Cambodia: Prakas On Formalities And Procedures For National Social Security Fund Registration And Contribution Payment

The Ministry of Labour and Vocational Training issued Prakas No. 168/22 MLVT/Br.K.NSSF dated 5 July 2022 on Formalities and Procedures for Registration of Company, Employee, and Contribution Payment for Persons Defined Under Provisions of the Labour Law¹ in the National Social Security Fund ("Prakas") which came into force on the same date of its issuance.

The Prakas sets out the formalities and procedures for the registration of company, employee, and contribution payment for persons defined under provisions of the Labour Law in the National Social Security Fund ("NSSF"). The Prakas applies to all employers or owners of companies, and persons defined under provisions of the Labour Law in occupational risk, healthcare, and pension schemes.

This Update highlights the key features of the Prakas.

Registration of a Company and its Employees

The employer or owner of a company in operation which has not registered with NSSF shall register within 30 days after the Prakas came into force; and (if the company is established after the Prakas came into force) within 30 days after the company commences operations, whichever is later. Registration is exempted for companies that have already registered under the occupational risk and healthcare schemes. The Registration Certificate issued to the company must be displayed at its wage payment office.

In addition, the employer or owner of a company must register its employees with NSSF within three days from the date of their employment, unless the employees are already registered with NSSF and hold an NSSF Membership Card. Upon registration, the employees will be issued with a NSSF Membership Card.

Non-compliance with Registration Requirements

An employer or owner of a company who fails to register the company or its employees with the NSSF shall be liable to a fine ranging from 10 to 30 times of base daily wage (US$10) multiplied by the number of employees in question.

Frequency of Payment and Reporting of Contribution Payment

In general, contribution payments are made on a monthly basis, except where the employer or owner of the company is permitted to pay the contribution on a yearly basis. Where the contribution payment is made on a monthly basis, the employer or owner of the company shall collect the employee's monthly contribution and pay the corresponding employer's contribution, and deposit the same in NSSF's account via partnership banks by the 15 th of the following month. If the contribution is paid annually, it must be made on the following month of the requested month.

Upon payment, the employer or owner of the company must complete the Social Security Contribution Declaration Form, Number of Employee Report and Payroll List with supporting documents and submit the same to NSSF or via contribution@nssf.gov.kh. The submission of report of monthly contribution must be made by the 20th of the following month.

Companies that pay contributions on an annual basis must submit the Number of Employee Report to NSSF every 12 months, or 15 days upon hiring or termination/departure of employee, if any.

Non-compliance with Contribution Payment and Reporting Requirements

Failure to comply with the contribution payment requirement or timely reporting to NSSF will subject the errant company to a fine ranging from 10 to 30 times of base daily wage (US$10) multiplied by the number of employees in question.

Footnote

1. Persons Defined Under Provisions of the Labour Law refer to employees and companies of industry, mining, commerce, crafts, agriculture, services, land or sea transportation, whether public, semi-public or private, non-religious or religious, whether they are of professional education or charitable characteristic as well as the liberal profession, associations or groups of any nature.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.