A recent study found that 98.7% of garment workers in Bangladesh have not enrolled in the state-sponsored universal pension scheme (UPS) due to financial constraints and lack of awareness. Many workers are also unfamiliar with the digital application process.
The study, conducted by Netherlands-based Mondiaal FNV, surveyed 200 garment workers in various areas of Dhaka. It revealed that the premium for the Progoti scheme, designed for private-sector employees, is considered too high, while the Surakkha scheme, for informal sector workers, lacks loan or withdrawal options. Additionally, the requirement for continuous premium payments over 10 years discourages participation.
Workers’ job insecurity is another major concern, with only 8% staying in the same factory long-term. Many fear job losses due to layoffs, industrial accidents, or financial crises. Furthermore, 64.7% of workers cannot afford the monthly premium, and 75.3% are unaware of the scheme.
The study recommended lowering premium costs, mandating employer contributions, allowing job transfers within the scheme, and offering withdrawal or loan options during financial hardships. It also suggested providing free medical services to workers who contribute for at least five years and implementing awareness campaigns to build trust in the pension system.
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