DHAKA, July 8, 2025 (BSS) - The European Union (EU) has disbursed EUR 23.5 million in grant financing to Bangladesh to bolster its social protection systems, reaffirming its long-term commitment to the country's inclusive economic development and poverty reduction efforts.

The support, announced today, recognised Bangladesh's progress in implementing the National Social Security Strategy and encourages continued reforms, particularly to protect the country's most vulnerable groups amid challenges such as high inflation and job losses in the garment sector, said a press release. 

"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.," EU Ambassador to Bangladesh Michael Miller said.

Since 2019, the EU has provided EUR 285 million in grants for Bangladesh's social protection, including EUR 20 million from Germany. 

Additionally, EUR 15 million is being used to implement reforms through technical assistance, said the release. 

The EU highlighted that its partnership has helped Bangladesh pay over 90 percent of cash benefits directly into citizens' accounts through the digital Government-to-Person system, while the launch of a Single Registry linking over 30 programmes has enhanced transparency, reduced duplication, and improved targeting.

A Labour Information Management System, now under development, has already registered data for over 650,000 workers across formal and informal sectors, while the Employment Injury Scheme pilot is providing lifelong pensions in cases of workplace or commuting accidents and is expanding to cover export processing zones.

In a milestone under the government's unemployment support programme, over 1,200 unemployed workers from one factory have received benefits for the first time, the EU noted.

The EU encouraged the Bangladesh government to adopt a renewed National Social Security Strategy beyond 2026, focusing on better targeting, responsiveness to urban and climate challenges, and sustainable financing solutions.

Key reform priorities highlighted include linking the Finance Division's Single Registry MIS with national databases such as the Tax Identification Number (TIN) and Savings Certificate systems, enhancing the unemployment support programme to enable direct registration for eligible individuals, and strengthening contributory schemes for working-age populations.

The EU also underscored the importance of addressing macroeconomic and public financial management challenges, notably through enhanced domestic revenue mobilisation, and called for continued protection of human rights and stronger policy oversight by civil society actors.

The EU's support for Bangladesh's social protection is part of its Global Gateway strategy and the Team Europe Initiative on Decent Work, which mobilises more than 50 programmes and EUR 500 million in funding to promote labour rights, skills, and social protection in Bangladesh.