The Unemployment Insurance System of Myanmar Manila,

Transcription

1 The Unemployment Insurance System of Myanmar Manila,

2 Labour Statistics, 2011 Population over million. 10% of labour force working abroad working age population about million working population million Labour force participation rate 66.04% unemployment rate 4.01%

3 Labour Force Survey The Labour Force Survey conducted in 1990 No further survey after 1990 population census to be conducted in 2014 following the population census, the Labour Force Survey to be conducted in

4 Potentials on Foreign Investments Economic sanctions lifted now potentials to get back international assistances and grants In the light of enactment of the Foreign Investment Law, foreign investors and investments flowing into the country

5 Ministry of Labour, Employment and Social Security The name of Ministry of Labour changed into Ministry of Labour, Employment and Social Security Obviously, the focus of the ministry shifting to social security concern- aiming to enhance social protection floor including an Unemployment Insurance Scheme Establishment of 77 Labour Exchange Offices throughout the country for Myanmar nationals to enjoy opportunities of decent work in local and abroad

6 Possible Job Opportunities about 1.3 million of Myanmar workers legally dispatched abroad for work up to 2012 October The types of job commonly found as general workers require to enhance their skill levels Due to enactment of the Foreign Investment Law, projects on deep sea port and special economic zone being implemented, local job opportunities expected to increase accordingly

7 Preparatory Measures working together with Singapore Polytechnic International for enhancement of the skill levels of Myanmar workers to grasp emerging job opportunities measures on providing training courses for competency based curriculum development for priority occupations relevant to the labour market; and establishment of approved training centers and accessing centers for National Quality Assurance System. to generate skilled workers in Myanmar and better address the unemployment issues.

8 Enhancement of Skill The MoLESS currently developing a National Plan on Myanmar Workforce Skill Development for providing skill training for workforce; Strengthening employment services; and ensuring job opportunities The Employment and Skill Development Law (Draft) finalized and submitted to the Parliament measures taken by the ministries concerned and MoLESS for achieving the objectives of ASEAN Economic Community by 2015 in the free flow of skilled labour

9 Enhancement of Skill (Contd:) National Skill Standard Authority (NSSA) of Myanmar formed since 2007 Under the guidance of the NSSA, 173 occupational competency standards drawn, 14 Occupational Competency Standards Committees formed

10 Social Security Act, 1954 current Social Security Act enacted in 1954 came into operation in 1956 the span of the scheme being more than 56 years Insured workers entitled to enjoy Sickness and maternity benefit, death grant in times of employment injury temporary disability benefit, permanent disability pension and survivors pension The Social Security Scheme primarily carrying out the health care activities

11 Current Situation active insured persons about 0.6 million only 1% of the population insured under the Social Security Scheme To be able to provide health care and cash benefits : 3 Workers Hospitals ; 92 social security clinics; and 77 social security offices have been set up

12 2012 Social Security Law When compared to the international practices, the current Law needs to be amended to be in line with the ILO Conventions. the new Social Security Bill drawn up since 2008 the 2012 Social Security Law enacted on 31 st August 2012 Under this new Law: invalidity, old age pension, survivors pension, social security housing plan and unemployment insurance system incorporated to be in line with international practice

13 Coverage of the new unemployment insurance system workers paying contributions and involuntarily become the unemployed due to various reasons Still, not covering all the unemployed measures for coverage of all the unemployed to be taken phase by phase depending on the national economic conditions

14 Conditions for enjoyment of UI Benefit an insured person must fulfill 36 months of contributions and must meet the following conditions: being unemployed for dismissal or termination because of permanent close-down of work but not voluntary resignation; not being a person dismissed from work of occupational punishment or not being a person dismissed or removed from work of misappropriation, violation of Civil Service Regulations or intentionally failing to abide by the workplace regulations; being a person of good health, capable to work and willing to work; being a person registered at the relevant Township Labour Exchange Office in accord with the stipulations; and reporting monthly on his unemployment to that office and Township Social Security Office.

15 UI System Rules under the new 2012 Social Security Law being drafted the total contribution to be paid under the UI system being 2% of the employee s salary- 1% by an employer and 1 % by a worker respectively The insured worker completing 36 months contribution, enjoy 60 days 48 months contribution up to 90 days and 84 months contribution up to 180 days of unemployment cash benefits

16 UI System (Contd:) After enjoyment of UI benefit one time, further UI cash benefit entitled upon the further completion of 36 months contribution UI benefit never enjoyed before, the total period of unemployment benefit not exceeding 6 months (180 days) entitled Completion of 36 months contribution and above, for an employee never enjoyed UI benefit, right to draw 20% of his paid contribution from the UI fund. for an employer never dismissed the insured person, right to draw 20% of his paid contribution from the UI fund. By doing so, expected for reducing the willingness of a worker to enjoy unemployment cash benefit and not laying off his workers by the employer

17 During the Period of Unemployment Benefit The unemployed are entitled to acquiring skill training for a new job access to public employment centers if he is married, the benefit for dependants considered, not exceeding 10% for monthly cash benefit free medical care and cash benefits entitled for sickness, maternity and confinement. If he dies, right to enjoy funeral grant by his beneficiaries

18 Timeline for Implementation Currently, Myanmar having no UI scheme introducing an unemployment insurance system in the new Social Security Law the new Law to be effective from around October/November in 2013 for taking preparatory measures

19 Activities for Implementation of the New Law extension of the organizational set-up and recruitment of new qualified staff; conducting trainings to the new staff; developing computer programmes for increased new tasks; putting data on registered establishments and workers profiles and test run; changing the existing Social security identity card into e-card; upgrading the Workers Hospitals and Social Security Clinics; sending the health care personnel abroad for training; promoting awareness of the benefits of the Social Security Scheme for all

20 The Present Issues and Challenges SME entrepreneurs avoiding registration with SSB; willing to reduce the number of workers; not willing to pay the amount of SSB contribution due; Workers Unwilling to pay contributions due to lack of understanding of the SSS; contribution being rather small compared to international rates possibly unwilling to make more contribution upon the introduction of the DOS Insurance System and UI system

21 The Present Issues and Challenges (Contd:) Need for international financial and technical assistance Undertaking propaganda activities for providing awareness for all; Setting up training rooms, training venues and training facilities for capacity building; Having installation of computers and accessories in order to implement the computerized system.

22 Conclusion A 20-year National Comprehensive Development Plan ( ) of Myanmar being drafted Concerning economic growth and job creation, adoption of policy and institutional arrangements on private sector participation in national economic activities, strategies for the development of SMEs, labour market development and priority policy reforms and programmes Concerning Social Protection, Policy and Institutional Reforms Priorities and Indicative Programmes, Existing Policies and legal framework for, Policy Options and Strategies being discussed to be included in the NCDP

23 Conclusion Myanmar taking an important step to introduce an UI system warmly welcome advice as well as technical and financial assistances for this initiative

24 Thank You