Logo of Phnom Penh Post newspaper Phnom Penh Post - Council seeks to postpone launch of pension plans

Council seeks to postpone launch of pension plans

Content image - Phnom Penh Post
Factory workers out for lunch in Chaom Chao commune in Phnom Penh’s Por Sen Chey district. Heng Chivoan

Council seeks to postpone launch of pension plans

The National Society Protection Council (NSPC) requested that the government continue to delay the launch of its planned social security regime offering pensions for most Cambodian employees because more input regarding the collection of their contributions of wages or salaries to help fund the programme is needed.

The request was made on June 1 during an NSPC’s virtual meeting led by the Minister of Economy and Finance Aun Pornmoniroth, who also serves as the NSPC chairman.

Back in 2020, the government delayed the launch of the social security regime granting pensions to Cambodian employees until the first semester of 2021, after the law was promulgated in 2019.

In order to meet the legal standards required to launch the pension programme, the Ministry of Labour and Vocational Training prepared a sub-decree on the contribution of wages or salaries.

In a press release after the meeting, NSPC said that due to the Covid-19 pandemic and its socio-economic impacts, it has decided to request that the government continue delaying the launch of this policy and engage in further study to evaluate its impacts.

“At the review meeting and during the discussion of the technical and political aspects, it was agreed that the current situation is not favourable for launching the social security regime providing employees with pensions as put forth in the labour law,” it said.

Finance ministry spokesman Meas Soksensan said the draft sub-decree was drawn up with exchanges of opinion on the political, strategic and technical aspects of the contribution of wages or salaries to the proposed pension programme, in addition to discussions on health care and job-related health risks.

He said the sub-decree took into account the financial burdens that employees and employers would shoulder should they pay into the system. He noted that civil servants working in public sector jobs are already entitled to protections under the National Social Protection Policy Framework.

“Institutions involved with the launch of the social security regime and pension programme should spread the word about it widely before it is launched to increase public awareness about it, especially about the benefits that provide protections to employees under this plan,” he said.

From June 25 last year to May 24 this year, roughly 700,000 poor and vulnerable families affected by Covid-19 had received cash payments through the social protection policy. The families represented more than 2.7 million people.

Among them, there were children under the age of five, disabled children, the elderly and AIDS-positive families. The government has spent $322.81 million on this assistance to date.

Cambodian Institute for Democracy president Pa Chanroeun said on June 2 that the social protection policy is a good one that can help people improve their livelihoods, especially while elderly people in Cambodia are facing a shortage of work.

Chanroeun said this protection seemed slow and its launch delayed compared to other policies and laws. He urged the government to accelerate the passing of this law in order to benefit citizens, especially the elderly, because they often receive no assistance and frequently experience hardship.

“The delay in the launch of the pension plan for all employees will even make some people lose benefits and delay their ability to receive benefits when their retirement should be accelerated instead of being put off in order to benefit younger members of the workforce,” Chanroeun said.

MOST VIEWED

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Five-year-old Hanuman dances his way into hearts of Cambodia

    A young talent from a new-established settlement has emerged, captivating the online world with his mesmerising performances of the traditional Cambodian monkey dance. Roeun Kakada is a five-year-old prodigy who has taken the social media sphere by storm with his exceptional dance skills and dedication

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • Honda shutters Siem Reap football club

    Japanese football legend Keisuke Honda, the owner of Siem Reap football club Soltilo Angkor FC, has been forced to shut the club down, after it failed to attract sponsorship for the upcoming season. Honda, the former manager of the Cambodia men's national football team, said

  • PM declares ASEAN Para Games open

    The 12th ASEAN Para Games officially kicked off on the evening of June 3 at Morodok Techo National Stadium in Phnom Penh, with a spectacular opening ceremony featuring fireworks and performances by some of the Kingdom’s most accomplished talents. Tens of thousands of sports fans

  • Hun Sen warns of regional tensions

    ASIA is becoming a dangerous geopolitical hotspot, with several countries announcing that they intend to send naval vessels towards Southeast Asia and on to the South China Sea, warned Prime Minister Hun Sen. “Heated geopolitical issues can easily escalate, namely to war. I am not