By Arju Afrin Kathy

Social insurance represents a transformative and relatively new pillar of Bangladesh’s social protection architecture. Under the National Social Security Strategy (NSSS), the Social Insurance Cluster, coordinated by the Finance Division, is tasked with shifting the system from a predominant reliance on non- contributory allowance programs toward contributory insurance mechanisms. This transition is particularly significant in a labour market where nearly 75 percent of the workforce is engaged in informal employment, underscoring both the scale of the challenge and the opportunity for inclusive social protection reform. The cluster seeks to establish a sustainable social insurance system tailored to Bangladesh’s socio-economic context, gradually expanding coverage from the formal sector to informal workers nationwide and providing long-term income security during health, employment, and old-age risks. By complementing allowance-based programs, the cluster enhances risk pooling, financial sustainability, and shared responsibility.