Minister of Labour Agnes NyaLonje has said preparations for the establishment of the Workers’ Compensation Fund are at an advanced stage and the fund needs K10 billion to kick off its operations.

Speaking during the commemoration of World Safety and Health Day in Lilongwe yesterday, she said all the steps necessary to implement the fund are in place, including the instituting the fund’s board of trustees, which has already been oriented.

Some of the workers take part in the big walk

Said NyaLonje: “We had expected that the current national budget would include these funds, but things have not worked out in that manner. However, we are in talks with some stakeholders who are giving us hope of financing this cause.”

Through this fund, employers will be required to make periodic contributions they will tap from if their employees qualify for compensation.

NyaLonje said she was optimistic that they would secure the funds soon, adding the ministry is in talks with some stakeholders.

Employers Consultative of Malawi executive director George Khaki said in the absence of funding, it is difficult for employers to compensate aggrieved employees.

He said currently, employers are forced to use their own funds to compensate workers, risking disabling the company’s economic standing.

Said Khaki: “As employers, we need the Employee’s Compensation Fund so badly. The current situation is not good at all and has led to accumulation of cases needing compensation because often times employers fail to handle multiple compensations at once.”

The commemorations were funded by the European Union (EU) whose head of delegation Rune Skinnebach said Malawi’s laws require strengthening for the benefit of employees and the entire country.

He said: “Occupational diseases and fatal incidences cost us four percent of the gross domestic product every year. It is up to labour organisations and government to do something about these things.”

Activities on the day started with a big walk participated by stakeholders such as the EU, government representatives, companies and suppliers of safety equipment and clothing.

The Workers’ Compensation Fund is backed by the enactment of the Workers Compensation Act 24 years ago.

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