income stands at approximately 3,621,500 KHR, equivalent to around USD 905.38. However, this figure primarily reflects the earnings of professionals in high-value, skill-intensive industries such as information and communication technology (ICT), finance, and engineering.
For the majority of the workforce, especially in general administrative, service, or production-based roles, the more realistic salary benchmark is closer to USD 500 per month (around 1,012,500 KHR). This amount better represents the median income level for Cambodia’s broader labor pool.
The table below illustrates the income segmentation across various employment tiers in 2025:
Salary Segmentation Table – Cambodia 2025
| Employment Tier | Typical Monthly Salary (USD) | Typical Monthly Salary (KHR) | Key Characteristics |
|---|---|---|---|
| General Labor (Unskilled) | 150 – 180 | 304,000 – 365,000 | Entry-level factory and service workers, regulated under GFT sector norms |
| Skilled Workers / Clerical Staff | 300 – 500 | 608,000 – 1,012,500 | Employees with vocational or administrative training |
| Mid-Level Professionals | 700 – 1,200 | 1,418,000 – 2,430,000 | Professionals with experience in technical or managerial positions |
| Senior Specialists / Managers | 1,500 – 3,000 | 3,045,000 – 6,090,000 | Experienced managers, engineers, and consultants |
| Executive and Expat Roles | 3,500 – 4,000+ | 7,105,000 – 8,120,000+ | Foreign hires and senior-level executives in multinational firms |
This income range demonstrates Cambodia’s economic bifurcation, where two distinct labor markets coexist. The first is the regulated industrial and manufacturing sector, which focuses on cost-sensitive production, mainly within garments, footwear, and textiles. The second is a dollar-denominated professional market, shaped heavily by foreign investment, multinational corporations, and international development organizations.
The disparity between the GFT minimum wage of USD 208 and the professional average nearing USD 905 underscores this divergence. It highlights how Cambodia’s workforce structure reflects both developing-economy wage characteristics and emerging-market salary inflation in professional domains.
From an employer’s perspective, understanding these dynamics is vital for designing compensation strategies that are both equitable and market-aligned. Using high-end professional averages as benchmarks for entry-level or semi-skilled roles could result in excessive overpayment, distorting internal pay equity and operational budgets. Conversely, underpaying skilled professionals may lead to talent attrition, particularly within competitive urban centers like Phnom Penh, where demand for qualified talent continues to surge.
In summary, Cambodia’s 2025 salary landscape represents a transitional economy balancing between cost-efficiency in traditional industries and competitive remuneration within globalized professional markets. Companies operating in the country must therefore adopt differentiated pay frameworks that reflect each sector’s market reality and workforce expectations.
b. Salary Progression by Professional Level
In Cambodia’s evolving employment landscape, salary progression in 2025 is increasingly influenced by a combination of professional experience, industry specialization, and employer type. Multinational corporations, foreign-funded enterprises, and international NGOs tend to offer a substantial compensation premium compared to domestic firms, often ranging between 20 to 30 percent higher. This wage gap primarily reflects the demand for internationally competitive talent, especially in sectors such as information technology, finance, engineering, and professional consulting.
Professionals entering the job market typically experience steady salary growth as they gain expertise and seniority. Over time, this progression not only reflects increased job responsibilities but also a greater ability to manage teams, oversee projects, and contribute to strategic business outcomes.
Salary Trends Across Experience Levels
The following table provides a comprehensive overview of the typical monthly salary ranges for professionals in Cambodia as of 2025. These ranges illustrate the correlation between years of experience and earning potential across key sectors.
Salary Benchmark Table – Professional Salary Ranges in Cambodia (2025)
| Professional Level | Years of Experience | Low Range (USD) | High Range (USD) | Characteristics and Key Insights |
|---|---|---|---|---|
| Entry-Level | 0 – 2 Years | 250 | 600 | Suitable for graduates or early-career professionals with limited industry exposure. Common in administrative, customer service, or junior technical roles. |
| Mid-Level Professional | 3 – 5 Years | 500 | 1,200 | Represents employees who have developed specialized expertise and can manage small teams or independent projects. Common across marketing, IT support, and logistics sectors. |
| Senior Professional | 6+ Years | 900 | 3,500+ | Reflects significant career experience with leadership capacity. Includes senior engineers, finance managers, and HR specialists managing strategic functions. |
| Management / Executive | Varies | 1,600 | 3,500+ | Occupied by top-level decision-makers such as general managers, directors, and country heads. Compensation may exceed stated levels in multinational and expatriate roles. |
Key Observations
• The salary trajectory in Cambodia mirrors that of other emerging Southeast Asian economies, with exponential income increases after the five-year experience threshold.
• International employers typically benchmark salaries against regional peers, such as Vietnam and Thailand, leading to higher competitiveness for skilled local professionals.
• Domestic companies, particularly small and medium-sized enterprises (SMEs), maintain more conservative pay structures but often offset this with non-monetary benefits such as flexible working hours or career training opportunities.
• Expatriate and management-level compensation remains highly variable, depending on company scale, foreign ownership, and strategic importance of the position.
Overall, salary progression in Cambodia’s professional sector for 2025 demonstrates a clear pattern of growth aligned with skill acquisition, sectoral development, and the increasing influence of international investment. Employers aiming to attract top-tier talent must adopt compensation frameworks that balance financial competitiveness with long-term professional growth incentives.
c. Entry-Level Compensation by Specialization (2025 Focus)
In 2025, the salary landscape for entry-level professionals in Cambodia reflects the nation’s accelerating transition toward a knowledge-driven economy. As industries such as technology, digital services, and finance expand, employers increasingly prioritize candidates with technical and analytical expertise. This growing demand for specialized skills creates a visible wage disparity among new graduates based on their academic background and technical proficiency.
General employment trends reveal that digital literacy, engineering capabilities, and financial acumen have become critical factors influencing salary benchmarks for fresh entrants. Employers in competitive sectors are willing to offer above-average starting salaries to attract skilled graduates capable of contributing to productivity and innovation from the outset.
