Social Protection Strategy
for Persons Defined by the
Provisions of the Labour Law
Year: 2014-2018
1 | Page UnofficialTranslation Preface
8
Social Security System in Cambodia started in 1955 but was abolished by Cambodia Democratic
Regime during 1975-1979. After this regime ended, until 1993, Cambodia promulgated the constitution
which is the Supreme Law of the country along with Labour Law in 1997. According to these two Laws, in
2002, the Law on the Social Security Scheme for persons defined by the provisions of Labour Law was set
up and in compliance with this Law, the National Social Security Fund was established by sub-degree in
2007 and until November, 2008, NSSF started its First Step called the Occupational Risk Insurance Scheme
successfully.
In accordance with the Law, the strategic plan of Royal Government, the development of National
Economy and Integration in Region, the National Social Security Fund have been preparing itself through
further extending, strengthening and developing its ability by organizing this five years strategic plan with
clear vision and mission in implementing Social Security efficiency, transparency, accountability and
punctuality for persons defined by the provisions of the Labour Law to achieve Social Security Services
when they experience incidents such as Old Age, Invalidity, Death, The Employment Injury or other
incidents such as Diseases and Maternity.
In time when Cambodia has improved in all sectors, ensuring of the Social Security is very important
in providing protection for people as a whole and partly for workers in enterprises/establishments who
depend on conception of sharing and solidarity policy in the society, ensuring income security meaning by
ensuring Social Security, there is no social member fall into risk of absolute poverty. In addition, the Social
Security policy has also contributed to the policy of poverty reduction of the Royal Government of
Cambodia via policy of sharing income by vertical and horizontal line meaning people with high income
help the lower ones, healthy people help people with diseases, disabilities or those who suffered from
accidents; young people help old people- theses can make all people in society obtain warmth feeling in
living which can maintain stability and harmonization in the society.
On behalf of the Governing Body, Leaders, civil servants, Employees and Workers of the National
Social Security Fund and I myself, I would like to deeply thank His Excellency Ith Samheng, Minister of
the Ministry of Labour and Vocational Training who has provided support on policies and techniques to the
National Social Security Fund successfully. I also would like to thank the Governing Body members for its
assistance and supports in preparing policies, legal instruments which are the foundation of NSSF to be able
to start its operation smoothly and effectively. Moreover, I would like to express my appreciation to officials
and workers of the National Social Security Fund who have actively paid attention to make this
Organization achieve subsequent success; especially, on the implementation of the First Step concerning
2 | Page UnofficialTranslation Occupational Risk Insurance Scheme and the functioning process of the Second Step on Health Insurance
Scheme and the Third Step on Pension Scheme. Similarly, I would like to thank all involving Ministries
and institutions for supporting the process of National Social Security Fund until now, particularly, for
employers and workers who have cooperated and implemented the Law better and I would like such
cooperation be continue for the functioning of the National Social Security Fund in further serving public
social services. Through the sincere participation from all involving sectors, the National Social Security
Fund strongly hopes that this strategic plan will be implemented successfully as scheduled and that it will
become an effective tool acting as a guiding compass in implementing Social Security policy to be more
developed in all dimensions for the benefits to society as a whole.
3 | Page UnofficialTranslation CONTENTS
Preface
2
Acronyms
6
Summary
7
Chapter I. General Aspects…………………………………………………………………….11
I.
Definitions ........................................................................................................................ 12
II. Background History.......................................................................................................... 12
III. Macro-Economic Situation ................................................................................................ 13
IV.Demography and Labour Force ......................................................................................... 14
V. Enterprises, Establishments and Labour Force................................................................. 16
VI. Cambodia Socio-Economic Situation ............................................................................... 18
i. Health Situation ....................................................................................................... 18
ii. Sources of Income .................................................................................................. 19
iii. Family Expense ..................................................................................................... 19
VII. Work Injury and Worker Health Situation ...................................................................... 20
Chapter II. Judicial Framework and Strategies ...................................................................... 23
I. Judicial Framework ........................................................................................................... 24
i. National Framework ............................................................................................... 24
ii. International Framework ......................................................................................... 26
II. Strategy Framework .......................................................................................................... 28
Chapter III. Cambodian Social Security Sector ..................................................................... 33
I.
Social Security Schemes for Persons Defined by the Provisions
of Labour Law...................................................................................................... 35
II. Social Security Schemes for Civil Servants, Veterans and Disabilities ....................... 35
III. Social Safety Nets for the Poor and Vulnerable ......................................................... 36
IV. Social Security Insurance in accordance with Insurance Law................................... 37
Chapter IV. Social Security Insurances for persons defined by the provisions of
Labour Law ................................................................................................................................ 39
I. The Employment Injury Insurance ........................................................................... 40
i. General Situation ...................................................................................................... 40
ii . Achievements ......................................................................................................... 41
4 | Page UnofficialTranslation iii. Challenges .............................................................................................................. 42
iv. Future Plan .............................................................................................................. 43
II. Health Insurance ........................................................................................................ 43
i. General Situation ...................................................................................................... 43
ii. Achievements .......................................................................................................... 44
iii. Challenges .............................................................................................................. 46
iv. Future Plan .............................................................................................................. 47
III. The Pension Scheme ................................................................................................. 47
i. General Situation ...................................................................................................... 47
ii Achievements ........................................................................................................... 48
iii. Challenges ............................................................................................................... 48
iv. Future Plan ............................................................................................................... 49
Chapter V. Social Protection Strategy for Persons Defined by the Provisions of
Labour Law ................................................................................................................................. 50
I. Vision ............................................................................................................................ 51
II. Mission ........................................................................................................................ 51
III. Goals .......................................................................................................................... 52
i.
Goal1: Extending and Strengthening the Implementation of
Employment Injury Insurance Scheme ......................................................... 52
ii. Goal 2: Functioning of Health Insurance Scheme ................................................ 54
iii. Goal 3: Functioning of the Pension Scheme......................................................... 58
iv. Goal 4: Strengthening Good Governance ............................................................ 60
Chapter VI. Action Plan on the Implementation of Social Protection Strategy for Persons
Defined by the Provisions of Labour Law 2014-2018 ............................................................. 64
References .................................................................................................................................... 84
5 | Page UnofficialTranslation Acronyms
CARD
:
Council for Agricultural and Rural Development
NSSF-C
:
National Social Security Fund for Civil Servants
NFV
:
National Fund for Veterans
NSSF
:
National Social Security Fund
GDP
:
Gross Domestic Product
NSPSPV
:
National Social Protection Strategy for the Poor and Vulnerable
FSDS
:
Financial Sector Development Strategy 2011-2020
IPCWFE
:
Investigation and Prevention Committee for the Worker’s Faintness at
Enterprises
RTSTPW
:
Road Traffic Safety Team for Preventing the Workers
AFD
:
Agence Francaise de Development
ASSA
:
Asean Social Security Association
AWCF
:
Asian Worker Compensation Forum
CBHI
:
Community Based Health Insurance
COMWEL
:
Korea Workers Compensation and Welfare Service
GIZ
:
German International Cooperation
GMAC
:
Garment Manufacturers Association in Cambodia
GRET
:
Groupe de Recherche et D’Echanges Technologiques
HEF
:
Health Equity Fund
HIP
:
Health Insurance Project
ILO
:
International Labour Organization
6 | Page UnofficialTranslation Summary
Social Protection Strategy for Persons Defined by the Provisions of Labour Law in 2014-2018 was
set up in accordance with National and International regulations, strategic plan of Royal Government and in
compliance with the Law on The Social Security Schemes for Persons Defined by the Provisions of Labour
Law and Sub-Decree on the establishment of National Social Security Fund.
This strategic plan includes six Chapters about general aspects of judicial framework and strategy
involving with common Social Security sectors and in part about Social Security in Cambodia including
Social Security Insurance for Persons Defined by the Provisions of Labour Law and strategic plan with
specific vision, mission, goals and the action plan for implementing this strategy including certain direction
and activity with precise indicators for measuring, investigating and evaluating the implementation
following each date with trust.
Chapter I: General aspects was raised about definition and background history of Social Security
and some influential factors and the important of fundamental data for comparing, analyzing and evaluating
on the provision of social protection services in Cambodia.
In this Chapter I, starting with the definition of Social Security which attracts people’s interest into
the contexts of Social Security to reach for the content of strategy. For Cambodia, this Social Security
System started in 1955 but this system was destroyed by Cambodian Democratic Regime during 1975-1979
until 1993 when Cambodia has promulgated the Constitution and Labour Law in 1997 in compliance with
both Laws in 2002, the Law on Social Security Scheme for persons defined by the provisions of Labour
Law has been promulgated. In accordance with this Law in 2007, the National Social Security Fund was
established and in the end of 2008, the functioning of first step on Employment Injury Insurance has been
put in place successfully.
For economy sector, Cambodian macro-economic has been showing its strength towards policytarget of annual growth 7.0 percent through Rectangular Strategy Phase II, III and National Strategic
Development Plan of the Royal Government with economy coverage in 2012 about 14,054 million dollars
and income per capita about 973 U.S dollars.
In terms of demography and labor forces, according to General Census Statistic Demography in
2008, it indicated strong potential in contributing to the country’s development through age group in
economic activity (15-64) years old which account for about 62 % of the total population. The number
increases up to nearly 1.3 million people from 2004 to 2010 by Cambodia Socio-economic investigation in
2010 and active population rate is about 87% and unemployment rate is about 0.3% out of the active
population.
7 | Page UnofficialTranslation For Enterprises, Establishments and Labour forces situation, according to the Enterprises Census in
2011, there are 505,143 enterprises with 1,676,263 workers (61.2% women). There are about 80% of the
total enterprises that have 01 to 02 workers, so we can conclude that small enterprises play a big part in
Cambodia and are deemed as having fluctuating economy or informal which requires further expansion on
social protection toward workers in small enterprises and also informal sectors.
Cambodia Socio-economic situation have raised about some important indicators that are basic
relevant to the provision of Social Security sector and people’s living condition including the condition of
health, income and other expenses from the observation on Cambodia socio-economy in the last 2010.
For work injury and workers’ health in this strategic plan, it has analyzed the first step of
implementation on Employment Injury Insurance Scheme which has become a huge pattern because it has
covered from 08 workers up nationwide if compared to the numbers of enterprises census in 2011. This
chapter has presented about NSSF’s members concerning age group, average wages, work injury situation,
non-work injury situation and expense situation to these injuries.
Chapter II has raised about judicial framework and Government strategy including national and
international framework which are the reference basis and oriented towards the implementation of Social
Security sector. Judicial framework comprised the constitution of the Kingdom of Cambodia that has
presented about social protection for people and social protection for workers in work sector and also there
is Labour Law, Law on the Social Security Scheme for persons defined by the Provisions of Labour Law
and Sub- Decree on the establishment of National Social Security Fund. For international regulation, it
comprises global declaration on human rights, Philadelphia declaration in 1944 and convention No. 102 of
Internal Labour Organization (ILO) which was the basic for international Social Security sector. According
to these regulations, ASEAN and ASSA also mentioned about Social Security principles to be implemented
in its regions and that Cambodia is also a member. Besides, there are some other national and international
regulations related to Social Security sector which have been developed and organized through discussion
and was recognized both in national and international level.
On the strategy basis, theRoyal Government of Cambodia has outlined some strategic plans for
national development, poverty reduction and enhancement of social stability by integrating Social Security
sector as the main actions and priority as stated in Rectangle Strategy phase III “Rectangular fourth,
Capacity building and Human resource development with third angle on Social Protection development”
Social Protection Strategy for the Poor and Vulnerable (2011-2015), Financial Development Strategy in
2010-2020 and strategic plan for the development of Labour sector and vocational training 2014-2018.
Chapter III for Social Security sector in Cambodia which includes Social Security Schemes for
Workers, Social Security Schemes for Civil Servants, Veterans and Disabilities, Social Security Insurance
8 | Page UnofficialTranslation from private sector in accordance with Insurance Law, social safety nets for citizen focusing on the poor
and vulnerable as well as other Social Security services that have paid contribution and those who haven’t
paid.
The Social Security Schemes for Workers have been implemented by National Social Security Fund
of the Ministry of Labour and Vocational Training in compliance with Law on the Social Security Schemes
for persons defined by the provisions of Labour Law. For Social Security Schemes for Civil Servants,
Veterans and Disabilities which have been
implemented by National Social Security Fund for Civil
Servants, Veterans and Disabilities of the Ministry of Social Affair Veterans and Youth Rehabilitation.
While Social Safety Nets for citizen focusing on the poor and vulnerable and other Social Security services
participated by line Ministries and stakeholders for providing social protection for people to get nutrition,
welfare, Technical and Vocational Training and Intervention from society when people get risks.
Besides, Social Security Insurance for private sector which follows Insurance Law focuses on
volunteer principles covered by the Ministry of Economy and Finance.
Chapter IV raised about the Social Security Schemes for persons defined by the provisions of
Labour Law which are being implemented by National Social Security Fund in compliance with Law on the
Social Security Schemes for persons defined by the provisions of
Labour Law including Pension,
Employment Injury and other risks based on the actual aspect of National Economy.
In this Chapter, all important information related to Social Security Scheme for workers in private
sector on the Employment Injury Insurance Scheme which is being implemented specifically on Health
Insurance and Pension Scheme scheduled to begin in 2014 and 2015 focusing on general situation,
achievements, challenges and future strategy.
Chapter V is a core strategy which described about Social Protection for persons defined by the
provisions of Labour Law. This Chapter raised about clear vision on “Ensuring Social Security effectively
for persons defined by the provisions of Labour Law” and mission in “Providing Social Security services
with efficiency, transparency, accountability and punctuality for persons defined by the provisions of
Labour Law aiming at easing difficulties when they get old, invalidity, death, the Employment Injury or
facing other incidents such as diseases and maternity”. To achieve these above vision and mission, the
strategy has 4 main goals for implementing from 2014-2018.
First Goal: Extending and Strengthening the Implementation of Employment Injury
Second Goal: Functioning of Health Insurance Scheme
Third Goal: Functioning of Pension Scheme
Forth Goal: Strengthening Good Governance
First goal: Extending and strengthening the implementation of the Employment Injury by extending
scope, strengthening implementation and developing the Employment Injury Scheme policy, ensuring quick
9 | Page UnofficialTranslation service delivery and timely. Along with the extension, strengthening and development, there are also
inclusion of measure to prevent work injury in order to avoid or reduce work injury for workers to the
lowest level and also providing rehabilitation services to NSSF members who suffered from Employment
Injury leading to permanent disability to obtain mental, physical and professional rehabilitation to ensure
full participation equally for victims in social activities.
Second goal: Functioning of Health Insurance Scheme for workers and employees to access health
care and medical treatment so as to reduce the expense on health issues when they have diseases, maternity
and other contingencies. The functioning of this Scheme includes preparing methodology, procedure, setting
up information technology system and preparing procedure to calculate health care service to avoid or
reduce the use or provision of service wrongly off the target between service providers and receivers. After
preparing work formality and dissemination campaign to mainstream the sector to the public, especially, the
service consumers to know because this work is regarded as the new turning point of Cambodia Social
Security sectors which requires building of trust from all milieu and set clear implementation steps in all
capital and provinces aiming at getting them to register, contribute and provide benefits as scheduled in
2014.
Third goal: Functioning the Pension Scheme in 2015 by studying the possibility of processing
Pension Scheme, preparing legal instruments and human resources training for the implementation basis,
setting up information technology system, disseminating and setting implementation steps on Pension
Schemes throughout capitals and provinces for enterprises, establishments and worker registrations and
collecting contributions to reserve for future benefit provision. The Scheme has been regarded as a longterm protection meaning protection until the last stage of worker lives. Therefore, when this Scheme is
functioning, all workers and employees in private sector will receive pension as civil servants do.
Forth goal: Strengthening good governance by focusing on enhancing public Social Security services
with efficiency, transparency, accountability and punctuality because good governance is the core value of
Rectangular Strategy Phase III and also is the core of social justice and socio-economic development with
sustainability and equity. To achieve this goal, some directions are implemented to enhance efficiency and
quality of public administration service, to strengthen financial management and asset, to strengthen and
extend cooperation with national and international partners, to strengthen planning mechanism, statistic and
legislation, to strengthen internal audits and to promote gender equity in Social Security sector.
Chapter VI mentioned about the detail of Action Plan for the implementation of social protection
for persons defined by the provisions of Labour Law. This action plan was made to achieve vision, mission,
goals and each direction in this strategy by raising specific activities with indicators for measuring,
investigating, and evaluating the implementation for each date more precise for five years implementation
(2014-2018).
10 | Page UnofficialTranslation CHAPTER I
GENERAL ASPECTS
11 | Page UnofficialTranslation Chapter I
General Aspects
I. Definition
1. The definition of Social Security differs from one country to another in the world, but it implies a
common point which is a relief measures when any individual in society suffered from the loss or
decrease of income which make them unable to sustain their families’ lives.
2. In the aim of providing standard for implementation of member states, the International Labour
Organization (ILO) through its global conference have ratified the convention and recommendations
on Social Security standard including convention No. 102 on minimum wage regulation of Social
Security. This convention has remarked the scope and minimum benefits among the total of nine
benefits (1) in which all member states should ensure having Social Security Policy in its scheme.
Therefore, we can spot three important purposes of Social Security namely: First: Ensure the access
to healthcare, second: Ensure the accessibility to benefits when losing income caused by
Employment Injury and third: Ensure necessary assistance when family responsibilities increase.
3. To sum up, Social Security is the necessary judicial measure in which the state or government need
to protect their own citizen who cannot afford to earn income or those who are facing with
compliance costs though temporary or permanent through social risk so that they can solve their
living standard problem via financial assistance or necessary materials or other services.
II. Chronological History
4. After gaining independence in 1993, Cambodia issued Royal Kram No3 /N.S dated April 25, 1955
regarding workers’ right to receive allowance for their spouse and children which is the starting
point of Social Security system in Cambodia but this system was abolished by Cambodia
Democratic Regime during 1975-1979.
5. Since 1979, all workers receive protection on retired pension, invalidity, death, and the Employment
Injury. In 1989, with economic reforms from plan based economy to market based economy, the
Social Security system for workers and employees in private sector was re-adjusted following the
current economic situation. Based on Labour Law in 1992, employers are required to responsible for
Employment Injury for accident which happens to employees. In 1993, the constitution of the
1
Nine minimum benefits: medical care, sickness, unemployment, old age, family, maternity, invalidity, survivor’s benefits. 12 | Page UnofficialTranslation Kingdom of Cambodia was establisheds whereas the Labour Law in 1992 was replaced by the
Labour Law in 1997 and in 2002 the Law on the Social Security Schemes for persons defined by the
provisions of Labour Law was promulgated.
6. Law on the Social Security Schemes for persons defined by the provisions of Labour Law aim to
create the Social Security Schemes for persons defined by the provisions of Labour Law in the
Kingdom of Cambodia including pension, Employment Injury, and other categories based on the
current economic situation.
7. According to the evolution of national economy and in response to the development of employment
sector which is formerly a social security department of the Ministry of Labour and Vocational
Training which at that time had two main duties: first, enforce the Law related to the Employment
Injury, second: Prepare Law on Social Security Schemes with active effort to research and compile
many legal instruments so as to pave the way for Law enforcement on Social Security Schemes for
persons defined by the provisions of Labour Law effectively.
8. This effort was fruitfully achieved by the National Social Security Fund which is a public
administration institution obliged to provide public social services with its acronym “NSSF”
formulated by Sub-decree No 16 RNKr.BK dated March 2, 2007. Also in 2007, the Governing
Body of the National Social Security Fund was established with tripartite compositions namely:
Royal Government representative, employer representatives and employee representatives.
9. Until July 2008, the Social Security Schemes for persons defined by the provisions of Labour Law
have successfully implemented its first step which is the Employment Injury Scheme.
III.
Macro-Economic Situation
10. General election in 1993 has brought in the practical principles of democracy, free multi-party,
market based economy, respect of human rights and dignities. Meanwhile, the Royal Government of
Cambodia has also operate National rehabilitation and development program in 1994, socioeconomic development plan for the first five years (1996-2000) to remark the vision of rebuilding
and developing the nation through the emphasis on macro-economy, social development, and
poverty reduction. Through this spirit, Cambodia has achieved sustainable macro-economic
development remarkably; for instance, the annual average economic growth was 8.4% in between
1994-2006.
11. From 2004 to 2007, the macro-economic situation increase in annual average rate beyond 10%,
which put Cambodia among the countries that have highly economic growth in the world.
13 | Page UnofficialTranslation 12. World economic crisis in 2008, recession of economic environment outside the country in 2009 has
an impact on Cambodia economy causing the growth rate of Gross Domestic Product (GDP) to
plummet to the lowest level ever after. Nevertheless, many sectors immediately returned back to
normal in the year after due to the increase of commodities purchase order in rural area, the increase
of export , particularly, the Royal Government of Cambodia has increased public expense in order to
push forward domestic need which contributed to the economic growth in Cambodia in 2011 by
7.1% followed by a 6% increase in 2010.
13. In 2012, the Royal Government of Cambodia validated the economic growth of 7.3% through stable
valueand GDP deflator 1.4%. Cambodia economy have been showing its strength towards policy of
annual growth 7.0% through Rectangular Strategy phase II, III and strategic plan of national
development in recent years 2009-2013 of the Royal Government. Economic coverage in 2012 is
currently worth 56,682,000 million riel or approximately 14,054 million dollars among 14.5 million
people in 2012 while the income per capita is USD 973 dollar.
14. In 2013, via preliminary prediction of GDP growth which is 7.6% through fixed value while the
GDP deflator account for 0.8%. Currently GDP value in 2013 can be worth 61,525,000 million riel
or 15,161 million dollar within 14.7 million people in 2013 whereas GDP per capita account for
1.036 dollar.
IV.
Demography and Labour Forces
15. Based on the final result, general demographic statistic census in 2008, the kingdom of Cambodia
has total population of13, 395, 682 people, men account for 6,516,054 equal to (48.64%) and women
account for 6,879,628 equal to (51.36%). The average age of men is 60.5 years old and women 64.3
years old respectively. Population density is 75 people per square kilometer and annual growth rate
1.54 %. Demographic prediction in 2013 account for 14 million people.
16. Infant fatality rate is 60 per 1,000 infants and maternity death rate during delivery is 461 people
among 100,000 people in 2008. Until 2010, infant fatality rate decreased by 54 infants per 1,000
infants and maternity death rate dropped by 206 people per 100,000 people when confinement.
These indicate the further strengthening of quality and health care services extinction, especially,
reproductive health service on maternity and children’s health.
17. Children in the age-group from (0-14 years old) account for 33.7%, while the age-group in economic
activities from (15-64 years old) is 62% whereas the old age-group from 65 years old onwards
account for 4.3%. Age rate of dependents in Cambodia demography reveals a decline from 1998,
with86.15% to 2008 61.19%, meaning it decrease by 24.96%.
14 | Page UnofficialTranslation 18. Family size in average per family decreased from 5.2 people in 1998 to 4.7 people in 2008 at
national level. This declining tendency of family size is due to the increasing number of families in
country which has switched from extended family to nuclear family system.
19. The total participants in economic activities account for 48.84% men and 51.16 % women in
Cambodia. Unemployment rate in Cambodia has indicated a decrease from 5.3% to 1.7% from 1998
to 2008. Both workers who work for family without revenue and the self-employed are about 83%
of workers throughout the country which reveals that most workers in Cambodia are outside
economic system. Moreover, the employed population rate has divided works sector by sector; and
72.3% work in the first sector and then 8.5 % work in the second sector and 19.2% work in the third
sector.
20. Until 2010, through Cambodia socio-economic observation, the legitimate
age-group for
employment from15-64 years old increased to 1.3 million people from 2004 to 2010. Annual
average is more than 3%. Labour force rate in Cambodia is about 87% in which (84% men and 90%
women). These rates are considered higher in rural area than that in Phnom Penh and provincial
town.
21. Based on the international data, the total unemployment rate in Cambodia is at the lowest level
which account for about 0.3% of Labour force in 2010. In Phnom Penh is not much different from
that in urban area, the unemployment rate seems to be a little bit higher in rural area.
15 | Page UnofficialTranslation Table 1: Population and Labour force from age 15 to 64 years old divided by gender and by
geographical area in 2010 (numbers of population calculated in thousand and percent)
Labour forces and sex
Cambodia
Phnom Penh
Urban areas
Rural areas
Total population
13,958
1,363
1,436
11,158
Work-age population
8,853
981
946
6,926
Labour force
7,702
693
776
6,223
Both genders
87.0
70.7
82.0
90.0
Women
84.2
64.8
79.3
87.6
Men
90.0
76.9
85.3
92.5
Labour force rate involvement
Employment rate
Both genders
86.7
70.1
81.7
89.7
Women
84.0
64.3
78.9
87.5
Men
89.6
76.4
84.8
92.2
Both genders
0.3
0.8
0.5
0.3
Women
0.3
0.8
0.5
0.2
Men
0.4
0.7
0.5
0.4
Unemployment rate
Source: socio-economic investigation in 2010
V.
Enterprises, Establishments and Workers
22. According to the final result, enterprises census in the Kingdom of Cambodia in 2011, there were
505,143 enterprises with total work involvement 1,676, 263 people which account for 676,263 total
workers and among them 650,179 are men equal to 38.8% and 1,026,084 women equal to 61.2%,
therefore women involvement in employment are higher than men.
23. If compared to the result of enterprises registration throughout country in 2009, the total number of
workers increased by 9.5% and annual growth rate prediction account for 4.54% while the annual
population growth rate prediction is 1.54%, so workers growth rate are higher
than that of
population . This growth indicated that workers in the first sector have switched to second and third
sector, a movement which is unique in the process of national development.
16 | Page UnofficialTranslation Table 2: Number of workers divided to coverage of workers and gender
Gender of workers
Coverage of workers Both Genders
Men
Women
Both Gender
(workers)
Total 1,676,263
Men
Women
(percent)
650,179 1,026,084 100
38.8 61.2
1 222,126
54,849
13.3
3.3
10
2 352,438
142,415 210,023
21
8.5
12.5
3 139,131
60,746
78,385
8.3
3.6
4.7
4 83,500
41,565
41,935
5
2.5
2.5
5 53,730
28,986
24,744
3.2
1.7
1.5
6 39,654
22,169
17,585
2.4
1.3
1
7 29,078
16,737
12,341
1.7
1
0.7
8 22,560
13,057
9,503
1.3
0.8
0.6
9 18,342
167,277
10,606
7,736
1.1
0.6
0.5
10-19 106,188
62,939
43,249
6.3
3.8
2.6
20-29 99,719
57,107
42,612
5.9
3.4
2.5
50-99 55,353
31,697
23,656
3.3
1.9
1.4
100-499 110,359
47,996
62,363
6.6
2.9
3.7
500-999 89,906
21,792
65,114
5.2
1.3
3.9
37,518
219,661
15.3
2.2
13.1
More than 1000 257,179
Source: Enterprises census in the Kingdom of Cambodia in 2011
24. Enterprises consist of 01 to 02 workers account for 80% of total enterprises. For enterprises which
have 01 worker account for 222,000 enterprises equal to 44% whereas enterprises with 02 workers
up account for about 176 enterprises equal to 34.9%.
25. Enterprises which have more than or equal to 5 workers account for 40,000 enterprises equal to 7.8%
with 879,000 total workers and for enterprises which has more than or equal to 10 workers, there are
13,000 enterprises equal to 2.6% with 716,000 workers whereas enterprises which has more than or
equal to 100 workers account for 787 enterprises equal to 0.2% with 454,000 workers and for
enterprises which has more than or equal to 1,000 workers account for119 enterprises with 257,000
workers. Therefore, we can conclude that large enterprises play a small part in the Kingdom of
17 | Page UnofficialTranslation Cambodia. Moreover, economic development policy of the Royal Government which are being
promoted and support to small enterprises to succeed.
26. If we look at enterprises categorized by international standard rank: whole sale and retail business;
automotive repair are the biggest part of international standard rank which account for 289, 000
enterprises equal to 57.2%
followed by 75,000 production enterprises equal to 14.9 %. For
household and food services there are 70,000 enterprises equal to 13.8 % and other service activities
account for 33,000 enterprises equal to 6.4%.
27. For enterprises throughout the capital-province, Phnom Penh is the area which has the most
enterprises accounted for 96,000 enterprises equal to 19%. Then, in Kampong Cham province, there
are 56,000 enterprises equal to 11.1%whereas in Kondal province, there are 41,000 enterprises equal
to 8%, On the other hand, in Battambang province there are 34,000 enterprises equal to 6.8%. In
Siem Reap province, there are 32,000 enterprises equal to 6.4%. In Takeo province, there are 32,000
enterprises equal to 6.3%.. Regarding workers in Phnom Penh, there are 559,000 workers equal to
33.4% which is the greatest number. Then, in Kondal province, there are 151,000 workers equal to
9%. In Kampong Cham province, there are 143,000 workers equal to 8.5%. In Siem Reap province,
there are 94,000 workers equal to 5.6% and in Battambang province 85,000 workers equal to 5.1%..
VI.
Cambodia Socio-economic situation
28. Since 2007, Cambodia socio-economic investigation was annually set up aiming at providing major
indicators concerning people living standard which covered many sectors such as: health care,
education, household, economic activities and other incidents. This strategy raised only some
indicators that are the basic reference relevant to the implementation of Social Security on socioeconomic investigation in the last of 2010.
i.
Health Situation
29. Through the investigation in 2010, Cambodia socio-economy indicated that people about 19% have
diseases or injuries. Among the total number of women, 21% have diseases or injuries and in that,
men account for 17%. If we think about the actual numbers of Cambodian population, approximately
2.7 million people have health problem which is the higher rate in rural areas than that in Phnom
Penh or urban area.
30. Health problem has the highest level rate among old people aged from 60 years old onwards, and in
that 38% are women whereas 32% are men. Among the youngest age-group from (0-14) year old,
18 | Page UnofficialTranslation health issue seem to have similar rate for both men and women whereas the age-group from 15 to 60
years old, women are found to have more health problem than men.
31. Among population which have health problem, about 18% have sought treatment 1 time or more and
in that, women have higher rate than men in all areas throughout the country.
32. Medical care for people in both genders, 16.9% sought public services, 32.7% sought private
services, 48% use self- treatment and 2.4% treating by herbal treatment. These showed that, people
who have diseases injuries or other health problems used self-treatment first before seeking other
treatments.
ii.
Sources of Income
33. Most families who earn a living through self-employment account for 65% equal to two third of total
income. Income from salary is approximately one third of total income. Incomes from selfemployment have increased by 20.7% in 2010 compared to 2009. In Phnom Penh, incomes from
self-employment have contributed about 51% of total income and 15% decrease compared to 2009.
Getting support on social Insurance, Insurance services or social benefits in terms of cash from the
Royal Government still little.
34. Income from agricultural sector is the main source of income for families in rural area and sources of
income from non-agriculture sector is also the important source of income for families living in
Phnom Penh and other urban areas in Cambodia. Income from agriculture has increased about 26.5%
and income from non-agriculture sector has risen about 16% in 2010 compared to that in 2009.
35. Families in urban areas have their income rising up about 37% in 2010 compared to that in 2009,
also income from salary or Labour wage account for about 29% of total income which indicate an
increase by 14%. Similarly Families in rural areas have their income accumulated about 24% in
which the income from salary or Labour force wage account for about 29% of total income meaning
it has increased about 21%.
36. Family net income in Cambodia is 214 U.S dollars in average per month in 2010 which increased
by 19% compared to that in 2009. Average net income per person is 48 dollars per month which
increased by 25%. Average net income per person in rural areas is different from that in the cityAverage net income for people living in Phnom Penh is 2.8 times more than that in rural areas.
19 | Page UnofficialTranslation iii.
Family Expense
37. Monthly average expense on consumption is about 1,122,000 riel per family and 266,000 riel per
person in 2010. Monthly average consumption expense has increased very little between 2009 and
2010. Monthly consumption expense per person has increased by 5%. The amount of consumption
expenses has significant change from one area to another.
Table 3: Composition of consumption expense calculated as monthly average for each person in 2009
and 2010
Calculated in thousand Percentage
Composition
of Consumption expenses
riel
of
total
consumption
expense
2009
2010
2009
2010
Food and beverage (non-alcoholic)
124
122
49
46
Alcohol and tobacco
6
5
2
2
Clothing and footwear
7
7
3
3
Household, water, electricity…
50
57
19
21
House furniture…
3
2
1
1
Medical care
19
21
8
8
Transportation
12
14
5
5
Telecommunication
5
5
2
2
Entertainment and culture
3
3
1
1
Education
5
7
2
3
Other goods
21
23
8
9
Source: Cambodia socio-economic investigation in 2010
38. Composition of consumption expenses per capita differ from one to another for instance; expenses
on food and soft drink account for nearly haft of total consumption expense about 46%, but this
number decrease by 3 % compared to that in 2009. In contrast, household expenses such as: water
fee, electricity and energy which is the second largest expense that has increased a little bit by19%
in 2009 to 21% in 2010. After the expense on necessities such as meal and household demand, the
expenses on medical care is also deemed as large expense, ranked 3rd about 8% of total expense.
20 | Page UnofficialTranslation VII.
Employment Injury and Workers’ Health
39. In 2011, the Kingdom of Cambodia has enterprises totally505,143 with 1,676,263 workers in total
and the enterprises which have more than 8 workers account for 18,028 with 756,606 workers. For
registrations in The Employment Injury Insurance Scheme until 2013, there were 6,107 enterprises
with 847,175 workers. Therefore, this scope covers The Employment Injury Insurance Scheme for
enterprises which have more than 8 workers accounted for 33.87% with workers approximately
112.63% equal to 50% of total workers throughout the country equal to 11% of total Labour force
and about 6% of total population nationwide without taking into account of annual growth rate.
40. A long with the provision of Employment Injury Insurance, we can know a lot of information related
to workers’ situation, particularly, the Employment Injury and expense situation because these
services cover the entire numbers of enterprises which have more than 08 workers throughout
country compared to the figure of enterprises census in 2011.
41. Until the last 2013, the Employment Injury Insurance Scheme has registered 847,175 workers in
total. For workers in textile, garment and footwear, there are 600,000 workers equal to 70% of all
registered workers. Among that, women participation account for more than 70%. For age-group
from (18-28) years old there are more than 58.08 % and age-group from (29-39) years old account
for 33.62% and the majority are women. Therefore, we can assume that most workers are women
and in the age between 18 to 39 years old.
42. Average wage of workers per capita is approximately 575,000 riel. Those whose wage is (0-350,000
riel) account for 14.1% whereas those whose wage is (350,001-650,000 riel) account for 59.33%,
and workers whose wage is (650,001 -1,000,000 riel) account for 15.27%, and those with 1,000,000
up account for 11.30%.
43. The annual work injury is approximately 01% compared to numbers of workers who have registered
in the Employment Injury Insurance Scheme, so among 100 workers there are more than one worker
get work injury a year. In 2013, there are 16,775 workers get work injury (12,030 women) which
contributed to 70%. Among all work injury, work injury at workplace account for 12,060 workers
equal to 71.89%and commuting accident account for 4.703 equal to 28% while occupational disease
account for 12 workers which is less than 1%. For degree of injury, there are15, 440 workers
suffered from minor injury which is equal to 92% and 1,227 workers equal to 7.3% had severe injury
whereas 96 workers equal to 0.57% died.
21 | Page UnofficialTranslation Table 4: Employment Injury report (for enterprises, establishments consist of more than 8 workers
Numbers of
Years
registration
workers
The Employment Injury report (workers)
Total
Women
Workplace
Commuting
Injury
injury
Occupational disease
2009
387,046
3,553
2,878
0
2010
594,686
7,611
5,878
5,099
2,512
0
2011
674,217
12,571
9,734
9,006
3,565
0
2012
768,134
14,223
10,709
10,573
3,642
18
2013
847,175
16,775
12,030
12,060
4,703
12
Source: Annual report of National Social Security Fund
44. Besides work injury, there is also non-work injury which account for more than 2% and faintness
case is seen more than 5% of total work injury whereas other non- work injury related to health
problem is deemed as an alarming number which needs to be reported every year.
45. Based on the basis of benefits provision to workers in 2013, there are 15,059 workers with 6,926
million riel expense, in average one person spend around 459,000 riel. For medical care benefits,
there are 8,245 workers with 5,254 million riel expense equal to 76% of total expense. If calculated
in average, the expense for victim treatment per capita is about 637,000 riel. Therefore, workers who
had work injury need to spend more than 600,000 riel for treatment which is under the responsibility
of National Social Security Fund.
22 | Page UnofficialTranslation CHAPTER II
JUDICIAL FRAMEWORK AND STRATEGIES
23 | Page UnofficialTranslation Chapter II
Judicial Framework and Strategies
I.
Judicial Framework
i.
National Framework
46. The Constitution of the Kingdom of Cambodia in 1993 is the National Supreme Law and the
provisions of social protection for citizen regardless of all forms of discrimination including rights to
Social Security Scheme and other social benefits. This Law has set up special provisions for Social
Security in-systematic economic sector for workers.
47. Chapter III, Rights and duties of Cambodian people, Article 36, paragraph 4 “Cambodian people
both genders are entitled to social Insurance and economic benefits which was set up in the Law”.
Chapter VI, Education, Culture and Social Affair, Article 57 “The state has set up Social Security
Scheme for workers”.
48. Labour Law in 1997: This Law covered all vocational communication resulted from work contract
between employers and employees to ensure better working conditions and maintain harmonization
in industrial relations, safety and health strengthening at workplace. After Constitution, Labour Law
is the foundation of the establishment of Law on Social Security for persons defined by the
provisions of Labour Law.
49. This Law has clearly defined work injury definitions(2), employers are in charge of work injury
which happened on workers for medical Insurance, providing allowance and other social benefits as
set in Chapter 9 about Work Injury, Article (248-257)
2
Work injury: an accident is considered to be employment injury : ‐
Accident inflected on the body of the worker, regardless of the cause, if it happens to a worker working or during the working hours, whether or not the worker was fault; it is the accident inflicted on the body of the worker or an apprentice with or without wage, who is working in whatever capacity or whatever place for an employer or manage of an enterprise. ‐
Equally, accidents happening to the worker during the direct commute from his residence to the work place and home are also considered to be employment injury as long as the trip was not interrupted nor detour made for a personal or non‐work‐related reason ‐
Occupational disease as stated in the law considered as employment injury and gains the same repair. 24 | Page UnofficialTranslation 50. Apart from that, this Law also defined that the Employment Injury Insurance under the general
Scheme is implemented by National Social Security Fund.
51. Law on The Social Security Scheme for persons defined by the provisions of Labour Law in
2002: Aiming to set up Social Security Scheme for persons defined by the provisions of Labour
Law in Kingdom of Cambodia including:
1. Pension Scheme concerning the benefits provision of old-age, invalidity (3), and death.
2. Employment Injury Scheme concerning the benefits provision of work injury and
occupational disease4.
For other Schemes, it shall be prescribed by subsequent sub-degree based on the current national
economy.
52. Sub-Degree on the establishment of National Social Security Fund: Establish Public
Administration institution aiming at serving public social services called “National Social Security
Fund” with acronym “NSSF” and is technically under the tutelage of the Ministry of Labour and
Vocational Training and financially under Ministry of Economy and Finance.
53. NSSF has duties to manage Social Security Scheme in compliance with the Law on the Social
Security Scheme for persons defined by the provisions of the Labour Law concerning benefits
provision
(5)
and collecting contributions
(6)
from members, facilitation on organizing health care
services and social affair for the benefits to its members and cooperate with involved organization to
raise awareness on how to prevent work injury and occupational diseases as well as taking action on
technical security and work hygiene.
54. Besides the above frameworks there are also other judicial frameworks such as: inter-ministry
statements, declarations and decisions related to the process of National Social Security Fund in
accordance with the Law on the Social Security Schemes for persons defined by the provisions of
Labour Law.
3
Invalidity: premature worn state, whether or physical, before the age of 55 that cause of loss of earning capacity. 4
Occupational disease: the disease that cause from work employment regarding to physical work, exposure to toxic substances and other employment performs in insalubrious conditions or areas in which cause various disease. 5
Benefits: is a kind, cash benefits or services that providing to NSSF members when they are old, invalidity and employment injury. 6
