Questions and Answers on National Social Security Fund (NSSF)18 February 2009
Chea Sophal
What is National Social Security Fund (NSSF)?
NSSF is a fund set up for the well being and protection of employees or workers. It is a public, legal and financially autonomous entity which is formulated by Sub Decree (in accordance with Royal Kram No CS/RKM/06561/03 dated June 15, 1996 promulgated the law on General Statute of Public Enterprises and Royal Decree No. NS/RKT/1297/91 dated December 31, 1997 on Judicial Statute of Public Establishment.
NSSF serves as a socially public service through the technical protection of MOLVT and financial protection of Ministry of Economy and Finance. NSSF is also designed to ensure equal social welfare for all workers or employees under the provisions of Cambodian Labour Law.
What are the roles and responsibilities of NSSF?
Main responsibilities of NSSF include:
Managing the social security fund
Ensuring that the same benefits be benefits to all members of the NSSF to alleviate theirs difficulties with old age, disability, death, working risk, or any other incidences, such maternal illness.
Collecting contribution from its members and employers.
Facilitating and making available and social services and beneficial to its members.
Cooperating with relevant agencies to firstly raise awareness on how to prevent working accident and professional diseases and secondly to take any technical action on working security and hygiene.
Cooperating with relevant agencies to study and monitor the working risk.
Organizing and managing Social Security Fund Investment.
What the components of NSSF?
The NSSF consists of three components as follows:
Employment Injury Insurance: Coverage for occupational risks including employment injury and occupational disease benefits.
Medical Care: Medical scheme for workers/employees when they are sick including operations and general sickness (total coverage to be confirmed as not clearly defined yet).
Pension Scheme: Providing old age benefit, invalidity benefit and survivors’ benefit (total coverage to be confirmed as not clearly defined yet).
Who will NSSF cover?
NSSF covers the follow types of workers/employees:All workers defined by the provisions of the Labour Law, if those persons perform work in the territory of Cambodia for the benefits of an employer or employers, regardless of nature, form and validity of the contract done or kind and amount of the wage received by the person thereof.
Trainees, person who is attending for rehabilitation centre and apprentice.
Seasonal or Occasional workers.
And state workers, public workers and every personnel who is not governed by the common statute for civil servants or by the Diplomatic statute as well as officials who are temporarily appointed in the public service.
What is the composition of NSSF?
The NSSF is run by a Director (automatic member from MOLVT), each representative from MOLVT, Council of Ministers, Ministry of Economy and Finance, and Ministry of Health, and two representatives from Employers and Employees/Unions. The NSSF is under the guidance of a governing board authorized to manage the organization in accordance with the provisions of its sub-decree and internal regulations.
What are occupational risks?
Occupational risks include working accident, working commute accident and occupational diseases and cover the following “beneficiaries.
Worker/employee (titular)
Care taker
Funeral manager
Spouse Death of titular
Children
Parents or elders
What are benefits in case of injuries?
Employees who are injured by work-related accidents, are entitled to compensation for medical treatment, surgery, prosthetic care, medicines, compensation for the person who takes care of the victim in the hospital, provision of vocational training etc. (Article 254 of LL and Article 7 of Prakas 243/02)
What are benefits in case of temporary disability?
If a work-related accident results in temporary incapacitation or permanent disability of less than 20 per cent of that person’s normal capacity or ability, the victim is entitled – in addition to compensation for medical treatment - to daily compensation equal to the average wage per day of the victim, starting the fifth day after the date of the work-related accident. If the disability lasts four days or less, the employee receives the regular salary for the days not worked (see Article 252 of the Labour Law and Article 8 of Prakas 243/02).
What are benefits in case of permanent disability?
If a work-related accident results in permanent disability of more than 20 per cent of normal capacity or ability, the victim is entitled to an annuity (a regular monthly payment). If the victim dies, the employer has to pay the funeral costs and an annuity for the spouse and the dependent children of the victim (see Article 253 of the Labour Law and Article 9 of Prakas 243/02).
When can workers/employees notify the occupational risks?