Key Salary Insights for Entry-Level Professionals in 2025
The table below outlines the estimated monthly salary ranges for fresh graduates across major disciplines in Cambodia’s labor market for 2025.
Entry-Level Monthly Salary Estimates by Discipline (2025)
| Academic or Professional Discipline | Typical Entry Role Examples | Estimated Salary Range (USD/Month) | Market Observations and Insights |
|---|---|---|---|
| Information Technology (IT) & Engineering | Software Developer, Systems Engineer, Civil Engineer | 450 – 600 | Technical graduates enjoy higher starting pay due to a shortage of qualified local candidates in high-demand sectors like digital infrastructure and automation. |
| Accounting & Finance | Junior Accountant, Financial Analyst, Audit Assistant | 400 – 600 | Competitive salaries are driven by the expansion of the financial services and banking sectors, as well as compliance and taxation needs in multinational firms. |
| Marketing & Human Resources | Marketing Coordinator, HR Assistant, Communication Officer | 350 – 500 | Entry salaries remain moderate, though digital marketing skills or HR analytics proficiency can command premium pay. |
| General Administrative & Customer Service | Office Administrator, Sales Assistant, Support Staff | 300 – 450 | These positions tend to offer the lowest starting pay, reflecting the abundance of available labor and limited technical requirements. |
Analytical Observations
• Technical and STEM-oriented graduates continue to hold a clear salary advantage, supported by Cambodia’s growing reliance on digitalization, construction, and engineering sectors.
• The pay gap between IT/engineering graduates and administrative roles can range from 25% to 40%, demonstrating the influence of specialized expertise.
• Multinational corporations and foreign-owned firms often benchmark entry-level pay higher than local employers, especially for graduates proficient in English or holding international certifications.
• Over the next few years, digital skill acquisition, data literacy, and exposure to software systems are expected to further widen the entry-level wage gap.
In summary, Cambodia’s 2025 entry-level salary market underscores a clear structural shift toward valuing technical and data-driven skills. Graduates who pursue digital and engineering disciplines are better positioned for rapid salary progression and career stability within the country’s competitive employment ecosystem.
4. In-Depth Sectoral Salary Analysis (Salaries by Industry)
a. Finance and Banking Sector Compensation
In 2025, Cambodia’s finance and banking sector continues to stand as one of the country’s most structured and lucrative employment domains. The sector encompasses a broad range of institutions, including commercial banks, microfinance companies, insurance providers, and fintech firms. It plays a pivotal role in driving the nation’s economic modernization and in offering stable, high-value employment for professionals with advanced financial, analytical, and technological expertise.
The compensation framework within the industry reflects both the growing sophistication of financial services and the widening gap between entry-level support roles and specialized management positions. As Cambodia embraces greater financial digitalization, professionals with backgrounds in financial technology, compliance, and risk management have become particularly sought after, commanding salaries well above the market median.
Salary Spectrum and Role-Based Variations
The table below presents a structured overview of average monthly salaries within Cambodia’s finance and banking industry for 2025.
Finance and Banking Salary Benchmarks in 2025
| Professional Role or Job Category | Typical Experience Level | Monthly Salary Range (USD) | Monthly Salary Range (KHR) | Market Insights |
|---|---|---|---|---|
| Banking & Finance Executives / ICT Service Managers | 8+ Years | 1,070 – 2,189 | 4,280,000 – 8,968,000 | Senior financial professionals and ICT managers remain in the upper-tier salary range due to their strategic importance in financial planning, digital infrastructure, and compliance. |
| Financial Analysts / Credit Officers | 3–6 Years | 650 – 1,200 | 2,600,000 – 4,800,000 | Mid-level roles earn stable, performance-based salaries with growth potential through regulatory compliance or digital banking expertise. |
| Payroll Clerks / Office Supervisors | 2–4 Years | 550 – 600 | 2,200,000 – 2,400,000 | Administrative and operational roles maintain moderate pay levels, reflecting limited specialization and repetitive tasks. |
| Bank Tellers / Customer Service Staff | 0–2 Years | 150 – 400 | 636,000 – 1,600,000 | Entry-level positions form the lower salary band, especially in regional or microfinance institutions with smaller operational scales. |
Analytical Observations and Trends
• The banking and finance sector exhibits pronounced income stratification, where entry-level staff may earn below the national professional average of approximately $905 per month, while senior specialists command salaries exceeding $2,000.
• Automation and digital banking expansion have begun reshaping salary structures, rewarding professionals with fintech, cybersecurity, and data analytics experience.
• The presence of multinational banks and regional financial institutions has created an upward pressure on compensation, particularly for bilingual professionals fluent in English and Khmer.
• Payroll Clerks and Office Supervisors earn around $580 per month, representing a steady middle-income bracket within the administrative class of the financial workforce.
In conclusion, while Cambodia’s finance and banking sector continues to provide some of the nation’s most competitive salaries, it remains characterized by stark intra-sectoral wage disparities. Employees positioned in data-driven or technology-integrated finance roles will likely benefit most from the sector’s ongoing modernization and digital transformation initiatives in 2025.
b. Technology (ICT) and Engineering Premium
In 2025, Cambodia’s technology and engineering sectors have emerged as two of the most dynamic and high-growth domains in the national labor market. Rapid digital transformation, the rise of e-commerce, and the integration of Industry 4.0 technologies have significantly amplified demand for technically skilled professionals. However, this surge in demand has also exposed a persistent skills shortage, leading to substantial salary inflation, especially for roles involving advanced software engineering, cloud computing, and automation systems.
Employers across both domestic and multinational firms are increasingly benchmarking their compensation models to regional and global standards rather than relying on traditional local pay scales. This shift has resulted in pronounced salary disparities between entry-level IT professionals and seasoned engineers who possess specialized technical competencies or international exposure.
