Staying compliant with National Social Security Fund (NSSF) contributions is vital for both business owners and professionals. To ensure you are meeting requirements and maximizing social protections, it is essential to understand the specific contribution caps and the range of benefits available.
Understanding the Contribution Rates & Maximum Pay Caps
The NSSF calculates contributions based on an employee’s monthly salary, but it is capped at a maximum “assumed wage” of 1,200,000 KHR (approx $3,000)
- Occupational Risk: 0.8% of the assumed wage. This is 100% paid by the employer. (Maximum cap: 9,600 KHR/month).
- Health Care: 2.6% of the assumed wage. Since 2018, this is also 100% paid by the employer. (Maximum cap: 31,200 KHR/month).
- Pension Scheme: Set at 4% for the first 5 years, which is split equally (2% paid by the employer and 2% deducted from the employee).
What are the Benefits for Employees?
The NSSF isn’t just a monthly deduction; it unlocks a comprehensive safety net designed to promote the welfare and livelihood of citizens:
- Health Care Benefits: Free medical care at NSSF-recognized facilities, a daily allowance for sick leave (70% of average wage), and a highly beneficial maternity allowance (70% of average wage for 90 days of maternity leave).
- Occupational Risk Benefits: Complete coverage for workplace and commuting accidents. This includes medical treatment, daily allowances for temporary disability, pensions for permanent disability, and vital rehabilitation services,,.
- Retirement & Pension: A guaranteed old-age pension for members who reach 60 years of age (with at least 12 months of contributions). It also provides invalidity pensions and survivors’ pensions to protect dependents.
Cambodia’s NSSF provides vital income security and healthcare for the workforce. Ensuring correct compliance means unlocking these massive benefits for your team!
Have questions about calculating your NSSF payroll or how to claim your benefits? Speak to one of our HR and Employer of Record (EOR) experts in Cambodia.