Contributions: is the money that members and employers contribute to National Social Security Fund through law as the benefits to pay for workers. 25 | Page UnofficialTranslation ii. International Framework
55. Global Declaration on Human Rights: is the foundation of human rights which have been ratified
by United Nation Conference in December, 10, 1994 stating that all persons have the rights to
participate in social activities, get protections and other benefits from society equally regardless of
all forms of discrimination.
56. Article 22 “ All people regardless of any status in society have the rights to Social Security set up for
those persons to satisfy
their rights in economy, society and culture which is
necessary
requirements in terms of dignity and individual characteristic development through national efforts
and international cooperation in line with the preparation and resources of the each state.
57. Article 25 “All Persons have the rights to obtain decent living conditions to support their own health
and welfare as well as family like clothing, shelters, heath care, other social services and social
protection in case when they are unemployed, having diseases, disability, become widow or
widower, getting old or lose the ability to earn a living in which those inabilities stemmed from the
will of individual..
58. Philadelphia declaration in 1944: focused mainly on goals and purpose of International Labour
Organization (ILO), which recognized the duty of this organization for all nations on world program
to achieve the following:
-
Strengthening the method of Social Security to provide basic foundation of income towards
the need of protection and comprehensive health care..
-
Life protection and workers’ health in all profession.
-
Children welfare protection and maternity.
59. ASEAN: aim to promote a joint development for all sectors among member states so as to achieve
one ASEAN community, one identity and one vision. For Social Security sector, this community
has decided to issue join-statements and some work plans for cooperation in region.
60. ASEAN community plan in 2015 focus on three pillars:
1:.Political-Security Community, 2:
Economic Community, and 3: Socio-Cultural Community in which social protection was prioritized
and integrated into the third pillar( Socio-Cultural Community) in preparation of social safety nets
system and protection from negative impacts of integration and Globalization through enhancing
experience exchange in Social Security system and developing Social Security standard in member
countries.
26 | Page UnofficialTranslation 61. Declaration on ASEAN Human Rights in November, 192012 with further commitment on Global
Declaration on Human Rights, United Nation Charter, Vienna declaration and activities program as
well as other international human right regulations which ASEAN member countries are the state
party. The Joint principle 30.1 states that “All persons have the rights on Social Security including
social Insurance to help them ensure the way of living with dignity and property”.
62. Joint statements of Labour Ministers during ASEAN plus three summits onthe seventh summit
conducted in May, 11 2012 in Phnom Penh, Cambodia between ASEAN Labour Ministers and
parties from China Republic, Japan and Korea Republic for the cooperation and exchange of
opinions which focus mainly on issues related to the effort to improve social protection and skill
development.
63. Besides the above foundations, there are some foundations related to Social Security whichASEAN
member countries have agreed such as: ASEAN action plans on Social Safety Nets, Bali Declaration
on the enhancement of role and participation from persons with disability in ASEAN Community
and that every ASEAN Labour Ministers Summit shall have discussion on Labour force
qualifications and ensuring Social Security Insurance to workers.
64. ASEAN Social Security Association (ASSA): is non-governmental organization which was set up to
provide platform to members in exchange of opinion and experiences on Social Security. Members
in this Community include all Social Security Nations in ASEAN member countries in which the
National Social Security Fund of the Kingdom of Cambodia is also the member. The main purposes
of this Community are to:
-
Enhance the development of Social Security field in the regions through the purpose of Law
and regulations of member countries.
-
Enhance cooperation in the regions for all fields of Social Security activities.
-
Exchange of experiences and information on Social Security.
-
Work in cooperation with other Social Security institutions in East Asia along with other
Social Security organizations around the world.
-
Cooperate in prevention, enhancement and development of Social Security Scheme through
training, workshop, and discussion.
65. Convention No. 102 of International Labour Organization has determined the project on the
importance of Social Security foundation guidelines in which all Social Security systems have been
27 | Page UnofficialTranslation promoted to a widest development. Convention 102 is the important foundation convention of Social
Security for all member countries of ILO that represent international recognition and was also
regarded as a symbol that played an important role in supplement the rights on Social Security
defined by the Law on International Human Rights. It is the only one international convention
which define the scope and all nine minimum benefits of Social Security.
66. Besides these, there remain other regulations related to Social Security which were developed and
organized through discussion and universal recognition that Social Security is the basic rights in
society all persons need to obtain.
II.
-
International Treaty on rights in Economy, socio-culture.
-
Convention on the elimination of all forms of Racism
-
Convention on the Rights of Disability
-
Convention 121 on Work Injury Benefits
-
Convention 128 on Invalidity, Old-Age and Survivor Benefits
-
Convention 130 on Medical Care and Disease Benefits
Strategy Framework
i.
Rectangular Strategy Phase III
67. Rectangular Strategy Phase III is a socio-economic policy agenda of political platform for the 5th
legislature mandate of the Royal Government of Cambodia for the purpose of growth, employment,
equity and efficiency aiming at promoting
agricultural sectors, physical infrastructure
development, private sector development and employment, capacity building and human resources
development through the core enforcement of good governance in fighting against corruption, Law
and judicial system reform, public administration reform, and arms forces reform including peace
coverage environment, political stability , security and social order, macro-economic environment
and favorable financial and environmental sustainability, partnership in development and Cambodia
integration into the region and the world.
68. In this strategy, the Royal Government of Cambodia aims to promote social intervention through
enhancement of Good Governance, work development and provision of social safety nets to all
persons, civil servants and workers “Rectangular 4 : capacity building and human resources
development, angle 3 social protection system development” has indicated clearly about the will of
the Royal Government to reduce poverty, promote social stability and harmonization of the people.
28 | Page UnofficialTranslation Figure 2: Diagram of Rectangular strategy phase III
Source: Rectangular Strategy phase III
ii.
National Strategic Development Plan 2014-2018
69. National Strategic Development Plan 2014-2018 is a roadmap for implementing Rectangular
Strategy phase III. This plan has been set up via specific method by setting responsible Ministry to
implement all prioritized policies in each angle of Rectangular Strategy Phase III and determined
specific activities and value evaluation so as to implement all prioritized policies.
70. This strategy clearly mentioned about prioritized policies of the Royal Government in the IV
legislature mandate in which social protection development system was integrated into capacity
building and human resource development. Based on this trend, the Royal Government will continue
to strengthen social protection system to be intertwined and harmonized so as to ensure sustainability
29 | Page UnofficialTranslation and efficiency which covered all public and private sectors including clear division of duties
between policies, judicial regulations and operation.
71. To implement prioritized policy in strengthening of social protection, this strategy also raise up some
priorities to enhance the efficiency social services provision as well as the enhancement of Social
Security system and capacity building in the institution. Based on this priority, some specific policies
was raised in promotion of family welfare and society, development and rehabilitation welfare of
children and youth, enhancement of disability’s welfare, old-age, veterans and establishment of
Social Security for general citizen and enhancement institution capacity and partnership
intensification.
iii.
National Social Protection for the poor and Vulnerable (2011-2015)
72. This strategy was coordinated and organized by Council for Agricultural and Rural Development
that was participated by involving sectors such as: Government representatives at National and SubNational level, Civil Society Representative and other Development Partners. National Social
Protection Strategy for the poor and vulnerable was organized to implement prioritized activities
raised in Rectangular Strategy and National strategic development plan 2009-2013 and supplement
policies, plans and all strategies of relevant Ministries both direct or indirect for social protection.
73. This strategy is comprehensive and has included all social protection systems as the benefits for the
poor and vulnerable and has determined the mains policies toward poverty reduction by raising
about the priority of social protection of the Royal Government regarding the poor, vulnerable
situation as well as social protection policies and strategy of Cambodia “Chapter II, Social
Protection is the first priority of the Royal Government of Cambodia”
30 | Page UnofficialTranslation Figure 2: Process toward in-depth social protection
Source: National Social Protection Strategy for the Poor and Vulnerable (NSPSPV )
iv. Financial Development Strategy (2011-2020)
74. Financial Development Strategy in 2011-2013 has its acronym “FSDS 2011-2020” is the update
strategic documents aiming at proceeding the development of strong financial system and based on
market policy for congregating and allocating resources effectively in contribution to economic
growth sustainably. This strategic document has been coordinated and the cycle of action plan in
sub-sectors correspond with long-term vision for financial sector as a whole. Moreover, it also
focuses on the need of financial integration in ASEAN regions on behalf of Cambodia as a member
in ASEAN Economic Community (AEC).
75. Chapter III mentioned about non-banking finance on pension Insurance Scheme and capital market
share for Pension Scheme in which the Royal Government has established National Social Security
Fund for Civil Servants, Veterans and handicap under the Ministry of Social Affair, Veterans and
Youth Rehabilitation which are being implemented for public sector and this Ministry have also
been drafting on Social Security for general citizen in the Kingdom of Cambodia.
76. Pension Scheme for persons defined by the Law on Social Security for persons defined by the
provisions of
Labour Law which was implemented by the National Social Security Fund,
31 | Page UnofficialTranslation technically under the tutelage of the Ministry of Labour and Vocational Training and currently have
been implementing on Employment Injury Insurance Scheme.
77. On the other hand, the Ministry of Economy and Finance is preparing Law on Insurance which pave
the way for volunteer pension from private sector.
v.
Strategic Plan of Labour and Vocational Training Development 2014-2018 of the Ministry of
Labour and Vocational Training
78. The Ministry of Labour and Vocational Training has actively been trying to implement political
propaganda of the Royal Government with significant results and have been developing more works
in compliance with Rectangular Strategy Phase III through the release of Strategic Plan development
concerning Labour and Vocational Training in 2014-2018 for the purpose of working conditions
and harmonization of industrial relation, technical and vocational training development,
employment and occupational development, and the development of Social Security Schemes for
persons defined by the provisions of Labour Law as well as Good Governance enhancement.
79. Also, the Social Security Schemes for persons defined by the provisions of Labour Law was set
forth as the fourth prioritized strategy which includes the strengthening and extending of
Employment Injury Insurance application, the functioning of Health Insurance Scheme and push
forward preparation of Pension Scheme which indicates a clear policy of the Ministry in ensuring the
enhancement of better working conditions and maintain the harmonization in industrial relations.
32 | Page UnofficialTranslation CHAPTER III
CAMBODIAN SOCIAL SECURITY SECTOR
33 | Page UnofficialTranslation Chapter III
Cambodian Social Security Sector
80. Social Security Sector in Cambodia has progressed remarkably in the last recent years, thanks to
some strategic plans of the Royal Government of Cambodia in terms of comprehensive social
protection and better enhancing of people’s living standard towards poverty reduction and social
stability boost including Rectangular Strategy Phase I, II and III for growth, employment, equity and
efficiency in Cambodia, National strategic plan development, social protection strategy for the poor
and vulnerable (2011-2015) and financial strategy development 2011-2020. Besides the above
strategies, there are also legal instruments and some other strategic plans which was subsequently set
up to provide Social Security services to people to suit with current National Economy. Social
Security Sector in Cambodia includes Social Security Scheme for persons defined by the provisions
of Labour Law, Social Security Scheme for Civil Servants, Veterans and Disabilities, Social Safety
Nets for general citizen focusing on the poor and vulnerable and some other Social Security services
both contributory and non-contributory as well as Social Security Insurance from private sector in
compliance with Insurance Law.
Figure 3: Scope of NSPS on the Poor and vulnerable
Source: National Social Protection Strategy for the Poor and Vulnerable
34 | Page UnofficialTranslation I.
The Social Security Schemes for persons defined by the provisions of Labour Law
81. Social Security work in private sector implemented by NSSF. NSSF has mission to serve public
social services and is obliged to manage Social Security Schemes in pursuant to the Law on the Social
Security Schemes for persons covered by the provisions of Labour Law.
82. NSSF has implemented the first step on the Employment Injury Insurance Scheme which until the
end of 2013 has extended its scope in 24 provinces/cities nationwide and has registered 6.107 enterprises
with 847,175 workers, and so has provided Employment Injury Insurance Scheme to its member over
50,000 workers. NSSF will also plan to implement the second step on Health Insurance Scheme in 2014,
and the third step on Pension Scheme in 2015.
II.
Social Security Schemes for civil servants, veterans, and disabilities
83. The Ministry of Social Affair, Veteran, and Youth Rehabilitation is liable for developing and
organizing the Social Security Schemes for Civil Servants, Veterans, and Handicap Fund. The Civil
Servants are under the liability of NSSF for civil servants (NSSF-C) in pursuant to the Royal Decree on
Social Security Schemes for Civil Servants aiming at prescribing Social Security Schemes, enforcement
institution and funds for supporting
Social Security Schemes for
civil servants covered by the
provisions of the Law on common statute of civil servants of the Kingdom of Cambodia.
84. The Social Security Schemes for Civil Servants covered on the retirement benefits, employment
disability, maternity, work injury, death, and survivors as well as dependents. Until 2012, there were
38,943 retired persons and 3,711 disable persons who are receiving Pension Scheme.
85. The veterans are under the liability of National Fund for Veterans (NFV) in providing Social
Security Schemes for veterans and their families for which until the end of 2012 there were all kinds of
veterans and families received Social Security Schemes from state, which account for 93,014 families,
28,157 disable families, 39,393 devotee families, 4,346death families, 19,396retired families, 1,722
invalidity families, and 214,641 survivors’ families. The Royal Government spends 12,102,311,186 Riel
a month from implementing this Scheme.
86. This Ministry is also liable for the managing handicap fund in accordance with the sub-decree on the
preparation and the functioning of handicap fund (HF) which is a public administration establishment
contributing to better promote disable field. with program support from involved organization, the
Labour Rehabilitation Center has provided all kinds of Labour rehabilitation services around51,753
persons including physical rehabilitation service around 20,821 persons, and medical rehabilitation
service about 30,932 persons.
35 | Page UnofficialTranslation III. Social Security Nets for the Poor and Vulnerable
87. The Social Security nets for the poor and vulnerable people are involved with Ministries,
development partnerships, organizations, and the stakeholders in providing social protection for all
citizens to gain access to nutrition, medical care, technical and vocational training, and protection and
intervention from society when suffering from injuries for the purpose of poverty reduction and
promoting social stability.
88. The Royal Government of Cambodia has been paying high attention to social health protection. In
2012, poor people were protected by financial health service mechanism including the exemption of
health service fee, Health Service Fund (HEF) and reproductive health cards which was sponsored by
the national budget and partner fund. Some people have been protected by community based health
Insurance (CBHI), a pre-payment of contribution by its members, the Insurance based on volunteer
principle and the budget from involved partners and equity fund program which covered all people
living under the poverty line approximately78%.
89. Service Payment exemption is being carried out in local public health facilities with a view to
promote the consumption from poor people. The exemption on service payment and the consumption
discount on poor people account for 2,112,973 cases in total equal to 9.4 million dollars on the
exemption of service payment in 2012.
90. Equity fund are being implemented in 370 health centers equal to 36% of the total health centers and
64 hospitals equal to 70% of the total of 91 hospitals in 58 operating districts among 79 operating
districts nationwide. The equity fund which was sponsored by the health support program in second
phase (contribution budgets of the government and development partners) with total consumers:
1,170,951 cases, and equity fund sponsored by the national budget with total consumers: 42,792 cases.
91. The reproductive health project for poor women was implemented in January 2011 in 9 operating
districts in 3 provinces. This project is consumed by poor women around 36,299 cases in 2012.
92. Community based health Insurance project is supported by the contribution of members based on the
voluntary guideline. There are 19 community based health Insurance projects which are being operated in
11 provinces and in Phnom Penh through the signing of contract with 179 health centers and 13 referral
hospitals to provide health service for 166,663 its members.
36 | Page UnofficialTranslation IV. Social Security Insurance through Insurance Law
93. The Royal Government of Cambodia has paid high attention to continue promoting and developing
Insurance sector in Cambodia to be developed through reform mechanism on Insurance Law, and urging
all Insurance companies to analyze thoroughly as well as managing risk effectively. The Insurance field
plays a crucial role in developing the country and in promoting Social stability through the supplement
on the Insurance sector which is under the liability of the state which has not yet provided
comprehensive Insurance service and coverage to the citizen throughout the country.
94. Insurance Law was promulgated in 2000 and the Insurance used in this Law refers to the signing of
commercial insurance contract in which the insured people are obliged to pay Insurance premium7 to
the Insurance company, and that the Insurance company shall provide compensation for the damages,
property loss resulting from the accident, or compensate when the insured people are dead get injured,
handicap, and have diseases, or when those persons reaches a deadline which both parties have agreed
as set forth in the Insurance contract.
95. In 2011, the general Insurance sector in Cambodia has contributed around 0.23% to the gross
domestic product which increased in average around 20% annually with 11 operators in total that
received license from the Ministry of Economy and Finance.
96. The Insurance sector had a stable growth between 2010 and 2011. The average level was over 20% a
year when the premium revenue increased from 24,755,038.27 U.S dollars in 2010 to 30,210,253 U.S
dollars in 2011. Besides, individual worker related injury Insurance had decreased by 7.98%, which may
possibly resulted from the enforcement of employment Insurance Scheme borne by NSSF.
97. In 2013, the Insurance sector in Cambodia has contributed around 0.29% to the gross domestic
product which increased in average around 17% annually with 19 operators in total that received license
from the Ministry of Economy and Finance. In that, there are 6 general insurance companies, 3 life
insurance companies, 1 sub-contractor insurance company, 2 small-scale insurance companies, 1
commission insurance company and 6 insurance agents which have been operating in Cambodian
insurance markets.
98. Insurance premium revenue in 2013 is totally 43,898,311 U.SD and the premium revenue from
general insurance is 41,856,417 U.SD which increased by 16% compared to that in 2012, the premium
for life insurance is 1,922,989 U.SD which increased by 1,517% compared to that in 2012 and the
premium for small-scale insurance is 118,905 U.SD which increased by 463%,
7
Insurance premium: the amount of money has to be paid to the insurance company by the date of the contract of the insurance
company.
37 | Page UnofficialTranslation Table 5: Whole Insurance premium revenue in general Insurance companies(Wrong figure)
Kind of Product
ACLEDA
CAMINCO
Campu-
Cambodia
Lottery
-Vietnam
Forte
Infinity
Total
Car
683,430
1,921,254
425,333
278,133
1,588,667
850,193
5,743,712
Fire
952,026
275,478
1,924,284
299,459
2,907,331
1,354,642
7,715,022
Ship
30,005
24,417
79,529
70,079
343,076
50,013
597,119
1,405,040
44,949
227,474
102,557
852,030
1,170,868
3,802,918
Architecture
52,117
4,154
0
0
0
0
56,271
Individual injury
307,015
146,459
253,723
37,707
1,132,704
4,540,223
2,331,630
Health
240,796
20,452
152,978
124,656
1,240,924
2,572,292
4,352,097
Work injury
Other
1,196,183
10,968
1,149,028
1,285,032
1,654,622
320,277
5,611,485
Total
4,196,183
2,448,130
4,212,349
2,197,624
9,719,354
6,777,307
30,210,253
Source: Department of Insurance and Pension
38 | Page UnofficialTranslation CHAPTER 4
SOCIAL SECURITY SCHEMES
FOR PERSONS DEFINED BY THE PROVISIONS
OF LABOUR LAW
39 | Page UnofficialTranslation CHAPTER 4
The Social Security Schemes for persons defined by
the Provisions of Labour Law
99. The Social Security Schemes for persons defined by the provisions of Labour Law implemented by
National Social Security Fund (NSSF) aiming at establishing Social Security Schemes for persons
defined by the provisions of Labour Law within the territory of the Kingdom of Cambodia including:
pension, Employment Injury, and other Schemes in line with the current national economy.
I. The Employment Injury Insurance Scheme
i. General Aspect
100. The Employment Injury Insurance Scheme (work related injury) has been put into practice in
November, 2008. This Scheme covers all workers determined by the Law on Social Security Schemes
for persons defined by the provisions of Labour Law. The Employment Injury Insurance Scheme covers
on accident at workplaces or during working, commuting accident, and occupational diseases.
101. In the preliminary stage of implementation on employment Insurance policy for enterprises or
establishments which employ 8 workers or more are obliged to register and pay contributions for their
workers to the national Social Security fund. The contribution rate equals 0.8% of the workers’ total
wage. The contribution is borne by the employers without deducting the wage of workers.
102. All workers of the enterprises or establishments who have registered in the National Social Security
Fund are entitled Employment Injury benefits when the persons concerned suffered from work injury.
The benefits of Employment Injury include emergency service provision, medical treatment and care,
daily allowance for temporary disability8, benefits of permanent disability9, incidental allowance for
caretaker of the victim10, funeral allowance11, survivors’ benefit12, and rehabilitation service13
8
Daily allowance for the temporary disability: shall be granted from the second day following the date of the accident
suffering the work injury that this allowance equals 70% of daily average wage. 9
Benefit of the permanent disability: shall be provided to the workers suffering the work injury to cause permanent disability
less than 20%, are eligible to enjoy allowance and incurred more than 20%, are eligible to have pension for the permanent
disability.
10
Incidental allowance for caretaker of victim: workers, suffering the work injury to cause the permanent disability, are
required a caretaker that is eligible to gain the incidental allowance equals 50% of the pension of victim.
11
Funeral allowance: in case of the employment injury resulting in death, survivors of the victim shall be granted the funeral
pension, 4,000,000 Riel, for the funeral preparation.
40 | Page UnofficialTranslation Commented [VC1]: Repeated sentences ii. Achievements
103. The Employment Injury Insurance Scheme has been extended in 24 provinces nationwide and has
registered 6,107 enterprises with 852,240 workers and has provided Employment Injury benefits to over
50,000 members until the end of 2013. This Scheme has also put in place the emergency call, 1286 (HotLine) and has signed contract with 65 hospitals and private medical institutions aiming at enabling
workers suffering from work injuries to gain emergency and medical care services on time.
104. In circumstance where the world is suffering from global economic crisis, the Royal Governments
of Cambodia has assisted investors in garment and footwear sector which use a large number of labour
forces by reducing the contribution rate of the Employment Injury Insurance Scheme from 0.8% to 0.5%
for a period of 2 years (2009-2010). Whereas the 0.3% of contribution is borne by the state in which
within 2 years the state shall pay contributions on behalf of garment and footwear enterprises around
8,717,155,459 Riel.
105. From 2011 onward, the case of workers’ faintness in garment and footwear sector in some capitalprovince were solved by NSSF to collaborate with with the Ministry of Labour and Vocational Training
in establishing the investigation and prevention committee for worker’s faintness at enterprises
(IPCWFE) with the role to investigate the causes of worker’s faintness, took emergency actions, and
coordinated with hospitals and relevant authorities in order to enable the victims to gain the emergency
service. Through this committee, until 2013, there were over 4,000 fainted workers who gained
emergency service and 176 factories with 38,817 workers received training on work statutes, hygiene
conditions, work security, and faintness prevention.
106. In case of commuting accident, there were about 20% of total annual accident in which this
problem is also impact on public order and increase the burden of the entire Social Security. In response
to this problem, road traffic safety team protection for workers (RTSTPW) with participation from
administrative members and representatives of civil society established for the purpose of preventing the
possible road traffic accident when
workers commute. In one year period which is in 2013, the
teamwork have organized meeting for 24 times on the dissemination on preventing traffic accident at
172 factories with 4,747 participants who are transport drivers for workers and its representatives.
12
Survivors’ benefit: the pension shall be granted to the beneficiaries of the victim suffered the work injury resulting in death.
The beneficiary has husband or wife, children, parents, or ageing persons. The beneficiary who is a spouse of the victim must
have a marriage license certificate, and this entitlement will be abolished when the spouse remarries. 13
Rehabilitation service: workers suffered the work injury and caused the permanent disability, are eligible to have prosthesis
limbs, work rehabilitation service, and vocational retraining.
41 | Page UnofficialTranslation 107. In preparation to the ASEAN integration in 2015 and in order to strengthen the international
cooperation with the regional Social Security entity, NSSF become a member in ASEAN Social Security
Association (ASSA), and have signed a Memorandum of Understanding with Korea Worker’s
Compensation and Welfare service (COMWEL), and signed on the joint Prakas regarding the
membership of Asian Worker Compensation Forum (AWCF) in order to exchange new work experiences
and develop knowledge on Social Security sector, and integrate Cambodian Social Security into the
region.
iii. Challenges
108. In the context where Cambodia has just enforced the Employment Injury Insurance Scheme for the
first time, the functioning of this scheme encountered many difficulties in view of a number of employers
did not understand precisely the Law on the procedure and formality of the implementation of
Employment Injury Insurance Scheme policy, particularly registration and contribution payment
conducted by IT system which is difficult for small-scale enterprises with limited human resource.
109. The implementation of some employers’ liability is not yet improved concerning the registration in
the National Social Security Fund, late payment of contribution; cover up of number of workers, changes
of enterprises’ name or owners, and late notification on work injury which imposed difficulties in the
investigation on the causes of work injury and led to late benefits provision to the victims.
110. The knowledge of workers is still limited including the benefit claim to non-work injury, the lack of
marriage certificate, falsification of marriage certificate, or making marriage certificate after the spouse
death. Some workers don’t have accurate identity (using others names or fake documents) to receive
treatment at hospitals which have not signed contract with NSSF or use the service not on target, and
irresponsible for medical treatment compensation on non-work injury.
111. The quality of medical services is limited. Some hospitals and clinics are slow to take good care of
the victim exaggerate medical fee or addition of service cost, and behave inappropriately on the victims.
112. The implementation of the first step still has some challenges concerning the capacity of the
establishments and limited capacity of some officials, unsmooth data management system (need to be
reformed), and the late provision of service accidentally. These challenges are inter-related and have
impacts on the delivery of benefits to the victims.
42 | Page UnofficialTranslation iv. Future Plan
113. Extend the implementation boundary of the Employment Injury Insurance Scheme: with a view to
enabling the persons defined by the provisions of the Labour Law to gain the good service widely in
response to the actual demand and growth of national economy.
114. Strengthen and develop the Employment Injury Insurance Scheme: in purpose of ensuring law
enforcement, the implementation of Employment Injury Insurance Scheme policy, the management of
IT more effectively in line with the international standards, and the growth of members and employment
coverage.
115. Take measures on preventing work injury: with the aim to avoid and cut down on work injury of
workers through the preparation of actions to prevent, and provide emergency care on work injury, the
conduct of workshop and consultative meetings, dissemination and instruction, measure taken on Social
Security and hygiene, field visit and facilitation on work injury for victims to receive the emergency
service.
116. Provide rehabilitation service: workers who are the member of NSSF suffering from work injury
resulted in permanent disability shall be granted rehabilitation both on mental and physical with a view
to ensuring the possibility of full participation with equity for the victim in social activities.
II. Health Insurance Scheme
i. General Aspect
117. The Health Insurance Scheme for workers is outlined in Rectangular Strategy Phase III of the
Royal Government of Cambodia which is set to operate in 2014. Also, judicial regulation, procedure, and
some employment formalities as well as benefits provision, registration, contribution collection, payment
mechanism on health service, and some formalities of implementation are being organized with the aims
of implementing the Health Insurance Scheme successfully with trust from workers who are member of
NSSF.
118. Along with this commitment, on behalf of Cambodia as the ASEAN member and the readiness of
ASEAN integration in 2015, the establishment of Health Insurance Scheme plays a vital role in making
the third pillar successful, ASEAN Social-Cultural Community with a view to organizing
Social
Security Nets and protection from the negative impacts of integration and globalization. Most ASEAN
member states have been implementing Health Insurance Scheme, so Cambodia shall prepare this
Scheme in order to reduce the gap of gaining Social Security Nets between ASEAN member states and
43 | Page UnofficialTranslation also to encourage domestic labour forces to contribute and increase the productivity for reducing
workers migration to foreign countries.
119. In connection with the situation of workers over the last recent years, there were cases of workers
faintness at enterprises or establishments in some capital-provinces; for instance, in 2013 there was 4%
of worker’s faintness out of the total work injury. Most of these cases were found related to workers’
health problem and diet, especially the lack of hygiene in living, saving, and the hesitation to go for
medical check-up due to high fee of medical services.
120. Besides the faintness, there were also other employment injuries which are regarded as non-work
injury; in this case, workers went to get treatment from contracted hospitals with and without reporting
to NSSF which is a matter of concern.
121. These situations have huge impacts on living standard of workers who is the victim and that need
to pay for their own treatment for which it will have further impacts if there are accidents or health
problems until disability or death to the family of the victims and the whole society which need to
shoulder the burden of taking care of spouse, children, or ageing persons in the family.
ii. Achievements
122. The Royal Government of Cambodia strived actively to deal with workers health issues so as to
provide clear systematic health insurance services.. Since 1997, through the presence of Labour Law, all
enterprises and establishments are required to have emergency room or infirmary in order to rescue and
provide first-aid for their own workers.
123. In 2009, the Royal Government allowed organizations named: Group de Recherche et Déchanges
Technologiques (GRET) of French responsible for implementing health Insurance project (HIP) in
partner with the Ministry of Labour and Vocational Training and Garment Manufacturers Association in
Cambodia (GMAC)
sponsored by Agence Franciase de Development (AFD) to begin the
implementation of pilot project on health Insurance on garment factory workers.
124. Since 2011, the incident of worker’s faintness occurred in some garment and footwear factories
which involved mainly with workers’ health problems. Seeing these problems, Samdech Akka Moha
Sena Padei Techo Hun Sen, the Prime Minister of the Kingdom of Cambodia approved on 27
August, 2011 concerning the functioning of Health Insurance Scheme with a view to promote the health
of workers.
44 | Page UnofficialTranslation 125. In compliance with the above approval, NSSF strived actively to research and organize the formality
and procedure for the functioning of Health Insurance Scheme by forming teamwork in which many
officials were sent to join in the training course, study tour, and consultative workshops both national and
international levels for many times and have prepare legal instruments and enforcement mechanism with
fruitful results
126. In the objective of implementing this Scheme effectively and sustainably, the involvement from
relevant experts on the analysis and financial management are inevitable. Basically, NSSF has
collaborated with International Labour Organization (ILO) and German International Cooperation (GIZ)
to prepare mechanism, analysis, and assessment on the expenditure and project implementation with
fruitful results subsequently.
127. Until December 2011, the Ministry of Labour and Vocational Training, Garment Manufacturers
Association in Cambodia (GMAC), Group de Recherche et Déchanges Technologiques (GRET), and
National Social Security Fund (NSSF) witnessed and reached the signing of
memorandum of
understanding on voluntary social health protection in garment enterprises or establishments in the
Kingdom of Cambodia with a view to cooperating with all parties and recognizing health Insurance
project (HIP) which will assist to the implementation of Health Insurance Project of NSSF.
128. In supplement to the Memorandum of Understanding in 2011 in July 2012, all parties including the
Ministry of Health signed Memorandum of Understanding on the support of social health protection in
Cambodia. The Ministry of Labour and Vocation Training through NSSF has provided contribution
budget to pay for the expense on medical fee for family members’ treatment of Health Insurance Project
totally 30,000 € for the expense until 30 September, 2013.
129. On 13 May, 2013, the Governing Body of National Social Security Fund decided unanimously on
the preparation of process on Health Insurance Schemes (SHI Roadmap) and seeks approval from both
tutelage Ministries in order to include health Insurance Project (HIP) under NSSF at the end of
September 2013 . Next, on October 2013, HIP was transferred into this project under direct control from
NSSF, which shall continue operation on the old management system of HIP until the obliged Insurance
system start to function.
130. The result of these efforts, the HIP project which compose of 11 factories and 7,200 workers was
transferred to be directly under the NSSF on October 2013 and is being operated successfully.
45 | Page UnofficialTranslation iii. Challenges
131. The Health Insurance Scheme is compulsory and new in Cambodia. This Scheme is more difficult
than the Employment Injury Insurance Scheme which involves mainly with officials’ capacity and staff;
particularly those who are skillful in medical field; this kind of expert is hard to find because they
demand high wage which is more than the wage of officials and civil servants.
132. The preparation of judicial regulation and IT system for fundamental implementation still needs
skillful workers and participation from relevant parties with a view to reaching and providing full Health
Insurance Scheme for the workers.
133. The workplace space is so narrow. Nowadays NSSF’s buildings are being used only for officials
and staff of the Employment Injury section which does not meet the demand of health Insurance because
we need more human resources.
134. The quality of health Insurance is limited including the capacity of skillful practitioners, medical
apparatus, medicines, and the service provision does not comply with the guidelines of the state. This
problem leads to unqualified service provision and lose of trust on domestic medical service which
impacts severely on the implementation of the Health Insurance Scheme obliged by the state.
135. Some data which is the basis in determining payment mechanism of health service is still in
shortages; especially data involving the offsetting of basic rate for each disease type which leads to the
difficulty in health service payment. Moreover, the examination and assessment on the quality of service
providers are not accurate, and the assessment analysis on health facilities has not yet defined..
iv. Future Plan
136. Prepare the formality and implementation procedure: by organizing training courses for officials
and staff, preparing judicial regulation and hold consultative meeting with relevant partners with a view
to gathering ideas and experiences for arranging health Insurance thoroughly.
137. Organize IT system: IT system is very crucial for the management of each Scheme of Social
Security. The implementation of Health Insurance Scheme is more difficult than the Employment Injury
Insurance Scheme, so it is required to prepare IT system thoroughly in order to ensure the process
effectively and sustainably.
46 | Page UnofficialTranslation 138. Prepare payment method on health service: To avoid and cut down on the consumption and service
provision not on the target from service providers and receivers.
139. Disseminate and determine implementation steps: In order to enable the stakeholders to be aware of
the procedure and formality of the implementation of health Insurance scheme. The dissemination will
determine the implementation steps specifically in capital-provinces in order to pave the way for
registration, contribution collection, and benefit provision in compliance with each step as scheduled.
III. The Pension Scheme
i. General Aspects
140. The Social Security Schemes for Civil Servants is being carried out by National Social Security
Fund for Civil Servants in pursuance with Royal Decree on Social Security Schemes for civil servants
promulgated in 2008. The Pension Scheme for workers in private sectors implemented by the National
Social Security Fund in accordance with the Law on the Social Security Schemes for persons under the
provision of Labour Law promulgated in 2002 which is set to be launched in 2015.
141. Pension benefits for persons defined by the provisions of Labour Law including old age pension or
allowance, invalidity pension, and survivors’ pension and allowance. Each NSSF member who is 55
years of age is entitled to old age pension provided that he or she has registered in NSSF within a period
of at least twenty years and have paid contributions at least sixty qualifying months within the last ten
years.
142. The preparation of Pension Scheme for workers in private sectors highlighted the effort of the
Royal Government of Cambodia towards the future of current active labour force and furthermore, it
also contributes to the promotion of labour productivity because through this mechanism, the current
labour force has warm feeling in their future even though they are working in private sectors, they can
live by themselves when reaching the old age without depending on their children’s financial support.
143. This policy contributes to the encouragement on workers both in private and public sectors, that is to
say, abolish the concept that working as in private sectors cannot get the pension because only the civil
servants in public service can gain pension. Therefore, when this Scheme functions, the workers in
private sectors will receive the same pension scheme as the civil servants.
47 | Page UnofficialTranslation ii. Achievements
144. In the initiatives of the process on Pension Scheme for persons defined by the provisions of Labour
Law, the Royal Government has outlined financial development strategy plan 2011-2020 approved on 25
November, 2011. This plan is a roadmap for long-term financial development in which Pension Scheme
was also put in the financial development sector.
145. Meanwhile, in preparation of the implementation of Pension Scheme, the NSSF pay high attention
on capacity building and strengthening officials capacity by dispatching them to join in training courses,
national and international study tour with a view to gaining work experiences many times. Additionally,
the training course on IT skill is also prepared for managing pension system.
iii. Challenges
146. The implementation of Pension Scheme still has some challenges with regard to the preparation of
judicial regulation and capacity. The functioning of this Scheme required clear set of implementation
mechanism in building judicial framework, structure, IT system, and skills in order to provide service
right on the target and ensure efficiency.
147. The data collection on demographic statistics in the Kingdom of Cambodia is still limited which is
the major issue in analyzing data regarding the citizen’s affordability as well as the workers’ eligibility to
get Pension Scheme and prediction of data changes. Also, the statistic of economics is not yet accurate
and is still a challenge for data analysis on the contribution payment rate which affect severely on the
implementation of Pension Scheme.
148. The prescription of citizen’s national identity is not yet complete. Some people don’t have national
identity cards and some others have overlapped national identity.
149. The improvement of IT sector in the Kingdom of Cambodia is still limited. Technological device is
not yet modernized and the experiences and implementation on this sector is limited. Moreover, this
factor is still a challenge to the implementation of Pension Scheme.
iv. Future Plan
150. Study the possibility of functioning Pension Scheme: through Pension Scheme mechanism
preparation by establishing a research teamwork to study on possible process of Pension Scheme with a
view to enabling the organization to be responsible for ensuring work results as expected and also to
ensure the stability of pension finance.
48 | Page UnofficialTranslation 151. Prepare judicial regulation and human resources training: for the basis implementation and
promoting the capacity of officials and staff to have knowledge and competency in providing good
service of Pension Scheme to the members.
152. Set up IT system for the implementation of Pension Scheme: on the establishment of registration
system, contribution payment, provision of benefits and data transmission system to the account of
retired persons in partner banks with a view to quick sharing of information and make it easy for
members to get pension punctually.
153. Dissemination and outline implementation steps: via dissemination through media system in order
to enable all stakeholders, particularly the owner of enterprises, establishment, and workers themselves
understand the implementation policy on Pension Scheme and prescribe the implementation steps for
registration and contribution collection from the enterprises, establishment, and workers in preparation
of providing old age pension and allowance to workers.
49 | Page UnofficialTranslation CHAPTER 5
SOCIAL PROTECTION STRATEGY
FOR PERSONS DEFINED BY THE PROVISIONS
OF LABOUR LAW
50 | Page UnofficialTranslation Chapter 5
Social Protection Strategy
For persons Defined by the Provisions of the Labour Law
154. Social protection strategy for persons defined by the provisions of Labour Law was established to
implement
legal regulation successfully, the strategic plan of the Royal Government, and the
international regulation to the Social Security sector for persons under the provisions of Labour Law.
This strategy is a work based program on Social Security with a view to implementing Rectangular
Strategy Phase III of the Royal Government of Cambodia to increase employment, equity, and efficiency
as well as aiming for ASEAN integration in 2015 in organizing Social Security nets and protection from
negative impact resulted from integration and globalization in region in terms of bridging the gap of
accessibility to Social Security nets between member states.
I. Vision
155. National Social Security Fund has precise visions in ensuring provision of Social Security for
persons covered by the provisions of Labour Law thoroughly and effectively to all workers working in
private sectors in line with the growth of the national economy and regional improvement.
“Ensure Social Security with efficiency, transparency, accountability, and punctuality for persons
defined by the provisions of Labour Law.”
i. Mission
156. The importance of Social Security Insurance is to provide the protection to citizen based on the
vision of sharing and solidarity guideline in society ensuring income security. Through Social Security
Insurance, social members shall be protected from the risk of income loss in view of the Employment
Injury. These enable them to trust in the entire society which pave the way for balance in the society
ensuring stability and harmonization in the society, and contributes to accelerate policy implementation
on poverty reduction of the Royal Government.
“Provide Social Security service with efficiency, transparency, accountability, and punctuality for
persons defined by the provisions of Labour Law in purpose of relieving difficulties in times of old age,
invalidity, death, occupation risk, or other contingencies i.e. disease and maternity.”
III. Goals
157. With a view to achieving its vision and mission in insuring Social Security service provision
effectively, NSSF has prescribed 4 goals: 1) extending and strengthening the implementation of
51 | Page UnofficialTranslation Employment Injury, 2) Functioning of health Insurance, 3) Functioning of Pension Scheme, and 4)
strengthening good governance.
i. Goal 1: Extending and strengthening the implementation of Employment Injury
158. The Employment Injury Insurance Scheme has been functioning for over 5 years and extended its
scope in 24 provinces nationwide. Through this period, NSSF has seen and gained a lot of experiences
both strength and weaknesses which is challenging, and that need further coordination and solution.
159. Clarity, coordination, and timely resolution shall be strengthened, particularly; strengthening,
extending, and developing the Employment Injury policy, taking actions on preventing work injury and
preparing formality and procedure to be better with a view to insuring the implementation of
Employment Injury Insurance Scheme as well as the entire Social Security sector with efficiency and
quality in compliance with the growth of members and employment coverage in response to the growth
of social economy both in the country and the region.