Salary Structure and Market Insights
The compensation framework for technology and engineering professionals varies according to specialization, experience, and the scale of the employing organization. Entry-level engineers in manufacturing or industrial automation typically earn between 500 and 700 USD per month, while new IT graduates earn slightly less at around 450 to 600 USD per month. However, as professionals advance into mid- and senior-level roles—particularly in software development, artificial intelligence, and blockchain technologies—salary levels rise sharply.
Estimated 2025 Annual Compensation for Key Technology Roles in Cambodia
| Job Title | Annual Salary Range (Entry/Mid-Level) | Annual Salary Range (Experienced) | Market Commentary |
|---|---|---|---|
| Blockchain Engineer | 50,000 – 65,000 USD | 65,000 – 85,000 USD | The blockchain ecosystem, though nascent, offers some of the highest salaries due to limited local expertise and growing adoption in fintech and logistics. |
| AI Architect | 25,000 – 35,000 USD | Up to 60,000 USD | Salaries reflect the increasing need for AI integration in analytics, automation, and customer service applications across industries. |
| DevOps Engineer | 30,000 – 45,000 USD | Up to 60,000 USD | Cloud infrastructure expansion and the need for agile deployment pipelines make this role essential for modern enterprises. |
Analytical Observations
• The ICT and engineering sectors in Cambodia effectively operate as a semi-expatriate labor market, where high-level technical positions are often filled by foreign professionals or Cambodian returnees trained abroad.
• Employers offering digital transformation services must compete regionally with salary packages often exceeding $50,000 annually, aligning with ASEAN-level benchmarks.
• The significant wage gap between entry-level IT graduates and experienced specialists—often exceeding tenfold—highlights structural skill imbalances in the local labor ecosystem.
• To mitigate this shortage, companies are increasingly investing in local upskilling programs and partnerships with international training providers.
In summary, the Cambodian technology and engineering sectors in 2025 represent a rapidly evolving compensation landscape, where salary scales are dictated more by global talent competition than by local economic norms. Organizations aiming to attract and retain high-value digital talent must adopt globally aligned remuneration strategies and long-term workforce development initiatives to sustain growth in this pivotal sector.
c. Education and Training Sector
The education and training sector in Cambodia continues to experience significant transformation in 2025, shaped by globalization, digital adoption, and the country’s economic modernization. Salaries within this field vary extensively depending on the type of institution, level of expertise, and specialization of the professional.
Local vs. International Educational Institutions
- Educators in local schools generally earn between USD 300 and USD 500 per month. This reflects Cambodia’s developing education infrastructure and the relatively modest budgets of public and local private schools.
- Teachers employed in international schools earn substantially higher wages, typically ranging between USD 1,500 and USD 2,500 monthly. These institutions often seek foreign-certified educators or those holding advanced degrees such as a Master’s in Education or Teaching English as a Foreign Language (TEFL) certification.
- The gap highlights the growing demand for internationally accredited curricula and English-based education, which cater to expatriates and Cambodia’s rising middle-class population seeking quality education for their children.
Growth in the EdTech and Corporate Training Subsector
- The emergence of educational technology (EdTech) has opened new income opportunities for professionals specializing in digital learning solutions, online course design, and corporate upskilling programs.
- Salaries for EdTech professionals and corporate trainers typically range between USD 700 and USD 1,200 per month, depending on their technical expertise and experience in content development, instructional design, or digital platform management.
- The ongoing digital transformation across Cambodian businesses has increased demand for customized corporate training programs, particularly in leadership development, technology adoption, and business communication.
Comparative Salary Overview
| Role Type | Average Monthly Salary (USD) | Employment Sector | Skill Requirement |
|---|---|---|---|
| Local School Teacher | 300 – 500 | Public / Local Private Schools | Bachelor’s Degree or Local Certification |
| International School Teacher | 1,500 – 2,500 | International Private Institutions | Foreign Certification / Advanced Degree |
| Corporate Trainer | 700 – 1,200 | Private Sector / Training Providers | Business / HR Expertise + Soft Skills |
| EdTech Content Developer | 700 – 1,200 | EdTech Startups / Online Platforms | Digital Learning Design / IT Skills |
Future Outlook
The education and training sector in Cambodia is poised for further salary growth as the country integrates global educational standards and expands its digital learning ecosystem. Professionals with advanced credentials, bilingual proficiency, and strong digital literacy are expected to command higher compensation packages. The government’s focus on workforce upskilling and private sector investment in EdTech innovation will continue to redefine salary structures and employment opportunities across this dynamic field.
d. Traditional Industries and Service Roles
The traditional industries and service-based roles in Cambodia remain a vital foundation of the nation’s economy in 2025. Despite the growing influence of technology-driven industries, sectors such as manufacturing, operations, human resources, and healthcare continue to employ a significant portion of the Cambodian workforce. The salary landscape within these fields reflects a balance between economic modernization and the preservation of conventional employment structures.
Manufacturing and Industrial Operations
- Cambodia’s manufacturing sector, particularly beyond garments, footwear, and textiles, continues to expand into diversified industries such as food processing, automotive components, and electronics assembly.
- Entry-level engineers earn between USD 500 and USD 700 per month, a range that reflects increasing demand for technically skilled professionals in mechanical and industrial engineering.
- Production Supervisors command salaries between USD 800 and USD 1,100 monthly, primarily in factories adopting semi-automated systems and quality assurance processes.
- Senior professionals such as Plant Managers earn between USD 1,500 and USD 2,800 monthly. Their compensation aligns with the responsibility of managing production efficiency, workforce performance, and supply chain optimization.
- As industrial automation becomes more prevalent, there is a notable rise in compensation for roles requiring digital and process management expertise.
Professional Roles in Services and Administration
- The professional service sector, encompassing human resources, healthcare, and corporate administration, presents mid-level salary brackets.
- Human Resource specialists and healthcare professionals typically earn between USD 500 and USD 960 monthly (equivalent to approximately 2,000,000 KHR – 3,840,000 KHR).
- Their pay variation is influenced by experience, company size, and specialization. For instance, HR personnel in multinational firms or healthcare staff in private hospitals often command higher salaries than their counterparts in local organizations.
