On 4 March 2021, the Royal Government of Cambodia issued Sub-Decree No. 32 ANK.BK on the Social Security Scheme on Pension (“SSSP“) for Persons Defined Under Provisions of the Labour Law (“Sub-Decree“). The SSSP took effect from 1 July 2022 following the issuance of Interministerial Prakas No. 165/22 MLVT/Br.K.NSSF dated 28 June 2022.
The Sub-Decree establishes the SSSP and sets out the mechanism, conditions, formalities, and procedures for registration with the SSSP, the contribution rate/structure and payment mode, the benefits under the SSSP, as well as the claim procedure. The Sub-Decree applies to all persons defined under the provisions of the Labour Law including those who work at two or more workplaces. The pension scheme is managed and administered by the National Social Security Fund (“NSSF“).
There are two main schemes under the SSSP: the compulsory contribution scheme (“CCS“) and the voluntary contribution scheme (“VCS“). Under the CCS, contribution is compulsory and the employers or owners of companies and employees jointly and equally contribute to NSSF. Under the VCS, contribution is voluntary and the qualified member of NSSF can request to participate in NSSF by voluntarily making the contribution by himself/herself.
The SSSP provides four benefits: (i) old age pension, (ii) invalidity pension, (iii) survivor pension and (iv) funerary allowance.
In this Update, we briefly highlight certain key aspects of the Sub-Decree and its implementing regulations.
For more information, click here to read the full Legal Update.
