Tuesday, June 28, 2016
Cambodia - Cost of State Healthcare Announced
According to a Labor Ministry prakas, or official statement, both employers and employees will be responsible for paying 1.3 percent of an employees’ monthly salary to the government for state-supplied health insurance guaranteed to all workers under the Labor Law.
“This prakas determined the rate of contribution and form of payment for healthcare insurance for everyone who is under the provisions of the Labor Law,” Labor Minister Ith Samheng wrote, adding that it had not been decided when the payments will start.
The 1.3 percent will be paid in riel, and all wages in foreign currencies will be converted using the official exchange rate of the National Bank.
Sum Sophorn, the deputy director of the National Social Security Fund (NSSF), told Khmer Times yesterday that he could not comment on when payments for healthcare would start.
“I cannot tell you yet when the real schedule of starting contribution is, but it depends on the registration of the enterprises. So far there are more than 100,000 workers registered,” Mr. Sophorn said, adding that once an employee is registered for health insurance, the employee and the employer will be obliged to pay their contribution to the NSSF.
Those who work at two or more places and therefore pay more than the required 1.3 percent will be compensated by the NSSF at the end of each year.
Employers will be required to pay the 1.3 percent contribution each month for any employee contracted for more than 15 days per month, the prakas reads.
The 1.3 percent figure is higher than the NSSF’s original estimate of the cost of state healthcare. It was announced in January in a sub-decree that workers in the textile and footwear industries would have their medical expenses covered by the NSSF. Labor Ministry officials at that time said workers would spend less than 1 percent of their wage for health services.
The sub-decree, which had six chapters and 14 articles, was signed by Prime Minister Hun Sen. Its aim was to create a mechanism to offer members of the NSSF preventative health services, medical benefits, medical care and also payment for staff who cannot work because of illness or a workplace accident, or because they are on maternity leave.