Strengthening the implementation boundary of Employment Injury Insurance Scheme
160. NSSF will continue to organize the dissemination meeting on the implementation of Employment
Injury Insurance Scheme in capital-provinces for the stakeholders, especially for employers and workers
to understand more clearly about the formality and procedure of the implementation of Employment
Injury Insurance Scheme as well as Social Security sector. The dissemination meeting will be conducted
at least 12 times a year.
161. The national economy has developed rapidly and the growth rate of annual workers account for
around4.47%. According to this growth, NSSF will strengthen the registration of enterprises,
establishments, and workers to increase further and get ready in establishing branches in 24 provinces
nationwide, recruit officials and staff as well as signing contract with local health centers more with a
view to provide service to members on time.
162. In Cambodia, the labour force from 01 to 07 account for about 90,000 workers equal to 54.9%.
This is considered large amount which haven’t received Employment Injury Insurance Scheme from
NSSF yet. The first step of the implementation only prescribed the enterprises or establishments
employing from 8 workers or more. From 2018 onward, the Employment Injury Insurance Scheme will
be implemented for employers using 1 worker up, so all workers will gain Employment Injury
Insurance Scheme.
52 | Page UnofficialTranslation 163. With the aims of extending the implementation boundary, IT system will be also prepared through
extension link between management system and IT network in all branches of NSSF for ensuring the
efficiency of management and transferring data on time.

