Cambodia Foreign Employee Quota 2025 - What Employers Need To Know
The window to apply for Cambodia's 2025 foreign employee quota has been open for some time and closes at the end of November 2024. The Ministry of Labour and Vocational Training (MLVT) has via different channels clearly explained what is required and what the process is - so what do you need to know as an employer in Cambodia?
Who Needs To Apply - Employing Foreign Employees In Cambodia 2025
Anyone employing or intending to employ foreign employees in 2025 in the Kingdom of Cambodia is required to apply for a foreign employee quota from the Ministry of Labour and Vocational Training - this is an annual requirement so it should not be news to anyone already operating here.
Under the quota system:
- A maximum of 10 per cent of an employer’s total local workforce may be foreign nationals
- This is based on a calculation of foreign employees/local employees, comprised of office employees (3 per cent); skilled labour employees (6 per cent); and unskilled labour employees (1 per cent).
There has been some flexibility on this since August 2020, when the MLVT issued Prakas 277/20 outlining “Special Conditions on the Employment of Foreign Nationals”
This allows the hiring of foreign nationals in excess of the above foreign employee quota cap but is subject to the MLVT approval.
The most common application of this is if suitably qualified Cambodian nationals or sufficient numbers for their workplace can be sourced. In that case, an employer may file a request to hire foreign nationals under special conditions over 10% of the total number of Cambodian employees.
By not completing the foreign employee quota process, employers may face potential fines from the MLVT. An enterprise can be subject to a fine of KHR 2,520,000 (63 days x KHR 40,000 / approximately US $630) for failure to obtain a foreign employment quota approval.
Applying For Special Conditions - Foreign Employee Quota
As we outlined in 2023, employers must ensure compliance with the following rules when applying for the aforementioned special conditions to employ foreign nationals over the set quota:
- A letter of request to exceed the quota must be submitted to the MLVT, with the employment contracts of each foreign worker attached.
- Work permit applications must be completed for all foreign workers through the FWCMS (*see below)
- Work permit fees must be paid for, as stated in the Joint Prakas between the MLVT and the Ministry of Economy and Finance
- Companies must ensure that all foreign workers possess valid visas or residence permits.
Foreign Workers Centralized Management System (FWCMS)
The Foreign Workers Centralized Management System (FWCMS) is a web-based online management system managed by the Ministry of Labour and Vocational Training (MoLVT) in Cambodia.
You can register on this portal, which will tell you whether you had a Work Permit in previous years. However, if your employer used an agency, then you may not be able to register on the portal since it is how agents apply for WPs under their accounts. If that's the case, you should go directly to the MoLVT rather than using an agency.
What Documents Do Employers Need For Applying
1. Apply For Permission
- Certificate of Incorporation or similar legal document
- The most recent Patent Tax document
- Declaration of Staff Movement In-Out or Declaration of Opening the Enterprise
2. Register Employment Contracts
- Passport
- Employment Contract
- Permission Letter to Hire Foreign Worker
3. Apply For Foreign Worker Permit & Employment Card
It should be noted that foreign employees still require a relevant work permit and visa which are also renewed annually.
