Employment & Labour Law

Govt launches New Payment System for Injured Workers

Date: 29 May 2019; Type: Legal News; Source: Myanmar Times

The Labour Ministry has streamlined the process of making social security payments in a bid to better serve registered workers and employers, said the head of the Ministry of Labour, Immigration and Population.

The new system is being tested in Hlaing Tharyar township in Yangon Region and Pyigyitagun township in Mandalay, where most of the country’s factories are located. The International Labour Organization (ILO) and non-governmental group Vision Zero Funds (VSF) are providing support for the pilot programme.

“We want workers who have registered for insurance to be provided with their payments effectively and quickly. We want to eliminate any delays in the department’s processes,” said U Maung Maung Aye, director general of the ministry.

The ministry launched the pilot project over the weekend.

U Maung Maung Aye said there were about 58 processes in providing payments to workers who are injured at work, but it had cut them to 25 processes.

Under the new system, registered workers who suffer injuries at work can go for treatment at their nearest clinics and hospitals.

“This pilot project will last for about six months. We will implement the new system in other townships if all goes well,” U Myo Aung said.

Ministry officials also said they have also been implementing reforms in information technology, medical matters, administration and legal affairs to make the social security system better able to serve workers. 

In Hlaing Tharyar, over 150,000 workers at 1006 factories pay premiums for insurance under the system, while in Pyigyitagun, 34334 registered workers at 1856 factories pay into social security insurance.

About 1.3 million of workers have registered for social security nationwide, according to the ministry.

The ministry said it has collected and deposited in the bank K350 billion paid by workers in the programme.

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