CURRENT EXPERIENCES ON

SOCIAL SECURITY SCHEME IN MYANMAR

Dr. Lwin Lwin Oo HlaingSocial Security Board

Ministry of Labour

MINISTRY OF LABOUR

DOLCIFHC

SSBFGLLID

CTDC

Operating Mechanism

The Board of Directors is responsible for the administration of the Social Security Scheme.

It comprises the Chairman, the General Manager, the Deputy General Manager and five mangers from different departments of the Board.

The Chairman is also the head of the Social Security Board.

The operation of the scheme comes under five Divisions, namely the Insurance Division, the Finance Division, the General Administrative Division, the Planning and Research Division, and the Medical Division.

Also 80 local offices, 95 social security clinics and three hospitals have been set up in the whole country.

Organization Chart

General Manager

DeputyGeneral Manager

Chairman

Admin Finance Insurance Research Medical

107 Local

Offices

93 SSB clinics

3 Workers’ Hospitals

Population of Labour ForcesDescription Number % on Total

Population

Total Population 57,370,000

Total Labour Force 27,000,000 47

Male Labour Force 17,000,000 30

Female Labour Force 10,000,000 17

Insured Workers 566,665 0.99

Introduction & Historical BackgroundThe Social Security Act drawn by the

assistance of ILO was enacted in 1954. The Social Security Scheme came into

operation in January 1956 under the Social Security Act.

The Scheme was introduced in Yangon Area first and gradually extended through out the country.

Covered EstablishmentsIndustrial establishments in which at least 5

persons are employed;Establishments covered under the shops and

Establishments Act (1951);Railways under the Myanmar Railways

Enterprises; Public industrial and transport establishments

under the Union Government or a local authority;

Ports / Mines / Oilfields/ DocksThe Ministry of Labour; andAny other establishments as may be notified

by the competent authority from time to time

Persons covered by the ActPersons working permanently or temporarily

in the covered establishments as-*salaried workers;*daily- rate workers;*piece-rate workers; and *apprentices.

Employers and management concerned are liable to make necessary arrangement insuring their workers with the Social Security Board .

Contribution

The Board collects contributions from employers and employees which amount to approximately 4% of the employees wages in the ratio of 2.5 : 1.5.

Employer and employee have to pay their contributions according to 15 wages classes.

Payment of contributions may be made by cheque or in cash.

Benefits

There are two main types of benefits

1. Free medical care and

2. Cash benefits.

Coverage AreaThere are 80 social security local offices in 110 townships in 14 states and regions except Chin state.

Free medical carePrimary Care 93 Clinics and 41 Government Enterprise

Clinics Secondary Care 3 Workers’ Hospitals

(1) Yangon 250 bedded hospital

(2) Mandalay 150 bedded hospital (3) Htantabin 100 bedded T.B hospital 

Tertiary Care Referral linked system to Specialist Hospitals

Other Free Medical Care provisions Out Patient Medical care (SSB Clinics)Antenatal, Confinement and Postnatal care (Clinics & Hosp)Investigation and diagnostic tests (Hospital)Specialist consultation (Specialist OPD)Hospitalization Medical certification (Fit for Job, Training Course)Supply of prosthesis and orthopedic appliances (Injured)Supply of pharmaceuticals and appliances (Purchasing)Preventive measures and mass vaccination (ATT)Health education (Hosp, Clinics and Workplaces)Clinical assessment by medical boards

(Invalid Pension, Permanent Disability Benefit) Medical education

(Medical Student, Training Nurses, Nurse aids)

Three Kinds of Free Medical CareFree Medical Care as in form of Medical

certificateSickness benefitMaternity benefitEmployment injury benefit (Temporary &

Permanent)

Medical procurement costs and Medical reimbursements MedicinesMedical instruments and Medical equipments are procured yearly through

State allotted budget. Medical reimbursements for those who cannot have

access to the social security clinics and have received medical treatments at the other clinics and hospitals.

Every month Reimbursement cases= 250 cases

Average reimbursement per each= 54850 kyats

Current Medical Care Data (9/2011)OPD Patients. 34,623

Admission Patients. 412

Specialist OPD Patients. 502

Death case 96

Tuberculosis Patients. 153

Malaria Patients 150

HIV/AIDS Patients. 40

Invalid Pension. 10

Permanent Disability Benefit 21

Cash benefits Benefit Qualified Period Cash

Sickness benefit 4 months 50% of wages

Maternity benefit 6 months 66.67% of wages

Funeral grant 1 month 40000 kyats

Temporary Disability benefit

1 month 66.67% of wages

Permanent Disability benefit 1 month loss of earning

capacity

Survivor’s Pension 1 month 66.67% of wages

Cash benefits (cont.) Temporary disability Benefits - Cash benefit is payable until the injured

worker has recovered or until the expiry of 52 weeks

Permanent disability pension -cash benefit-based on the % of loss of earning capacity

Survivors Pensions-paid to his or her dependants-in case of death is due to employment injury

Other Provisions for Employment Injuries of Non-insured Workerswho are not covered by the Social Security

Scheme, the Workmen’s Compensation Act (1932) places liability of compensation, in case of work accidents, on the individual employer.

It deals with personal injuries resulting from employment accidents and also with occupational diseases.

Financial ResourcesFree medical care and benefits are financed by

contributions from employees, employers and the

State in our social insurance system.

Employers and employees have to pay their

contributions according to 15 wages classes.

The lowest class is 1 kyat upto 4000 kyats.

The highest class is 30000 kyats and above.

 

Financial Resources (contd)The State subsidizes more than 200 million

kyats annually for capital expenditure to be

utilized in -building hospitals, clinics,

offices and

- purchasing medical equipment,

vehicles, furniture and office

equipment.

Financial Resources (contd)The Social Security Board maintains three separate accounts in the Social Security Fund:

1. General Insurance(sickness,maternity,death) Account

2. Employment Injury Account,3. Administrative Expenditure Account.

Recent Financial Data (9/2011)Active Insured Persons. 566,665Contribution (Kyat). 616,710,970Contribution (FEC). 91,060*

Benefit (Cash). 56,438,570Cost for Med: & Access: 83,114,960Cost for Hosp, Clinic, Off: 94,325,450Cost for Admin (Salary) 143,345,030Cost for Capital 14,883,700Reimbursement 13322560Total Cost. 405,430,270

Medical Invalid PensionIf the insured persons are non-gazetted

officer or other ranks and suffer from chronic illness, they can request invalid pension.

Medical invalid pension board including senior medical officials recommends it after assessment of the claimant.

But the gazetted officers are transferred to medical board of Ministry of Health.

Potential for reform the current SchemeTo accumulate more contributions To improve benefitsTo lay down limitations in issuing

benefitsTo extend coverage of scheme

Thank you for your kind attention