Strengthening and developing the Employment Injury Insurance Scheme
164. In strengthening the implementation of the Employment Injury Insurance Scheme policy, NSSF will
focus on inspection, investigation of work injury, and taking administrative measures on the enterprises,
establishments which do not comply with the law for the purpose of better law enforcement ensuring
registration on enterprises, establishments and workers as well as paying contribution on time and
correctly.
165. In addition to law enforcement and existing mechanism, the preparation and formality reform as
well as procedure for implementation are very significant for developing Social Security task more
effectively including list of occupational disease, guideline preparation on the control of pieceworker14 to
the Employment Injury Insurance Scheme, guideline preparation on self-employed profession, seasonal
or occasional work, guideline prescription on trainees and apprentice who are compulsory to register and
pay contribution in NSSF with a view to serving this sector to receive Insurance as the general workers.
166. Through this objective, IT system for Employment Injury Insurance Scheme will be developed
better on the system of registration management and contribution of workers and enterprises or
establishments, and the benefit management system and SMS system for the workers.

Taking measures on preventing Employment Injury
167. Annual work injury estimates approximately 10,000 cases equal to 1% of the total of workers who
have registered in the Employment Injury Insurance Scheme in exclusion on the accidents and general
diseases of workers which is non-work injury. This case, both work injury and non-work injury required
measures to be taken promptly.
168. Preventive actions shall be in line with the benefit provision or compensation for victims in which
prevention is better than cure. When the number of accidents decreases, it makes the expense decreases
14
Pieceworker: is a person who gets the work from the entrepreneur to recruit the manual worker by himself with a view to
operate the work or provide any service with the total price.
53 | Page UnofficialTranslation accordingly and Social Security Finance will be balanced maintaining labour force which led to high
productivity, and reduce social burden. The mechanism of the Employment Injury prevention will be
studied and compiled the statistics of work injury as well as collecting information thoroughly from the
work injury conditions with a view to assess and take actions.
169. Meanwhile, other mechanism will also be implemented together through discussion meeting with
stakeholders to prepare measures in order to disseminate and instruct on prevention, and emergency
rescue in case of work injury to employers, workers, and stakeholders. Furthermore, this cooperation is
also joined by hygiene work security staff for the purpose of conducting field visits in hand as well as
coordination on work injury for victims to receive emergency services.

