Result achieved

A social protection scheme to extend coverage, enhance comprehensiveness and/or increase adequacy of benefits has been adopted or reformed (Step 2)

Number of countries that have adopted or reformed social protection schemes to extend coverage, enhance comprehensiveness and/or increase adequacy of benefits (Step 2)

31.08.2019 MWI152 Public

Linked projects

RAF/17/53/IRL - Southern Africa – Social Protection Component IGSPJI

Outcome summary

The Government finalised the Regulation on The Workers Compensation Fund

Outcome achieved

The Ministry of Labour, in consultation with social partners, prepared The Workers Compensation (General) Regulations, 2018. The regulations were consulted among tripartite partners in March 2019 and finalized in August 2019. When the fund is functional by 2021 it is expected to cover around 434,000 workers in the first year of operations. The new fund to be created by the Regulations under the Workers Compensation (General) Regulations, 2018 with pooled resources of employers’ contributions, combined with benefit payments on no-fault principles are considered a big step toward fulfilling requirements of international labour standards. They will substantially improve current non-payments or delayed payment of benefits. Regulations drafted with a view to guarantee gender equality and non-discrimination principles were included on major dimensions of coverage, benefit package, financing, administration and institutional arrangements. Workers’ Compensation benefits provide measures to workers victims of adverse environmental and climate conditions.

ILO's contribution to the outcome

ILO supported tripartite consultations in three regions of Malawi in March 2019 to raise awareness and gather feedback from stakeholders on the draft regulation. Consultations were attended by 78 participants from Government, workers and employers. ILO undertook an actuarial study on the Fund reform to inform financial management and sustainability of the Fund (REF: ILO, 2019-02. Technical note - Financial assessment of a new employment injury insurance scheme in Malawi. The ILO with support from the Government of Ireland, trained 30 Ministry of Labour Workers Compensation department officials and social partners (25 officers) in the design and implementation of insurance-based work injury schemes guided by C121 in July, 2018, December 2018, and March 2019. At the same time, the ILO also undertook an actuarial study on the reform of the Fund to inform financial management and sustainability of the Fund. The ILO has reviewed regulations from the perspective of gender equality as well as non-discrimination principles. The ILO studies provide for prevention and benefits to workers who could become victims of deteriorated work conditions due to climate change, for example in the event of heat stress.

Gender equality & non-discrimination

The establishment of a universal social old age pension will provide access to pensions to all Malawians, independently of gender or other individual characteristics. The draft bill for the pensions was developed under the principles of gender equality and non-discrimination, and will benefit women. The implementation of an insurance-based Work injury scheme will improve protection of vulnerable workers and enhance the balance in work relations as more harmonious industrial relations will result once the WCF is in place, instead of the litigious cases arising anytime there are accidents and injuries that are not deemed properly compensated at the moment. The WCF will also support the work-related measures required for women in maternity.

International Labour Standard

The support for the introduction of a universal social old age pension is in line with the principle of universality and rights based social protection, as per Recommendation 202 (2012). The implementation of the Workers Compensation Fund is aligned with the ILO Minimum Standards (Social Security) Convention, 1952 (No. 102).

Social dialogue

The process of development of the universal social old age pension bill was based on dialogue between different sectors of society, which included government agencies and ministries, civil society organizations, political parties, Members of Parliament, and media. Dialogue was cross-cutting in all activities implemented in the 2018 and 2019. The ILO further ensured that the work developed around the Workers Compensation Scheme was done through tripartite consultations, promoting dialogue at national and district levels.

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