Client Alert: Cambodia Labor Compliance – Two Obligations Every Entity Must Address

May 25, 2026

1. Payroll Ledgers: Mandatory Overhaul Now in Effect

On May 6, 2025, the Ministry of Labor and Vocational Training (“MLVT”) issued Prakas No. 111/25 on Payroll Ledgers, repealing prior regulations and establishing new mandatory requirements for all entities to maintain and manage payroll records in a standardized template, either in a ledger or computerized format.

The Prakas is part of the MLVT’s effort to integrate payroll data into the Labor Automated Centralized Management System and requires entities to upload monthly payroll data using the prescribed template by the 20^th of the following month. It entered into effect on its issuance date, but up to now, some entities have not yet complied with this obligation.

For further details on this Prakas, please refer to our previous client alert: Reminder on the MLVT’s Requirements on Computerized Payroll Systems

2. Upcoming Self-Declared Labor Inspection due June 30, 2026

As part of annual labor compliance, entities are required to complete self-declared labor inspections through the MLVT’s Self-Inspection Centralized Management System twice each year, with the first round due by June 30, 2026.

The process involves entities assessing and rectifying compliance gaps before a physical inspection takes place. If an entity declares a point as non-compliant, the MLVT is automatically notified of the violation and the related penalty. In such cases, the MLVT will issue a corrective order requiring the entities to rectify the non-compliance before imposing the actual penalty. It is therefore essential that all self-declarations are complete and accurate.

While we have not yet seen strong enforcement of the above compliance matters at this stage, the obligations are already in force. Failure to comply may result in administrative fines and enforcement action. Entities are therefore encouraged to take prompt steps to ensure compliance.

If you have any questions or need any assistance with these requirements, please do not hesitate to contact us.

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The information included here is for information purposes only and does not represent legal, tax, or other advice.