Workers/employees who are members of NSSF shall immediately notify employer or representative of employer about occupational risks (work-related accident, commute accident and occupational diseases).
In case of an accident resulting in death, the obligation of notification will be the burden of beneficiary of the victim.
Employer and owner of enterprises under the provisions of the Law on the National Social Security Funds for persons defined by the Labour Law and those who have been registered in the NSSF shall notify NSSF within 48 working hours at the latest after the receipt of notification of occupational risks happening to the workers/employees.
Who are enterprises and employees registered in NSSF?
Enterprises that hire 8 employees or more are required to register with NSSF. Enterprise that have been operating shall register within 45 days at the latest after the effect of Prakas on NSSF Establishment and those enterprises that are operating after the effect of this Prakas shall register within 45 days after the date of their openings.
Base on the Announcement No. 33, Registration of NSSF will be implemented in Phnom Penh, Kampong Speu, and Kandal Province after which it will be applied to all provinces.
The enterprises must have therewith Commerce Registration Certificate from the Ministry of Commerce or other relevant ministries relating to the business.
Enterprise data and name of the enterprise shall be the same as its name in Commerce Registration Certificate issued by the Ministry of Commerce or other relevant ministries relating to their business.
References:1. MOLVT, Prakas No.012/08 KB-BrK: “Registration of Enterprise/Establishment and Employees in the National Social Security Fund”, 11 February 2008
2. MOLVT, Prakas No.022/08 KB-BrK: “Determination of the Phase and Scope of Implementation of Occupational Risk Scheme”, 11 February 2008.
3. MOLVT and MOH, Joint-Prakas No. 110/08 KB/BrK: “Notification of Occupational Risks”, 16 June 2008
4. Royal Government, Sub-Decree No. 16/ANKr. BK: “The Establishment of National Social Security Fund”, 02 March 2007.
5. CAMFEBA, Employer Conference: National Social Security Fund (NSSF) Introducing Employment Injury Insurance (EII), Sunway Hotel, 21 April 2008.
6. Cambodia Labor Law, 1997.
7. CLEC: Cambodian Employment and Labour Law, December 2005.
Chea Sophal
What is National Social Security Fund (NSSF)?
NSSF is a fund set up for the well being and protection of employees or workers. It is a public, legal and financially autonomous entity which is formulated by Sub Decree (in accordance with Royal Kram No CS/RKM/06561/03 dated June 15, 1996 promulgated the law on General Statute of Public Enterprises and Royal Decree No. NS/RKT/1297/91 dated December 31, 1997 on Judicial Statute of Public Establishment.
NSSF serves as a socially public service through the technical protection of MOLVT and financial protection of Ministry of Economy and Finance. NSSF is also designed to ensure equal social welfare for all workers or employees under the provisions of Cambodian Labour Law.
What are the roles and responsibilities of NSSF?
Main responsibilities of NSSF include:
Managing the social security fund
Ensuring that the same benefits be benefits to all members of the NSSF to alleviate theirs difficulties with old age, disability, death, working risk, or any other incidences, such maternal illness.
Collecting contribution from its members and employers.
Facilitating and making available and social services and beneficial to its members.
Cooperating with relevant agencies to firstly raise awareness on how to prevent working accident and professional diseases and secondly to take any technical action on working security and hygiene.
Cooperating with relevant agencies to study and monitor the working risk.
Organizing and managing Social Security Fund Investment.
What the components of NSSF?
The NSSF consists of three components as follows:
Employment Injury Insurance: Coverage for occupational risks including employment injury and occupational disease benefits.
Medical Care: Medical scheme for workers/employees when they are sick including operations and general sickness (total coverage to be confirmed as not clearly defined yet).
Pension Scheme: Providing old age benefit, invalidity benefit and survivors’ benefit (total coverage to be confirmed as not clearly defined yet).
Who will NSSF cover?
NSSF covers the follow types of workers/employees:All workers defined by the provisions of the Labour Law, if those persons perform work in the territory of Cambodia for the benefits of an employer or employers, regardless of nature, form and validity of the contract done or kind and amount of the wage received by the person thereof.
