By Thar Gyi - Jun 14, 2025
Workers at Dong Chen Handbag (Myanmar) Co., Ltd, a handbag manufacturing factory, say the factory manager stated that maternity benefit payments would only be around 70,000 kyats. A female worker with about six years of experience who inquired about support for a cesarean section said she received this response from the manager.
“They said they didn’t know when I asked about the maternity fund support. The factory manager said we have to submit it ourselves to the Social Security Office. We’ll only get around 70,000 kyats even if we’re eligible. That’s what they said,” said the worker who experienced it firsthand.
According to the 2012 Social Security Law, Chapter 5, Article 27 (a)/(b), workers are entitled to 70% of their average wage over the past year during maternity leave, and 50% of their average monthly wage for childbirth expenses. In addition, Chapter 7, Article 65 (a) of the law stipulates that workers have the right to reimbursement for expenses that were paid in advance.
“Birth-related expenses come from the money we contribute to the social security fund. We only want what's rightfully due according to the law. It's not illegal to ask. I only received 70,000 kyats for childbirth even though I’ve contributed to social security for all six years. And those with no work history don’t get anything. We want to know—are the social security offices not giving it, or is HR cutting from it?” a worker said.
Workers say the factory deducts 2,850 kyats monthly as a regular contribution to the social security fund. They said the factory does not clearly explain or settle the entitlements or compensations related to that leave, and does not publicly announce any information about it although maternity leave is allowed.
“They said half of the maternity benefit comes from the factory and the other half from the social security office. But they stop responding when we asked if the benefit is provided within the first month, we took maternity leave. They never announce when the payment will be made. They keep deducting the social security fee every month. The factory only clears about 40% of the entitlement, while the social security office says it covers 100% for leave. The factory only settles the money only in April. By that time, we can’t remember which leave period the payment is for. Some workers don’t even receive it at all,” they said.
According to a 2014 announcement by the Ministry of Labour, Employment, and Social Security, employers are required to contribute 3% of a worker’s salary toward the social security fund, while workers themselves must contribute 2%.
Dong Chen Handbag (Myanmar) Co., Ltd is a handbag manufacturing factory that manufactures international brands Zera and other bags. The factory is located on Yawatwinwun U Pho Hlaing Road, Industrial Zone 2, Dagon Seikkan Township.
