Collaboration: International Labour Organization (ILO), Bangladesh
Starting date:  September 15, 2026
Completion date: December 15, 2026

Project description: This project supports ILO’s Advancing Formalization in Bangladesh initiative by assessing which social protection options are realistic for micro, small, and medium enterprises (MSMEs) and their workers. Most MSME owners and workers fall in the gap between poverty-targeted social assistance and formal social insurance. Informality, irregular incomes, weak institutional links, and fragmented governance leave them largely without protection against sickness, injury, maternity, income loss, and old age.

The study reviews the legal, policy, and institutional landscape, maps existing schemes and pilots, and draws lessons from best practices in other countries. It examines the barriers faced by different categories of MSMEs and workers and assesses the feasibility of alternative protection models. Findings draw on a desk review and purposive consultations with government agencies, development partners, employers’ and workers’ organisations, and MSME owners and workers in Dhaka and selected districts. The study also sets out a financial framework covering likely coverage, costs, and fiscal implications.

Theme: Social Protection and Labour Markets

Team leader:
Dr Bazlul Haque Khondker, Team Leader

Team members:
Dr Selim Raihan, Employment and Labour Market Expert
Ali Sabet Ghadam Moghadam, MSME and Enterprise Development Expert