August 25, 2022

From 1 October 2022, employers and employees in Cambodia must equally contribute to the pension scheme of the National Social Security Fund (NSSF) that launched in 2021. The NSSF comprises four categories of benefits: old-age pension, incapacity or disability pension, survivor pension, and funeral benefits. The government recently published regulations to implement the pension system.

Highlights

Eligibility criteria. Companies with one or more employees must register with the NSSF, and nonregistered employees must register within three days of the start of their employment. All employers and employees enrolled in the NSSF for health and accident insurance will be automatically enrolled in the pension scheme. To withdraw pension benefits, employees must be at least age 60, registered with the NSSF pension scheme, and have contributed for 12 or more months.
 

Mandatory pension contributions. Contribution payments will be calculated on monthly earnings capped at KHR 1,200,000, and must be paid no later than the fifteenth day of the following month. Contributions will increase gradually as follows:
 

  • In years one to five, total contributions will be 4%.
  • In years six to 10, total contributions will increase to 8%.
  • After 10 years, total contributions will increase to 10.75%, and thereafter increase 2.75% after each subsequent 10-year period

Voluntary pension contributions. Employees aged 60 or older can make voluntary contributions to the NSSF, but employers do not have to pay contributions. Voluntary contributions can also be made by NSSF members who are unemployed and younger than age 60, and by individuals earning more than the monthly wage cap.
 

Related resources

  • Law 170 (Khmer) (Government, 5 July 2022)
  • Law 168 (Khmer) (Government, 5 July 2022)
Kasin Sutuntivorakoon
by Kasin Sutuntivorakoon

Retirement Valuation Lead, Mercer

Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group


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