KINGDOM OF CAMBODIA

NATIONAL SOCIAL SECURITY FUND OF CAMBODIA (NSSF) Mr NATIONAL SOCIAL SECURITY FUND OF CAMBODIA (NSSF) Mr. Cheak Lymeng Deputy Director of Policy Division

Content Chapter I, Economic and Social Context Chapter II, Law and Legal Documents on Social Security Chapter III, Social Security in Cambodia (UI &EII) I. Unemployment Mechanism (UI) II. Employment Injury Insurance (EII) III. Challenges IV. Policy Responses toward the Recent Global Economic Crisis Since 2008

Chapter I, Economic and Social Context 1- General Information Constitutional monarchy Cambodian  People’s Party (CPP) occupied 90/123 seats Land 181,035 square kilometers 24 municipalities Population 13,395,682 (2008 census) Labor Force7 million (2008 census) GDP USD 14.2 billion, estimate) Per capita GDP USD 830 in 2010 & (USD 984 in 2012 estimate)

Chapter I, Economic and Social Context 2- Macro-economic Indicator Source: Recent Macro-economic Indicators (June 12, 2012), Ministry of Economic and Finance

Chapter I, Economic and Social Context 3. Population and Demographics Ages structure: under 15 year=33.7%, 15-49 =53.4%, 50-64=8.6% and elderly 65+=4.3%. Demographics 13.4 million Annual growth rate 1.54% Population density 75 persons per square kilometers Source: Cambodia Demographic and Health Survey 2010 Source: General population census of Cambodia 2008

Chapter I, Economic and Social Context 4-Labour Force and Employment Labor force 7 million around 80 percent. Men and women form 48.84 and 51.16 percent respectively The economic activity rates are higher in the rural areas than in the urban areas for both. Unpaid family workers and own account workers together constitute about 83 % of the employed population in Cambodia. Primary sector 72.30%, Secondary 8.54% and Tertiary sectors 19.16% Source: General population census of Cambodia 2008

Chapter II, Law and Legal Documents on Social Security The Constitution Law 1993 The Labor Law 1997 The Law on Social Security Schemes for Persons Defined by the Provision of Labor Law 2002 Rectangular Strategy for Growth, Employment, Equity and Efficiency Phase II 2008 National Social Protection Strategy for the Poor and Vulnerable 2011-2015 And others Legalities: Insurance Law, Sub‐decree on the Establishment of NSSF, Royal Decree on the NSSFC, Disabilities Law and …

Source: General population census of Cambodia 2008 Chapter III, Social Security in Cambodia (UI&EII) I. Unemployment Mechanism (UI) 1-Unemployment Figure Unemployment Rates: both sexes: 1.68, Males: 1.52 and Female: 1.82) Unemployment rates are lower in the rural areas then in the urban areas Source: General population census of Cambodia 2008

Chapter III, Social Security in Cambodia (UI&EII). I Chapter III, Social Security in Cambodia (UI&EII) I. Unemployment Mechanism (UI) 2-Unemployment Existing Legal Document The Labor Law 1997 is the mainly existing legal document for dismissal compensation of termination of the labor contract. (The employer shall provide the worker with the severance pay for dismissal).

Chapter III, Social Security in Cambodia (UI&EII) I Chapter III, Social Security in Cambodia (UI&EII) I. Unemployment Mechanism (UI) 3-Unemployment Intervention Programs Food for work Cash for work (Emergency Food Assistance Project) Take‐home rations Skills development of the formal and informal economics (National Training Fund) Employment information services (National Employment Agency) Small‐scale credit for self‐employment in the National Poverty Reduction Fund

Chapter III, Social Security in Cambodia (UI&EII) II Chapter III, Social Security in Cambodia (UI&EII) II. Employment Injury Insurance (EII) 1. Employment Injury Accident at Workplace Commuting Accident Occupational Disease

Chapter III, Social Security in Cambodia (UI&EII). II Chapter III, Social Security in Cambodia (UI&EII) II. Employment Injury Insurance (EII) 2-Benefit of EII Emergency Service Provision of Caring Services and Treatment Provision of daily allowance Benefits for Permanent Loss of Working Ability Payment for the Victim's care taker Contribution for funeral Survivors/Beneficiary Benefit Rehabilitation Service

3-Administrative Structure (NSSF) Chapter III, Social Security in Cambodia (UI&EII) II. Employment Injury Insurance (EII) 3-Administrative Structure (NSSF)

Chapter III, Social Security in Cambodia (UI&EII). II Chapter III, Social Security in Cambodia (UI&EII) II. Employment Injury Insurance (EII) 4-Registration and Contribution Procedures Every employer of enterprises under the Social Security Law having 8 or more employees shall send the list of employees of its enterprise to the NSSF for registration. Every month employer have to send the report of number of employees to NSSF before the 15th of the next month by ‘Paper Form’ or ‘Electronic Form’ with the sending letter signed by manager of enterprise.

Chapter III, Social Security in Cambodia (UI&EII). II Chapter III, Social Security in Cambodia (UI&EII) II. Employment Injury Insurance (EII) 4-Registration and Contribution Procedures Every employers registered at NSSF have a compulsory to pay contribution to the NSSF at 0.8% percent of average wage in the level of monthly wage of workers. The monthly wage for contribution payment starts from (200,000 Riels, approximately USD 50 up to 1,000,001 Rieals approximately UDS 250). Workmen Compensation Contribution is a separate compulsory of owner of enterprises.

Chapter III, Social Security in Cambodia (UI&EII). II Chapter III, Social Security in Cambodia (UI&EII) II. Employment Injury Insurance (EII) 5-Financial Management NSSF is a public, legal and financially autonomous entity which financial transactions using a banking system. Sources of Fund Initial fund given by the Government Contribution from the NSSF’s members Fine from late payment of contribution or submission of payroll list as well as its interest And others…

5-Financial Management Expenses Chapter III, Social Security in Cambodia (UI&EII) II. Employment Injury Insurance (EII) 5-Financial Management Expenses Expense on benefits for members Expense on administration Expense on prevention Expense on health care activities and social affairs

6-Membership and Coverage Chapter III, Social Security in Cambodia (UI&EII) II. Employment Injury Insurance (EII) 6-Membership and Coverage By Semester I, 2012 Covered 19/24 capitals /provinces and contracted with 41 health providers Registered of 3.931 enterprises with 722.209 workers Provided benefits of 29,129 persons.

Chapter III, Social Security in Cambodia (UI&EII) III. CHALLENGES Further human resources improvement Medical service providers (still to be improved) Has to improve information technology system Awareness of employers and employees on the scheme Financial Issue

Chapter III, Social Security in Cambodia (UI&EII). IV Chapter III, Social Security in Cambodia (UI&EII) IV. Policy Response toward the Recent Global Economic Crisis Sin 2008 Cambodia Government has subsidized the investors in garment and shoes sectors by reducing EII contribution rate from 0.8% to 0.5% for 02 years namely 2009 and 2010. The Government has been responsible for subsidizing the remaining 0.3% to NSSF. Government unveiled a special fund of Samdach Prime Minister for re-training of unemployed garment workers, offering numerous short vocational training courses designed to re-skill for re-employment

THANK YOU