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

  • Accused not treated equally, says CCHR

    The Cambodia Centre for Human Rights (CCHR) has urged the Court of Appeal to do more to ensure that an accused’s right to a fair trial is fully respected. In a bulletin released on Monday, the CCHR said it had monitored 273 cases at the

  • Investors’ $14.4M projects approved

    New investments from local and foreign sources continue to pour into Cambodia despite the Covid-19 pandemic remaining a lingering threat to regional and global economies. This comes as the Kingdom’s gross domestic product (GDP) is expected to contract between one and 2.9 per cent this

  • NagaWorld casinos set to reopen, schools to follow

    NAGACORP Ltd has requested that it be allowed to reopen its NagaWorld integrated resorts in Phnom Penh after the government recently approved casinos to operate again, provided they follow Covid-19 prevention measures set by the Ministry of Health. Mey Vann, the director-general of the Ministry

  • Rubber exports stretch 17%

    Cambodia exported 97,175 tonnes of natural rubber in the first five months of this year, surging 17 per cent compared to the same period last year as the Covid-19 pandemic stretches on, Ministry of Agriculture, Forestry and Fisheries official Khuong Phalla told The Post on Thursday. Phalla,

  • ASEM supports Kingdom’s proposal to postpone meeting amid Covid

    The 13th Asia-Europe Meeting (ASEM13) scheduled to be held in Cambodia in November has been postponed until mid-2021 due to the Covid-19 pandemic, a Ministry of Foreign Affairs and International Cooperation press statement released on Saturday said. The decision was made during a two-day meeting

  • Coffee maker roasted for producing fake product

    The Ministry of Interior’s Counter Counterfeit Committee will send a suspect to court on Monday after she allegedly roasted coffee mixed with soybeans and other ingredients, creating a product which could pose a high risk to consumers’ health. On the afternoon of July 2, the

  • Cash handout programme 80% complete

    Minister of Social Affairs, Veterans and Youth Rehabilitation Vong Soth confirmed on Thursday that the implementation of the Cash Transfer Programme For Poor and Vulnerable Households During Covid-19 had been implemented for more than 80% of the over 560,000 families. The programme was introduced one week ago.

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Where is Cambodia’s exit strategy that can save the economy?

    With the prospect of being slammed by a double whammy, the government is working on an economic recovery plan to deliver it from Covid-19 and the EU’s partial withdrawal of the Everything But Arms scheme in the next two to three years Cambodia is

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to