Social Insurance, the Garment Industry and Gender in Bangladesh: A Comparative Political Economy Perspective with Nepal and Cambodia
Citation: Raihan, S. and Hassan, M.M. (2025). Social Insurance, the Garment Industry and Gender in Bangladesh: A Comparative Political Economy Perspective with Nepal and Cambodia. SANEM & GIZ Research Paper. SANEM Publications, Dhaka, Bangladesh.
Bangladesh’s Ready-Made Garment (RMG) sector, central to exports and employment, still lacks robust social protection, leaving millions of workers vulnerable. The government’s pilot Employment Injury Scheme (EIS), launched in 2022 under the National Social Security Strategy, offers pensions to injured or deceased workers’ families, but its future remains uncertain due to reliance on voluntary corporate contributions. Research highlights structural barriers to expanding social insurance: powerful industry associations prioritizing competitiveness over welfare, weak regulatory enforcement, and limited worker voice due to low unionization. Yet CGE simulations show that stronger social insurance could raise productivity, exports, and GDP while improving wages and industrial stability. Gender gaps remain stark, with women disproportionately excluded from benefits. Lessons from Cambodia and Nepal show that political commitment can overcome resistance. The report urges compulsory employer contributions, stronger institutions, broader coverage, and sustained stakeholder engagement to build a durable, equitable social insurance system aligned with international labour standards.