Phnom Penh is the capital and largest city of Cambodia. Double-digit economic growth rates in recent years have triggered an economic boom, with new hotels, restaurants, bars, and residential buildings springing up around the city. Phnom Penh's wealth of historical and cultural sites makes it a very popular tourist destination. Cambodia is in South-eastern Asia, bordering the Gulf of Thailand, between Thailand, Vietnam, and Laos. The climate is tropical with a rainy monsoon season (May to November) and a dry season (December to April) with little seasonal temperature variation. The official language is Khmer. French is spoken by the older generation who survived the Khmer Rouge era. Many middle-class young people in the main urban areas speak English. Chinese and Thai are also used, though given current tensions the latter language should be used with care. The main religion is Buddhism. The economy of Cambodia has seen rapid progress in the last decade. Per capita income, although rapidly increasing, is low compared with most neighbouring countries. The main domestic activity on which most rural households depend is agriculture and its related sub-sectors. Manufacturing output is varied but is not very extensive and is mostly conducted on a small-scale and informal basis. Cambodia is influenced by Buddhism. Expatriate business dress is generally conservative, comprising light-weight business suits when meeting senior government officials, diplomats or business people, otherwise shirt and tie in the working environment. Generally it is advisable to dress modestly and to observe and respect local clothing customs. The security risk for expatriates in Cambodia is medium, with northern Cambodia carrying a slightly higher risk. Risks include petty theft and opportunistic crime, as well as the threat and use of violence against tourists, business visitors and expatriates. The currency of Cambodia is the Cambodian Riel (KHR). US dollars are widely accepted. Not all banks accept international cards. Credit cards are not generally accepted other than at a few hotels and businesses in larger cities. Private medical facilities in Phnom Penh are generally better equipped than public facilities, but can be expensive. There have been cases of Bird Flu in poultry and a small number of human infections. There have been cases of hand, foot and mouth disease resulting in a number of deaths among children. The population of Phnom Penh is 1.5 Million (2019 est.), while the inflation rate (CPI) is 2.07% for Cambodia as at April 2019. Xpatulator Hypothetical Tax for Cambodia is based on the current personal income tax rates which are progressive up to 20%. Fringe benefits are taxable at the flat rate of 20% of the amount paid.
Cost Of Living
The cost of living for expatriates / professional migrants in In Phnom Penh, the cost of each basket, based on local prices, compared to the international average, is categorized follows (Exact cost of living percentages only available in personalised reports): Phnom Penh as at 1 October 2019 is average in comparison to other places in the world. 1) Alcohol (where available) & Tobacco: Low 2) Clothing: Very Low 3) Communication: Very Low 4) Education: Average 5) Furniture & Appliances: High 6) Groceries: High 7) Healthcare: Low 8) Household Accommodation: Average 9) Miscellaneous: High 10) Personal Care: Low 11) Recreation & Culture: Very High 12) Restaurants Meals Out and Hotels: Low 13) Transport: Low Phnom Penh is for example 33.3% more expensive than Houston TX for groceries, 19.6% more expensive for household costs than Kuala Lumpur, and 25.2% more expensive for transport costs than Dubai. The hardship premium for Phnom Penh for an expat from Perth, is for example 20%, i.e. host location (Phnom Penh) premium of 30% minus home (Perth) location premium of 10%. Phnom Penh is ranked as a high degree of hardship location. Want to know more about cost of living, hardship (quality of living) or expat salary in Phnom Penh? Register subscribe to your home location and Phnom Penh and run your personalised reports.