Logo of Phnom Penh Post newspaper Phnom Penh Post - New law set to benefit those working in the private sector

New law set to benefit those working in the private sector

Content image - Phnom Penh Post
Garment factory workers walk along Veng Sreng Boulevard in Phnom Penh after clocking out. Hong Menea

New law set to benefit those working in the private sector

Workers and employees in the private sector will receive the same benefits as those in the public sector if they pay their income tax and fulfil other legal requirements.

The recently passed Law on Social Security Schemes states that workers and employees in the private sector are entitled to a pension and other benefits that civil servants receive.

It was signed off by the King and passed into law as a matter of urgency early this month.

Its scope covers people working in the public sector and those protected by the Labour Law. They include those working in the air and maritime sectors, as well as domestic workers and the self-employed.

Consisting of 11 chapters and 107 articles, the law aims to ensure income security for them when facing social risks, including disability, death, work-related accidents and unemployment, among others.

Article 21 states that the sources of pensions for all workers and employees come from the state, employers and National Social Security Fund (NSSF) members, as well as from investments and donations in line with the law.

Sum Sophorn, the deputy director of the NSSF at the Ministry of Labour and Vocational Training, told The Post on Wednesday that officials were preparing legal documents related to the law for further dissemination to the public.

“It has already taken effect after being passed, but in the first phase of our implementation in 2020,

we will focus on workers and employees in the private sector first,” he said.

Sophorn said workers and employees in the private sector who have been registered [with the NSSF] would not need to re-register but are required to continue paying their dues in the form of income tax through their employers as stipulated in the new law.

Since the NSSF began operations in late 2008, he said around 1.6 million workers and employees in the private sector have been registered.

While some trade unions have expressed concerns over the effective implementation of the law, the Garment Manufacturers Association in Cambodia (GMAC) has requested a delay in its implementation.

It said the immediate effect of the pension scheme’s implementation would lead to financial pressure on employers while some companies had not prepared their financial plan for next year. Some employers, it said, were also not fully aware of the law.

GMAC urged the NSSF to invest in upgrading facilities, technology and strengthen the capacity of its officers whom, it said, should acquire relevant soft and technical skills to effectively respond to members’ enquiries.

“Start to widely promote and raise awareness of NSSF’s coverage and its benefits to the public in order to encourage the informal sectors to participate in the scheme, especially, the pension scheme,” it said.

Pav Sina, the president of the Collective Union of Movement of Workers, applauded the new law for including workers and employees in the private sector, especially those covered by the Labour Law and urged the relevant authorities to ensure its transparent implementation.

Ministry spokesman Heng Sour said the government will provide an opportunity for relevant parties to provide inputs so that the implementation of the pension scheme for the private sector is successful.

“The old law is still in effect and the sub-decree will go through further tripartite discussions. So any concerns and inputs will be addressed. We will invite the relevant parties to attend discussions on it,” he said.

MOST VIEWED

  • Draft law on state of emergency pending finalisation

    Prime Minister Hun Sen will lead a top-level meeting on Tuesdays to review the draft law on imposing a state of emergency. Meantime, he has decided to close all casinos in Cambodia effective April 1. In the press conference after the National Assembly met today, Hun

  • Stranded passengers petition UK for help

    Some 10,521 foreigners in Cambodia, the bulk being from the UK, have signed an online petition calling on British Prime Minister Boris Johnson and relevant officials to fly them out of the Kingdom. The petition is targeted at 15,000 foreigners. Among them are nearly 200 Europeans, the majority

  • State of emergency on table amid pandemic

    Prime Minister Hun Sen, his deputy prime ministers and legal team will meet on Tuesday to review the draft law on declaring a state of emergency, as Covid-19 cases rose to 107 in the Kingdom on Monday. Speaking at a press conference after a parliament meeting

  • Covid-19 Pandemic: Force majeure and legal consequences

    Is the Covid-19 pandemic considered an event of force majeure? The World Health Organisation declared the novel coronavirus (Covid-19) outbreak a pandemic on March 11. Following this declaration, the Ministry of Health and other ministries have taken various legal and administrative measures to prevent the rapid

  • PM set to mend ties with US

    Prime Minister Hun Sen has responded to US Congressman Ted Yoho, saying he is ready to improve Cambodia-US relations, and not take up issues of disagreements which have become a barrier between the two countries’ bilateral cooperation. His response to Yoho came after the congressman

  • Mysterious century-old structure found at bottom of Angkor pond

    The Apsara National Authority (ANA) has discovered a mysterious 1,000-year-old structure of a wooden building at the bottom of a pond after the Angkor Wat temple’s conservation team completed restoring its northern cave. The deputy director at ANA’s Angkor International Research and Documentation