ACTIVITIES

The Law on Social Security Schemes

  • 31 December 2019

ROYAL KRAM

NS/RKM/1119/018

We

Preahkarona Preahbath Samdech Preahboromneath NORODOM SIHAMONI

Saman Phoum Cheat Sasna Rokhatkhatheya Khemerarothreastr Puthintreathoramohaksat

Khemreachnea Samohorpheas Kampuch Ekreach Roathboronaksanteh Sopheakmangkolea Sereyvibolar Khemerasreypireastr Preahchao Krong Kampuchea Thibadey

 

  • Having seen the Constitution of the Kingdom of Cambodia;
  • Having seen the Royal Decree No. NS/RKT/0918/925 dated 06 September 2018 on the Appointment of the Royal Government of Cambodia;
  • Having seen the Royal Kram No. NS/RKM/0618/012 dated 28 June 2018 promulgating the Law on the Organization and Functioning of the Council of Ministers;
  • Having seen the Royal Kram No. NS/RKM/0699/09 dated 23 June 1999 promulgating the Law on the Establishment of the Ministry of Labour and Vocational Training;
  • Having seen the proposal of Samdech Akka Moha Sena Badei Techo Hun Sen, the Prime Minister of the Kingdom of Cambodia.

 

Hereby Promulgate

 

            The Law on Social Security Schemes, which was approved by the National Assembly on 08 October 2019 in the third session of its sixth legislative term, and whose formality and legality were completely reviewed by the Senate on 18 October 2019 in an extraordinary session of its forth legislative term, with the whole content as follows:

 

        

 

 

 

 

 

 

 

 

 

 

 

LAW ON SOCIAL SECURITY SCHEMES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER 1

GENERAL PROVISIONS

Article 1.- Purpose

            The purpose of this law is to organize the social security schemes of the Kingdom of Cambodia in order to ensure the social equity and solidary, and to promote the welfare and living standard of citizens. 

Article 2.- Objective

            The objective of this law is to determine the general principles, modalities, implementation mechanism and management system of social security schemes of the Kingdom of Cambodia including pension scheme, healthcare scheme, occupational risk scheme, and unemployment scheme.

Article 3.- Scope of Application

            The scope of application of this law extends to all the persons as follows:

  1. The individuals in public sector:
  • The civil servants who serve in the ministries, national and subnational organizations entities, and are defined by the provisions of the law on common statute of civil servants of the Kingdom of Cambodia;
  • The civil servants who are defined by the provisions of the law on statute of civil servants in the legislature, excluding the pension scheme;
  • The civil servants who serve in the judicial organizations;
  • The national police officers and prison officers, only for the treatment and medical care benefits in the healthcare scheme;
  • The officials who serve in the national election committee;
  • The former civil servants and veterans;
  • The contractual officers who serve in the ministries, national and subnational organizations, entities, who are recognized by the Ministry of Civil Service;
  • The individuals of various public fields determined by a sub-decree.
  1. The individuals defined by the labour law of the Kingdom of Cambodia including the personnel serving in the airway and maritime as well as domestic workers.
  2. This law is not applicable to the military officers of the Royal Cambodian Armed Forces, who are regulated by a separate legal norm.

Article 4.- Definition

            The key terms used in this law are defined in the glossary as its Annex.

CHAPTER 2

GENERAL PRINCIPLES OF SOCIAL SECURITY SCHEMES

Article 5.- Pension Scheme

            The social security scheme on pension for the individuals in public sector shall be an obligatory contribution regime, toward which a state and the aforementioned persons in this paragraph are jointly obliged to pay a contribution.

            The social security scheme on pension for the persons defined by the provisions of labour law, including airway and maritime staff as well as domestic workers, shall be an obligatory contribution regime, toward which employers and the aforementioned persons in this paragraph are jointly obliged to pay a contribution.

             The social security scheme on pension for a self-employed shall be specified by a sub-decree.

Article 6.- Healthcare Scheme

            The social security scheme on healthcare for the individuals in public sector shall be an obligatory contribution regime, toward which a state, the aforementioned persons in this paragraph and former civil servants are jointly obliged to pay a contribution.

            The social security scheme on healthcare for the persons defined by the provisions of labour law, including airway and maritime staff as well as domestic workers, shall be an obligatory contribution regime, toward which employers and the aforementioned persons in this paragraph are jointly obliged to pay a contribution.

            The social security scheme on healthcare for a self-employed shall be specified by a sub-decree.

Article 7.- Occupational Risk Scheme

            The social security scheme on occupational risk for the individuals in public sector shall be an obligatory contribution regime, toward which a state is obliged to pay a contribution.

            The social security scheme on occupational risk for the persons defined by the provisions of labour law, including airway and maritime staff as well as domestic workers, shall be an obligatory contribution regime, toward which an employer is obliged to pay a contribution.

