Country Report Fellowship Training on Employment Insurance (EI) and Employment Injury Insurance (EII) in collaboration with the Korea Workers’ Compensation and Welfare Service (COMWEL), Seoul, Republic of Korea, 5-13 October 2011 KINDOM OF CAMBODIA Nation Religion King

 Located in Southeast Asia.  Covers an area of 181,035 km 2  Borders Thailand to the West and Northwest, Laos to the North and Vietnam to the East and Southeast  In the South it faces the Gulf of Thailand Country Profile

Demography Figure 1: quick information about Cambodia Official languageKhmer Area181,035 km 2 CapitalPhnom Penh CurrencyRiel Calling code855 Internet TLD.kh Population14.45 million (2010 estimate) Population growth1.71% (2010 estimate) Birth rate25.73 births/1,000 population (2010 estimate) Death rate8.08 deaths/1,000 population (2010 estimate) Infant mortality rate54.79 deaths/1,000 live births (2010 estimate) Life expectancy Male: y, Female: y (2010 estimate) Urban population22% of total population (2008 estimate) Population density81 persons /km 2 (2008 estimate)

 Multiparty democracy under a constitutional monarchy.  The King is the chief of state, and the Prime Minister is the head of government.  The king formally appoints the prime minister to head the government.  The prime minister heads a cabinet.  A bicameral (two-chamber) parliament holds legislative power. Political System

From 2004 to 2007, the economy grew about 10% per year.  Growth dropped below 7% in 2008 as a result of the global economic slowdown.  The real GDP per capita grew steadily from 2002 to 2004 and reached the peak of 20.20% in  Cambodia had a labor force of 8.6 million (2008 estimate)  The garment industry currently employs more than 320,000 people and contributes more than 85% of Cambodia's exports. Economy

Year GDP at Current Prices (billion riel) Real GDP Growth (Constant Price 1993) (%) Real GDP per capita Growth (%) Inflation (% increase, YoY) Inflation (% increase, Year Average) Inflation, Food Group (% increase, YoY) GDP Deflator (%) Riel/US$ Exchange Rate (EoP) Real Effective Exchange Rate Population (millions) , %2.10%-0.80% -3.40%-3.10%3, , %7.30%0.70%-0.90%-2.50%2.60%3, , %6.10%3.70%-0.10%1.80%0.70%3, , %7.60%0.50%1.20%1.50%1.80%3, , %12.90%5.60%3.90%6.40%4.80%4, , %16.40%6.70%5.80%8.40%6.10%4, , %16.00%2.80%4.70%6.50%4.60%4, , %14.70%10.80%5.90%10.00%6.50%4, , %20.20%13.50%19.70%33.00%14.00%4, , %6.30%7.50%4.00%33.00%3.30%4, Macro Economic Indicators Figure 2: Macro Economic Indicators

 Social Security was initiated in Cambodia since 1955 in accordance with the Royal Decree No. 55 and 306.  During the genocide rule ( ), it was demolished.  The Department of Social Security was established in  The current Labour Law of Cambodia was passed in 1997 by amending the 1992 Labor Law.  The first Social Security Law was passed by the Parliament in September  In 2004 the ILO experts came to study the feasibility of the scheme and the administrative design.  In 2007 the sub-degree concerning the establishment of the National Social Security Fund (NSSF) was adopted.  NSSF was fully functional at end of 2008 Historical Development Process of Social Security

Vision The vision of NSSF provides the Social Security Insurance by “the Law on Social Security Scheme for Persons Defined by the Provisions of the Labor Law” to employees in order to guarantee the security of income towards contributing the reduction of poverty and promotion of social stability. Mission The mission of NSSF has the following:  To strengthen “the implementing Law on Social Security Scheme for Persons Defined by the Provisions of the Labor Law”.  To study for enlarging the social security scheme towards Health Care and Pension Scheme.  To increase the public awareness on employment injury insurance policy.  To enlarge the occupational risk insurance scheme covering all over the country.  To offer the occupational risk benefits in effectiveness, accountability and equity. Vision and Mission of NSSF

Coverage

 Legal entity with autonomy in administration and self- financing.  Administers the schemes of Social Security protection in accordance with the National Social Security Law and the provisions of the Social Security related Sub-Decrees.  For all matters other than finance are under the supervision of the Ministry of Labour and Vocational Training (MoLVT), while the Ministry of Economy and Finance (MEF) administers all finance related issues. Organizational Structure

Figure 3: Organization Structure

Registration In 2010, 927 enterprises and 143,454 employees have been registered to NSSF. Among them 551 enterprises came from Phnom Penh municipality,24 from Kandal province, 08 from Kampong Speu Province, 61 from Banteaymean Chey province, 33 from Kampong Chhnang province, 34 from Svay Reang Province, 80 from Preah Sihanouk province, and 136 from Siam Reap province. By the end of 2010, the total amount of 1,910 enterprises and about 594,686 employees were registered. (Please refer to the list of registration below). Implementing of Employment Injury Insurance Scheme

Figure 4: Number of Enterprises Registered by month in Capitals/Provinces Months Phnom Penh Kampong Speu Kandal Banteay Meanchey Kampong chhnang Svay Reang Preah Sihanouk Siam Reap Total January February March April May June July August September October November December Total

Contribution Until 2010, 1,910 enterprises were registered at NSSF in which 1,867 were bound by contribution obligation and 1,564 enterprises and 530,599 employees were contributed equivalent to 84 %.

