The European Union (EU) has disbursed €23.5 million in grant financing to the Government of Bangladesh to support the country’s social protection system. This funding acknowledges Bangladesh’s progress in implementing its National Social Security Strategy (NSSS) and aims to encourage continued reforms amid ongoing economic challenges such as high inflation and job losses, particularly in the garment sector.
As a long-standing development partner, the EU has provided €285 million in grants for social protection since 2019, which includes €20 million from Germany. An additional €15 million is allocated to support the implementation of reforms through technical assistance.
The EU’s support has enabled Bangladesh to digitize over 90% of cash benefit payments via the Government-to-Person (G2P) system. The creation of a Single Registry linking over 30 programmes has improved targeting, reduced duplication, and increased transparency. A Labour Information Management System now includes data for more than 650,000 workers, and a pilot Employment Injury Scheme provides lifelong pensions for workplace and commuting accidents. This scheme is expanding to new sectors, including export processing zones. Additionally, more than 1,200 unemployed workers have received benefits under the unemployment support programme.
The EU encourages Bangladesh to adopt a renewed National Social Security Strategy beyond 2026. The revised strategy should emphasize better targeting, greater responsiveness to urban and climate-related risks, and the establishment of sustainable, long-term financing mechanisms. Proposed enhancements include integrating the Finance Division’s Single Registry MIS with national databases such as the Tax Identification Number (TIN) and Savings Certificate systems, and allowing direct registration for eligible individuals under the Social Protection Programme for Unemployed and Distressed Workers.
Further recommendations from the EU include strengthening contributory social protection schemes for working-age populations and improving the quality of service delivery to ensure lifelong access to adequate protection. The EU also calls for addressing broader macroeconomic and public financial management issues, particularly by improving domestic revenue mobilisation. Additionally, it advocates for safeguarding human rights and increasing civil society’s involvement in monitoring social protection policies.
This funding is part of the EU’s Global Gateway strategy and the Team Europe Initiative on Decent Work, which collectively mobilize over €500 million across more than 50 programmes to promote labour rights, workforce skills, and inclusive social protection in Bangladesh.
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