Article 8.- Unemployment Scheme

            The social security scheme on unemployment shall be an obligatory contribution regime, toward which an employer and employee are jointly obliged to pay a contribution.

Article 9.- Portion of Contribution for an Obligatory Contribution Regime

            The portion of contribution by the individuals in public sector, the persons defined by the provisions of labour law, including airway and maritime staff as well as domestic workers for an obligatory contribution regime toward pension, healthcare, and unemployment schemes shall not exceed 50% (fifty percent) of its totality.

            The contributory remuneration and salary shall be specified by a sub-decree.

CHAPTER 3

COMPETENT AUTHORITY

Article 10.- National Social Protection Council

            All social security operations are to be coordinated, monitored and oriented within the policies and strategies of the National Social Security Council.

            The organization and functioning of the National Social Protection Council shall be specified by a royal decree.

Article 11.- Social Security Regulator

            The Social Security Regulators shall be established with the following roles and duties:

  1. Define the due diligence regulations, operating standards, necessary measures, and guidelines on Social Security Fund investment.
  2. Keep track of the financial status of social security operator.
  3. Establish mechanisms to protect members and mediate disputes when there is a conflict.
  4. Monitor compliance to ensure that operations in the provision of social security services are conducted with transparency, accountability, and financial sustainability.

            The organization and functioning of the Social Security Regulator shall be specified by a sub-decree.

Article 12.- National Social Security Fund

            The National Social Security Fund, abbreviated as the NSSF, is a unique operator of the social security schemes as stated in the provisions of this law.

            The NSSF is a public institution established by the Royal Decree under the technical tutelage of the Ministry in charge of social security, and under the financial tutelage of the Ministry of Economy and Finance.

Article 13.- Duties of the NSSF

            The NSSF has the following duties:

  1. Manage and administer all social security schemes as determined by this law.
  2. Ensure the provision of social security benefits to the NSSF members with the purpose of alleviating the hardships of living which may face eventual risks, such as aging, invalidity, death, occupational risk, unemployment, maternity, illness, or accident as well as other contingencies.
  3. Collect and manage the contribution of each social security scheme, as well as other sources of income.
  4. Register and manage the identity codes of the NSSF members.
  5. Oversee the application of the provisions of this law by enterprises, establishments, or related entities under the jurisdiction of the NSSF.
  6. Educate, disseminate, and supervise the implementation of prevention measures of the occupational risks and health for the NSSF members.
  7. Study, research and investigate occupational risks.
  8. Study, research and prepare legal documents on the classification of occupational diseases.
  9. Sign and oversee the execution of agreements with health facilities.
  10. Study, analyze and financially evaluate each social security scheme.
  11. Conduct health and social activities related to the interests of the NSSF members.
  12. Administer and manage the investment of Social Security Fund.

Article 14.- Governing Board of the NSSF

            The NSSF is headed by a Governing Board composed of the following:

  • The Minister in charge of Social Security Schemes                                  President
  • Representative of the Ministry of Economy and Finance (1)                    Member
  • Representative of the Ministry of Civil Service (1)                                   Member
  • Representative of the Ministry of Health (1)                                             Member
  • Representative of the Ministry of Social Affairs, Veterans and

Youth Rehabilitation (1)                                                                            Member

  • Representative of the Office of the Council of Ministers (1)                    Member
  • Representatives of employers (2)                                                               Member
  • Representative of the NSSF members (2)                                                  Member
  • The Executive Director of the NSSF                                       Automatic Member.

Article 15.- Executive Units

            The daily works of the NSSF shall be administered and managed by an Executive Director who is appointed by a royal decree, and by several Vice Executive Directors as assistants in accordance with the legal documents in force.

            Monitoring the application of the provisions under the jurisdiction of the NSSF as defined in this law shall be the competence of the Social Security Inspector. The appointment and duties of the Social Security Inspector shall be specified by a sub-decree.

        The NSSF’s staffs are civil servants in the civil service, who are transferred or newly recruited at the request of the Executive Director of the NSSF, and contractual employees who are regulated by the internal rules and staff statute of the NSSF in accordance with the law on labour.

Article 16.- Management of Social Security Fund

            The fund management of each social security scheme is under the jurisdiction of the NSSF’s Social Security Council. The NSSF’s Social Security Council shall prepare the principles of fund management, investment management, investment planning, and investment packages to the Governing Board for review and approval in accordance with the guideline on the investment of the Social Security Regulator prior to a request for final decision by the Ministry of Economy and Finance.

            In fulfilling its duties, the NSSF’s Social Security Council shall make a report on maintaining and managing all the social security schemes to the Governing Board, the Social Security Regulator and the Executive Director of the NSSF.

            The composition, qualification, organization and functioning of the Social Security Council shall be specified by a sub-decree.