- The sector’s gradual adoption of technology, especially HR analytics and telemedicine, has also contributed to an incremental rise in compensation for professionals with digital and data management skills.
General Labor and Service Industry Roles
- At the base level of Cambodia’s economic structure lie general labor and service positions, which form the largest share of the workforce.
- Typical entry-level salaries start at approximately USD 180 per month (around 720,000 KHR), particularly in sectors such as hospitality, retail, logistics, and domestic work.
- Despite lower wage levels, these roles remain essential to the operational continuity of Cambodia’s urban and rural economies.
Comparative Salary Matrix for 2025
| Position Category | Average Monthly Salary (USD) | Equivalent in KHR (Approx.) | Key Factors Influencing Salary |
|---|---|---|---|
| Entry-level Engineer | 500 – 700 | 2,000,000 – 2,800,000 | Technical expertise, experience, sector specialization |
| Production Supervisor | 800 – 1,100 | 3,200,000 – 4,400,000 | Process efficiency, team management |
| Plant Manager | 1,500 – 2,800 | 6,000,000 – 11,200,000 | Leadership, automation adoption, scale of operations |
| HR / Healthcare Professional | 500 – 960 | 2,000,000 – 3,840,000 | Sector type, qualification, technology usage |
| General Labor / Service Worker | 180+ | 720,000+ | Industry demand, geographic location, skill level |
Economic Outlook and Salary Trends
The traditional and service sectors in Cambodia are gradually integrating digital technologies and process innovations. As modernization accelerates, professionals with a combination of operational experience and technological proficiency are expected to see higher salary growth. While wage levels in general labor and services remain modest, the country’s push toward industrial diversification and vocational upskilling is likely to create more competitive pay scales across multiple occupational tiers by the end of 2025.
5. Regional Salary Disparities and Cost of Living Context
a. Phnom Penh Salary Premium
In 2025, Cambodia’s salary landscape reveals notable geographical disparities driven by variations in economic activity, infrastructure development, and cost of living across provinces. Among these, Phnom Penh remains the dominant hub for professional and corporate employment, commanding a substantial salary premium compared to regional cities and rural provinces. This divergence underscores the capital’s role as the central axis of Cambodia’s economic dynamism.
Phnom Penh Salary Premium
- Phnom Penh serves as the nation’s political, financial, and industrial nucleus, hosting the headquarters of multinational corporations, financial institutions, and major government offices.
- Professionals in Phnom Penh typically earn between 15 and 30 percent more than their provincial counterparts. This disparity reflects both the higher operational costs for employers in the city and the elevated living expenses faced by employees.
- For example, a finance officer earning approximately USD 1,200 per month in Phnom Penh would receive around USD 900 for the same position in Siem Reap or Battambang.
- The capital’s robust job market, fueled by continuous investment in construction, banking, and information technology, further reinforces the compensation differential.
Cost of Living and Urban Salary Adjustments
- The elevated salary levels in Phnom Penh are primarily offset by a substantially higher cost of living.
- As of April 2025, the city’s cost of living index stands at approximately 37.7, positioning it as the most expensive location in Cambodia.
- Housing costs represent the most significant expenditure for residents. A one-bedroom apartment in the city center averages around USD 386.77 per month, with rental prices ranging from USD 250 to USD 750 depending on proximity to business districts and property quality.
- Daily expenses such as transportation, dining, and utilities are also markedly higher compared to other regions, further justifying the capital’s wage premium.
Employers’ Compensation Strategy
- For employers, offering a 15–30 percent salary premium is not merely a recruitment incentive but a necessary adjustment to ensure equitable purchasing power for employees residing in Phnom Penh.
- This approach enables companies to attract and retain qualified professionals, especially in competitive fields such as finance, IT, and management.
- Firms that fail to calibrate compensation according to cost-of-living realities risk higher turnover and recruitment challenges.
Comparative Cost and Salary Analysis (2025)
| Location | Average Monthly Salary (Finance Role, USD) | Cost of Living Index | Average Rent (1BR, City Center, USD) | Salary Premium vs Provinces |
|---|---|---|---|---|
| Phnom Penh | 1,200 | 37.7 | 386.77 | +15% to +30% |
| Siem Reap | 900 | 31.2 | 280.00 | Baseline |
| Battambang | 850 | 29.5 | 260.00 | Baseline |
Insights on Economic Disparity
- The pronounced income gap between Phnom Penh and provincial regions highlights Cambodia’s ongoing urban–rural economic imbalance.
- However, as infrastructure projects and regional investments expand, cities such as Sihanoukville and Siem Reap are expected to gradually narrow the wage differential over the coming years.
- By 2025, salary adjustments across key industries increasingly factor in both geographical and lifestyle costs, signaling a more data-driven approach to compensation management across Cambodia’s evolving labor market.
b. Salary Comparison in Secondary Cities
The 2025 Cambodian salary landscape reveals notable regional variations between Phnom Penh and secondary cities such as Siem Reap, Kampot, and Sihanoukville. These differences are primarily influenced by cost of living, economic specialization, and local labor market conditions. Employers operating in these cities often benefit from a lower wage base, while employees enjoy a more affordable lifestyle that compensates for the reduced salaries.
Wage Structures in Secondary Cities
- Average salaries in secondary cities typically range between 15 and 30 percent lower than those in Phnom Penh.
- This wage differential reflects not only the lower cost of living but also the smaller scale of commercial and industrial operations outside the capital.
- For example, an administrative professional earning USD 800 in Phnom Penh would likely receive between USD 560 and USD 680 in Siem Reap or Kampot for a comparable role.
- These adjustments allow employers to maintain operational efficiency while offering competitive compensation within the regional context.
Sector-Specific Salary Variations
- Regional industry specialization has a notable influence on compensation patterns.
- Siem Reap, as Cambodia’s leading tourism hub, commands higher wages for professionals within the hospitality and travel sectors. Hotel managers, tour operators, and digital marketing professionals in tourism-related enterprises may earn 10 to 20 percent more than counterparts in non-tourism roles in the same region.
