THE PILOT OF AN EMPLOYMENT INJURY SCHEME FOR BANGLADESH’S RMG SECTOR
The EIS Pilot covers all 4 million workers contributing to the export-oriented readymade garments (RMG) sector of Bangladesh. In cases of work-related injuries, the Pilot provides compensation payments for the permanently disabled and the dependants of deceased workers. This takes the form of monthly payments/pensions, paid as top-ups to the lump-sum compensation already paid by the national institution (via the Central Fund), rendering the level of benefits compatible with international standards (ILO Convention No. 121). The EIS Pilot’s monthly pensions are financed by voluntary contributions from international brands. The amount of the pensions depends on the age and last earned wage of the respective worker, thus serving as an income replacement.
The EIS Pilot also includes a data-gathering and capacity-building component on occupational accidents, diseases and rehabilitation, based on a sample of approx. 150 representative factories. This will enable the assessment, based on reliable data, of the feasibility, viability and cost efficiency of a comprehensive EIS in Bangladesh. The data-gathering and capacity-building component will thus ensure the affordability of employer contributions.