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<h1>Social Security Programs Throughout the World: Asia and the Pacific, 2016</h1>
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<h1>Bhutan</h1>
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<div class="exchangeRate">Exchange rate: <abbr class="spell">US</abbr>$1.00 = 66.95 Bhutanese Ngultrums.</div>
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<h2>Old Age, Disability, and Survivors</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First and current laws:</span> 1976 (royal command) and 2007 (employment and labor act).</p>
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<p><span class="h4">Type of program:</span> Provident fund system.</p>
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<h3>Coverage</h3>
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<p>Persons employed for at least one year in firms with at least five employees.</p>
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<p>Exclusions: Self-employed persons and family labor.</p>
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<p>Special system for military personnel, civil servants, and employees of public corporations.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> At least 5% of monthly basic earnings.</p>
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<p>There are no minimum and maximum earnings used to calculate contributions.</p>
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<p><span class="h4">Self-employed:</span> Not applicable.</p>
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<p><span class="h4">Employer:</span> At least 5% of monthly basic earnings.</p>
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<p>There are no minimum and maximum earnings used to calculate contributions.</p>
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<p><span class="h4">Government:</span> None.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Old-age benefit:</span> Age 56 with at least five years of contributions; at any age if employment ceases involuntarily.</p>
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<p><span class="h4">Disability benefit:</span> Assessed with a total loss of working capacity due to a work- or nonwork-related illness or injury and has at least five years of contributions.</p>
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<p>Employment must cease.</p>
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<p><span class="h4">Survivor benefit:</span> Paid when a fund member dies before withdrawing the full account balance.</p>
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<p>Eligible survivors include a <span class="nobr">widow(er),</span> legitimate children, parents, and persons named by the deceased.</p>
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<h3>Old-Age Benefits</h3>
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<p><span class="h4">Old-age benefit:</span> A lump sum of total employee and employer contributions plus accrued interest minus drawdown payments is paid.</p>
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<p>Drawdown payment: Up to 50% of the balance of total employee and employer contributions plus accrued interest may be withdrawn after five years of continuous contributions. Subsequent withdrawals are possible after additional <span class="nobr">five-year</span> periods of continuous contributions.</p>
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<p>With less than five years of contributions, a lump sum of total employee contributions plus accrued interest is paid.</p>
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<h3>Permanent Disability Benefits</h3>
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<p><span class="h4">Disability benefit:</span> A lump sum of total employee and employer contributions plus accrued interest minus drawdown payments is paid.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor benefit:</span> A lump sum of total employee and employer contributions plus accrued interest minus drawdown payments is split among eligible survivors in proportions determined by the deceased.</p>
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<h3>Administrative Organization</h3>
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<p>Ministry of Labour and Human Resources (http://www.molhr.gov.bt/molhr/) provides general supervision.</p>
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<p>Royal Insurance Corporation of Bhutan (RICB) (https://www.ricb.com.bt/) and administers the provident fund.</p>
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<h2>Sickness and Maternity</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First and current laws:</span> 2007 (employment and labor) and 2008 (constitution).</p>
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<p><span class="h4">Type of program:</span> Employer-liability (cash sickness and maternity benefits) and universal (medical benefits) system.</p>
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<h3>Coverage</h3>
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<p><span class="h4">Cash maternity and cash sickness benefits (employer liability):</span> Employed persons.</p>
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<p>Exclusions: Self-employed persons.</p>
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<p><span class="h4">Medical benefits (universal):</span> Citizens of Bhutan.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person</span></p>
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<p><span class="h5">Cash benefits:</span> None.</p>
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<p><span class="h5">Medical benefits:</span> None.</p>
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<p><span class="h4">Self-employed person</span></p>
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<p><span class="h5">Cash benefits:</span> Not applicable.</p>
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<p><span class="h5">Medical benefits:</span> None.</p>
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<p><span class="h4">Employer</span></p>
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<p><span class="h5">Cash benefits:</span> The total cost.</p>
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<p><span class="h5">Medical benefits:</span> None.</p>
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<p><span class="h4">Government</span></p>
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<p><span class="h5">Cash benefits:</span> None.</p>
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<p><span class="h5">Medical benefits:</span> The total cost.</p>
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<h3>Qualifying Conditions</h3>