CHAPTER 4

SOCIAL SECURITY SCHEME ON PENSION

SECTION 1

GENERAL PRINCIPLES

Article 17.- Protected Individuals

            The persons covered by the pension scheme are as follows:

  1. The individuals in the public sector.
  2. The persons defined by the provisions of labour law, including airway and maritime staff as well as domestic workers.
  3. The self-employed.

Article 18.- Benefits of the Pension Scheme

            The benefits of the obligatory contribution-based pension schemes include the pensions for old-age, invalidity, survivor and cremation allowance.

            The benefits of the voluntary contribution-based pension scheme shall be specified by a sub-decree.  

Article 19.- Contribution of Pension Scheme

            The rate of pension contribution by the persons defined by the provisions of labour law, including airway and maritime staff as well as domestic workers shall be specified by a sub-decree.

            The rate of pension contribution by the self-employed shall be specified by a sub-decree.

            The rate of pension contribution shall be increased by a ladder premium method or an appropriate method which is approved by the National Social Protection Council.

Article 20.- Beneficiary of Survivor’s Benefit

            The beneficiaries of survivor’s benefit include spouse and direct dependent child of the NSSF member who shall meet the requirements as follows:

  1. Having no work or occupation exceeding the income limit of poverty line.
  2. If being a spouse, a marriage certificate must be issued before the NSSF member becomes ill or suffers an eventual accident causing death.
  3. If being a child, the following requirements must be met:
  • Being single;
  • Being at the maximum age of 18 (eighteen) years old.

            The children who are disabled or suffers chronic disease and unable to work or make profit shall be granted a survivor’s benefit for a lifetime. The certification of disability or chronic disease situation shall be made by a specialist physician and approved by the Medical Council of NSSF. The Medical Council of NSSF may reassess the disability or chronic disease situation if required.

            The right to survivor’s benefit shall be forfeited by any of the following events:

  • The death of beneficiary;
  • The spouse enters into a second marriage in compliance with legal procedures in force. In this case, the aforementioned person shall notify the NSSF within 30 (thirty) days after the date of new marriage ceremony.

Article 21.- Resources of Pension Scheme

            The resources of pension scheme derive from the following:

  • The contributions by the state, employers and NSSF members;
  • The incomes from investments;
  • The gift or donation, and other legitimate sources.

Article 22.- Financial Risk Assessment for Pension Scheme

            The financial risk assessment for pension scheme shall be reviewed and re-analyzed at least once every 5 (five) years.

Article 23.- Modification of Pension Benefits

            The benefits for pension scheme shall be modified every year in accordance with the official consumer price index.

Article 24.- Reserved Fund for Pension Scheme

            The reserved fund for pension scheme shall be equivalent to the expense of pension benefits of the last 3 (three) years.

Article 25.- Specification of Invalidity State

            The invalidity state shall be specified by a decision of the Medical Council of NSSF. The review of invalidity state shall be annually conducted. The invalidity pension shall be suspended in the event that he or she fails to attend the scheduled medical examination.

SECTION 2

OBLIGATORY CONTRIBUTION-BASED PENSION SCHEME

SUB-SECTION 1

OBLIGATORY CONTRIBUTION-BASED PENSION SCHEME FOR THE INDIVIDUALS IN THE PUBLIC SECTOR

Article 26.- Old-Age Pension                           

            The NSSF members of both sexes of the public sector are subject to mandatory retirement at age 60 (sixty) and are eligible for an old-age pension if the aforementioned persons meet the following conditions:

  1. Having registered for the pension scheme.
  2. Having paid a pension contribution for at least 12 (twelve) months.

            The NSSF member who fails to meet the conditions in the above point 2 of paragraph 1 shall be entitled to an old-age allowance.

            The retirement age of both-sex individuals in the public sector may be modified by a royal decree, subject to changes in the expected age, economic and social status.

Article 27.- Invalidity Pension                         

            The NSSF member of the public sector who suffers invalidity is entitled to receive an invalidity pension if they meet the following conditions:

  1. Having registered for the pension scheme.
  2. Having paid a pension contribution for at least 60 (sixty) months prior to the date of invalidity.

Article 28.- Survivor’s Benefit                         

            The beneficiary of the survivor’s benefit is entitled to receive a pension fund unless an old-age or invalidity pensioner, or an NSSF member dies after having paid a contribution of at least 60 (sixty) months for the pension scheme.

            The minimum rate of survivor’s benefit is set to be 45% (forty-five percent) of the old-age or invalidity pensions contributed by the aforementioned person.

            The portions of survivor’s benefit are divided into the following:

  • A 50% (fifty percent) benefit for a spouse.
  • A 50% (fifty percent) benefit for a child.
  • In the event that either a spouse or a child is the only beneficiary, s/he shall receive a 100% (one hundred percent) benefit.

Article 29.- Cremation Allowance                    

            The beneficiary of survivor’s benefit is entitled to receive a cremation allowance when the old-age or invalidity pensioner dies

Recent Post