Understanding Payroll Deductions in Cambodia
When you receive your paycheck in Cambodia, the amount you take home is always less than your gross salary. The difference is made up of several payroll deductions that your employer is legally required to withhold and remit on your behalf. Understanding each of these deductions helps you read your payslip correctly and plan your finances.
In Cambodia, the main payroll deductions fall into three categories:
- Tax on Salary (TOS) — the income tax withheld from your monthly salary
- NSSF Social Security Contributions — contributions to the National Social Security Fund for employment injury and health insurance
- NSSF Pension Contributions — contributions to the national pension scheme
This guide explains each deduction in detail for 2026, how they are calculated, and how they affect your net pay. To estimate all of these deductions at once, use the Cambodia Salary Tax Calculator.
1. Tax on Salary (TOS)
Tax on Salary is the largest deduction for most employees. Cambodia uses a progressive tax system for resident employees, meaning different portions of your salary are taxed at different rates (0% to 20%). Non-resident employees are taxed at a flat 20% rate on all Cambodia-sourced salary.
Resident employees can also claim dependent deductions (150,000 KHR per eligible dependent child or non-working spouse) to reduce their taxable salary before the brackets are applied.
For the full bracket table, worked examples, effective-rate calculations, and a detailed explanation of resident vs non-resident treatment, see our companion article: Cambodia Salary Tax Brackets 2026.
2. NSSF Social Security Contributions
The National Social Security Fund (NSSF) administers Cambodia's social security system. Employers and employees both contribute to NSSF for two main schemes:
Employment Injury and Health Insurance Scheme
This scheme covers workplace injuries, occupational diseases, and health insurance for employees. The contribution rates are:
- Employer contribution: 1.3% of the employee's monthly salary (capped at the NSSF salary ceiling)
- Employee contribution: None for this scheme
The salary used for NSSF calculations is subject to a ceiling, which is periodically adjusted by the government. For 2026, confirm the current ceiling with NSSF or your employer.
Health Insurance Scheme (SHV)
Under the health insurance scheme, contributions are shared between employer and employee:
- Employer contribution: a percentage of the employee's monthly salary
- Employee contribution: a percentage of the employee's monthly salary
Both are capped at the NSSF salary ceiling. The exact rates may be updated by prakas (ministerial regulation), so always verify the current rates with NSSF.
3. NSSF Pension Scheme
Cambodia launched its national pension scheme through NSSF, gradually expanding coverage to different sectors. The pension scheme is funded by contributions from both employers and employees.
Pension Contribution Rates
- Employer contribution: a percentage of the employee's contributory salary
- Employee contribution: a percentage of the employee's contributory salary
The contributory salary is subject to a minimum and maximum ceiling set by NSSF. The pension scheme is being rolled out in phases, with different sectors brought in over time. By 2026, coverage is expected to include a broad range of enterprises.
The pension contributions are withheld from your salary each month and remitted to NSSF by your employer. These contributions build up your pension entitlement for retirement.
Putting It All Together: Total Deductions
To understand your total payroll deductions, you need to add up all the components. Here is a summary of what is typically deducted from an employee's paycheck:
| Deduction | Who pays | Basis |
|---|---|---|
| Tax on Salary (TOS) | Employee | Progressive brackets (resident) or 20% flat (non-resident) |
| NSSF Employment Injury | Employer | Percentage of salary up to ceiling |
| NSSF Health Insurance | Employer + Employee | Percentage of salary up to ceiling |
| NSSF Pension | Employer + Employee | Percentage of contributory salary up to ceiling |
The employee's share of deductions reduces the net pay shown on the payslip. The employer's share is an additional cost on top of the gross salary and does not reduce the employee's take-home pay.
Example: Calculating Net Pay
Let us walk through a simplified example for a resident employee with a gross monthly salary of 5,000,000 KHR and no dependents:
Step 1: Calculate Tax on Salary
- First 1,500,000 KHR at 0% = 0 KHR
- Next 500,000 KHR at 5% = 25,000 KHR
- Next 6,500,000 KHR at 10% = 650,000 KHR (but only 3,000,000 KHR falls in this bracket)
- 3,000,000 KHR at 10% = 300,000 KHR
Total TOS = 0 + 25,000 + 300,000 = 325,000 KHR
Step 2: Calculate NSSF Employee Contributions
Assuming the employee's share of NSSF contributions (health insurance + pension) is a percentage of salary up to the ceiling, the exact amount depends on the current rates and ceiling. For illustration, if the combined employee NSSF rate is approximately 2% on salary within the ceiling:
- NSSF employee contribution (illustrative) = 100,000 KHR (2% of 5,000,000, assuming salary is below ceiling)
Step 3: Calculate Net Pay
- Gross salary: 5,000,000 KHR
- Minus TOS: 325,000 KHR
- Minus NSSF employee contributions: 100,000 KHR (illustrative)
- Net pay = 4,575,000 KHR (illustrative)
This is a simplified example. Actual NSSF rates and ceilings should be confirmed with your employer or NSSF for the most accurate calculation.
Reading Your Payslip
A typical Cambodian payslip will show:
- Gross salary — your total salary before any deductions
- Tax on Salary — the TOS withheld based on progressive brackets
- NSSF contributions — your share of social security and pension
- Other deductions — any employer-specific deductions (loans, advances, etc.)
- Net salary — the amount you actually receive
If any line item looks incorrect, ask your HR or payroll department for an explanation. You have the right to understand every deduction on your payslip.
Using the Salary Tax Calculator
To estimate the tax portion of your deductions quickly, use the Cambodia Salary Tax Calculator. The calculator handles:
- Progressive tax brackets for resident employees
- Flat 20% rate for non-residents
- Dependent deductions
- Both KHR and USD input
- Effective tax rate display
While the calculator focuses on Tax on Salary, it gives you the largest piece of the deduction puzzle. You can then add your NSSF contributions (available from your payslip or HR) to get your full net pay estimate.
Employer Responsibilities
Employers in Cambodia have several payroll obligations:
- Withhold Tax on Salary from each employee's monthly salary and remit it to the General Department of Taxation (GDT) by the 15th of the following month
- Register employees with NSSF and make monthly contributions for social security and pension
- Issue payslips showing gross salary, deductions, and net pay
- Maintain payroll records for tax and labor compliance
Failure to comply with these obligations can result in penalties, interest, and legal action. Employers should work with qualified payroll professionals or tax advisers to ensure full compliance.
Important Notes
The deduction rates and rules described in this guide reflect the Cambodia payroll framework for 2026. However, NSSF rates, pension scheme coverage, and tax rules can change through new prakas or legislation. Always verify current rates with:
- The General Department of Taxation for tax matters
- The National Social Security Fund for social security and pension contributions
- Your employer's payroll department for your specific situation
This guide is for informational purposes only and does not constitute legal or tax advice.