Logo of Phnom Penh Post newspaper Phnom Penh Post - Pension scheme eyed for non-gov’t workers

Pension scheme eyed for non-gov’t workers

Content image - Phnom Penh Post
Garment workers produce items of apparel at a factory in Kandal province earlier this year. Heng Chivoan

Pension scheme eyed for non-gov’t workers

Labour Ministry spokesman Heng Sour said yesterday that a new pension scheme for private sector employees under the umbrella of the existing National Social Security Fund (NSSF) would be finalised and implemented next year.

The NSSF, in which garment factories are still the primary participants, was set up in 2007 to provide workers with injury insurance, health insurance and pensions. While the first two have been set up, the Labour Ministry has yet to implement a pension scheme for the private sector.

Sour said private sector employees are currently paying taxes but not getting any post-retirement benefits from the government, unlike civil servants, who are already entitled to pensions.

“When they [private sector employees] are retired or lose their job, they do not get any support from the government, but civil servants get it,” he said.

While in the initial stages of consultation, Sour said that pensions could be drawn once an employee reaches age 63 and has at least 20 years of contribution to the fund. This payment, matched by an equal payment from employers, could be around 5 to 7 percent of a worker’s gross salary, he added.

Ath Thorn, president of the Cambodian Labour Confederation, welcomed the move, adding that he was hoping to include provisions for those who could not make the 20 years of contributions.

“We have advocated for years to have this pension scheme, because it is good for employees who would not have to worry anymore about money for supporting their lives after retirement,” he added.

MOST VIEWED

  • Diplomatic passports issued to foreigners to be annulled

    The Ministry of Foreign Affairs and International Cooperation will move to annul diplomatic passports issued to those not born in Cambodia. Analysts say the move may be in relation to reports that former Thai prime minister Yingluck Shinawatra used a Cambodian passport to register as

  • Hun Sen warns Irish MP of EBA ‘mistake’

    Prime Minister Hun Sen on Saturday told former Irish premier Enda Kenny, still a member of the EU nation’s parliament, that the 28-nation bloc should not make a “third mistake” regarding Cambodia by using the preferential Everything But Arms (EBA) agreement to “take 16 million

  • The hairy little heroes saving many lives in rural Cambodia

    IN RURAL Siem Reap province, rats dare to tread where no person will, as these hairy little heroes place their lives on the line each day for the good of the local community. The rodents are the most important members of a special team, leading

  • PM warns EU and opposition on 34th anniversary of his rule

    HUN Sen reached the milestone of 34 years as Cambodian prime minister on Monday and used the groundbreaking ceremony for a new ring road around Phnom Penh to tell the international community that putting sanctions on the Kingdom meant killing the opposition. “Please don’t forget