social security

1. SOCIAL SECURITY IN INDIA

2. Protection Provided by the
society
Through series of
public measure
Social
Security
Against Social and EconomicDistress
• Sickness
• Maternity
• Injury or Disablement
• Unemployment
• Old age
• Death

3. Social Security
o India has always had a joint family system that took care of social security needs of all
members.
o Social Securities can be provided by Institutional and non Institutional agencies.
o India is a good example of having non-institutional form of social security measures in
the world.
o its own social security system- because of Self sufficient Village Economy, Joint
Family System & caste system.
o It had a religious backing also.

4. Concept of Social Security
• Social security systems ensure the minimum level of living to the needy by public
assistance, and they also promote public health and social welfare.
• Social security has a powerful impact at all levels of society. It provides workers and
their families with access to health care and with protection against loss of income
• It provides older people with income security in their retirement years
• For employers and enterprises, social security helps maintain stable labor relations
and a productive workforce

5. Why We Need of Social Security
 Most of the rural and informal sector workers in the world do not have any social security measures.
 In India almost 90% of families earn their livelihood from the unorganized sector.
 Needs that necessitates social security :
 Physical risks: Sickness, old age, maternity, accidents, death.
 Economic risks : Unemployment
 Economic burden of larger family
 Toguarantee at least long-term sustenance to families when the earning member retires, dies or suffers a
disability.
 Help people to plan their own future through insurance and assistance.
 To prevent deprivation, assure the individual of a basic minimum income for himself and his
dependents and to protect the individual from any uncertainties
 To protect entire family (dependents) by giving benefit packages in financial security
and health care.

6. Types of social security : social security is of two types
 Social assistance : A method to provide benefits to persons usually for
the vulnerable groups of community ( Children, mothers, disabled, old
age people etc.) from general revenues of the state. It is non-
contributory from employer side.
 Social insurance: A method to provide benefits to person through
contributions of beneficiaries with contribution/subsidies from
employer and state.

7. .
SOCIAL ASSISTANCE SOCIAL INSURANCE
• Non-contributory • Financed by contributions
• Receive benefits either in cash or in-kind
(food aid)
• Worker is actively involved in economic
planning for his future
• Involves a feeling of charity, sympathy • Inculcates a sense of responsibility for
future planning
• Designed to supplement the incomes of
particularly vulnerable groups (elderly and
disabled)
• Provide for various contingencies that
interrupt or stop earnings
• Example:
1. National old age pension scheme
2. National family benefit scheme
3. National maternity benefit scheme
• Example:
1. ESI scheme
2. Contributory provident fund scheme
3. LIC schemes

8. Workmen’s
Compensation
Act
Trade Unions
Act
Payment of
Wages Act
The Factories
Act
The
Employees’
State
Insurance Act
1923
1926
1936
1948
1948

9. Minimum
Wages Act
Employees’
Provident Fund
and Misc.
Provisions Act
Maternity
Benefit Act
Apprentices
Act
Payment of
Bonus Act
1948
1952
1961
1961
1965

10. Contract
Labour(Regulation
and Abolition)Act
Payment of
Gratuity Act
Equal
RemunerationAct
Child
Labour(Prohibition
and Regulation)Act
Sexual Harassment
at
Workplace(Preventi
on, Prohibition and
Regulation) Act
1970
1972
1976
1986
2013

11. Social security in India
Organised sector –
defined as workers who are having a direct regular employer-employee relationship
within a organization
Unorganised sector –
The unorganized sector workers are those who have not been able to pursue their
common interests due to constraints like casual nature of employment, invariably
absence of definite employer-employee relationship, ignorance, illiteracy, etc.

12. Workforce in India
 According to NSSO Survey2011-2012
 Total workforce
 organized sectors
 unorganized sectors -
- 474.23 million
- 81.92 million
392.31 million
 Composition of workforce in organized sector
Public Sector
Private sector
-- 37.18 million
-- 44.74 million
 Workforce Participation In India- Rural 39.9 % and Urban 35.5,
 Maharashtra – Rural 48.6 %, Urban- 36.5%
total workforce
17.3
82.7
unorganised
organised

13.  Social Security measure In India: Scheme for OrganisedSector
 Includes establishments covered by the Factories Act, 1948, the Shops and Commercial
Establishments Acts of the States, Industrial Employment Standing Orders Act, 1946, etc.
 It has a structure through which social security benefits are extended to workers Provided
through following acts:
ESI Act,
EPF & MP Act,
Workmen’s’ Compensation Act,
Maternity Benefit Act,
Payment of Gratuity Act.
Factories act
Minimum wages act

14.  Scheme for organised sector : Employees’ State InsuranceAct,
1948
Medical Sickness Disablement Dependants benefit Other
• Full medical care is
provided to an
insured person
and his family.
• Medical care is
also provided to
retired and
permanently
disabled insured
persons and their
spouses on
payment of a
token annual
premium of
rs.120/-
• Cash
compensation at
the rate of 70 per
cent of wages, for
a max of 91 days
in a year.
• Worker is required
to contribute for
78 days in 6
months.
• Temporary
disablement : in
case of
employment
injury. - 90% of
wage.
• Permanent
disablement : 90%
of wage in the
form of monthly
payment
depending upon
the extent of loss
of earning
capacity
• Death occurs due
to employment
injury or
occupational
hazards
• 90% of wage in
the form of
monthly payment..
• Funeral expenses
: an amount of
rs.10,000/-
• Vocational
rehabilitation
• Physical
rehabilitation : in
case of physical
disablement due
to employment
injury.
• Old age medical
care

15.  The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act)
Basically meant for security of workers after their retirement.
It provides for lump sum payment of provident fund, monthly pension and deposit linked
insurance.
Covers 187 specific scheduled factories and establishments employing 20 or more
employees
 The Employees’ Provident Fund & Miscellaneous Provisions (Amendment) Act, 1996 :
was made on 16th Nov 1995, : for the word "family pension fund“ the Word "Pension
Fund” shall be substituted

16.  The Workmen’s Compensation Act, 1923
Act takes care of two contingencies namely disablement due to employment injury and
death due to employment injury.
A lump sum compensation amount is paid to the disabled worker or the dependants as
the case may be during both the contingencies.
The Workmen’s Compensation Act is not applicable to those workers who are covered by
the ESI Act.

