Cambodia

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Situation and Priorities

Social protection situation

The biennium 2023-24 sees a stride towards social security extension, labour formalization strategies, and the improvement of social protection governance and delivery in Cambodia.

The launch of the National Strategy for the Development of the Informal Economy 2023-2028 will guide multiple ministries, including MEF, MISTI, MLVT, MoC, institutions such as GS-NSPC, NSSF and other organs of the state like Khmer Enterprise to support the formalization of both informal enterprises and informally employed workers in Cambodia. The formalization of both enterprises and the employment relationship will remove a significant barrier that prevents workers from accessing social security benefits and will lead to an increase in social protection for workers.

A crucial development in 2023 was the promulgation of The Voluntary Healthcare Scheme for Self-Employed Workers and Dependent of Workers (Sub-Decree 280) in August 2023 and the associated prakas that supported the operationalization of the scheme in October 2023. This scheme closes the legal gap which existed since the introduction of NHI in 2017 that prevented 3.5 million self-employed workers and an estimated 4 million dependents of workers to access to the National Social Security Fund (NSSF).

The Social Security Regulator (SSR) was established through the promulgation of the Non-Banking Financial Service Act (NBFSA) in 2022 and begun the development of its processes and capacities in 2023 to ensure transparency and accountability of the social protection system.

Established end 2022 and fully operational by 2023, the National Social Assistance Fund (NSAF) acts as a social assistance single operator under the technical guardian of the Ministry of Social Affairs, Veterans, and Youth Rehabilitation (MoSVY) and financial guardian of the Ministry of Economy and Finance. The NSAF manages social assistance programs outlined in the Family Package and the National Social Protection Policy Framework 2016-2025 (NSPPF), along with the current civil servant pension fund and the veteran fund.

In 2023, the Family Package preparations continued, including the ICT platform development, drafting of the communication strategy, and continued negotiations with MoEYS on the gradual integration of the Scholarship programme in collaboration with the GS-NSPC.

One of the key national priorities was the design of the TVET Cash Transfer programme to link cash with complementary TVET programmes. The programme creates opportunities for increased gender focus and disability inclusion.

COVID-19 and other crises

Government social protection measures to mitigate the socio-economic impact of COVID-19 include implementing a temporary cash transfer scheme for poor families identified through the government’s Identification of Poor Households Program (IDPoor) and the cash transfer for vulnerable families affected by inflation and flood. The cash transfer is for approximately 706,000 households, providing between US$20 to US$36 (2023)   A wage subsidy programme was also implemented during COVID-19 crisis in 2021 to 2022. Suspended workers in garment and tourism sectors were provided a co-transfer of US$ 70 per month (US$40 from the government and US$30 from the employer).

As of January 2024, the cash transfer has benefited around 710,000 households who hold IDPoor cards, with over US$1.3 billion in cash transfers across 42 rounds of payments, according to MoSVY.

In April 2024, the temporary programme will be substituted by the Family Package Programme.

Cambodia has embarked on the development of its Shock-responsive Social Protection (SRSP) framework in 2020.

Government and social partner priorities

In 2023, the RGC has launched the “Pentagonal Strategy-Phase I”, serving as a roadmap to achieving the Kingdom’s developmental vision.

The Pentagonal Strategy lists priority goals for the ongoing term that are relevant to the Cambodian social protection system:

(i) Expansion of healthcare services towards the goal of providing universal health coverage; (ii) Providing vocational and technical training for youth from impoverished and vulnerable households; (iii) Institutionalizing national social assistance programs for vulnerable and at-risk households during economic crises and emergencies; (iv) Formulation and acceleration of implementation of the Informal Economy Development Strategy, and sharing the benefits of the Kingdom’s formal social protection systems;

ILO Projects and Programmes

Results

The ILO Social Protection Programme in Cambodia has contributed to shape the nation's social protection system since its launch in 2021. In 2023, the ASPC Project supported system development, policy framework creation, and program design to expand social security schemes and routine cash transfers. It played a pivotal role in the design, implementation, and expansion of national emergency Covid-19 cash transfer programs for vulnerable populations. Notably, two key legislations, the Voluntary Healthcare Scheme for Self-Employed Workers and Dependents of Workers, and the National Strategy for the Development of the Informal Economy 2023-2028, were successfully launched with project support.

The project facilitated the establishment of a framework and operational scheme to extend social security schemes to informal economy workers through work formalization. This effort, supported by comprehensive advocacy, evidence generation, and technical assistance, culminated in the launch of the National Strategy for the Development of the Informal Economy 2023-2028. Studies conducted in 2022 provided crucial insights for this framework, paving the way for increased access to social protection for workers.

The Voluntary Healthcare Scheme for Self-Employed Workers and Dependents (Sub-Decree 280), promulgated in August 2023 and operational in October 2023, also benefited from significant project support. The project aided in reviewing National Health Insurance, costing extensions to self-employed individuals and dependents, designing the scheme, and producing the sub-decree. This scheme addressed legal gaps, granting millions access to social protection.

The project provided technical assistance for policy development and institutional building, notably for the Social Security Regulator (SSR).

Funding gaps / Support the ILO

US$ 720,000

Building a culture of social security to facilitate better access to social security for workers in Small Medium Enterprises

Impact: 1,500,000 workers - N° of persons with better access to social protection (single registry, online application, one stop-service)
US$ 15,000,000

Extend legal and effective coverage to the agricultural sector, through formalization of enterprises, labour and climate adaptation of the sector

Impact: 3,500,000 workers - N° of persons effectively covered (related SDG 1.3.1)

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ILO Experts

IMG
Kenichi Hirose
Senior Specialist, Social Protection
IMG
Marielle Phe Goursat
Chief Technical Advisor on SHP
IMG
Sokgech Heng
National Programme Officer
IMG
Jie Yu Koh (Finn)
Programme Manager
Xuxu Li
Jr Professional Officer, Social Protection
IMG
Yuta Momose
Junior Professional Officer
Sophorn Tun
National Coordinator