Rehabilitation Service Provision
170. Workers who are the member of NSSF shall be provided with rehabilitation service in case of
suffering from work injury resulting in permanent disability to gain rehabilitation, both mentally and
professionally, with a view to ensuring the possibility of full participation and equality of victims in
social activities.
171. The assurance of Social Security not only provides medical treatment and compensation but also
includes preventive actions and rehabilitation. It means that the first preventive action doesn’t cause any
accidents or diseases, it requires medical treatment. Then, if the victim is in critical conditions resulting
in permanent disability, he / she shall be provided rehabilitation and live in society as ordinary people.
172. In order to achieve this goal, NSSF will prepare employment implementation mechanism, human
resource training, preparation judicial regulation implementation basis, collaboration with stakeholders in
order to prescribe and assess the service provision correctly, establish data management system, and sign
contract with rehabilitation service organization in capital-provinces.
ii. Goal 2: Functioning of Health Insurance Scheme
173. The Employment Injury Insurance and Health Insurance Schemes are two mechanisms which need
to complete each other because the health of workers cannot only be covered only on prevention of
disease or accident caused by work related injury, but also on disease prevention or general injury that is
not related to work. The links of these two Schemes are inter-related and also provide full protection for
workers ‘health.
54 | Page UnofficialTranslation 174. After succeeded the first step on Employment Injury Insurance Scheme, and according to the growth
of national economy which leads to the growth of investors in country and workers working in the
enterprises or establishments that require high attention on work rules, especially for the health problem
of workers. Obviously, over the last recent years, there were cases of workers’ faintness at enterprises or
establishments in capital and some provinces. This case was found related to the health problem and diet
of workers as well as the hesitation to go for medical check-up owing to the high fee of medical service.
175. Besides the faintness case, there were also many other non-work related injury on workers who
went to get treatment service in the contracted hospital as well as reported and not reported to NSSF with
regard to health problem which is a matter of concern. These situations have a serious impact on workers
‘health and living standard which requires high expense on medical service and also influence family and
the entire society. Health Insurance will push the workers to consider more about their own health
problem in view of gaining free medical service and also promoting appropriate works.
176. Based on these principles, 4 targets were prescribed accurately for implementing on the formality
and implementation procedure of the Health Insurance Scheme, IT system setup, prepare health service
payment procedure, and public dissemination as well as implementation steps with a view to achieving
the provision of Health Insurance Scheme to workers officially in 2014.

