September 21, 2022
Social security system for pensions to be launched next month

Amid finalization of the preparation for the launch of the social security system for pensions, Minister of Labour Ith Samheng has announced that it will be launched on October.

Soon the 90-day campaign promoting the benefits of the pension system will be drawing to a close and Cambodia will be adopting the system. This was confirmed by local news after the meeting of the National Minimum Wage Council for Textiles, Garments, Footwear and Travel Products and Bags today.

Minister Samheng said that through this campaign on pensions, the Ministry received comments and reflections of workers and employers who are ready to contribute and benefit from the system.

“This is a very good thing,” said the Minister. “I am confident that from October onwards the social security pension system will be implemented and we hope that there will be no obstacles in its implementation.”

The implementation of the social security system for pensions was announced on 28 June of this year under the provisions of the Labour Law. The Ministry of Labour announced the date of the commencement of the payment of social security contributions for pensions under compulsory contributions on 5 July.
https://www.khmertimeskh.com/501155374/ ... ext-month/

Clutch Cargo wrote: ↑Thu Sep 22, 2022 2:38 pm Will be interesting to see how that will work. Compulsory contributions for the pension by the worker, employer or both? What %? Who will manage and invest the monies contributed and pay pensions?

Both employee and employer will be required to contribute

As a younger person I don't trust pensions nor pension funds because I have seen how they fucked people over in my home country and some others that I've lived in over the past few decades - but a basic state pension is a good scheme to develop here imo

Clutch Cargo wrote: ↑Thu Sep 22, 2022 2:38 pm Will be interesting to see how that will work. Compulsory contributions for the pension by the worker, employer or both? What %? Who will manage and invest the monies contributed and pay pensions?

Both, employee and employer pay 2%. I don't think there has been any public talk where the money is going to be invested or does it just sit on NSSF bank account.

I know most of the workers are totally against this. They believe they don't get any money ever. Even though the NSSF actually works well in case of injury for example. It's a simple procedure for employee to get money back for doctor expenses or get free healthcare if go directly their partner doctor. And in general the department is one of the most modern and least corrupted government office in Cambodia. Low level management and staff at least are very friendly and no tea money ever asked.

rogerrabbit wrote: ↑Thu Sep 22, 2022 3:05 pm

Clutch Cargo wrote: ↑Thu Sep 22, 2022 2:38 pm Will be interesting to see how that will work. Compulsory contributions for the pension by the worker, employer or both? What %? Who will manage and invest the monies contributed and pay pensions?

Both, employee and employer pay 2%. I don't think there has been any public talk where the money is going to be invested or does it just sit on NSSF bank account.

The only thing I have seen is the amount you will be left with. there was an example:
Salary of $300 for 30 years = get 45% of monthly contributions (or $135 per month).

This is the max which you can get (salary, not %, that goes higher based on years paid, up to 70% on 50 years)

SO does that mean pay 2% of 300 (or $6pm) and get the $135. or pay $300 per month

It is a interesting move for the work force, but let us think that the employer wrap's up the business! Were doe's that leave the employee? I very much doubt the government has any bail out plan.

AndyKK wrote: ↑Fri Sep 23, 2022 12:48 pm It is a interesting move for the work force, but let us think that the employer wrap's up the business! Were doe's that leave the employee? I very much doubt the government has any bail out plan.

The employer doesnt have anything to do with the money (apart from contributing). It will be held somewhere by the govt (maybe not held exactly). Same as any defined contribution pension around the world as far as I can tell