Development of social insurance-based unemployment insurance scheme in Sri Lanka
Project properties
LKA/22/50/JPN Asia and the Pacific Sri Lanka Japan Completed This project is part of the Global Flagship Programme on Building Social Protection Floors for All
Description
This is the new project proposal on "Development of social insurance-based unemployment insurance scheme in Sri Lanka” submitted to Japan Ministry of Health, Labour and Welfare for the period of one year from 1 September 2022 to 31 August 2023 with the proposed budget of USD 192,403. The Project was designed to promote decent work and policy measures by developing functional unemployment insurance scheme. Further, the project will support to the government to capacitate the officials as well as social partners and strengthening the existing systems in relation to social protection. The multiple crises have intensified long-standing worrisome features of the labour market: they have expanded unemployment, widened gender gaps in labour force participation, and given rise to job insecurity, uncertainty, and hardship. The decline in household income due to job losses is likely to have increased the incidence of poverty, with COVID-19 estimated as having pushed over 500,000 people into poverty. These negative developments would have worsened in 2022 as the economic crises intensified. The current social protection system in Sri Lanka is mainly extended to formal workers through EPF and ETF. The enrolment in these social security funds is still limited despite the availability of legal provision mainly due to relatively high employment share in the informal sector. There is no social insurance-based social security system in place and various benefits under two funds are provided in lump-sum. Maternity benefits and employment injury benefits are covered with employers’ liability-based financing and social protection coverage gaps are clearly existing in case of sickness and unemployment (except severance payment covered by EPF with certain conditions). Concerning the gender aspect, majority of women in the working age population have a limited access to formal social protection due to low level of labour force participation which will eventually lead to an entire life-cycle social protection deficit. Prior to finalize the mid/long-term UNCT priority actions on social protection mentioned under 1.1, ILO received a request of technical assistance from the National Labour Advisory Committee (NLAC), the national tripartite committee under the Ministry of Labour in Sri Lanka. NLAC identified its important to develop broader spectrum of social security policy and schemes including unemployment benefits. Considering the sequence of social security reform in the country and priority for providing income supports to unemployed, introduction of unemployment insurance was identified as the priority. As a followup action, the Secreatary of the Ministry of Labour requested ILO to provide to technical assistance to make recommendations on establishing a comprehensive social security system for Sri Lanka.SDG
Goals
- End poverty in all its forms everywhere
Time
01.12.2022 - 31.03.2024
Budget
186,485 / 200,000
Development Cooperation