Recently, the Ministry of Labour and Vocational Training of Cambodia released a circular announcing that the pension scheme will be officially launched from October 1, 2022. All private enterprises/institutions in Cambodia are required to make pension contributions for their employees on monthly basis starting from the foregoing date.

The social security schemes of Cambodia are composed of three parts, i.e.
(1) occupational risk scheme;
(2) heath care scheme; and
(3) pension scheme.  

The occupational risk insurance scheme had been implemented since 2008, the health care insurance scheme had also been implemented since 2016, while the pension scheme has not been enforced so far.

The pension schemes of Cambodia include compulsory pension scheme and voluntary pension scheme. The contribution rates for compulsory pension scheme are as follows:

1. First Stage: For the first 5 years, the contribution rate will be 4% of the wages of the employee (2% shall be contributed by the employer and the other 2% shall be contributed by the employee)
2. Second Stage: 5 years after the first stage, the contribution rate will be 8% of the wages of the employee (4% shall be contributed by the employer and the other 4% shall be contributed by the employee)
3. Third Stage: After the Second Stage, the contribution rate will be increased 2.75% every 10 years. For example, on the 11th year, the contribution rate will be 10.75% (5.375% shall be contributed by the employer and the other 5.375% shall be contributed by the employee)

The employers shall complete monthly pension contributions no later than the 15th day of the following month. And a monthly contribution report including the number of employees shall be submitted to the National Social Security Fund no later than the 20th day of the following month.

Employees who participate in the compulsory pension scheme may enjoy the following benefits when qualified: (1) old-age pension; (2) disability pension; (3) survivor’s pension; (4) funeral allowance.

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See also:
Statutory Audit Requirement in Cambodia
Comparison of Company Limited, Branch and Representative office in Cambodia
Guide to Starting a Company in Cambodia
Guide to Starting a Branch in Cambodia
Guide to Starting a Representative Office in Cambodia