EU grants €23.5m to strengthen Bangladesh's social protection system

The European Union has disbursed €23.5 million in grant support to Bangladesh to strengthen its social protection system, reaffirming its long-standing commitment to inclusive economic growth and poverty reduction in the country.

The support, announced today (8 July) in a press release, acknowledges Bangladesh's progress in implementing the National Social Security Strategy (NSSS), while encouraging the government to push forward with key reforms to better safeguard vulnerable groups amid persistent inflation and employment challenges in key sectors like garments, reports BSS.

"Social protection is about respect, dignity, and resilience. It helps people navigate life's uncertainties," said Michael Miller, EU ambassador to Bangladesh. 

"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," he added.

Since 2019, the EU has provided €285 million in grants for Bangladesh's social protection, including €20 million from Germany. Additionally, €15 million is being used to implement reforms through technical assistance, the release stated. 

The EU also highlighted key achievements from its partnership with Bangladesh, including that more than 90% of cash benefits are now delivered directly to citizens through the government's digital Government-to-Person (G2P) payment system. 

It also noted the creation of a Single Registry covering over 30 programmes, which has improved transparency, reduced duplication, and enhanced the targeting of support.

The EU further 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.

Among the reform priorities, the EU called for better integration between the Finance Division's Single Registry Management Information System and national databases such as the Tax Identification Number (TIN) and Savings Certificate systems. 

It also recommended expanding direct registration options for unemployed individuals and strengthening contributory schemes for working-age populations.

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