Digital Dignity: Empowering Workers Through Employment Injury Schemes and Data Trust
Author: Md. Mahfuz Ul Bashar
The backbone of Bangladesh’s economic engine—the RMG sector—owes its strength to its vast and dedicated workforce. Yet for years, this labor force has remained vulnerable to workplace injuries, accidents, and unforeseen life disruptions, with limited access to structured compensation or long-term protection.
That is beginning to change. The Employment Injury Scheme (EIS)—currently in its pilot phase—is a critical step toward equitable protection for garment workers. But scaling it effectively across the entire industry will require strong collaboration between the government, factory owners, and worker representatives.
Why Employment Injury Protection Matters
Workplace safety in Bangladesh has come a long way since the Rana Plaza tragedy. Yet, accidents still happen—ranging from machine injuries to fires. In 2023, nearly 1,200 workers in the Ready-Made Garment (RMG) sector were affected by workplace injuries, often receiving only basic medical care and little to no long-term support (ILO report, 2023).
Without a proper and ongoing system to protect injured workers, many:
- Fall into poverty due to lost income
- Face legal challenges when seeking compensation
- Are treated unfairly when trying to return to work
Across all sectors in Bangladesh, thousands of workers died, and hundreds were injured. The RMG sector alone saw a notable portion of these cases (OSHE, 2023; Safety and Rights Society, 2023). Although transport and construction had higher numbers, the RMG sector’s impact is critical because it employs millions—especially women—and drives the national economy.
These numbers show why employment injury protectionis essential.
What Is the Employment Injury Scheme (EIS)?
The Employment Injury Scheme (EIS) is Bangladesh’s first structured pilot initiative to provide comprehensive compensation and protection for workers affected by workplace injuries in the Ready-Made Garment (RMG) sector. Officially launched on 21 June 2022, the pilot was developed through a collaboration between the Government of Bangladesh (GOB), the International Labour Organization (ILO), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), with funding from the Netherlands and Canada including: The pilot consists of two main components:
- Data Gathering and Capacity Building
- Focuses on collecting reliable data on occupational accidents and diseases.
- Strengthens medical and administrative capacity in selected factories.
- Covers 150 representative factories with a minimum of 150,000 workers, selected to ensure geographic and size diversity (15% large, 50% medium, 35% small)
- Risk-Sharing for Long-Term Benefits
- Provides ILO-compliant compensation for permanent disability and death.
- Includes monthly wage replacement, medical care, and rehabilitation services.
To align with ILO Convention No. 121, which mandates sustained income support for injured workers—including at least 60% wage replacement and benefits for dependents in case of death—the Employment Injury Scheme (EIS) supplements existing lump-sum payments from the Central Fund, a pooled financial resource designed to ensure consistent compensation across the sector.
The scheme is overseen by a Tripartite Committee, comprising representatives from the government, employer associations (BGMEA, BKMEA), and worker federations (IBC, NCCWE). This inclusive governance model ensures transparency and shared accountability. The Central Fund maintains a dedicated account for EIS operations, reinforcing financial integrity and traceability.
Designed as a steppingstone, the pilot aims to evolve into a national wage-based insurance system by 2028, with full employer contributions and robust institutional oversight—marking a significant shift toward sustainable and equitable injury protection in Bangladesh’s RMG sector
Successes of the Pilot
The pilot phase of the Employment Injury Scheme (EIS) in Bangladesh has demonstrated promising outcomes, as highlighted in the 2024 evaluation by the International Labour Organization (ILO) (e.g., “ILO, 2024, Employment Injury Scheme Evaluation Report”). This initiative, designed to provide structured compensation for workplace injuries in the ready-made garment (RMG) sector, has already made a tangible impact.
- Over 30 verified cases—including both fatalities and partial permanent disabilities—were successfully processed under the scheme. Each case received full wage replacement, ensuring financial stability for affected workers and their families.
- Timely compensation has been a hallmark of the pilot, with payouts delivered within 30 to 45 days of claim approval.
The pilot has also fostered a positive shift in worker behavior, with many reporting increased confidence in reporting workplace accidents. A key factor in the pilot’s success has been strong social dialogue. Most notably, the ILO’s 2024 evaluation found that the EIS reduced wage loss by up to 80% for affected workers compared to traditional mechanisms. This underscores the scheme’s effectiveness in safeguarding livelihoods and promoting decent work standards.
Challenges to Scaling EIS Nationally
While the pilot phase of the EIS has shown encouraging results, scaling it across Bangladesh’s entire RMG sector presents several structural and operational challenges:
Coverage: Pilot still covers <5% of total RMG workforce
Awareness: Worker’s awareness or know-how about access to the scheme
Employer Concerns: Cost-sharing & administrative structure
Legal Framework: Anchoring in Bangladesh’s labor laws
Path Forward: Scaling with Equity
To build a truly inclusive and resilient EIS, Bangladesh must take deliberate steps that balance ambition with fairness:
Legal Institutionalization: The EIS must be embedded within the Labour Act, with clear provisions on contributions, eligibility, and oversight. This will provide legal certainty and encourage broader adoption.