Months Enterprises to Contribute Contributed Enterprises Number of workers contributed Total amount of Contribution (in Riels) Percentage of Enterprises contributed Jan-20101,3031,216426,369916,340, Feb-20101,3081,223430,800981,472, Mar-20101,3281,233430,857979,339, Apr-20101,3551,261444,1891,011,471, May-20101,6421,496468,5991,200,338, Jun-20101,6521,499479,6261,225,647, Jul-20101,6851,517491,9701,338,400, Aug-20101,7341,550506,5221,298,495, Sept-20101,7781,580510,7251,325,566, Oct-20101,8001,586525,9711,259,332, Nov-20101,8431,607525,8921,378,569, Dec-20101,8671,564530,5991,451,848, TOTAL14,366,822,351.00

Inspection and Legal Affair The inspection and legal affair have the main function of ensuring the implementing the law on Social Security Schemes for Persons Defined by the Provision of the Labor Law and other regulations. This process focuses mainly on some points such as: inviting enterprises/institutions to register and pay contribution, investigating employment injury, strengthening the implementing of law by via inspection, setting deadline for fining, and complaining to the court in case of the enterprises/institutions don’t implement the law and regulation.

Employment Injury Investigation In 2010, NSSF have investigated occupational risk of 8,567 employees. Among them, 8,132 persons were work injury and 435 persons non-work injury. Whereas in 2009, 3,853 persons were work injury and 168 non-work injury, and it’s shown that the work injury has increased 4,279 persons and 267 non-work injury. Benefits In regards to the provision of benefits, the NSSF paid great attention to providing a good benefits to employees exposed to occupational risk to receive a stability of revenues in work life, family and social. The institution made changes some procedures so that the provision of benefits could be better and faster carried out and facilitate with the hospital contracted with NSSF to ensure better medical service. To do this, the institution assigned its agents tostation at some hospitals in order to facilitate the victims during the day. Moreover, in case of severe injuries, NSSF sent the officers to incidence scene to provide on time facilitation and intervention

 Occupational accident refers to the accident inflicted on the body of the employee during working hours, regardless of the cause and employee’s fault.  Accident occurs along the direct route between the employee’s residence and workplace is called commuting accident excluding social activities that are not part of the employee’s job.  Occupational disease arises out of the exposure to the harmful substances or hazardous condition in the processes. Occupational Accident and Diseases

 The benefits are categorized as followings: medical treatment benefit, temporary disablement benefit, nursing benefit, permanent disablement benefit, constant attendance benefit and survivor benefit. Benefits and Payment

 The claiming for all benefits is made on the prescribed forms and submitted to relevant office within the prescribed time.  Related documents have to be submitted along with the forms in order to support the claim. Benefit Claiming

Benefits

 Medical Treatment  Injured employee is provided with medical treatment benefits including medical care and transportation.  Temporary Cash  70% of the daily contributory average wage, but it lasts only 180 days.  Allowance for the care taker is 50% of the temporary cash of the victim Benefits (cont.)

 The employee receives a lifetime pension based on the loss of earning capacity  A constant attendance benefit is 50% of the beneficiary’s pension  P  DCAW  70%  (LEC  1/5 LEC)  APV  P: Pension  DCAW: Daily Contributory Average Wage  LEC: Loss of Earning Capacity  APV: Actuarial Present Value Permanent disablement benefit

 The employee will be awarded lump-sum payment instead of pension.  LS  DCAW  70%  LEC  20%  APV  LS: Lump-Sum  DCAW: Daily Contributory Average Wage  LEC: Loss of Earning Capacity  APV: Actuarial Present Value Permanent disablement benefit with the loss of earnings is less than 20 %

 To ensure compliance with the scheme requirements and to hinder fraudulent claims, penalties in the form of fines and jail sentences have been allocated by National Social Security Law in accordance with Sub-Decree.  The offence includes non-registration of the enterprise or employees, non-payment or underpayment of contributions, and a refusal to comply with the other administrative requirements.  Other wrongdoings include the submission of false information to claim benefits or other fraudulences. Penalty

Obstacles and Challenges  During its implementation in the first phase on the Occupational Risk Scheme, NSSF encountered main challenges as described below:  Quality of medical services were not good enough  Providing not enough service and not right to the goal  Did not cooperate well in providing information concerning to the number of employees, employees’ salary and branches of company.  Did not send their monthly reports on the number of their employees and contribution on time.  Provided inaccurate report on occupation risk and were often late.  NSSF started its first operation amid the global financial crisis (late 2008)

 Penalties and law enforcement to ensure compliance with the standard and hamper fraudulent claims.  Internal capacity building.  NSSF staffs needs to be trained to understand the social security schemes.  Educational campaign to raise the public awareness.  Equips necessary furniture and IT equipment.  Recruits more staff Recommendation