Monday, June 2, 2025

"Employment Injury Benefit for Foreign Workers under Myanmar’s Social Security Law"

 Employment Injury Benefit for Foreign Workers under Myanmar’s Social Security Law

By Khaing Thanda Lwin

Photo Credit: Internet
 

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:

  1. Industries, factories, warehouses, and engineering businesses.
  2. Government departments, organizations, and regional administrative bodies engaged in business.
  3. Development organizations.
  4. Financial organizations.
  5. Companies, associations, and their branches.
  6. Shops, commercial and public entertainment establishments.
  7. Transport businesses operated or permitted by the government.
  8. Construction projects lasting one year and above under employment agreement;
  9. Businesses with foreign investment, citizen investment, or joint ventured businesses.
  10. Businesses relating to mining and gem
  11. Businesses relating to petroleum and natural gas
  12. Ports and out-ports operations.
  13. Businesses employing freight handling workers.
  14. The Ministry of Labour and its subordinate entities.


  15. 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)           

No comments:

Post a Comment

Breach of Contract, Compensation and Remedies under Myanmar Laws By Khaing Thanda Lwin 18 th June 2025 Under Myanmar laws, there are ...