How seniority pay is paid twice a year on a contract with no end date, how much each payment is, and how a fixed-term contract differs.
Updated 30 Oct 2026
Seniority pay, also called seniority indemnity (ប្រាក់បំណាច់អតីតភាព), is money your employer owes you for the time you have worked, under Cambodia's Labour Law and Prakas 443 of 2018. How it is paid depends on your contract: twice a year if it has no end date, once at the end if it is fixed-term.
Contracts with no end date (UDC): June and December
On an undetermined duration contract (UDC), each year of work earns 15 days of wages, paid in two instalments of 7.5 days: one in June and one in December.
If you started partway through a half-year, your first payment is not made smaller. At least 21 days of work in the half-year earns the full 7.5 days; fewer earns nothing for that half-year. The Ministry of Labour ruled out paying in proportion to the time worked (Notification 069, February 2020).
How much one payment is
A day's wage is your monthly wage divided by the working days in a month: 26, unless your employer counts 24 or 22. Use your usual monthly wage, before tax. Whether regular allowances belong in it is one of the points an accountant is still confirming.
For a wage of $300.00 a month:
| Step | Amount |
|---|---|
| A day's wage | $300.00 ÷ 26 = $11.54 |
| June payment | 7.5 days = $86.54 |
| December payment | 7.5 days = $86.54 |
| A full year | $173.08 |
Each figure is worked out in full, then rounded.
Work out your own paymentsFixed-term contracts (FDC)
On a fixed duration contract (FDC) you are paid once, when the contract ends: at least 5% of all the wages you were paid over the contract. For a 12-month contract at $300.00 a month, that is $180.00.
Years worked before 2019
Service before 1 Jan 2019 is owed as back-pay on its own schedule, which is still being confirmed. For now KitMel counts only your service from 2019, and says so on your result.
Is seniority pay taxed?
Since 2020 the first 4,000,000 ៛ of seniority pay in a year is free of salary tax, and the rest is taxed with that month's salary (Ministry of Economy and Finance Circular 002, March 2020). Tax advisers apply it as 2,000,000 ៛ off each of the two payments. KitMel does not take this tax off yet: an accountant is checking it first.
This guide uses the same rules as the seniority calculator, last compared with their sources on 30 Oct 2026. It is a guide, not legal advice.
Sources
- Prakas 443 on seniority indemnity (2018) · Ministry of Labour and Vocational Training
- Notification 069: no pro-rating, 21 days earns a half-year · MLVT, via KPMG(opens in a new tab)
- Instruction 058/19: day wage from the half-year average · Deloitte(opens in a new tab)
- Tax treatment of seniority payments · VDB Loi(opens in a new tab)