Preparation on formality and implementation procedures of Health Insurance Scheme
177. The preparation of formality and implementation procedure step 2 in the past, NSSF has established
teamwork for the functioning of Health Insurance Scheme since 2012. Through this teamwork, the
readiness of implementing the work achieved remarkable results. Until the end of 2013, this teamwork
was transformed to division and has continued implementing Health Insurance Scheme of HIP and has
been doing the remaining works as well as adding some other incomplete works with a view to
implementing obliged Health Insurance Scheme for workers.
178. NSSF will continue training on capacity building for officials and staff on Health Insurance Scheme
through collaborating with other development stakeholders with the aim of organizing training course
and study tour to gain experience both inside and outside country. In order to ensure the implementation
on Health Insurance Scheme, which is a new work and more complicated than the Employment Injury
Insurance Scheme along with systematic training, NSSF will organize training mechanism at workplace
in hand.
55 | Page UnofficialTranslation 179. The Social Security Schemes for workers have been raised in the constitution since 1993, but the
functioning of medical care Scheme for workers in this sector is a new work for Cambodia. In this
context, the establishment of judicial regulation for fundamental implementation is indispensable. The
preparation shall be collaborated with other development partners to collect ideas and experiences for
preparing
detail technical works with legal instrument basis so as to pave the way for effective
implementation.
180. Meanwhile, the research and analysis on the possibility of service coverage, which is not yet
included, will be implemented with relevant stakeholders with a view to prescribing an acceptable
service for all and ensuring the continuity of the whole project. In line with prescribing the covered
service, the finding of service providing partners will also be implemented through formality preparation
and creating basic assessment tool on health for quality recognition and reaching contract agreement on
service consumption right on target, punctually and with quality.

Setting up IT system for Health Insurance Scheme Implementation
181. IT system is indispensable for the implementation of
Social Security Schemes and entity
management. Hence, it is required to prepare IT system thoroughly with a view to ensuring the process
effectively. The preparation of IT system for this Scheme shall be started from the establishment of
registration, contribution payment, and benefit provision separately from other Schemes for easy control
and with mechanism for analysis and assessment on the project’s situation, especially on financial
aspects for taking adjustment measures and settlement on time.
182. Collaborate with the Ministry of Interior with a view to identifying workers ‘identity and providing
new ID smart card to the workers with accurate data for the basis in prescribing workers’ identity and
quick service delivery. Also, this project will pave the way for the setting up of complaint system from
workers to record the request and other challenges to be resolved on time along with better work
improvement.
183. The preparation will also be applied on the study of possible change on data collection management
system, the possible change on the joint management system between the Employment Injury Insurance
and the Health Insurance Schemes, the link of management system of Health Insurance Scheme with the
accounting system, the acceleration of data transferring between the central office and branch division,
and the procedure preparation and systematic control equipment with high efficiency for the Health
Insurance Scheme.
56 | Page UnofficialTranslation 
Preparing health service payment procedure
184. Prepare health service payment procedure for implementing with health facilities partners on Health
Insurance Scheme which involves mainly with the providers and receivers of health service. This issue is
a focal point in implementing Health Insurance Scheme of all Social Security entity because it is related
to the stability and sustainability of the whole project. Therefore, it is required that there is proper
procedure and health service payment mechanism participated by relevant stakeholders.
185. In this goal, NSSF will prepare system of health service payment precisely, install monitoring
system on members’ validity in the contracted health facilities, and designate agents to standby at those
health facilities for coordinating and dealing with daily works with a view to ensuring good service
provision and minimizing the consumption or using the service not on right target.

Public dissemination and determining implementation steps
186. Nowadays, NSSF has been implementing the pilot project of Health Insurance Scheme with 11
factories and 7, 000 workers in Phnom Penh. Based on the experiences on this pilot project, the Health
Insurance Scheme is compulsory and shall be functioning in 2014 and the dissemination plan is being
carried out in order to enable relevant stakeholders, especially employers and workers, to understand the
procedure and the formality of the implementation of Health Insurance Scheme through workshop,
dissemination meeting, and advertising in public media.
187. With dissemination work, the Health Insurance Scheme will prescribe the implementation boundary
step by step in capital-provinces to register on enterprises, establishments, and workers with a view to
enable workers to get access to Health Insurance Scheme with accurate system and that will reach to the
whole country coverage.
188. With a view to ensuring better benefits delivery of Health Insurance Scheme, NSSF will also put in
place investigation mechanism on its own members concerning the impacts after gaining medical service
in order to take actions on dissemination on health promotion, prevention program, and first-aid to
workers, and for fundamental analysis on health facilities partners to provide medical service more
effectively to workers.
57 | Page UnofficialTranslation iii. Goal 3: The functioning of Pension Scheme
189. Pension Scheme on Public Sector for Civil Servants implemented by NSSF for civil servants
(NSSF-C) of the Ministry of Social Affairs, Veteran, and Youth Rehabilitation. The Pension Scheme for
persons defined by the provision of Labour Law has been implemented by NSSF of the Ministry of
Labour and Vocational Training which covers on benefits, old age pension and allowance, invalidity
pension and allowance for survivors, a new Scheme which is the same as Health Insurance Scheme for
all people in Cambodia. Therefore, when this Scheme is functioning, the workers working in private
sector shall be granted the same pension as that of civil servants.

