Employment Injury Benefit for Foreign Workers under Myanmar’s Social Security Law
By Khaing Thanda Lwin
I. INTRODUCTION
In Myanmar, employee social protection is governed by
the Social Security Law of 2012, which does not distinguish between local and
foreign employees regarding benefit eligibility. The law applies to all ‘insured
persons’, including foreign workers registered with the Social Security Board
(SSB) and making contributions. As a result, registered foreign employees are
generally entitled to the same benefits as local workers. Additionally, the Social
Security Rules of 2014 ensures that all foreign
employees working in establishments covered in the law, regardless of their
salary payment currency, are eligible for health and employment injury benefits under
Myanmar’s social security system. Regarding
loss caused by natural disasters, the law provides for a Family Assistance
Insurance Fund, which offers healthcare, relief materials, and cash assistance
to disaster-affected insured persons and their families; however, this scheme
remains inactive at present.
II. REGISTRATION
Under Myanmar’s Social Security Law and Directive No.
5/2014 issued by the Social Security Board (SSB), certain employers are
required to register their workers, including foreign nationals, with the SSB.
This registration ensures access to benefits for all workers, including
temporary, permanent, apprentices, and trainees, regardless of whether they are
paid wages.
2.1 Eligibility for Registration
Employers with five or more employees in
establishments covered under Section 11 (a) of the Social Security Law must
ensure their workers, including foreign nationals, are registered with the SSB.
Additionally, even individuals not employed in covered establishments may
voluntarily join the insurance system.
2.2 Covered Establishment
The
following types of establishments are required to register with the SSB, as per
the Social Security Law:
- Industries, factories, warehouses, and
engineering businesses.
- Government departments, organizations, and
regional administrative bodies engaged in business.
- Development organizations.
- Financial organizations.
- Companies, associations, and their
branches.
- Shops, commercial and public entertainment
establishments.
- Transport businesses operated or permitted
by the government.
- Construction
projects lasting one year and above under employment agreement;
- Businesses with foreign investment, citizen
investment, or joint ventured businesses.
- Businesses relating to mining and gem
- Businesses relating to petroleum and
natural gas
- Ports and out-ports operations.
- Businesses employing freight handling
workers.
- The Ministry of Labour and its subordinate
entities.
Other establishments designated by the Ministry of Labour.
2.3 Registration of Foreign Workers
Foreign nationals employed
in covered establishments are required to register with the Social Security
Board (SSB), regardless of whether they receive wages in foreign currency or
Myanmar kyat. They are subject to the Health and Social Care Insurance System
and the Employment Injury Benefit Insurance System. As a result, foreign
workers are entitled to the same benefits as local employees. [Rule 202 (a)]
III. SOCIAL SECURITY BENEFITS AND CONTRIBUTIONS
Under
the Social Security Law, both employers and employees contribute to the social
security system, granting insured individuals with the following key benefits.
(1) ‘Health
and Social Care Insurance’ which covers medical treatment, maternity benefits,
cash benefits, disability supports, and funeral grants.
(2) ‘Employment
Injury Insurance’ which include free medical treatment, temporary and permanent
disability benefits and survivor’s benefits as well as funeral grants.
3.1 Contribution Rate
To
enjoy healthcare and social care benefits, (2) % by employers and (2) % by
employees, totally (4) % shall be contributed to the Social Security Board.
To
enjoy employment injury benefits, the employers shall contribute additional (1)
% for the establishments with fewer than (50) employees and at lease (2)
employees claim the benefits. If more than (5) % of the employees in the
establishments with over (50) employees claim the benefits, the employers’
contribution increases to (1.5) %. [Sections 17 and 50, Rule 55 (a) and Rule 58]
3.2 Voluntary Contribution
Under this law,
voluntary contribution of an individual, including self-employed workers and
the employees working in the company with less than five employees, to the
Social Security Board (SSB) are allowed. The establishments opting for voluntary
insurance can access employment injury benefit by making the employer
contributions similar to those required for covered establishments. [Rule 59
(b)]
3.3 Contribution in Foreign Currency
If an insured person
earns wages in foreign currency, contributions to the Social Security Fund and
Employment Injury Benefit Fund must be paid in foreign currency. Corresponding
benefits will also be provided in foreign currency. (Section 102)
Rule 202 (c) clearly
defines the method of contribution payment and benefit entitlement based on the
currency in which wages are received. It specifies that for insured persons
earning in foreign currency must pay contributions and receive benefits in foreign
currency. Those earning in Myanmar kyat must pay contributions and receive
benefits in Myanmar kyat.
