After issuing Law on Social Security, Royal Government of Cambodia issues Sub-Decree on Social Security Scheme on 4 March 2021 which describe mechanisms, conditions, formalities, and procedures of registration, contribution payment, contribution rate, accrual rate, benefit claim, and benefit provision.

Scope

This sub-decree shall cover Persons Defined by the Provisions of the Labour Law including persons with 2 (two) jobs or more.

Registration

All employers or owners of enterprises/establishments with one worker or more shall be compulsory to register their own enterprises/establishments in Pension Scheme in NSSF not later than 30 days following the date of this sub-decree comes into force except that the enterprises/establishments were registered in Health Care and Occupational Risk Schemes.

Contribution rate

Contributions of Pension Scheme shall be borne together by employer or owner of enterprise/establishment and worker. In a qualifying period of the first five years, this contribution rate shall be determined 4 (four) percent of contributory wage as follows:

• 2 (two) percent is borne by employer.
• 2 (two) percent is borne by worker.

In case the enterprise/establishment pays wage in foreign currency, the monthly wage shall be paid in Riel currency in line with the monthly exchange rate based on the exchange rate of the National Bank of Cambodia notified by NSSF.

Contribution payment of Pension Scheme shall be done monthly. All employers or owners of enterprises/establishments shall be compulsory to collect and pay contributions of Pension Scheme, both parts of employer and worker, to the NSSF account in the contracted bank by 15th (fifteenth) of the following month at the latest.

In case the employer or owner of enterprise/establishment is able to pay the annual contribution, the person concerned shall request NSSF. This annual contribution payment shall be done in the following month counting from the date of requesting for contribution payment. For the annual contribution payment, the employer or owner of enterprise/establishment shall pay contributions by the year of calendar. NSSF shall revise the amount of contribution in the beginning of the following year.

Old-age pension

The NSSF member as worker shall have entitlement to enjoy old-age pension if the person concerned fulfils the conditions as follows:

1. Have registered in Pension Scheme;
2. Be at least the age of 60 (sixty); and
3. Have paid contributions of Pension Scheme in a qualifying period of at least 12 (twelve) months.

Invalidity pension

The NSSF member as worker falling into invalidity shall have entitlement to enjoy invalidity pension if the person concerned fulfils the conditions as follows:

1. Have registered in Pension Scheme
2. Have paid contributions of Pension Scheme in a qualifying period of at least 60 (sixty) months before the date of incurring invalidity.

Beneficiaries of survivors’ pension

Beneficiaries of survivors’ pension shall have entitlement to enjoy survivors’ pension only if the deceased who is old-age pensioner, invalidity pensioner, or NSSF member has paid contributions of Pension Scheme in a qualifying period of at least 60 (sixty) months.

Voluntary pension scheme

The NSSF member fulfilling any following condition shall have entitlement to request NSSF for participating in Voluntary Pension Scheme:

1. Lose a job with earnings before the age of 60 (sixty) and have possibility to continue to pay the contributions.
2. Be at the age of 60 (sixty) and intend to pay the contributions continually in order to get higher old-age pension than the actual one provided in line with the Mandatory Pension Scheme.
3. Have higher income than the ceiling wage that the person concerned is imposed on contribution payment in the Mandatory Pension Scheme. The ceiling wage shall be regulated by the separate sub-degree.

Contribution rate

The contribution rate of Pension Scheme shall be defined based on the scaled premium methods as follows:

• Phase 1: contribution rate shall be equal to 4 (four) percent of contributory wage or voluntary income in a qualifying period of the first 5 (five) years counting from the starting date of contribution payment as set forth in article 33 above;
• Phase 2: contribution rate shall be equal to 8 (eight) percent of contributory wage or voluntary income in a qualifying period of 5 (five) years after the phase 1;
• Phase 3: contribution rate shall be increased 2.75 (two point seven five) percent of contributory wage or voluntary income in a qualifying period of every 10 (ten) years.

The date of launching Social Security Scheme on Pension for Persons Defined by the Provisions of the Labour Law shall be regulated by the inter-ministerial Prakas of the Ministry of Labour and Vocational Training and the Ministry of Economy and Finance.