In 1972, a workmen compensation system for work related illness and injuries was incorporated into the Labors Act and the Workmen Compensation Fund was set up in 1874.
In 1990, while the economy of the country was expanding, the parliament passed the new Social Security Act that covers 7 benefits for workers in the formal private sectors, i.e.
(a) medical benefits for non-work related illness or injuries,
(b) maternity benefits,
(c) invalidity benefits,
(d) death benefits,
(e) old age benefits,
(f) unemployment benefits, and
(g) children allowance benefits.
The first four benefits were implemented immediately within 6 month (June 1991). From this act, the Social Security Office (SSO) was set up in the Ministry of Interior, and was later integrated with other departments to form the Ministry of Labour and Social Welfare. The SSO also looks after the Workmen Compensation Fund. During the first two years of implementation. Social Security Scheme covered enterprises with 20 or more workers. In September 1993, it began to cover enterprises with 10-19 workers. In 1994, the scheme allows workers who terminate their eligibility due to unemployment to become voluntary insurers.