Tripartite Management Board: A governing body comprising government, industry, and union representatives can ensure transparency, accountability, and responsiveness to stakeholder needs.
Tiered Contribution Model: To avoid excluding smaller factories, a subsidized contribution structure should be introduced—allowing micro and small enterprises to participate without financial strain.
Awareness & Training Programs: Targeted campaigns and workshops for workers and managers can demystify the claim process and promote a culture of safety and rights awareness.
Digital Integration: Linking EIS with worker databases and factory records can streamline injury reporting, reduce fraud, and enable faster fund disbursement.
A Moral and Economic Imperative
Employment injury protection is more than a compliance measure—it’s a pillar of ethical manufacturing. It builds trust, reduces workplace unrest, and signals global leadership in labor standards. As international buyers increasingly demand proof of post-injury support, a national EIS becomes not just a social good—but a competitive advantage..
Data Trust & its Relevance to EIS
As Bangladesh explores the national scaling of the Employment Injury Scheme (EIS), the concept of a data trust emerges as a critical enabler of transparency, efficiency, and worker protection.
A data trust is a structured legal and technical framework where sensitive data is managed by a neutral, trusted entity—often composed of multiple stakeholders. Its purpose is to ensure that data is collected, stored, and shared ethically, securely, and transparently, with a strong emphasis on user rights, privacy, and accountability.
In the context of EIS, a data trust could serve as the backbone for managing worker-related data—including injury reports, compensation claims, and factory safety records. This would not only support the scheme’s operational integrity but also build confidence among workers and employers alike. Key benefits include:
- Streamlined Claims Processing: Centralized and verified data can reduce delays and errors in compensation disbursement.
- Transparency & Accountability: Audit trails and tamper-proof technologies can ensure that every claim is traceable and fair.
- Data Safeguards: Worker information can be protected through encryption, access controls, and consent-based sharing protocols.
By embedding a data trust into the EIS infrastructure, Bangladesh can create a resilient and rights-based system that upholds the dignity of workers while meeting the demands of modern governance and global compliance.
Final Thought
Expanding the Employment Injury Scheme (EIS) is not merely a matter of increasing coverage—it’s a commitment to recognizing the worth of every worker. In times of crisis, laborers need more than compassion; they need structured, reliable protection. A nationwide EIS would reflect Bangladesh’s RMG sector’s dedication not just to economic progress, but to fairness, resilience, and human dignity.
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Author: Md. Mahfuz Ul Bashar
The backbone of Bangladesh’s economic engine—the RMG sector—owes its strength to its vast and dedicated workforce. Yet for years, this labor force has remained vulnerable to workplace injuries, accidents, and unforeseen life disruptions, with limited access to structured compensation or long-term protection.
That is beginning to change. The Employment Injury Scheme (EIS)—currently in its pilot phase—is a critical step toward equitable protection for garment workers. But scaling it effectively across the entire industry will require strong collaboration between the government, factory owners, and worker representatives.
Why Employment Injury Protection Matters
Workplace safety in Bangladesh has come a long way since the Rana Plaza tragedy. Yet, accidents still happen—ranging from machine injuries to fires. In 2023, nearly 1,200 workers in the Ready-Made Garment (RMG) sector were affected by workplace injuries, often receiving only basic medical care and little to no long-term support (ILO report, 2023).
Without a proper and ongoing system to protect injured workers, many:
- Fall into poverty due to lost income
- Face legal challenges when seeking compensation
- Are treated unfairly when trying to return to work
Across all sectors in Bangladesh, thousands of workers died, and hundreds were injured. The RMG sector alone saw a notable portion of these cases (OSHE, 2023; Safety and Rights Society, 2023). Although transport and construction had higher numbers, the RMG sector’s impact is critical because it employs millions—especially women—and drives the national economy.
These numbers show why employment injury protectionis essential.
What Is the Employment Injury Scheme (EIS)?
The Employment Injury Scheme (EIS) is Bangladesh’s first structured pilot initiative to provide comprehensive compensation and protection for workers affected by workplace injuries in the Ready-Made Garment (RMG) sector. Officially launched on 21 June 2022, the pilot was developed through a collaboration between the Government of Bangladesh (GOB), the International Labour Organization (ILO), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), with funding from the Netherlands and Canada including: The pilot consists of two main components:
- Data Gathering and Capacity Building
- Focuses on collecting reliable data on occupational accidents and diseases.
- Strengthens medical and administrative capacity in selected factories.
- Covers 150 representative factories with a minimum of 150,000 workers, selected to ensure geographic and size diversity (15% large, 50% medium, 35% small)
- Risk-Sharing for Long-Term Benefits
- Provides ILO-compliant compensation for permanent disability and death.
- Includes monthly wage replacement, medical care, and rehabilitation services.
