A draft sub-decree on the new National Social Security Fund pension obtained by Khmer Times has revealed that workers and employers may have to split its monthly premiums once the scheme is launched.
The Labour Ministry is currently working with the NSSF to draft a new pension provision under the Labour Law.
“The contribution shall be equal to four percent of the wage [of an employee],” the draft sub-decree said. “Two percent will be contributed by the employer, while the other two percent will come from the worker.”
If approved, employers and workers would be obliged to contribute to the pension scheme on the 15th of every month.
According to the draft, the scheme would cover those working in the formal and informal sectors.
Yesterday, NSSF deputy director Sum Sophorn during a consultative meeting with 150 government and employer representatives on the sub-decree, said the pension scheme is important to retirees.
“The NSSF will launch this pension scheme in 2020 to ease the burden of our [retiring] citizens,” Mr Sophorn said.
He said to be retired in the Kingdom, a citizen would have to be over 60, but exceptions could be made to those not physically able to work.
According to the International Labor Organization, 6.5 percent of Cambodians are aged over 60. It said one million people are over 55.