Studying the Possibility of functioning Pension Scheme
190. Pension Scheme for persons defined by the provisions of Labour Law will be implemented in 2015
by requiring mechanism preparation of Pension Scheme through the establishment of research teamwork
to organize this Scheme in advance in order to have entity in charge and achieve work result as
scheduled.
191. In terms of preparation, there shall have some study cases on the impacts on the implementation of
Pension Scheme regarding demography , workers, and economic and social situation. This Scheme
provide long-term benefits, which need in-depth studies, particularly on the age form of members and
living standard for assessing the time frame of benefit provision, contribution rate prescription, and
appropriate benefits to be in line with current national economy.
192. After studying and collecting full information from all dimensions along with the conduct of
consultative meeting with relevant stakeholders to discuss on preliminary result, collection of ideas, and
work experiences for the basis of continuing the preparation and assessment analysis on the entire project
implementation. Furthermore, the discussion also includes the collaboration from mathematic experts of
Social Security to record the contribution rate and benefits package with a view to ensuring financial
management of Pension Scheme sustainably.

Preparation of Judicial Regulation and Human Resource Training
193. Prepare judicial regulation for fundamental implementation of Pension Scheme including formality
preparation and registration procedures, contribution payment, benefits provision, and some necessary
judicial regulations related to the joint implementation of Pension Scheme. Meanwhile, with a view to
organizing the judicial regulation to be meaningful completely, it is required the participation from all
relevant stakeholders through workshop and discussion meeting together in order to collect ideas to be
integrated into these judicial regulations.
58 | Page UnofficialTranslation 194. Build officials and staff capacity to have clear knowledge and ability in providing good service on
Pension Scheme with a view to building trust in
service delivery through collaborating with
development partners working in Social Security section, prepare training courses and conduct study tour
to gain experiences both inside and outside the country. Meanwhile, the appointment and recruitment of
officials and staff who are knowledgeable on Pension Scheme to perform their own works more
importantly and will implement together in promoting capacity building and better implementation of
Pension Scheme.

Setting up IT system for the implementation of Pension Scheme
195. IT system is indispensable for managing Social Security Schemes as well as Pension Scheme. In the
context where Cambodia has just prepared the implementation of this Scheme, human resources and
technology are still limited. The setting up of IT system must be collaborated with national and
international experts in building safe data basis as well as finance and accounting system with a view to
ensuring the management of revenue and expenses of Pension Scheme with high efficiency.
196. According to this basis, the establishment of registration system, contribution payment, and the
establishment of benefit provision system shall be implemented together regarding the implementation of
the first step. Moreover, there is also study on the possibility of data transferring to the account of the
retired persons in partner banks with a view to sharing information quickly and assist members in getting
pension on time.

Public dissemination and implementation steps
197. Dissemination through workshops, meetings, spot productions and leaflet as well as other media
systems with a view to enable all relevant parties, especially the owner of enterprises, establishments,
and workers understand the implementation of Pension Scheme policy.
198. Implement the Pension Scheme step by step in capital-provinces concerning the registration of
enterprises, establishments, and workers as well as contribution collection in order to enable workers in
private sectors to gain the same Pension Scheme as the civil servants. With registration and contribution
collection, NSSF will prepare to provide old age allowance to workers who haven’t satisfied with
conditions in receipt of old age pension before reaching to provide long-term pension in the future and
coverage throughout the country.
59 | Page UnofficialTranslation iii. Goal 4: Strengthening good governance
199. Along with the implementation of technical works on the provision of Employment Injury Insurance
service, the readiness of functioning of Health Insurance and Pension Scheme as well as the
strengthening of good governance are a significant catalyst for promoting public service provision
effectively, with transparency, accountability, and timely. The good governance is still the core value of
Rectangular Strategy Phase III, and also the core of social justice, and the sustainable and equitable
socio-economic developments. In order to achieve this goal, some directions are implemented as follows:

Increasing the efficiency and quality of public administration service
200. These directions will focus mainly on capacity strengthening and internal management system,
information provision mechanism and resolutions as well as the preparation and reform on some
management policies with a view to increasing public service provision on Social Security with
efficiency and quality.
201. To strengthen capacity building and internal management system, NSSF will conduct training
courses for officials and staff at least 50% every year to all officials and staff as well as intensifying
interior management system, and organize management policy on human resources to be in compliance
with policy on internal management and Law on common statute of civil servants of the Kingdom of
Cambodia.
202. In addition to capacity building and internal management system, public dissemination will be
extended comprehensively with a view to raising awareness to relevant parties, especially employers and
workers, to know clearly about the compulsory Insurance policy of Social Security.. Furthermore, the
information retrieval mechanism and solutions will be established simultaneously with a view to dealing
with the requests and problems on time.
203. Some management policies will be also prepared and reformed including the duty of medical
committee, management system of health service consumption, IT infrastructure, and some management
policies, which will provide protection, utilization, and management effectively, and ensure the respect of
Law and achieve other objectives.
60 | Page UnofficialTranslation 
Strengthening of financial management and property
204. To strengthen financial management and property with transparency, accountability, justice,
efficiency, quality, equity, saving, and timely in pursuant to the Law on public financial system and Law
on the public procurement.
205. With a view to achieving this direction, the mechanism of financial management and some
properties will be strengthened and further developed on the prescription of procedure and formality of
financial management, financial analysis of Social Security Schemes, the establishment of investment
committee, the preparation plan of procurement and supply as well as the preparation for maintenance
mechanism and joint property utilization in order to ensure the maintenance, consumption, financial and
property supply right on target.

Strengthening and extending the cooperation with national and international partners
206. In era of globalization, the cooperation with national and international partners are important in
developing and strengthening the relationship between stakeholders and development partners both
inside and outside the country with a view to promote knowledge development, information exchange,
quotation, and exchange of new work experiences. In this direction, some major activities are set to be
implemented as follows:
- strengthen and extend the cooperation with national and international institutions on Social
Security in order to exchange information and data on Social Security field.
- strengthen the implementation of national and international regulations on Social Security, and
continue investigating the implementation of Agreement and Memorandum of Understanding.
- Continue joining annual meeting with other Social Security organizations in which NSSF has
become member including the meeting and other workshops as well as organizing study tour to exchange
experiences both inside and outside the country.

Strengthening plan building mechanism, statistics, and legislation
207. To strengthen the building of plan, statistics, and legislation through preparing long-term strategy,
short-term plan, and making annual reports as well as raising direction for rollout implementation in
order to make ways for comparable mechanism, assess the implementation, and be a roadmap for guiding
the implementation in the right purpose as well as continue collaborating with the Ministry of Health and
stakeholders for building plan, statistics, and legislation in contribution to achieve the royal government
policy on social development and national economy.
61 | Page UnofficialTranslation 208. Compile and revise judicial regulation with a view to ensuring provision of Social Security service
more effectively and appropriate to the development at national and international levels as well as in the
region. In addition, judicial regulation preparation, the strengthening mechanism on administrative
practice will also be implemented altogether on the act of not obeying law and Social Security guideline.

Strengthening Internal Audit
209. Make internal audit plan by prescribing the goal, extension, and implementation mechanism with a
view to conducting the credible audit in accordance with the guideline and vocational standard of internal
audit. With the implementation plan building, report making will be applied as well for showing work
results, providing improvement recommendation and corrective measures.
210. Collaborate with national audit authorities and expert institutions to organize training course on
audit knowledge, financial works, internal management mechanism, and some fundamental knowledge to
the department leaders in entity and the internal audit officials to gain knowledge for management and
leading works in each section as well as the whole organization for improvement. Furthermore, the
collaboration with financial officials from the Ministry of Economy and Finance in conducting audit with
a view to guiding financial management to be appropriate to the Law on public financial system.
211. In additional to the project planning task and collaboration, NSSF will prepare mechanism for
examining and conducting internal audit on some significant fields including: finance, contribution,
benefit provision, and other activities in both central departments and branch departments in capitalprovinces aiming at increasing efficiency in internal management and risk prevention with a view to
ensuring the using of resources sustainably and providing better service on public administration.

