Published : 09 Jul 2025, 03:52 AM
Updated : 21 Aug 2026, 01:29 PM
The European Union (EU) has released €23.5 million in direct budget support to Bangladesh for strengthening its social protection system and expanding coverage for vulnerable groups.
In a media statement issued from its Dhaka office on Tuesday, the EU confirmed the grant has been transferred to the national treasury.
Alongside the funding, the EU has issued a set of policy suggestions for improving the design, financing and delivery of social protection.
“This grant financing recognises progress and encourages further efforts to implement the National Social Security Strategy, notably for Bangladesh’s most vulnerable citizens, despite facing a series of challenges, including high inflation and job losses in the garment sector,” the statement read.
“The EU is Bangladesh’s long-term partner for improved social protection, a priority issue for the country’s inclusive economic development.
“Since 2019, the EU has provided €285 million in grants for social protection, including €20 million from Germany. Another €15 million is being provided to help implement reforms through technical assistance,” it added.
According to the EU, over 90 percent of social assistance payments are now made directly into citizens' accounts through digital Government-to-Person (G2P) systems.
It added that the Single Registry has linked more than 30 social safety net programmes, reducing duplication and improving targeting, which has “increased” transparency in the system.
The bloc also said a Labour Information Management System is under development and already holds data on over 650,000 workers across formal and informal sectors.
The EU noted that an Employment Injury Scheme pilot is providing lifelong pensions to workers who suffer accidents at work or during commutes, with plans to expand coverage to sectors including Export Processing Zones.
It said more than 1,200 workers from one factory have already received benefits under the government’s unemployment support programme.
EU Ambassador to Bangladesh Michael Miller said: “Social protection is about respect, dignity, and resilience. It helps people navigate life’s uncertainties.
“As Bangladesh moves toward graduation from Least Developed Country status, investing in strong and inclusive social protection systems is vital to promote prosperity, stability and social cohesion. It also helps rebuild public trust in state institutions.”
The EU urged Bangladesh to adopt a renewed National Social Security Strategy beyond 2026.
The statement said the revised strategy should prioritise improved targeting, better response to urban and climate challenges, and develop sustainable long-term financing.
The EU called for the integration of the Finance Division’s Single Registry MIS with other national databases such as Tax Identification Numbers (TIN) and savings certificate systems to strengthen the social protection system.
The bloc also supported enabling direct registration for eligible workers under the Social Protection Programme for Unemployed and Distressed Workers.
In the statement, the EU encouraged expanding contributory schemes for working-age populations and improving service delivery to ensure all citizens have adequate social protection throughout their lives.
