cellcard cellcard

GMAC calls for delay of incoming pension scheme

Mom Kunthear / Khmer Times Share:
Garment workers will receive pensions once the NSSF scheme begins. KT/Chor Sokunthea

The Garment Manufacturers Association in Cambodia has urged the government to delay implementing a pension scheme included in the current draft law on social security to reduce the financial burden on employers.

The government is aiming to have the Social Security Law passed next year. It currently contains 11 chapters and 107 articles.

The Council of Ministers’ previously said the purpose of having a social security fund law in Cambodia is to ensure economic and social stability for people and improve their welfare and standard of living.

The Council of Ministers in August approved the draft law, with Prime Minister Hun Sen noting that it would expand National Social Security Fund schemes for civil servants and those in the private and informal sectors, including garment workers.

It has been with the National Assembly ever since it was approved by the Council of Ministers.

GMAC said in a statement on Friday that even though it supports the drafting of the Social Security Law, employers would be financially burdened if they had to also pay for pensions.

“Under the structure of the new law, the employers would be pleased to see the implementation of pensions be delayed,” it said.

GMAC said employers are concerned about the financial burden because “some companies have already planned their budget for next year and many of them are still not aware of the coming implementation of the pension scheme”.

It said employers would also like to see a proper management system and have comprehensive discussions before investing in a pension fund.

“Social security investment shall be consulted with the employer and employee representatives before taking all investment decision,” GMAC said.

It said NSSF should first invest in upgrading facilities, technologies and strengthening the capabilities of workers.

“Start by widely promoting awareness about NSSF’s coverage and its benefits to the public in order to encourage the informal sector to participate in the scheme, especially the pension scheme,” GMAC said.

Ouk Samvithya, director of the National Social Security Fund, yesterday said the establishment of a social security pension scheme is aimed at protecting citizens’ finances by providing a decent income.

Mr Samvithya said the NSSF is ready to reduce the burden of people working in the public and private sectors when they face risks.

“NSSF plans to launch a pension scheme for persons defined by the provisions of the Labour Law, including personnel working in the air and maritime transportation [sector] and domestic workers in Cambodia by early 2020 to help ease the burden on people, especially workers when they are old and lack income,” Mr Samvithya said, adding he will meet with unions and relevant partners to collect more input in the coming days.

Previous Article

Asia-Pacific Summit 2019 begins today

Next Article

Kampong Cham riverbank collapse affects commune administration hall