Article Cambodia: Mandatory Digital Payroll System Introduced

On May 6, 2025, the Ministry of Labor and Vocational Training of Cambodia issued a directive (prakas) requiring all businesses to maintain a digital payroll book with a QR code generated from the ministry’s website. (Ministry of Labor and Vocational Training Prakas No. 111/25 Payroll book (May 6, 2025).)

All businesses subject to Cambodia’s Labor Law must implement the ministry’s digital payroll system by following these steps in order:

1. 1. Register or log in to the employer account on the Ministry of Labor and Vocational Training portal system at https://lacms.mlvt.gov.kh.
   2. Retrieve the unique QR code from the portal.
   3. Accurately input all necessary payroll information in accordance with company records.
   4. Add the QR code to the digital payroll book.
   5. Maintain and use the digital payroll system for all employee records for a minimum of three years and provide authorities with access to payroll records upon request for auditing purposes. (Article 2.)
   6. Complete and submit each month’s payroll details within 20 days of the start of the following month. (Article 3.)

Penalties for Noncompliance

Failure to comply with the new directive will result in penalties. Although the directive does not specify exact sanctions, penalties under Chapter XVI of the Labor Law apply. Article 359 in Chapter XVI of the Labor Law states, “Those guilty of violating the provisions of the articles in Chapter XVI of this law shall be fined or imprisoned or both. Fines are imposed by the Labour Inspector and the Labour Controller.” For example, an employer that fails to generate and attach a legally registered QR code to the digital payroll book will breach Article 5 of the directive and be subject to such penalties.

Transition to Digital Payroll Management

Cambodia is transitioning from paper-based payroll management regulated by a 2001 directive (Prakas No. 269/01 (October 11, 2001)) to a digital approach. According to the Cambodia Digital Government Policy 2022–2035 by the Ministry of Post and Telecommunications, digital government drives growth by:

• • Increasing state revenue
  • Reducing redundant work and public spending
  • Lowering environmental impact
  • Streamlining administrative workflows
  • Enhancing data exchange among ministries and institutions

Challenges

Despite significant progress toward establishing a digital government, Cambodia still faces many challenges. One major issue identified by the Cambodia Digital Government Policy is that individual ministries have developed their own digital systems, resulting in overlapping systems and the absence of a unified national platform. Moreover, the absence of a unified national platform may complicate data storage and computing support, as many institutions do not have the technical resources needed to secure their digital systems.

Prepared by Raksmei Dara, Foreign Law Intern, under the supervision of Sayuri Umeda, Foreign Law Specialist

Law Library of Congress, June 17, 2025

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