3.4 Right to Enjoy Benefit despite of
Defaulting to Contribute
Even
if the employer—whether already registered or required to register—fails to pay
the contributions, or even if the contributions are not deducted from the
worker’s wages and paid, the insured person still has the right to enjoy the
benefits under this Law. If the insured person has passed away, the right to
receive benefits belongs to the person nominated by the insured. If no one was
nominated, the benefits go to the insured’s dependents. [Section 69 (a)]
The
employer who defaults on contribution payments shall be liable to pay the
outstanding contributions, the stipulated defaulting fees, and bear the cost of
all benefits and related expenses payable to the insured. [Section 69 (b)]
IV. OVERVIEW OF EMPLOYMENT INJURY BENEFIT
In the Social Security Law, ‘Employment
Injury’ refers to an accidental injury, decease or occupational disease
contracted to a worker in and out of workplace due to employment, in connection
with duty, in carrying out other works for the benefit of the employer or on
the way to and from the workplace to serve duty. [Section 2 (f)]
The ‘Employment Injury Benefit Fund’ refers
to a fund established by the employer’s contributions for his workers to enjoy
employment injury benefit. [Section 2 (h)]
Employers
are required to register with the township social security office and
contribute to the Employment Injury Benefit Fund for workers covered under
Section 45 of the Social Security Law. [Section 48 (a)]
Additionally,
employers may voluntarily register and contribute to the fund for workers not
covered by the mandatory registration provisions. [Section 48 (b)]
Through
the Employment Injury Benefit Insurance System, registered employees are
entitled to medical treatment, temporary disability benefits, permanent
disability benefits, survivors' benefits, and funeral expenses.
4.1 Free Medical Treatment
The
insured person has the right to receive medical care for the employment injury,
without limitation on period, at the social security hospitals, clinics or the
State-owned or private hospitals and clinics concluded agreement with the
Social Security Board. [Section 52 (a), Rule 106]
4.2 Temporary Disability Benefit
An
insured worker who suffers a work-related injury that leads to a temporary
inability to work is entitled to specific benefits under the Social Security
Law. These include medical care and financial support in the form of temporary
disability benefits. The law also outlines procedures for converting these
benefits to permanent disability benefits under certain conditions, as well as
provisions for cases of recurring incapacity. The following sections detail the
eligibility, duration, and conversion process of temporary disability benefits.
4.2.1 Entitlement
to Temporary Disability Benefit
An
insured worker who suffers a reduction or cessation of earnings due to an
employment injury is entitled to free medical treatment and a temporary
disability benefit of 70% of the average wage within the four months prior to
the occupational accident. This benefit is available from the date of
incapacity for work, to a maximum of 12 months, under medical certificate.
(Section 55, Rule 181)
The
insured may claim the temporary disability benefit for a minimum of one day and
up to 12 months, depending on the period of incapacity. If the worker is
registered under the employment injury benefit system, the benefit is granted
without restriction on the period of contribution. (Rule 180)
4.2.2 Conversion
to Permanent Disability Benefit
If the insured remains incapable of working
after 12 months of receiving temporary disability benefit, the benefit shall be
converted into a permanent disability benefit. If a medical certificate
confirms permanent disability while the insured is still receiving temporary
disability benefit, the conversion to permanent disability benefit shall apply. [Section 56 (b) and (c)]
If
medical care ends before the 12 months due to recovery but results in permanent impairment or
loss of a bodily organ, the insured may convert to permanent disability
benefit. [Rules 188 (a)]
4.2.3 Recurrence of temporary disability
In the event of a recurrence of temporary
disability, if the insured becomes incapable of working again due to the same
injury, the temporary disability benefit may be extended. However, the total
duration, including the additional period, shall not exceed 12 months. (Rule
184)
4.3 Permanent Disability Benefit
The rights of the insured include the
ability to convert temporary disability benefits into permanent disability
benefits based on medical assessments. The insured is entitled to financial
support if an employment injury results in permanent impairment, partial or
total loss of work capacity.
4.3.1 Conversion
from Temporary Disability to Permanent Disability Benefit
Before
the 12 months period of temporary
disability benefit, if medical care stops due to recovery but
results in permanent impairment or organ loss, the insured can convert to
permanent disability benefit. [Rules 188 (a)]
During
the 12 months period of temporary
disability benefit, if a medical certificate confirms permanent
disability while receiving temporary disability benefit, the insured can
convert to permanent disability benefit. [Section 56 (c), Rules 188 (b)]
After
the 12 months period of
temporary disability benefit, if the insured cannot return to
work due to the injury, the temporary disability benefit ends, and they can
switch to permanent disability benefit. [Section 56 (b), Rule 188 (c)]
4.3.2 Benefit
Calculation for Permanent Disability
Permanent
disability is classified into two categories based on the loss of work capacity.
The insured is entitled to the cash benefit for permanent partial disability if
there is likely to cause permanent partial loss of capacity for work and is
entitled to the cash benefit for permanent total disability if there is likely
to cause permanent total loss of capacity for work due to employment injury. [Section
57, Rule 191 (a)]
According to
Section 58, the calculation of permanent disability benefits is
based on 70% of the insured’s average monthly wage and the percentage of work
capacity lost due to employment injury. The Social Security Law establishes a
structured formula to determine the financial compensation, categorized as
follows:
(a) For
a loss of work capacity of 20% or less, the insured is entitled to a lump sum cash
benefit equivalent to five years of monthly benefits.
(b) For
a loss of work capacity exceeding 20% but not exceeding 75%, the insured has
the right to receive cash benefits for seven years, either in installments or
as a lump sum.