To align with ILO Convention No. 121, which mandates sustained income support for injured workers—including at least 60% wage replacement and benefits for dependents in case of death—the Employment Injury Scheme (EIS) supplements existing lump-sum payments from the Central Fund, a pooled financial resource designed to ensure consistent compensation across the sector.
The scheme is overseen by a Tripartite Committee, comprising representatives from the government, employer associations (BGMEA, BKMEA), and worker federations (IBC, NCCWE). This inclusive governance model ensures transparency and shared accountability. The Central Fund maintains a dedicated account for EIS operations, reinforcing financial integrity and traceability.
Designed as a steppingstone, the pilot aims to evolve into a national wage-based insurance system by 2028, with full employer contributions and robust institutional oversight—marking a significant shift toward sustainable and equitable injury protection in Bangladesh’s RMG sector
Successes of the Pilot
The pilot phase of the Employment Injury Scheme (EIS) in Bangladesh has demonstrated promising outcomes, as highlighted in the 2024 evaluation by the International Labour Organization (ILO) (e.g., “ILO, 2024, Employment Injury Scheme Evaluation Report”). This initiative, designed to provide structured compensation for workplace injuries in the ready-made garment (RMG) sector, has already made a tangible impact.
- Over 30 verified cases—including both fatalities and partial permanent disabilities—were successfully processed under the scheme. Each case received full wage replacement, ensuring financial stability for affected workers and their families.
- Timely compensation has been a hallmark of the pilot, with payouts delivered within 30 to 45 days of claim approval.
The pilot has also fostered a positive shift in worker behavior, with many reporting increased confidence in reporting workplace accidents. A key factor in the pilot’s success has been strong social dialogue. Most notably, the ILO’s 2024 evaluation found that the EIS reduced wage loss by up to 80% for affected workers compared to traditional mechanisms. This underscores the scheme’s effectiveness in safeguarding livelihoods and promoting decent work standards.
Challenges to Scaling EIS Nationally
While the pilot phase of the EIS has shown encouraging results, scaling it across Bangladesh’s entire RMG sector presents several structural and operational challenges:
Coverage: Pilot still covers <5% of total RMG workforce
Awareness: Worker’s awareness or know-how about access to the scheme
Employer Concerns: Cost-sharing & administrative structure
Legal Framework: Anchoring in Bangladesh’s labor laws
Path Forward: Scaling with Equity
To build a truly inclusive and resilient EIS, Bangladesh must take deliberate steps that balance ambition with fairness:
Legal Institutionalization: The EIS must be embedded within the Labour Act, with clear provisions on contributions, eligibility, and oversight. This will provide legal certainty and encourage broader adoption.
Tripartite Management Board: A governing body comprising government, industry, and union representatives can ensure transparency, accountability, and responsiveness to stakeholder needs.
Tiered Contribution Model: To avoid excluding smaller factories, a subsidized contribution structure should be introduced—allowing micro and small enterprises to participate without financial strain.
Awareness & Training Programs: Targeted campaigns and workshops for workers and managers can demystify the claim process and promote a culture of safety and rights awareness.
Digital Integration: Linking EIS with worker databases and factory records can streamline injury reporting, reduce fraud, and enable faster fund disbursement.
A Moral and Economic Imperative
Employment injury protection is more than a compliance measure—it’s a pillar of ethical manufacturing. It builds trust, reduces workplace unrest, and signals global leadership in labor standards. As international buyers increasingly demand proof of post-injury support, a national EIS becomes not just a social good—but a competitive advantage..
Data Trust & its Relevance to EIS
As Bangladesh explores the national scaling of the Employment Injury Scheme (EIS), the concept of a data trust emerges as a critical enabler of transparency, efficiency, and worker protection.
A data trust is a structured legal and technical framework where sensitive data is managed by a neutral, trusted entity—often composed of multiple stakeholders. Its purpose is to ensure that data is collected, stored, and shared ethically, securely, and transparently, with a strong emphasis on user rights, privacy, and accountability.
In the context of EIS, a data trust could serve as the backbone for managing worker-related data—including injury reports, compensation claims, and factory safety records. This would not only support the scheme’s operational integrity but also build confidence among workers and employers alike. Key benefits include:
- Streamlined Claims Processing: Centralized and verified data can reduce delays and errors in compensation disbursement.
- Transparency & Accountability: Audit trails and tamper-proof technologies can ensure that every claim is traceable and fair.
- Data Safeguards: Worker information can be protected through encryption, access controls, and consent-based sharing protocols.
By embedding a data trust into the EIS infrastructure, Bangladesh can create a resilient and rights-based system that upholds the dignity of workers while meeting the demands of modern governance and global compliance.
Final Thought
Expanding the Employment Injury Scheme (EIS) is not merely a matter of increasing coverage—it’s a commitment to recognizing the worth of every worker. In times of crisis, laborers need more than compassion; they need structured, reliable protection. A nationwide EIS would reflect Bangladesh’s RMG sector’s dedication not just to economic progress, but to fairness, resilience, and human dignity.