Logo of Phnom Penh Post newspaper Phnom Penh Post - NSSF deductions of 4% take effect beginning next month

NSSF deductions of 4% take effect beginning next month

Content image - Phnom Penh Post
Officials from the labour ministry held information sessions to promote the benefits of pensions at factories throughout the country in August. LABOUR MINISTRY

NSSF deductions of 4% take effect beginning next month

The National Social Security Fund (NSSF) scheme for the private sector under the provisions of the Labour Law has now taken effect, after the Ministry of Labour and Vocational Training announced the closure of a 90-day campaign to promote the system.

NSSF deputy director-general Heng Sophannarith confirmed to The Post on October 2 that the pension scheme had begun on October 1, and that the first contribution had to be paid in November.

“Employers will deduct two per cent from the workers. The employer will match this contribution in order to ensure a total of four per cent is paid to the NSSF,” he told The Post on October 2.

Sophannarith said that as of October 2, a total of 1,466,725 workers from more than 13,300 registered businesses were obligated to make the contributions.

Labour minister Ith Samheng announced the end of the campaign to promote the implementation of the system on September 29, with a total of about 500 people from ministries, institutions, development partners, associations, employers, unions and workers’ representatives in attendance.

Ouk Samvichea, the NSSF director-general, said the campaign reached 1,072,425 workers, or 73 per cent of the NSSF’s total members.

“Compared to the number of workers in the textile-related sectors, we have reached 128 per cent, so we have achieved a much greater success than we hoped. Employers, business owners and workers have expressed their satisfaction with the pension system and have all agreed to participate,” he said.

At the September 29 event, Samheng said that a complete social security system must contribute to the whole cycle of people’s lives, including birth, old age, illness and death.

He said that the NSSF, as a social security operator, has made a significant contribution to alleviating the hardships of the people from birth. The system provides prenatal and postnatal check-ups, and also makes provisions for up to 90 days of maternity leave, as well as additional government subsidies.

“When they reach working age, workers are covered by the fund’s occupational risk and accident insurance, so they will receive medical treatment, rehabilitation services, and regular daily pay should a work accident mean they cannot work. If they should die on the job, their families will receive compensation,” he added.

When a member of the NSSF enters old age, Samheng said the government would provide protection via the pension plan. Following the death of a member, a cremation allowance would be arranged.

In 2008, the labour ministry introduced Occupational Risk Insurance for public officials. In 2016, the government launched health insurance for private sector employees. A 24-hour health insurance programme for public official was established in 2018. In general, Samheng said, both private sector workers and public officials shared the same social coverage.

“In the past, pensions were only available to civil servants and workers in the private sector did not receive them. The introduction of the new NSSF is a historical moment for the workers of Cambodia,” he said.

MOST VIEWED

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,

  • Capital-Poipet express rail project making headway

    The preliminary results of a feasibility study to upgrade the Phnom Penh-Poipet railway into Cambodia’s first express railway indicate that the project would cost more than $4 billion and would take around four years to complete. The study was carried out by China Road and

  • Thai boxers to join SEA Games’ Kun Khmer event

    The Cambodian SEA Games Organising Committee (CAMSOC) – together with the Kun Khmer International Federation (KKIF) and Khmer Boxing Federation – have achieved a “great success” by including Kun Khmer in the upcoming biennial multi-sports event on its home soil for the first time, said a senior

  • Bullets to bracelets: Siem Reap man makes waste from war wearable

    Jewellery is often made from valuable gemstones like emeralds or diamonds and precious metals like gold or silver, or valueless things like animal horns. But a man in Siem Reap has approached the manufacture of delicate pieces from a different angle. His unique form of

  • 61% of 2022 imports came from just 3 markets

    The three largest exporters to Cambodia – mainland China, Vietnam and Thailand – accounted for 60.94 per cent of the Kingdom’s total merchandise imports last year, at $18.245 billion, which was up 11.99 per cent over 2021, according to the General Department of Customs and Excise. Cambodia’s total imports