- In contrast, industrial zones such as Sihanoukville maintain salaries that align with or slightly fall below the national average, particularly for manufacturing and logistics positions. This trend reflects the prevalence of production-based employment with limited white-collar demand.
Cost of Living Dynamics
- The lower salary structure in secondary cities is balanced by a significantly reduced cost of living.
- While the total monthly budget for a comfortable lifestyle in Phnom Penh ranges between USD 850 and USD 1,200, this figure declines to USD 650 to USD 900 in cities like Siem Reap and Kampot.
- Housing is the most influential factor in this reduction. Monthly rent for a one-bedroom apartment in Siem Reap averages around USD 250, compared to approximately USD 400 in Phnom Penh’s city center.
- Essential services, food, and transportation are also considerably more affordable in these secondary locations, allowing residents to sustain comparable living standards despite lower salaries.
Comparative Salary and Cost of Living Table (2025)
| City | Average Monthly Salary (General Roles, USD) | Tourism/Industrial Premium | Average Monthly Living Cost (USD) | Salary Difference vs Phnom Penh |
|---|---|---|---|---|
| Phnom Penh | 1,000 | N/A | 850 – 1,200 | Baseline |
| Siem Reap | 700 – 850 | +10% to +20% (Tourism) | 650 – 900 | -15% to -30% |
| Kampot | 650 – 800 | N/A | 650 – 850 | -20% to -30% |
| Sihanoukville | 700 – 850 | Industrial Focus (Stable) | 700 – 950 | -15% to -25% |
Interpretation and Economic Implications
- The data reveals that while Phnom Penh continues to dominate Cambodia’s wage hierarchy, secondary cities are gradually emerging as attractive alternatives for both employers and jobseekers.
- The availability of affordable housing, lower living costs, and industry-specific growth—especially in tourism and manufacturing—creates a balanced ecosystem for sustainable employment.
- Employers can optimize payroll budgets through regional hiring strategies, while professionals seeking improved work-life balance may find secondary cities increasingly viable for long-term career development.
6. Total Compensation and Cost of Employment (TCE)
a. Full Cost of Labor Calculation
In Cambodia’s evolving employment market for 2025, understanding the Total Cost of Employment (TCE) is a critical factor for organizations aiming to budget accurately, remain compliant with labor laws, and design sustainable compensation frameworks. The TCE encompasses more than the basic salary—it includes statutory benefits, bonuses, social security contributions, seniority payments, and other allowances that together represent the full financial commitment of an employer per employee.
Comprehensive Definition of TCE
- The Total Cost of Employment (TCE) represents the aggregate annual expenditure incurred by a company for an employee.
- It combines direct remuneration (such as monthly salary) with indirect costs that are essential for compliance and employee welfare.
- These include:
• Statutory employer contributions to Cambodia’s National Social Security Fund (NSSF).
• Mandatory seniority indemnity payments under the Labor Law.
• Performance or annual bonuses tied to productivity or tenure.
• Non-cash benefits, including meal allowances, transportation, and housing support.
• Paid leave and training allowances, which contribute indirectly to labor costs.
Strategic Importance for Employers
- In 2025, rising competition for professional talent—particularly in finance, ICT, and engineering—has made it imperative for employers to assess compensation through a total cost perspective rather than base pay alone.
- Multinational and regional firms operating in Cambodia often find that TCE values exceed nominal salaries by 20 to 40 percent, depending on sector-specific benefit structures.
- Employers that neglect TCE calculations risk underestimating their payroll obligations, potentially affecting profitability and employee retention.
Comparative Total Annual Cost of Employment (TCE) Matrix (2025)
| Role Level | Monthly Salary Range (USD) | Estimated Annual Total Cost of Employment (TCE) (USD) | Typical Cost Uplift vs Base Salary (%) |
|---|---|---|---|
| Entry Level | 250 – 400 | 3,300 – 5,200 | +25% to +35% |
| Mid-Level Professional | 500 – 800 | 6,500 – 10,400 | +30% to +40% |
| Senior Professional | 900 – 1,500 | 11,700 – 19,500 | +30% to +45% |
| Management Level | 1,600 – 3,000 | 20,800 – 39,000 | +35% to +45% |
Interpretation of the Data
- Entry-level professionals, while earning modest salaries, incur proportionately higher TCE percentages due to fixed statutory costs that apply regardless of pay scale.
- For mid-level and senior professionals, variable bonuses and benefits significantly expand the total cost, reflecting higher incentive-based compensation structures.
- Executive and management-level employees often receive performance-linked bonuses, housing allowances, and expatriate benefits, resulting in a total employment cost that may exceed 1.3 times the base annual salary.
Key Insights for 2025 Workforce Planning
- Organizations aiming to maintain competitiveness in the Cambodian market must account for the growing regulatory emphasis on employee welfare and social protection.
- Accurate TCE forecasting enhances financial planning, ensuring that companies can attract and retain talent without compromising fiscal sustainability.
- By integrating TCE analysis into salary benchmarking and workforce budgeting, employers can optimize remuneration strategies while complying with evolving national labor standards.
b. Statutory Contributions and Tax on Salary (ToS) Structure
Cambodia’s labor and tax framework imposes several statutory obligations on employers that directly influence the total cost of employment and overall payroll management. Understanding these mandatory contributions and tax requirements is critical for ensuring full compliance with Cambodian labor law while maintaining efficient financial planning.
Employer’s Legal Responsibilities
Employers in Cambodia are required to manage, withhold, and remit various statutory deductions and contributions on behalf of their employees. These obligations encompass both direct taxation and social protection mechanisms designed to safeguard worker welfare and contribute to national development funds.
Breakdown of Statutory Components
Tax on Salary (ToS)
- The Tax on Salary (ToS) represents a core component of Cambodia’s income taxation framework.
- Employers are legally required to calculate and withhold ToS every month from employees’ gross income and remit the amount to the General Department of Taxation.
- Resident employees are subject to a progressive tax rate system that scales based on income level, while non-resident employees pay a flat rate.
