1. Regulatory Framework for the Social Security Scheme
“Law on Social Security Schemes for Persons Defined by the Provisions of the Labor Law” was promulgated on September 25, 2002 to establish a social security scheme composed of pension scheme, which is to provide old age benefit, invalidity benefit and survivors’ benefit, and occupational risk insurance, which is to cover the employment injury and to provide occupational disease benefit.
2. Major Provisions on Social Security Schemes
National Social Security Fund
The Social Security Schemes shall be under the management of the National Social Security Fund (NSSF), which is the public establishment, formulated by Sub-decree in accordance with “Law on General Statute of Public Enterprise” promulgated on June 15, 1996 and “Royal Decree No. 1297/91 on Judicial Statute of Public Establishments” dated on December 31, 1997 (Article 3).
Persons to Be Covered by the Social Security Schemes
Persons covered by the Social Security Schemes in this law regardless of nationality, race, sex, belief religion, political opinion, national extraction, social origin, membership of trade union or act in trade union are as follows (Article 4).
- All workers defined by the provisions of the Labor Law, if those persons perform work in the territory of the Kingdom of Cambodia for the benefit of an employer or employers, regardless of nature, form and validity of the contract done or kind and amount of the wage received by the person thereof
- State workers, public workers and every personnel who is not governed by the Common Statute for Civil Servants or by the Diplomatic statue as well as officials who are temporarily appointed in the public service
- Trainee person who is attending for rehabilitation center and apprentice shall deem as workers providing in paragraph 1 of this article
- Persons work in self-employed profession.
- Seasonal or occasional workers
- Employers and workers covered by this law shall have a compulsory to pay contribution to NSSF. Terms and procedures of payment of the contribution and the entitlement of benefits shall be determined by Sub-decree on the formulation of NSSF (Article 6).
The benefits of the pension scheme include old age pension and allowance, invalidity pension, survivors’ pensions and allowance (Article 7).
Each NSSF member who is 55 years of age is entitles to old age pension provided that he or she has fulfilled the following conditions:
- To be registered in NSSF in a period of at least twenty years
- To pay in contribution at least for sixty qualifying months for Social Security Schemes during the period of least ten years up to the date of eligibility of the pension.
Each NSSF member who has fulfilled such conditions and reach a premature worn state, whether mental or physical, before the age of 55 that cause loss of earning capacity, may request to have an early pension. Each NSSF member who is 55 years of age has paid contribution less than 60 qualifying months for Social Security Schemes and has finished all wage-related works, but has not fulfilled other conditions in order to get old age pension is entitled to have old age allowance which shall be paid as a lump sum (Article 8).
NSSF member who becomes disabled before the age of 55 is entitled to have invalidity benefit provided that the person concerned has fulfilled the following condition (Article 9).
- being registered in the NSSF at least for five years
- having fulfilled for six qualifying months for Social Security Schemes within the last 12 months up to the date of beginning of the incapacity leading to the validity
In case of the death of any holder of old age or invalidity or early pension, as well as in case of the death of any NSSF member who, at the date of his or her death, has fulfilled required conditions for enjoying old age or invalidity pension or has already proved for 180 qualifying months for Social Security Schemes, the beneficiaries shall be entitled to get survivors’ pension (Article 10).
If any NSSF member who may be not entitled to an invalidity pension as well as has not yet justified for 180 qualifying months for Social Security Schemes up to the date that she/he died, husband or wife, whether disabled or not, and also orphanage of the person concerned shall be entitled to enjoy survivors’ allowances that shall be provided as a lump sum in the amount of not less than monthly old age pension for the NSSF member hereof (Article 11).
An accident is considered to be employment injury. Regardless of the cause, if it happens to worker working or during the working hours, whether or not the worker was faulty, it is the accident inflicted on the body of the worker or an apprentice with or without wage, who is working in whatever capacity or whatever place for an employer or manager of an enterprise. Equally, accidents happening to the worker during the direct commute from his residence to the work place and home are also considered to be employment injury as long as the as the trip was not interrupted nor detour made for a personal or non-work-related reason (Article 12).