Trainees, person who is attending for rehabilitation centre and apprentice.
Seasonal or Occasional workers.
And state workers, public workers and every personnel who is not governed by the common statute for civil servants or by the Diplomatic statute as well as officials who are temporarily appointed in the public service.
What is the composition of NSSF?
The NSSF is run by a Director (automatic member from MOLVT), each representative from MOLVT, Council of Ministers, Ministry of Economy and Finance, and Ministry of Health, and two representatives from Employers and Employees/Unions. The NSSF is under the guidance of a governing board authorized to manage the organization in accordance with the provisions of its sub-decree and internal regulations.
What are occupational risks?
Occupational risks include working accident, working commute accident and occupational diseases and cover the following “beneficiaries.
Worker/employee (titular)
Care taker
Funeral manager
Spouse Death of titular
Children
Parents or elders
What are benefits in case of injuries?
Employees who are injured by work-related accidents, are entitled to compensation for medical treatment, surgery, prosthetic care, medicines, compensation for the person who takes care of the victim in the hospital, provision of vocational training etc. (Article 254 of LL and Article 7 of Prakas 243/02)
What are benefits in case of temporary disability?
If a work-related accident results in temporary incapacitation or permanent disability of less than 20 per cent of that person’s normal capacity or ability, the victim is entitled – in addition to compensation for medical treatment - to daily compensation equal to the average wage per day of the victim, starting the fifth day after the date of the work-related accident. If the disability lasts four days or less, the employee receives the regular salary for the days not worked (see Article 252 of the Labour Law and Article 8 of Prakas 243/02).
What are benefits in case of permanent disability?
If a work-related accident results in permanent disability of more than 20 per cent of normal capacity or ability, the victim is entitled to an annuity (a regular monthly payment). If the victim dies, the employer has to pay the funeral costs and an annuity for the spouse and the dependent children of the victim (see Article 253 of the Labour Law and Article 9 of Prakas 243/02).
When can workers/employees notify the occupational risks?
Workers/employees who are members of NSSF shall immediately notify employer or representative of employer about occupational risks (work-related accident, commute accident and occupational diseases).
In case of an accident resulting in death, the obligation of notification will be the burden of beneficiary of the victim.
Employer and owner of enterprises under the provisions of the Law on the National Social Security Funds for persons defined by the Labour Law and those who have been registered in the NSSF shall notify NSSF within 48 working hours at the latest after the receipt of notification of occupational risks happening to the workers/employees.
Who are enterprises and employees registered in NSSF?
Enterprises that hire 8 employees or more are required to register with NSSF. Enterprise that have been operating shall register within 45 days at the latest after the effect of Prakas on NSSF Establishment and those enterprises that are operating after the effect of this Prakas shall register within 45 days after the date of their openings.
Base on the Announcement No. 33, Registration of NSSF will be implemented in Phnom Penh, Kampong Speu, and Kandal Province after which it will be applied to all provinces.
The enterprises must have therewith Commerce Registration Certificate from the Ministry of Commerce or other relevant ministries relating to the business.
Enterprise data and name of the enterprise shall be the same as its name in Commerce Registration Certificate issued by the Ministry of Commerce or other relevant ministries relating to their business.
References:1. MOLVT, Prakas No.012/08 KB-BrK: “Registration of Enterprise/Establishment and Employees in the National Social Security Fund”, 11 February 2008
2. MOLVT, Prakas No.022/08 KB-BrK: “Determination of the Phase and Scope of Implementation of Occupational Risk Scheme”, 11 February 2008.
3. MOLVT and MOH, Joint-Prakas No. 110/08 KB/BrK: “Notification of Occupational Risks”, 16 June 2008
4. Royal Government, Sub-Decree No. 16/ANKr. BK: “The Establishment of National Social Security Fund”, 02 March 2007.
5. CAMFEBA, Employer Conference: National Social Security Fund (NSSF) Introducing Employment Injury Insurance (EII), Sunway Hotel, 21 April 2008.
6. Cambodia Labor Law, 1997.
7. CLEC: Cambodian Employment and Labour Law, December 2005.
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