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<p><span class="h4">Cash sickness benefits (employer liability):</span> Must have worked at least six consecutive months before the incapacity began.</p>
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<p><span class="h4">Cash maternity benefits (employer liability):</span> Must have worked at least five consecutive months before the expected date of childbirth.</p>
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<p><span class="h4">Medical benefits (universal):</span> There is no minimum qualifying period.</p>
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<h3>Sickness and Maternity Benefits</h3>
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<p><span class="h4">Cash sickness benefits (employer liability):</span> 100% of the employee's earnings is paid for up to five days a year.</p>
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<p><span class="h4">Cash maternity benefits (employer liability):</span> 100% of the employee's earnings is paid for at least eight weeks.</p>
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<h3>Workers' Medical Benefits</h3>
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<p>Government health centers provide free essential health care services.</p>
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<h3>Dependents' Medical Benefits</h3>
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<p>Medical benefits for dependents are the same as those for the insured.</p>
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<h3>Administrative Organization</h3>
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<p><span class="h4">Cash sickness and maternity benefits:</span> Ministry of Labour and Human Resources (http://www.molhr.gov.bt/molhr/) provides general supervision.</p>
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<p><span class="h4">Medical benefits:</span> Ministry of Health (http://www.health.gov.bt/) provides general supervision.</p>
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<p>Government hospitals and health facilities deliver medical benefits.</p>
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<h2>Work Injury</h2>
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<h3>Regulatory Framework</h3>
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<p><span class="h4">First law:</span> 1994 (workmen's compensation).</p>
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<p><span class="h4">Current law:</span> 2007 (employment and labor).</p>
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<p><span class="h4">Type of program:</span> Employer-liability system through a public carrier.</p>
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<h3>Coverage</h3>
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<p>Persons employed in firms with at least five employees.</p>
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<p>Exclusions: Self-employed persons.</p>
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<h3>Source of Funds</h3>
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<p><span class="h4">Insured person:</span> None.</p>
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<p><span class="h4">Self-employed person:</span> Not applicable.</p>
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<p><span class="h4">Employer:</span> The total cost (provides benefits directly or pays insurance premiums).</p>
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<p><span class="h4">Government:</span> None.</p>
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<h3>Qualifying Conditions</h3>
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<p>Must have been employed for at least one year (temporary disability benefit) or have at least five years of continuous contributions (permanent disability benefit).</p>
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<h3>Temporary Disability Benefits</h3>
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<p>70% of the employee's earnings (excluding overtime payments and allowances) in the last month before the disability began is paid for up to five years, or until the employee returns to work or receives a permanent disability benefit from another system, whichever is earlier.</p>
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<h3>Permanent Disability Benefits</h3>
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<p>A lump sum of approximately one year of the national minimum wage is paid if the employee is still unable to return to work after five years.</p>
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<p>The national minimum daily wage is 234 ngultrums.</p>
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<h3>Workers' Medical Benefits</h3>
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<p>Benefits include the total cost of necessary treatment not provided by government health clinics.</p>
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<p>Government health clinics provide free essential health care services.</p>
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<h3>Survivor Benefits</h3>
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<p><span class="h4">Survivor pension:</span> 70% of the deceased's earnings (excluding overtime payments and allowances) in the last month before death is paid to a <span class="nobr">widow(er),</span> legitimate children, and parents. Eligible survivors must have been partly or wholly dependent on the deceased.</p>
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<p><span class="h4">Survivor lump sum:</span> A lump sum of 1,080 days of the national minimum wage is paid to a <span class="nobr">widow(er),</span> legitimate children, and parents. Eligible survivors must have been partly or wholly dependent on the deceased.</p>
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<p>The national daily minimum wage is 234 ngultrums.</p>
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<h3>Administrative Organization</h3>
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<p>Ministry of Labour and Human Resources (http://www.molhr.gov.bt/molhr/) provides general supervision.</p>
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<p>Bhutan Insurance Ltd. (BIL) (<a href="https://www.bil.bt/">http://www.bhutaninsurance.com.bt/</a>) administers the program.</p>
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<h2>Family Allowances</h2>
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<h3>Regulatory Framework</h3>
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<p>His Majesty Kidu Office administers a constitutionally mandated welfare (Kidu) system consisting of cash and <span class="nobr">in-kind</span> benefits to Bhutanese citizens. Must be assessed as needy, disabled, landless, or be a child with no source of income to attend school.</p>
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