Table: Cambodia 2025 Tax on Salary (ToS) Structure
| Employee Type | Tax Rate Type | Income Range (USD/Month) | Applicable Rate (%) | Filing Frequency | Remarks |
|---|---|---|---|---|---|
| Resident Employee | Progressive | 0 – 1,300 | 0 – 20 | Monthly (by 25th) | Based on income bracket |
| Non-Resident Employee | Flat | All income levels | 20 | Monthly (by 25th) | Uniform rate applies regardless of income |
- For resident workers, the tax rate begins at 0 percent for lower-income earners and scales progressively up to 20 percent for higher-income brackets.
- Non-resident employees, typically expatriates, are taxed at a consistent flat rate of 20 percent on gross income.
- Monthly electronic filings must be submitted by the 25th of the subsequent month, ensuring ongoing compliance with Cambodia’s fiscal regulations.
National Social Security Fund (NSSF)
- Employers with eight or more employees must register with the National Social Security Fund (NSSF) within 45 days of operation.
- The NSSF encompasses three primary schemes:
• Occupational Risk Scheme – covering workplace accidents and professional illnesses.
• Healthcare Scheme – providing medical coverage for employees and dependents.
• Pension Scheme – a recently expanded component that introduces mandatory employer and employee pension contributions to support retirement income security. - Contributions are shared between employer and employee, typically calculated as a percentage of the employee’s gross salary, with rates periodically reviewed by government decree.
Seniority Payment Liability
- Employers are legally obligated to provision annual seniority payments for employees under Undetermined Duration Contracts (UDC).
- The standard entitlement is equivalent to 15 days of wages per year, disbursed either biannually or upon contract termination.
- This payment structure reinforces job stability and ensures financial continuity for long-serving employees.
Strategic Implications for Employers in 2025
- Accurate forecasting of payroll costs must include these statutory obligations to prevent financial discrepancies during audits or compliance reviews.
- For multinational corporations and SMEs expanding in Cambodia, integrating these statutory elements into payroll systems ensures legal conformity while improving transparency in employee remuneration.
- The combined effect of ToS, NSSF, and seniority payments increases the employer’s total compensation cost by an estimated 10 to 20 percent beyond base salary figures, depending on workforce composition and benefits structures.
By effectively managing statutory contributions and salary taxation, organizations operating in Cambodia in 2025 can maintain compliance, foster employee satisfaction, and strengthen their long-term workforce sustainability.
c. Fringe Benefits and Non-Monetary Compensation
Fringe benefits and non-monetary compensation have become vital components of modern remuneration structures in Cambodia. As the labor market evolves in 2025, these additional forms of employee compensation play a decisive role in compliance, attraction, and retention of skilled professionals across industries.
Fringe benefits, often considered indirect remuneration, complement base salaries and directly influence the total value of an employee’s compensation package. Beyond statutory contributions, employers in Cambodia are increasingly adopting a holistic compensation model that balances legal obligations with competitive market expectations.
Key non-statutory benefits commonly provided by Cambodian employers include:
• Healthcare allowances to support medical and wellness needs.
• Housing allowances to offset rising urban living costs.
• Transportation allowances to assist commuting and travel.
• Seniority bonuses ranging between USD 2 and USD 11 per month after one year of continuous employment.
These benefits not only comply with emerging employee expectations but also serve as a mechanism for boosting morale and organizational loyalty.
Strategic Importance of Non-Monetary Benefits
For mid- to high-level professionals, fringe benefits act as a strategic retention tool. Since Cambodia’s progressive tax system subjects top earners to a 20 percent tax rate, employers strategically design benefit structures to maintain net take-home pay while optimizing cost efficiency. Non-monetary benefits such as health insurance, flexible working arrangements, and skill development opportunities are increasingly preferred due to their non-taxable nature and long-term value perception.
Properly structured compensation frameworks allow companies to maintain competitive salary packages without inflating taxable gross income. This ensures that organizations remain compliant with Cambodian tax regulations while retaining financial flexibility.
Taxable and Non-Taxable Benefit Classification
According to Cambodian tax law, certain fringe benefits are taxable when considered as part of an employee’s total remuneration. Employers must carefully distinguish between allowable and taxable items to avoid non-compliance.
Below is a classification matrix outlining key examples:
| Fringe Benefit Type | Taxable Status | Remarks |
|---|---|---|
| Accommodation and utility payments | Taxable | Considered as part of personal living expenses |
| Education assistance (non-job related) | Taxable | Only employment-related education is exempt |
| Motor vehicle provision (for personal use) | Taxable | Must be justified as work-related to be exempt |
| Low-interest loans or discounted sales | Taxable | Viewed as a financial advantage to the employee |
| Excessive cash allowances or bonuses | Taxable | Evaluated under fair market benefit principles |
| Insurance and pension contributions (beyond statutory limits) | Taxable | Limited exemptions may apply for group policies |
By maintaining clear documentation and accurate classification, employers can ensure transparency in their compensation management.
Sick Leave and Salary Continuation Policies
Under Cambodian labor regulations, employees are entitled to up to six months of sick leave, subject to varying pay entitlements:
• First month – 100 percent of salary paid by the employer.
• Second and third months – 60 percent of salary continuation.
• Fourth to sixth months – unpaid leave period.
This progressive structure balances employee welfare with organizational sustainability, ensuring that both parties are protected during extended medical absences.
Conclusion
In 2025, fringe benefits and non-monetary compensation continue to redefine salary structures in Cambodia. For employers, understanding the intricate relationship between compensation, taxation, and employee satisfaction is crucial for maintaining competitiveness in the evolving Cambodian labor market. Through strategic benefit planning, businesses can achieve compliance while delivering greater perceived value to their workforce.
7. Strategic Outlook
The 2025 salary environment in Cambodia presents a complex dual structure shaped by divergent forces between regulated mass employment sectors and rapidly evolving professional markets. This structural duality defines the overall compensation dynamics, economic competitiveness, and labor mobility across industries.