Occupational disease is also considered as occupational risk. The Minister in charge of the Social Security Schemes and the Minister of Health shall issue a Joint Prakas concerning identification of the occupational disease list vis-à-vis with list of employment regarding to physical work, exposure to toxic substance and other employment performs in insalubrious conditions or areas in which cause various diseases (Article 13).
Benefits for occupational risk are as follows (Article 15)
- Medical care services for occupational risk caused by employment injury or commuting accident or occupational diseases whether the accident interrupt the work or not
- Provide daily allowance for employment injury or commuting accident or occupational diseases causing temporary disability
- Provide disabled pension or allowance for employment injury or commuting accident or occupational diseases causing permanent disability
- Provide funeral benefits and survivors’ pension
In case of temporary disability, with duly confirmation from doctor designated or recognized by the NSSF, the victim is entitled to have daily allowances. The daily allowances shall be given to the victim until the injury recovered or until the victim death resulting from the injury after treatment for a period of time. The daily wage of the worker for the first absent day is payable by the employer (Article 17).
A disability, which shall be duly certified by the doctor designated or recognized by the NSSF that it is a permanent disability the victim is entitled to the followings.
- The permanent disability pension when the degree of disability incurred at least equally to twenty percent “20%”
- The disability allowance that shall be provided as a lump sum if the degree of the disability incurred less than twenty percent “20%”. The degree of permanent disability shall be determined by Prakas of the Minister in charge of Social Security Schemes (Article 18).
When having the occupational risk and causing the victim died, the National Social Security Fund shall provide funeral benefits and pension for survivors of the victim (Article 19).
The method of participation of employer, worker registration, contribution payment, computing benefit and benefit service under the liability of employers and workers in the function of the Social Security Schemes shall be determined by Prakas (Article 23).
Formulation of National Social Security Fund
National Social Security Fund (NSSF) was created by the Sub-Decree #16 (RGC) of March 2, 2007. NSSF shall be a public legal person under technical supervision of the MLVT and under financial administration of the MEF. It shall have a central office in Phnom Penh.
NSSF shall have the following duties:
- to manage the social security regime in compliance with the Law on Social Security Regime for persons who are subject to the provisions of the Labor Law
- to guarantee to appropriately provide benefits for members of the NSSF for the purpose of assisting difficulties in the case of old age, disability, death, labor risk or if they encounter illness, motherhood
- to collect contribution from members of NSSF and employers, etc.
The NSSF shall source resources as follows:
- Initial resources provided by the State for the establishment of NSSF
- Transfer as provided in the State budget such as allowances for operation and capital
- Contributions of NSSF members and employers which are kept for financing on each section of the social security regime, etc.
Registration will initially be implemented only in Phnom Penh, Kampong Speu and Kandal. All enterprises hiring eight or more employees must register for the NSSF within 45 days after the date of their openings. Following that, the NSSF will implement the regime of the occupational risks insurance schemes (Work Related Accidents) for enterprises, having upwards of 8 employees located in Preah Sihanouk, Siem Reap, Banteay Meanchey, Kampong Chhnaing and Svay Rieng provinces, from January 1, 2010. The establishments in those areas must register enterprises and workers before December 31, 2009 and commence to pay contribution from January 2010 onwards.
Injury component of the NSSF is currently the only part operational. As the NSSF scheme includes anyone deemed an employee under the Labor Law, both resident and non-resident employees, and local and expatriate staff are included in its scope.
Victims of work-related injuries must be sent to certain approved hospitals for treatment.
- In Phnom Penh: Calmette Hospital, Russian Hospital, Lok Sang Hospita
- In Kandal and Kampong Speu provinces: Chey Chomnas Hospital (Kandal), Kampong Speu Referral Hospital (Kampong Speu), any of the three Phnom Penh Hospitals
The monthly contribution rates for the NSSF