Promoting Gender Equity in Social Security Field
212. The strategic goals of the Royal Governments in section 5 on gender equity promotion is issued
through the strengthening of citizen qualification and promoting women status which is regarded as the
backbone of economy and society, as well as changing youth to be a crucial catalyst for development in
all sectors.
213. Through this spirit, gender equity in Social Security sector will be promoting through pushing and
motivating women to join in Social Security works as well as providing priorities of the important duty in
the work. In Social Security sector, NSSF will provide Employment Injury Insurance Scheme, the
functioning of Health Insurance Scheme, and Pension Scheme with a view to enabling workers,
particularly female workers, to gain additional Social Security service. Meanwhile, there are also
participation of project building and stakeholders in mainstreaming and sharing the gender information in
Social Security sector with relevant stakeholders.
62 | Page UnofficialTranslation 63 | Page UnofficialTranslation Chapter 6
Action Plans
on the Implementation of Social Protection
for Persons defined by the Provisions of Labour Law in 2014-2018
3
- These action plans are made for the strategic planning implementation with a view to achieve four main goals concerning objectives, direction
and specific actions with indicator, unit , and implementation year for investigating, measuring, and implementing each action precisely.
- In These plans, goals, objectives, actions, indicator, and each year of implementation are subject to be changed based on the actual situation.
Goal 1: Strengthening and extending the implementation of employment injury insurance scheme
Year of Implementation
2014
2015
2016
2017
Objective 1: Strengthening the implementation boundary of employment injury insurance scheme
No
Action
Indicator
Amount
1.1
Continue
dissemination on the
implementation of
employment injury
insurance policy
Dissemination meeting in
capital-provinces
Times
15
12
12
12
12
NSSF
1.2
Set up branch
division of NSSF in
capital, provinces,
and districts
Number of branch
division of NSSF in
capital, provinces,
districts
Division
2
6
10
10
10
NSSF
1.3
Sign the contract
Number of health
with health facilities
facilities in capital,
in capital, provinces,
provinces, districts
and districts
Heath
facility
25
150
50
30
20
NSSF
64 | Page UnofficialTranslation 2018
Operating Entity
Register the
enterprises,
establishments, and
workers
Number of enterprises,
establishments, and
workers
1.5
Reform on Prakas
regarding the stage
prescription,
extension of the
implementation of
employment injury
insurance, and
Prakas on the
registration of
enterprises,
establishments, and
workers in NSSF
Process of Prakas
reformation
%
1.6
Implement the
registration of
employers
employing more
than 1 worker
Process of
implementation
%
1.4
Enterprise
1,000
1,000
1,000
1,000
5,000
Worker
100,00
0
50,000
50,000
50,000
400,00
0
100
NSSF
20
Extend connection
of management
system and IT
network in the
Process of connection
1.7
%
100
branch division of
network
NSSF in capital,
provinces, and
districts
Objective 2: Strengthening and developing employment injury insurance scheme
2.1
Carry out inspection
at enterprises and
establishments
Number of inspections
65 | Page Times
5,760
6,336
NSSF
NSSF
NSSF
6,779
7,117
UnofficialTranslation 10,675
NSSF
2.2
Investigate work
injury
Workers suffering from
work injury shall gain
benefits legally
Victim
17,675
17,543
17,311
16,979
21,447
NSSF
2.3
Take administrative
actions on the
enterprises and
establishments
which do not
comply with the
Law
Rate of enterprises and
establishments
complying with the Law
%
89
90
91
92
92
NSSF
2.4
Organize guidelines
on the control of
pieceworkers for
employment injury
insurance
Process of organizing
Prakas on the control of
pieceworkers
%
50
100
NSSF
2.5
Prescribe guidelines
on trainees and
apprentice
Process of organizing
Prakas on employment
injury insurance for
trainees and apprentice
%
50
100
NSSF
2.6
Organize guidelines
on self-employed
profession, and
occasional or
seasonal work
Process of organizing
Prakas on employment
injury insurance for the
persons who are selfemployed, occasional or
seasonal work
%
50
100
NSSF
66 | Page UnofficialTranslation 2.7
2.8
2.9
Research and
compile list of
occupational
diseases
Improve the
management system
of registration and
contribution of
enterprises,
establishments, and
workers
Improve the
management system
of benefits
Process of organizing
Prakas of inter-ministry
on prescription of the
nature of occupational
diseases
%
50
Process of organizing the
management system of
registration and
contribution
%
100
%
95
Efficiency of the benefit
provision for victims
Install SMS system
Process of SMS system
2.10 for workers
installment
Objective 3: Taking actions on preventing work injury
3.1
Research and
compile statistics of
work injury
Process of researching
and compiling statistics
of work injury
67 | Page %
%
100
NSSF
NSSF
96
97
98
NSSF
NSSF
100
70
99
100
UnofficialTranslation NSSF
3.2
Conduct meeting
with stakeholders on
preventive measure
and emergency
rescue in case of
work injury for
employers, workers,
and other
stakeholders
Number of the meetings
with stakeholders
times
20
20
20
20
20
NSSF, IPCWF,
RTSTPW
3.3
Dissemination and
instruction on
preventive actions
and emergency
rescue for
employers, workers,
and other
stakeholders
Number of the
dissemination and
instructions
Times
44
40
30
30
30
NSSF, IPCWF,
RTSTPW
3.4
Collaborate with
stakeholders to take
measures on work
security, hygiene,
and emergency
rescue of work
injury
Decreasing rate of work
injury
%
1.80
1.70
1.60
1.50
1.40
NSSF, IPCWF,
RTSTPW
3.5
Conduct field visit
and coordinate work
injury of victim to
receive emergency
service
Efficiency of gaining
emergency service
%
85
90
93
95
97
NSSF, IPCWF,
RTSTPW
Objective 4: Providing rehabilitation service
68 | Page UnofficialTranslation 4.1
Set up mechanisms
to organize
rehabilitation
service provision
Process of organizing the
rehabilitation service
mechanisms
%
50
100
4.2
Human resource
training in
rehabilitation
section
Number of officials
received training course
on rehabilitation
Person
7
10
4.3
Research and
coordinate with
stakeholders
Process of the research
%
50
100
NSSF
4.4
Organize judicial
regulations
Process of organizing
judicial regulations
%
50
100
NSSF
4.5
Prescribe and assess
the condition of
victims' disability
for service grant
Efficiency of providing
rehabilitation service to
the victim
%
50
65
4.6
Establish data
management system
for provision
rehabilitation
service
Process of organizing
data management system
%
50
100
4.7
Sign the contract
with service
providing entity
Number of entity which
provide rehabilitations
service
69 | Page Entity
10
NSSF
15
75
20
85
25
95
NSSF
NSSF
NSSF
5
5
UnofficialTranslation 5
NSSF
Goal 2: Implementing health insurance scheme
Year of Implementation
2014
2015
2016
2017
Objective 1: Organizing the formality and procedure of health insurance scheme
N
Actions
Indicator
1.1
Organize judicial
regulations for
implementing health
insurance
1.2
Organize meeting
with the
stakeholders in order Number of meeting
to collect ideas and
experiences
1.3
Research and
analyze possibility
of the service
coverage which is
not included yet
1.4
Organize the
formality and set up
instrument of
service cost
assessment of the
health facilities
Process of organizing
judicial regulations
Amount
2018
Operating
Organization
%
100
NSSF
Times
10
NSSF
Process of researching
and analyzing the nature
of service in health
insurance
%
0
0
50
70
100
NSSF
Number of health
facilities recognized by
the quality
Health
facility
60
100
200
300
500
NSSF
Objective 2: Setting up IT system for health insurance scheme
2.1
Set up system of
registration and
contribution
payment
Process of organizing the
management system of
registration and
contribution payment
70 | Page %
100
NSSF
UnofficialTranslation 2.2
Organize the
management system
of benefit provision
Process of organizing the
benefit management
system
%
100
2.3
Collaborate with
Ministry of Interior
in order to prescribe
the identity of
workers
Percentage of workers
with ID smart card
%
30
2.4
Establish and install
complaint system
from members
Process of establishment
and installation
%
100
2.5
Study the
changeable
possibility of
database oracle
system
Process of studying the
changeable possibility of
database oracle system
%
50
100
NSSF
Process of studying the
possibility and system
change
%
50
100
NSSF
Process of linking the
system
%
100
2.6
2.7
Study the
changeable
possibility of the
joint management
system between
employment injury
insurance and health
insurance schemes
Set up connection
between the
management system
of health insurance
and accounting
(sage)
71 | Page NSSF
70
100
NSSF
NSSF
NSSF
UnofficialTranslation 2.8
Accelerate data
transferring between
central office and
branch divisions
Efficiency of data
transferring on time
%
90
Process of organizing the
%
procedure and installing
monitoring system
Objective 3: Organizing payment strategy of health service
Organize
mechanisms of
Process of organizing
3.1
%
health service
mechanisms
payment
100
NSSF
100
NSSF
2.9
Organize procedure
and install
monitoring system
95
96
98
NSSF
3.2
Organize health
service payment
through IT system
Process of organizing the
system of health service
payment
%
100
NSSF
3.3
Organize Prakas of
inter-ministry for
using health service
of health insurance
scheme
Process of organizing
Prakas of inter-ministry
%
100
NSSF
3.4
Set up and install
monitoring system
of members' validity
in health facilities
Number of health
facilities to be equipped
Health
facility
60
100
200
300
500
NSSF
3.5
Nominate NSSF
agent to standby in
health facilities
Number of NSSF agent
standby at health
facilities
Agent
28
100
50
50
50
NSSF
Objective 4: Public dissemination and determining implementation steps
100
72 | Page UnofficialTranslation 4.1
Dissemination
meeting on the
implementation of
health insurance
scheme in capitalprovinces
Number of the
dissemination meeting
4.2
Produce spot and
leaflet
Number of spots and
leaflet
4.3
Implement health
insurance scheme in
capital-provinces
4.4
Times
1
Spots
1
1
1
leaflet
1
1
1
Number of capitalprovinces
Capitalprovince
1
7
5
5
7
Register and collect
contribution from
enterprises,
establishments, and
workers
Number of enterprise,
establishment, and
workers registered in
system
enterprise
600
4,500
2,000
2,000
5,900
worker
360,00
0
550,00
0
80,000
80,000
430,00
0
4.5
Provide benefits of
health insurance to
the workers
Rate of member using
health insurance service
%
60
50
45
45
45
NSSF
4.6
Investigate the
health effect of
members who gain
medical service
Rate of member to be
investigated
%
5
5
5
5
5
NSSF
4.7
Implement
dissemination
program on health
promotion, and the
program of
prevention and firstaid for workers
Number of prevention
program to be
disseminated
Times
10
15
20
25
30
NSSF
73 | Page 7
5
5
7
NSSF
NSSF
NSSF
NSSF
UnofficialTranslation Goal 3: Implementing the pension scheme
Year of Implementation
2014
2015
2016
2017
Objective 1: Researching the possible realization to implement the pension scheme
Organize the
Process of organizing the
1.1 mechanisms of
mechanisms of pension
%
50
100
pension scheme
scheme
Study the
demographic
situation and
1.2 workers on age form Process of studying
%
100
for the
implementation of
pension scheme
N
Actions
Indicator
Amount
2018
Operating
Organization
NSSF
NSSF
1.3
Study the economic
and social situation
Process of studying
%
100
1.4
Organize the
meeting with the
stakeholders
Number of meetings
Times
8
3
NSSF
1.5
Collaborate with
mathematics experts
Process of defining
of social security in
contribution rate and
order to prescribe
benefits
contribution rate and
benefit package
%
50
100
NSSF
100
NSSF
NSSF
Objective 2: Organizing judicial regulation and human resource training
2.1
Organize the
judicial regulations
Process of organizing the
judicial regulations
74 | Page %
50
UnofficialTranslation 2.2
2.3
Conduct meeting
with the
stakeholders to
Number of meetings
collect ideas in order
to put in the judicial
regulations
Nominate and select
the officials and
staff have
Number of officials and
knowledge of
staff in charge of pension
pension to perform
work
2.4
Collaborate with the
stakeholders to gain
experience both
inside and outside
the countries
2.5
Train the capacity of
Number of officials and
officials and staff in
staff
charge of pension
Number of study tour
Times
100
NSSF
Official and
staff
10
5
5
5
5
Times
2
2
2
2
2
Official and
staff
10
5
5
5
5
NSSF
NSSF
Objective 3: Organizing IT system for implementing the pension scheme
3.1
Build data basis of
pension scheme in
collaboration with
national and
international experts
Process of building data
basis and management
system
%
50
100
NSSF
3.2
Organize the
management system
of accounting and
finance
Process of organizing
management system
%
50
100
NSSF
3.3
Set up the system of
registration and
contribution
payment
Process of organizing
system of registration
and contribution payment
%
50
100
NSSF
75 | Page UnofficialTranslation 3.4
Establish the system
of benefit provision
Process of organizing the
systems of benefit
provision
%
Organize data
transferring to the
Process of organizing to
3.5 account of retired
%
send the data
persons in the
partner banks
Objective 4: Public dissemination and implementation steps
4.1
Dissemination
meeting on
implementation of
pension scheme in
capital-provinces
Number of the meetings
4.2
Produce spot and
leaflet
Number of spot and
leaflet
Spot
Leaflet
4.3
Implement pension
scheme in capitalprovinces
Number of capitalprovinces
4.4
Register and collect
contribution from
enterprises,
establishments, and
workers
Number of enterprises,
establishments, and
workers registered and
paid contribution
Provide old age
allowance to
workers
Number of workers gain
benefit of old age
allowance
4.5
50
100
NSSF
50
100
NSSF
Times
3
8
14
NSSF
1
1
1
1
1
1
1
1
1
1
Capitalprovinces
3
8
14
Enterprise
5,500
2,000
1,500
6,000
NSSF
member
790,00
0
160,00
0
100,00
0
450,00
0
NSSF
worker
1,053
1,568
2,568
4,150
NSSF
Year of Implementation
2015
2016
2017
2018
Operating
Organization
NSSF
NSSF
Goal 4: Strengthening of good governance
N
Actions
Indicator
76 | Page Amount
2014
UnofficialTranslation Objective 1: Improving efficiency and quality of the public administration services
Build capacity and
Rate of officials and staff
1.1 Train human
%
50
50
received training
resource
50
50
50
NSSF
1.2
Strengthen internal
management system
and human resource
policy
Efficiency of internal
management
%
90
97
99
99
99
NSSF
1.3
Extend pubic
dissemination on
social security
insurance service
Coverage of public
information provision
%
70
70
70
70
70
NSSF
1.4
Create mechanisms
of gaining
information and
problem solving
Efficiency of gaining
information and problem
solvoing
%
80
90
95
97
97
NSSF
1.5
Establish
documentary library
on social security
insurance provision
Process of organizing
and implementing
%
50
100
1.6
Reform the
composition and
function of medical
committee
Process of reforming
Prakas of medical
commission of NSSF
%
100
1.7
Set up management
system of health
service consumption
Efficiency of payment
and consumption of
health service
%
95
96
97
1.8
Prepare and
renovate IT
infrastructure
Efficiency of data
transferring
%
90
95
100
77 | Page NSSF
NSSF
98
UnofficialTranslation 99
NSSF
NSSF
1.9
Study the possibility
Process of linking IT
of linking IT
networks with partner
network with partner
banks
banks
Organize procedure
and the
implementation
1.10
policy for using
materials and IT
system
Process of organizing
%
10
100
NSSF
%
100
NSSF
%
100
NSSF
Times
1
Objective 2: Strengthening financial management and property
2.1
Prescribe procedure
and the formality of
financial
management
Process of prescribing
the procedure and the
formality of financial
management
2.2
Analyze finance of
social security
scheme
Number of financial
analysis of social
security scheme
2.3
Establish investment Process of establishing
committee
investment committee
%
100
2.4
Prepare procurement
plan and supply in
Efficiency in
compliance with the
procurement
law on public
management and supply
procurement and
financial guidelines
%
90
78 | Page 1
NSSF
NSSF
97
99
99
UnofficialTranslation 99
NSSF
2.5
Prepare for
maintenance
mechanism and
usage of joint
property
Efficiency in usage of
joint property
%
90
97
99
99
99
NSSF
Objective 3: Strengthening and extending cooperation with national and international partners
3.1
Strengthen and
extend cooperation
with national and
international
institutions working
in social security
Efficiency of changing
information and data in
social security
%
70
75
80
85
90
NSSF
3.2
Strengthen the
compulsory
implementation of
national and
international
regulations in social
security
Compliance with
national and international
standard
%
70
75
80
85
90
NSSF
3.3
Continue
investigating and
implementing the
agreement and
memorandum of
understanding
Maintain good
cooperation
%
100
100
100
100
100
NSSF
3.4
Participate in
annual meeting with
ASSA and AWCF,
and other meetings
and workshops
Number of the meetings
and workshops
Times
10
10
10
10
10
NSSF
79 | Page UnofficialTranslation Organize study visit
to exchange
3.5 experiences both
Number of study visit
Times
5
inside and outside
countries
Objective 4: Strengthen planning mechanisms, statistic, and legal procedure
5
5
5
5
NSSF
4.1
Build long-term
strategic plan and
annual planning
Roadmap orientation
right on target
%
100
100
100
100
100
NSSF
4.2
Make the reports of
annual work result
and raise the
implementing
direction
Compared mechanism
and assessment of the
implementation
Report
1
1
1
1
1
NSSF
4.3
Compile and reform
judicial regulation
for ensuring social
security service
Efficiency and
more effectively,
processing of social
and appropriate to
security service
the development
situation both at
national, regional, or
international levels
%
80
85
90
95
97
NSSF
80 | Page UnofficialTranslation 4.4
Keep on
collaborating with
Ministry of Health
and relevant
institutions in
building plan,
statistics, and
legitimate works in
compliance with
guidelines of the
royal government
The implementation in
compliance with policy
of the royal government
Strengthen the
administrative
Number of action on
actions on rejection
rejection of complying
4.5 of complying with
with the law and the
the law and the
guideline
guidelines of social
security
Objective 5: Strengthening internal audit
5.1
Efficiency of the
Build plan and make
implementation of
report on annual
internal audit in the right
audit
purpose
81 | Page % 100 100 100 100 100 NSSF
% 80 90 100 100 100 NSSF
%
85
90
95
97
97
NSSF
UnofficialTranslation 5.2
5.3
5.4
5.5
Collaborate with
national audit
authorities and the
expert institutions,
and organize
training course on
audit knowledge,
financial work,
internal
management
mechanisms and
other knowledge
Collaborate with
financial examining
officials of the
Ministry of
Economy and
Finance
implementing the
internal audition
Examine,
investigate, assess,
and provide the
recommendation on
implementation of
social security
policy
Audit and
investigate finance,
contribution, benefit
provision, and other
activities in both
central office and
branch division
Number of training
courses
Times
1
1
1
1
1
NSSF
Annual audit
Times
1
1
1
1
1
NSSF
Efficiency of
management on social
security policy
0
80
85
90
95
99
NSSF
Reformation and
development of financial
management system,
contribution, and benefit
provision of social
security schemes
%
70
75
80
85
90
NSSF
82 | Page UnofficialTranslation Objective 6: Promoting gender equity in social security sector
6.1
Push and encourage
the women to work
in social security
works, and provide
priority of important
duties
Rate of female officials
and staff working in
NSSF
%
50
50
50
50
50
NSSF
6.2
Provide employment
injury insurance,
health insurance,
and pension
schemes
Female workers shall be
granted insurance
compared to the total of
workers registered
%
71
71
71
71
71
NSSF
6.3
Participate in plan
making and report to
promote gender
equity in social
security sector with
relevant ministries
and institutions
Mainstreaming and
sharing the gender
information in social
security sector with the
stakeholders
%
70
70
70
70
70
NSSF
83 | Page UnofficialTranslation References
3
Law and Judicial Regulation
-
Constitution of the Kingdom of Cambodia in 1993
-
Law on the Labour in 1997
-
Insurance Law
-
Law on the Social Security Schemes for Persons defined by the Provisions of the Labour Law
-
Law on the Protection and Promotion of the disable rights
-
Royal Kret concerning the Social Security Schemes for the Civil Servant
-
Royal Kret concerning the Social Security Schemes for the Veteran
-
Sub-Kret concerning the Establishment of the National Social Security Fund
-
Sub-Kret concerning the Establishment of the National Social Security Fund for the Civil Servant
-
Sub-Kret concerning the Establishment of the National Veteran Fund
-
Sub-Kret concerning the Organization and Functioning of the Handicap Fund
Strategy and Policy of the Royal Government
-
Rectangular Strategy Phase III
-
National Development Strategy Planning (2014-2018)
-
National Social Protection Strategy for the Poor and the Vulnerable (2001-2018)
-
Financial Sector Development Strategy (2011-2020)
-
Strategic Planning of the Development of the Labour and Vocational Training Sector (2014-2018)
-
Recommendation of Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the
Kingdom of Cambodia in the Inauguration of Achievement Building and the opening of the
Convention of the Mandate Affairs of Four-Year Action Plan Implementation (2009-2012) and the
Work Objectives in 2013 of Ministry of Labour and Vocational Training.
Other Documents
-
General Announcement on the Human Rights in 1948
-
Announcement of Philadelphia in 1944
-
Convention No. 102 of the International Labour Organization in 1952
-
ASEAN Association (ASEAN Planning in 2015 on the Announcement of the ASEAN Human
Rights and the Joint Statements of the 7th Summit of ASEAN Labour Officials Plus Three)
-
ASEAN Social Security Association
-
General Population Census in Cambodia in 2008
-
Enterprise/Establishment Census of the Kingdom of Cambodia in 2011
84 | Page UnofficialTranslation -
Cambodian Socio-Economic Audit in 2010
-
Macroeconomic Indicators of Ministry of Economy and Finance (dated 30 July, 2013)
-
Insurance Report in 2011
-
Work Result Report in 2012 and Duty Objectives in 2013 of Ministry of Social Affairs, Veteran and
Youth Rehabilitation
-
Health Achievement Report in 2012 and Work Objectives in 2013 of Ministry of Health
-
Work Achievement Report in 2013 and Implementation Objectives in 2014 of the National Social
Security Fund
85 | Page UnofficialTranslation