Hiring a foreign employee in Cambodia

TL;DR

• A Cambodian employer may have at most 10% foreign employees in its workforce. Beyond that, a special authorisation from the MLVT is required (Prakas 277/20).
• Two distinct annual steps: the Foreign Manpower Quota (filed before 30 November for the following year) and then each employee’s work permit / employment card (≈ 100 USD/yr, renewed before 31 March). Everything runs through the FWCMS portal.
• The work permit ( MLVT ) and the EB visa (Foreign Affairs / Immigration) are two parallel documents: the employer handles the permit; the employee stays responsible for the visa. NSSF and ToS apply to foreign employees too.

Legal framework and conditions

Employing a foreigner rests on Article 261 of the Labour Law (1997): any foreign national who carries out an activity in Cambodia must hold a work permit and an employment card issued by the MLVT. On the employer side, two cumulative conditions:

• Be a registered entity (Co. Ltd., branch, registered NGO…) with an employer account at the NSSF and the MLVT.
• Comply with the foreign workforce quota: the share of foreigners must not exceed 10% of the total workforce (Cambodian + foreign employees).

The foreign workforce quota (10%)

The core rule: an employer may only employ foreigners up to 10% of its total Cambodian workforce. This cap breaks down into three sub-categories (Prakas No. 196 of 16 August 2014, Use of Foreign Workers):

Exceeding the quota: special authorisation

If you need more than 10% foreigners (technical start-up, a sector with no skilled local labour…), Prakas No. 277/20 (August 2020) allows you to file a request for special authorisation with the MLVT to employ foreigners beyond the 10% cap, provided you can show that qualified Cambodians cannot be found in sufficient numbers. The application requires a written justification and the employment contracts of the foreign employees concerned. The grant remains discretionary.

Cost and duration

Two distinct deadlines, not to be confused:

• Foreign Manpower Quota: filed each year before 30 November for the following year (window opens around 1 September). It is a forecast declaration of foreign headcount, not a per-head payment.
• Work permit / employment card: ≈ 100 USD/yr per employee, renewed between 1 January and 31 March (validity aligned to the calendar year, 1 January to 31 December). Fee and procedure details on the employee side in the work permit guide.

How to do it (employer procedure)

1. Open / check the FWCMS employer account

The FWCMS (Foreign Workers Centralized Management System, fwcms.mlvt.gov.kh) is the MLVT’s single portal for everything related to foreign labour. The employer (HR or a mandated firm) creates a company account linked to the registration number and the NSSF account.

2. File the quota request (before 30 November)

1. Enter the total Cambodian headcount and the number of foreigners planned for the following year.
2. The system checks the 10% ratio and the breakdown by sub-category.
3. If you exceed 10%, attach the special authorisation request (justification + contracts) under Prakas 277/20.
4. Obtain quota approval: it is a precondition for issuing the individual permits.

3. Apply for each employee’s work permit / employment card

1. For each foreigner hired: passport + current EB visa , contract, photo, medical check.
2. Online filing on the FWCMS, within the approved quota.
3. Payment of ≈ 100 USD/yr per employee.
4. Issuance of the digital employment card (+ printable PDF).

4. Register the employee at the NSSF and declare the ToS

The foreign employee is treated like any declared employee: NSSF registration and monthly ToS withheld at source (see below).

Required documents

On the employer side (account + quota):

• Registration number of the entity (MoC Certificate of Incorporation) and an active NSSF account.
• Total Cambodian headcount, evidenced (staff register, NSSF declarations).
• Employment contracts of the foreign employees (and a written justification if exceeding the quota).

On each employee’s side (work permit), via the FWCMS:

• Valid passport + current EB visa .
• Recent passport photos.
• Medical check at an approved clinic.
• Signed employment contract.

Renewal

Two calendars to keep in parallel, every year:

• Quota: re-filed before 30 November for the following year (otherwise a fine).
• Work permit: renewed between 1 January and 31 March for each employee still in post.

Common pitfalls

Link with other obligations

Hiring an expatriate triggers the same social and tax obligations as for a local employee — see the hiring a local employee guide:

• NSSF : mandatory social contributions (occupational accident, health care) — see the NSSF guide.
• ToS (tax on salary): withheld at source by the employer. For a non-resident (< 183 days/yr), a flat 20%; for a resident, a progressive scale — see the ToS guide.
• EB visa : the employee’s responsibility, but often coordinated with HR — see the EB visa guide.

FAQ

How many foreigners can I employ without special authorisation?

Up to 10% of your total Cambodian workforce. Concretely, to employ 1 foreigner “outside the special quota”, you need roughly 9 Cambodian employees (1 foreigner per 10 people total). Below that, you exceed the ratio and must request the Prakas 277/20 authorisation.

What is the difference between the quota and the work permit?

The quota (Foreign Manpower Quota) is a forecast headcount authorisation, filed before 30 November for the following year. The work permit is each employee’s individual title (≈ 100 USD/yr), issued within the approved quota and renewed before 31 March. Without a quota, no permit.

As an employer, must I pay my employee’s EB visa?

Legally, the EB visa is the employee’s responsibility. In practice, many employers coordinate or fund it, but the MLVT administrative obligation is the work permit, not the visa. See the EB visa guide.

Does a foreign employee contribute to the NSSF and pay the ToS?

Yes. A declared foreign employee is treated like a local one: NSSF registration and ToS withheld at source. The ToS rate depends on their tax residence (resident: progressive scale; non-resident: flat 20%).

What if I have no Cambodian employees?

You do not meet the 10% quota (the denominator is zero or too low). You must then go through the special authorisation under Prakas 277/20 for each foreigner, justifying the absence of qualified Cambodians. This is the typical case of a micro-company founded by a single expat — hence the value of hiring at least one local employee.