Stability and Challenges in the Regulated Employment Sector
The garment, footwear, and textile (GFT) industry, which remains Cambodia’s largest formal employment sector, continues to demonstrate salary stability in 2025. The minimum wage adjustment—rising by a modest USD 2—reflects a deliberate government strategy to preserve industrial competitiveness and maintain macroeconomic equilibrium. With inflation forecasted at approximately 2.0 percent, the policy ensures operational predictability for employers and export consistency for the manufacturing base.
However, this stability comes at a cost. Workers in urban centers continue to face mounting financial challenges driven by escalating living expenses and persistent household debt levels. The minimal wage growth fails to bridge the widening gap between income and cost of living, compelling many workers to depend on supplementary income streams or informal credit sources.
Escalating Salaries in Professional and Technical Markets
In contrast, Cambodia’s professional and technical workforce operates in a high-demand, skill-constrained environment. Key sectors such as software development, fintech, civil engineering, and renewable energy are experiencing steep salary inflation due to limited qualified talent and increased international competition.
Compensation for specialized roles now reaches up to USD 85,000 annually—significantly surpassing the national professional average of USD 905.38 per month. This divergence underscores a clear salary polarization between traditional manufacturing jobs and high-skilled professions.
The table below illustrates the widening salary gap across employment categories:
| Employment Sector | Average Monthly Salary (USD) | Annualized Estimate (USD) | Market Trend |
|---|---|---|---|
| GFT Sector (Factory & Production) | 215 | 2,580 | Stable, low inflation impact |
| Administrative & Support Roles | 450 | 5,400 | Gradual upward adjustment |
| Skilled Technicians | 950 | 11,400 | Moderate growth driven by automation demand |
| Engineering & IT Specialists | 3,000 | 36,000 | Rapid increase due to global recruitment pressure |
| Executive & Senior Management | 7,000 | 84,000 | High volatility, globally benchmarked salaries |
This data demonstrates the significant structural imbalance shaping Cambodia’s 2025 compensation ecosystem.
Strategic Compensation Imperatives for Employers
Organizations operating in Cambodia must adopt segmented compensation frameworks to sustain both fiscal prudence and workforce competitiveness. Employers in the GFT sector must maintain strict compliance with statutory obligations—covering minimum wage, attendance bonuses, and other mandatory allowances—to meet labor law standards.
Simultaneously, companies employing high-skilled professionals must implement advanced salary structures that reflect global market rates. Effective strategies include:
• Conducting regular international salary benchmarking to remain competitive.
• Designing total compensation packages that integrate compliant fringe benefits such as housing, medical, and education support.
• Balancing fixed and variable pay components to optimize tax efficiency under Cambodia’s progressive Tax on Salary system.
Outlook for 2025 and Beyond
Cambodia’s salary evolution will continue to mirror its broader economic trajectory—balancing between cost-driven manufacturing competitiveness and knowledge-driven professional expansion. The government’s ongoing efforts to modernize vocational education, enhance digital literacy, and diversify industrial bases will gradually alleviate talent shortages, though immediate relief remains limited.
Structural reforms, particularly those aimed at improving labor productivity, financial inclusion, and corporate governance, will be instrumental in stabilizing the wage environment. Until then, the upward pressure on professional and technical salaries is expected to persist, reinforcing the need for employers to adopt data-driven, adaptive compensation strategies.
In summary, the Cambodian salary landscape in 2025 represents both opportunity and challenge—a delicate balance between sustaining industrial affordability and rewarding professional expertise essential for long-term economic resilience.
Conclusion
The Cambodian salary landscape in 2025 embodies a critical juncture of transformation, shaped by economic modernization, labor market realignment, and increasing integration with regional and global economies. As the nation continues to transition from a low-cost manufacturing base toward a diversified, skills-driven economy, the salary structures across sectors have evolved to reflect varying degrees of economic sophistication, talent competitiveness, and cost-of-living pressures.
For employers, understanding this evolving compensation ecosystem is not merely a compliance exercise—it is a strategic necessity. The regulated sectors, led by the garment, footwear, and textile industries, maintain Cambodia’s foundation for mass employment, offering cost stability and predictable operational frameworks. The government’s decision to modestly raise the minimum wage while sustaining macroeconomic equilibrium signals a commitment to preserving industrial competitiveness amid global uncertainties. However, this measured approach highlights the ongoing disparity between the pace of wage growth and the cost of living in urban centers such as Phnom Penh, where rising expenses continue to challenge workers’ financial well-being.
In contrast, the professional and technical job markets are expanding rapidly, creating a parallel salary ecosystem defined by higher income potential but also intense competition. The demand for qualified professionals in software development, engineering, financial services, and digital technology far outpaces supply, resulting in salary inflation and greater reliance on foreign expertise. In many cases, skilled professionals command salaries exceeding USD 85,000 annually, positioning Cambodia as a rapidly developing player in the regional professional labor market.
These dual dynamics—wage stability in mass employment and rapid escalation in professional remuneration—require companies to adopt segmented compensation strategies. Employers must balance statutory compliance with the National Social Security Fund (NSSF), seniority payments, and Tax on Salary (ToS) obligations while innovating in total compensation design. This includes integrating flexible benefits, performance-linked bonuses, and well-structured fringe benefits that align with Cambodia’s tax regulations to enhance employee retention without overburdening payroll costs.
Moreover, regional salary variations across Phnom Penh, Siem Reap, Kampot, and Sihanoukville further emphasize the importance of location-based compensation strategies. Employers operating outside the capital can leverage lower living costs to maintain competitiveness while offering benefits that match local market expectations. For employees, these regional differences highlight the potential for improved quality of life and savings opportunities in secondary cities.
From a broader economic perspective, Cambodia’s salary progression reflects its ongoing structural reforms and economic ambitions. The government’s efforts to promote foreign investment, strengthen vocational education, and foster digital transformation are gradually creating a more skilled workforce capable of commanding higher wages. However, challenges such as skill shortages, high urban living expenses, and limited access to professional development opportunities continue to shape the pace and sustainability of salary growth.
