Minister of Labour and Vocational Training Ith Samheng said that the new Cambodian pension system is a better social security scheme in comparison to the systems used in other countries as the rate of contribution required from individual workers is relatively very low.
Samheng was speaking at an event that was part of a 90 day campaign to disseminate information on social security obligations and the benefits of pensions for all individuals covered by the labour law.
“In the first five years of this pension, employers and employees will contribute two per cent each respectively, but to ensure it meets the minimum necessary expense, especially for factory workers, the rate will change depending on the actual situation of Cambodia’s economy,” he said.
Samheng, who is also the chairman of National Social Security Fund (NSSF) board, said that the contribution by employers for this pension is a contribution towards the development of the country as well as a means to motivate employees to work harder by giving them hope when they are old and cannot work any longer.
NSSF said that the 90 day campaign had already organized three meetings with participation from officials from the Ministry of Labour and Vocational Training and trade unions.
It said the next campaign will be held with relevant tri-party stakeholders directly on the floors of factories and enterprises.
The minister said that employers and employer representatives must send their employees’ names to the NSSF to be registered in order to protect their interests. Employers must also disseminate the details of the new pension scheme to all workers in their factories and their companies so that they fully understand it and the benefits it confers to them.