Social security scheme was implemented in accordance with 1954 Social Security Act by the
Ministry of Labour. According to the law factories, workshops and enterprises that have over 5
employees whether State owned, private, foreign or joint ventures, must provide the employees
with social security coverage. The contribution is tri-partite with 2.5% by the employer 1.5%
by the employee of the designated rate while the government contribution is in the form of
capital investment. Insured workers under the scheme are provided free medical treatment, cash
benefits and occupational injury benefit. To effectively implement the scheme branch offices,
workers’ hospitals, dispensaries and mobile medical units have been established nation-wide.
Social Security Board is now preparing the Social Security Law (2012) for increasing the
coverage by compulsory contributions from the formal sector as well as voluntary contributions
from the informal sector and the community.