Looking ahead, the trajectory of Cambodia’s wage environment in 2025 and beyond will depend on the nation’s ability to sustain productivity growth, enhance education and training systems, and attract high-value industries. Employers who invest in workforce upskilling, digital integration, and equitable compensation models will be better positioned to attract and retain top talent in a competitive regional market.
In conclusion, Cambodia’s salary ecosystem in 2025 is defined by its dual nature—steady growth in traditional sectors and accelerating competition in knowledge-based industries. For businesses, it presents both opportunities and challenges: the chance to leverage cost-efficient labor in mass sectors while competing strategically for high-skilled talent. For professionals, it marks a period of increased potential for career advancement and earning growth, driven by expanding industries and global market connectivity.
Ultimately, Cambodia’s evolving salary structure is a reflection of its economic maturity and resilience. As the nation continues to align with ASEAN’s broader economic development, maintaining equilibrium between wage competitiveness, social protection, and productivity will determine how effectively Cambodia transitions into a sustainable, inclusive, and globally competitive economy.
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People Also Ask
What is the average salary in Cambodia in 2025?
The average monthly salary in Cambodia in 2025 is approximately $905, with variations depending on industry, skill level, and geographic location.
How much is the minimum wage in Cambodia in 2025?
The minimum wage for garment, footwear, and textile workers in 2025 is $204 per month, following a modest increase from the previous year.
Which jobs pay the highest salaries in Cambodia?
High-paying jobs include software engineers, blockchain developers, AI architects, and senior management positions, with annual salaries reaching up to $85,000.
What are entry-level salaries in Cambodia in 2025?
Entry-level salaries generally range from $250 to $600 per month, depending on the field. Technical and IT graduates tend to earn more than administrative roles.
How do salaries in Phnom Penh compare to other regions?
Phnom Penh salaries are 15–30% higher than in secondary cities due to higher living costs and greater demand for skilled professionals.
What is the cost of living in Phnom Penh in 2025?
The average cost of living in Phnom Penh ranges from $850 to $1,200 per month, including rent, food, and transportation.
Do salaries in Siem Reap and Kampot differ from Phnom Penh?
Yes, salaries in Siem Reap and Kampot are typically 15–30% lower than Phnom Penh, though tourism-related jobs in Siem Reap can pay slightly more.
How much do teachers earn in Cambodia in 2025?
Local teachers earn between $300 and $500 per month, while international school teachers can earn from $1,500 to $2,500 monthly.
Are salaries increasing in Cambodia in 2025?
Salaries are rising gradually, especially in digital, engineering, and financial sectors, driven by skill shortages and foreign investment.
What is the Tax on Salary (ToS) rate in Cambodia?
Resident employees are taxed progressively from 0% to 20%, while non-residents face a flat 20% tax rate.
How much do IT professionals earn in Cambodia?
IT professionals earn between $450 and $700 monthly for entry-level roles, while experienced engineers can make up to $85,000 annually.
What benefits are included in Cambodian employment packages?
Common benefits include healthcare, housing allowances, transportation, seniority bonuses, and social security contributions.
How is Total Cost of Employment (TCE) calculated in Cambodia?
TCE includes base salary, benefits, allowances, bonuses, and mandatory social security contributions for each employee.
Do employers contribute to social security in Cambodia?
Yes, employers must register with the National Social Security Fund (NSSF) and contribute to healthcare, occupational risk, and pension schemes.
What are the average salaries in the manufacturing sector?
Manufacturing employees earn between $180 and $1,500 monthly, depending on their position and technical expertise.
Are Cambodian salaries competitive in Southeast Asia?
While lower than regional averages, Cambodia’s salaries are gradually increasing, especially in professional and technical fields.
What is the salary range for mid-level professionals in Cambodia?
Mid-level professionals earn between $500 and $1,000 per month, depending on industry and experience level.
How much do HR and finance professionals earn in Cambodia?
HR specialists and finance professionals typically earn $500 to $960 monthly, with senior roles exceeding $1,500.
What industries pay the most in Cambodia?
Technology, finance, engineering, and international education are among the top-paying industries in Cambodia in 2025.
Are bonuses common in Cambodian companies?
Yes, many employers offer annual bonuses, performance incentives, and seniority-based payments as part of total compensation.
How much do healthcare professionals earn in Cambodia?
Healthcare professionals earn between $500 and $1,000 monthly, with private-sector roles often paying higher salaries.
Do foreign workers earn more in Cambodia?
Yes, expatriates and foreign specialists generally earn higher salaries, often aligned with global benchmarks for their expertise.
What is the salary range for engineers in Cambodia?
Entry-level engineers earn $500–$700 per month, while senior or specialized engineers can earn up to $2,800 monthly or more.
How is sick leave managed under Cambodian labor law?
Employees can take up to six months of sick leave, with full pay for the first month and 60% pay for the next two months.
What is the average monthly household income in Cambodia?
The average household income in Cambodia is approximately $1,000 to $1,200 in urban areas, varying by family size and employment.
What are seniority payments in Cambodia?
Employers must provide seniority payments equal to 15 days of wages per year for employees on undetermined duration contracts.
How much do professionals in the education technology sector earn?
EdTech professionals and corporate trainers earn between $700 and $1,200 monthly due to growing demand for digital learning.
How do employers attract skilled workers in Cambodia?
Employers offer higher salaries, fringe benefits, housing support, and career development programs to attract scarce talent.
Will salaries in Cambodia continue to rise after 2025?
Yes, salary growth is expected to continue, particularly in skilled and digital sectors, as Cambodia strengthens its economy.
Is Cambodia’s job market favorable for foreign investors in 2025?
Yes, Cambodia remains attractive for investors due to stable wage growth, a young workforce, and increasing technical talent availability.
Sources
IMF
ADB
Trading Economics
KPMG International
IPS Cambodia Real Estate
The Talent4U
AYP Group
Nucamp
Khmer Times
The Borgen Project
Playroll
Clean Clothes
Remote People
Globalization Partners
Acclime
Multiplier
Paylab
Wise
GoCambo
PwC
