Myanmar: Dismissed workers will continue having access to social security benefits

Submitted by mmarquez on Thu, 05/07/2020 - 11:03
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zicolaw.com (20.03.2020) On 20 March 2020, MOLIP issued Notification No. 64/2020 stating that employees who become unemployed arising from redundancy or temporary/permanent closing of factories such as CMP, hotel and tourism and SMEs, will get one year free medical treatment, medical costs and travelling. For this, and prioritizing the garment industry (CMP), hotel and travel agency gorups, as well as SMEs, the governement established COVID-19 Fund wil be established with (50) billion Kyats from the State Revolving Fund and (50) billion Kyats from the Social Security Fund. The total of (100) billion Kyats shall be deposited at Myanmar Economic bank. 

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Dismissed workers in the garment, hotel, tourism sector, and from SMEs, will get one year free medical treatment, medical costs and travelling. 

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C. Labour

On 17 March 2020, the Ministry of Labour, Immigration and Population (“MOLIP”) issued a notice letter suspending the issuance of overseas employment certificate and oversea employees’ application from 18 March 2020.

On 20 March 2020, MOLIP issued Notification No. 64/2020 stating that employees who become unemployed arising from redundancy or temporary/permanent closing of factories such as CMP, hotel and tourism and SMEs, will get one year free medical treatment, medical costs and travelling.

On 20 March 2020, MOLIP issued Directive No. 1/2020 stating that the closure of the registered business and the redundancy of employees shall be informed to the Social Security Board and contribution shall be suspended. If the business reopens from the temporarily closure, the employer shall inform the Social Security Board within 10 days and reimburse the contributions to the Social Security Board. Employees who become unemployed for various reasons shall be entitled to the benefits such as right to enjoy medical treatment, maternity allowance, medicine and travel allowance, right to enjoy medical treatment for pensioners and funeral allowance in accordance with the Social Security Rules 2012.

MOLIP issued Notification No. 63/2020 on 20 March 2020 to provide that due to the hardship faced by business in light of COVID-19, employers can make social security payments quarterly instead of monthly. This is applicable to all business registered under the Social Security Board.