Legal and Tax Updates

Legal Update: Pension Schemes for Persons under the Provision of Labour Law

Issue: No. 015P/21 – 17 March 2021

Covering Sector: all persons under the Provisions of the Cambodian Labour Law

Following the Law on Social Security, dated 2 November 2019, the Royal Government of Cambodia issues a Sub-Decree No.31 on the Social Security Pension Scheme (“Pension Scheme”) on 04 March 2021 detailing the registration requirement, contribution rate and benefits for both Compulsory Pension Scheme and Voluntary Pension Scheme which shall apply to all persons under the Provisions of the Cambodian Labour Law


Under the Compulsory Pension Scheme, all owner(s) or employer(s) of establishment(s) /enterprise(s), who employ worker at least from 1 employee shall register its establishment(s)/enterprise(s) at National Social Security Fund on Pension Scheme within 30 (thirty) days after effective date of the Sub-Decree, except in case establishment(s)/enterprise(s) is already registered under the existing Health and Occupational Accident Scheme.

For Voluntary Pension Scheme, only member of the National Social Security Fund (“NSSF”) meeting one of the following requirement will be allowed to participate in this voluntary scheme:

  • Losing paid job before reaching 60 (sixty) years old, but still having ability to pay the contribution payment;
  • Being less than 60 (sixty) years old and wish to pay the contribution in order to get higher old-age benefit than the benefit he/she would receive under compulsory scheme.
  • Having income higher than wage ceiling determined by a separate sub-decree.

Under both compulsory and voluntary scheme, the benefits include old-age benefit, disability benefit, survival benefit, and funeral allowance. Except for funeral allowance, the other pension benefits for the two schemes will be provided be-monthly and shall be adjusted annually based on the change in consumer price index as determined by the Ministry of Planning.

The contribution rate is determined at the following rates and phases:

  • Phase 1: 4% of the contributable wage during the first 5 (five) years from the contribution starting date to be set by Ministry of Labor and Vocational Training (“MLVT”);
  • Phase 2: 8% of the contributable wage during another 5 (five) years after Phase 1; and
  • Phase 3: an addition of 2.75% of the contributable wage to the above rate during next 10 (ten) years and during another 10 (ten) years’ period.

During the first 5 (five) years, the employee and employer under compulsory scheme each shall share 50% of the contribution payment to NSSF. For voluntary scheme, the applicant shall bear 100%.

Please be note, the date of implementation of this Pension Scheme shall be determined by a joint Prakas of the MLVT and the Ministry of Economy and Finance; and the date to starting date for the contribution will be set by Prakas of MLVT, all of which are, until now, is not yet being set.

We hope that the above legal update is helpful for your investment and help you to invest more confidently.


The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any question or need any assistance, please feel free to contact us:

SON Sokeng,


Managing Director

+855 12 885 870


Sokeng has more than 8 years of professional experiences in corporate, commercial, investment and capital market sector in Cambodia. He advised and assisted various companies in various legal compliance issues, major investment projects and in conducting legal due diligence for major M&A and IPO projects. He has led many legal counsel teams to advise and assist ACLEDA Bank Plc., Phnom Penh Autonomous Port and other SMEs in the process of listing and proposed listing on the Cambodia Securities Exchange (CSX).
NOEUM Sokvichhai,


Head of Corporate, Commercial and Investment Practice Group

+855 12 826 785


Atty. Sokvichhai has more than 6 years of experiences in labour, corporate, commercial and investment advisory in Cambodia. He actively advices and assists various businesses in commercial, tax, and labour registration, business licensing, products registration & distribution, business recapitalization & restructuring, and mergers & acquisitions transaction. He also has particular experiences in advising collective investment fund and trust business, investment incentives & qualified investment project, and labour & employment related issues. Sokvichhai also assists major business in preparing various commercial agreements. Currently, Sokvichhai is also leading Sithisak’s Investigation Team to investigate any labour related misconduct within client’s company.