Cambodia: Rules for compulsory and voluntary pension contributions
Applies with regard to individuals who are subject to provisions of the Cambodian labor law
Applies with regard to individuals who are subject to provisions of Cambodian labor law
Sub-Decree No. 32 concerns compulsory and voluntary pensions and addresses the contribution rates, procedures for contribution payments, and benefit claims.
The guidance under the sub-decree applies with regard to individuals who are subject to provisions of the Cambodian labor law. The formalities and procedures of the registration for a new company will be determined by future guidance.
The benefits under both compulsory and voluntary pension plans include old-age benefits, disability benefits, survival benefits, and funeral allowances. For compulsory plans, employers and employees each contribute 50% according to the following schedule:
- For the first five years—4% of the contributable wage (2% contributed by the employer, the other 2% contributed by each worker/employee)
- For the next five years—8% of the contributable wage (4% contributed by the employer, 4% contributed by each worker/employee)
- For the next 10 years—an increase of 2.75% every 10 years
Read a May 2021 report [PDF 119 KB] prepared by the KPMG member firm in Cambodia
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