(c) For
a loss of work capacity exceeding 75%, the insured has the right to enjoy
monthly cash benefit for nine years in installment, or in lump sum, or in
monthly installment until death.
(d) For
permanently disabled individuals requiring constant care, an additional 10%
supplement is provided on top of the entitled benefits under the category of
over 75% disability. This supplement may also be received in installments, a
lump sum, or monthly payments until death.
4.4 Survivors’ Benefit for Occupational Decease
Under
Section 62 of the Social Security Law, survivors’ benefits are provided to the
dependents of an insured person who has passed away due to an
employment-related injury. The entitlement to this benefit is based on the
insured’s contribution period and average wage. If a nominated beneficiary
exists, they will receive the benefit accordingly. In the absence of a
nominated beneficiary, the benefit is distributed among the deceased’s legal
dependents in a specified order. The following classification outlines the
eligibility, compensation structure, and distribution of survivors’ benefits.
4.4.1 Nominated Beneficiary
When
the insured is deceased of employment injury, a nominated individual shall be
entitled to enjoy the survivors’ benefit, either in installments, or as a lump
sum, based on the contribution period and the average wage within the four
months preceding the insured’s death.
4.4.2 Compensation Based on Contribution Period
The survivors’ benefit shall be determined as follows:
-
For contributions of 60 months and under, 30 times of
an average wage for a month;
-
For contributions exceeding 60 months but not
exceeding 120 months, 50 times of an average wage for a month;
-
For contributions exceeding 120 months but not
exceeding 240 months, 60 times of an average wage for a month;
-
For contributions exceeding 240 months, 80 times of
an average wage for a month.
4.4.3 Absence of a Nominated Beneficiary
If
the insured person did not nominate a beneficiary, the survivors’ benefit shall be granted to dependents in the
following order: first to the spouse; if there is no surviving spouse, then to
the children of the deceased; and if there are no surviving spouse or children,
then to the parents of the deceased.
Under
Rule 196 (b), if there are more than one person who has the right to enjoy
survivors’ benefit, such benefit shall be enjoyed equally.
4.5 Benefit for Funeral Expenses
The registered SSB workers
have the right to enjoy ‘Benefit for Funeral Expenses’ under both
the Health and Social Care Benefit Fund and the Employment Injury Benefit Fund.
If the insured is deceased of occupational injury or any other cause, for
a person nominated by the insured or if there is no such nomination, survived
wife or husband who lives together with him or her, or members of the family or
persons who incurred for such funeral expenses, or a person who claimed for the expenses
which he incurred for the funeral may claim the benefit. The
entitlement amounts to a maximum of five times the insured’s average wage of a
month calculated from the last four months before their passing. [Section 30,
Rule 126 (b)]
V. LIMITATION
This section outlines the time limits within which
claims for temporary disability benefits, permanent disability benefits, and
survivors' benefits must be filed under the Social Security Law. The following
subsections specify the applicable periods for each type of benefit claim.
5.1 Limitation on temporary disability benefits
The insured shall claim the temporary disability
benefit within (3) months from the expiry of the period of disability to work
according to the medical certificate. [Rules 185 (b)]
The temporary disability benefit shall be terminated
form the date on which the insured becomes capable for work again within 12
months. [Section 56 (a)]
The temporary disability benefit may be fully or
partially suspended if the insured person returns to work for wages, fails to
receive necessary medical care for recovery, or does not follow the doctor's
instructions, resulting in delayed recovery. (Rules 187)
Section 63 stipulates that an insured person is not
entitled to receive sickness benefit or maternity benefit concurrently with
temporary disability benefit. In cases where two of these benefits are payable,
and their amounts differ, only the higher amount shall be paid to the
beneficiary.
5.2 Limitation on Permanent Disability Benefit
Section
73 (iv) provides that, for any benefit payable from the Social Security Fund or
Employment Injury Benefit Fund—if granted in installments or on a monthly
basis—the entitled person must submit a claim with supporting documents to the
relevant Township Social Security Office within one year from either the date
of the accident or the date of termination of temporary disability benefit in
the case of conversion to permanent disability benefit due to an employment
injury.
5.3 Limitation on Survivors’Benefit for
Occupational Decease
Section
73 (v) stipulates that, for any benefit payable from the Social Security Fund
or the Employment Injury Benefit Fund—if granted in installments or on a
monthly basis—the eligible person must submit a claim, along with the required
supporting documents, to the relevant Township Social Security Office within
one year from the date of the insured's death, in cases where the death
resulted from an occupational cause and the claim relates to survivors’
benefit.
VI. CONCLUSION
Myanmar’s
Social Security Law ensures that both local and foreign workers registered
under the system are entitled to comprehensive employment injury benefits.
These include medical care, disability compensation, survivors’ support, and
funeral grants. To access these protections, timely registration, contribution
compliance, and adherence to claim procedures are essential for both employers
and employees.
REFERENCES
1. Social Security Law 2012
2. Social
Security Rules 2014
3. Directive 5/2014 (Procedures for Contributions to the Social
Security Board)
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