17.  Maternity benefit act, 1961
Extends to the whole of India
Entitled for paid holidays not exceeding 12 weeks in the case of maternity and during this
period they are eligible to receive full wages.
Woman should have worked for period of not less than 160 days in the 12 months
immediately preceding the date of her expected delivery
Maternity Benefits (Amendment)Act, 2017 : 27th March2017
In the principal Act, in section 5,— (A) in sub-section (3)— (i) for the words ‘‘twelve weeks
of which not more than six weeks’’, the words ‘‘twenty-six weeks of which not more than
eight weeks’’ shall be substituted.
‘‘Provided that the maximum period entitled to maternity benefit by a woman having two
or more than two surviving children shall be twelve weeks of which not more than six weeks
shall precede the date of her expected delivery;’’;

18.  Minimum wages Act
To promote welfare of workers by fixing min rates of wages in certain industries
because in many industries where labor is not organised.
Toprevent exploitation of workers
Minimum wages has to be paid without any deductions
Payment of wages less than minimum wages on the ground of performance or
output is illegal
Working hours should not exceed more than 48 hrs/week with a holiday
Not more than 9 hrs/day with 1 hr rest in between
If person works more than 48hr/week than extra hrs are considered overtime and
overtime payment is double the wage

19. Minimum Wages : As per 3rd March2017
Schedule of Employments
Minimum rates of wages inRupees
category of
Workmen/Employe
es Per Month
Per Day
All Schedule employments Unskilled 13,350/- 513/-
Semi skilled 14,698/- 565/-
Skilled 16,182/- 622/-
Clerical and supervisorystaff
Non Matriculate 14,698/- 565/-
Matriculate but 16,182/- 622/-
not Graduate
Graduate and 17,604/- 677/-
above

20.  Unorganised Sector
The unorganized sector workers are those who have not been able to pursue their
common interests due to constraints like casual nature of employment, invariably absence
of definite employer-employee relationship, ignorance, illiteracy, etc.
Are also generally low paid and a majority of them are devoid of any of the social security
benefits like life and medical insurance, health care, maternity benefits, and old age
pension etc.

21.  Category of Unorganised Sector :
1) Occupation: Small and marginal farmers, landless agricultural labourers, fishermen,
those engaged in animal husbandry, beedi workers, building and construction workers,
etc.
2) Nature of Employment: Attached agricultural labourers, bonded labourers migrant
workers, contract and casual labourers
3) Specially distressed categories: Scavengers, carriers of head loads, drivers of animal
driven vehicles, loaders and unloaders
4) Service categories: Midwives, domestic workers, fishermen ,barbers, vegetable and fruit
vendors, newspapers vendors etc

22.  Scheme for unorganised sector
Scheme Eligibility Fund Benefit
Varishtha pensionbima
yojana(2003-04)
Indian citizens aged55
years and above
Only single premium
is payable
•Monthly pension-
rs 250-2000
• Loan facility available
National rural
employment guarantee
scheme (2005)
Any adult member
volunteer to do unskilled
work
Governmentaided
scheme
Atleast 100 days of guaranteed
wage employment in every
financial year to everyhousehold
National social
assistance
program(1995)
Needy elderly personsand
poor households on the
death of the primary
breadwinner.
Employee-none
Employer-none
Government-100%
• Old age pension scheme
• Family benefit scheme
• maternity benefit scheme
Unorganized sector
social securityscheme
(2004)
•Voluntary
•Age 36-50yrs
•Monthly income < rs
6500
Income relatedand
flat rate
Triple benefit-
•Pension scheme
•Personal accident insurance
•Medical insurance

23.  Unorganized Workers Social Security Bill, 2008
Ministry of labour & Employment has enacted the Unorganised workers social security
Act,2008.
Govt of India has approved a proposal for convergence of 3 major social Security Scheme
for Unorganised workers on a single smart card platform –
RSBY, AABY, IGNOAPS for old age protection

24.  Unorganised Sector Rashtriya Swasthya Bima Yojana,2008
Initially designed to target only the BPL households, but has been expanded to cover -
Building and other construction workers, Licensed Railway Porters , Street Vendors,
Beedi Workers , Domestic Workers, Mine Workers, Rickshaw pullers, Rag pickers,
Auto/Taxi Driver and MNREGA Workers,
Covers all BPL unorganized sector workers and their families (of five member )
Beneficiary will be required to pay Rs 30 per annum as registration/ renewal fee.
Prescribed premium of Rs 750 per member-family will be borne by the Central and State
Governments in the ratio of 75:25.
Benefits -
cashless attendance to all covered ailments;
Hospitalization expenses, taking care of most common illnesses,
all pre-existing diseases to be covered,
 transportation costs subject to prescribed limits payable to the beneficiary.

25. Newer Initiatives : Pradhanmantri Jan DhanYojana
• To ensure access to financial services, namely, Banking/ Savings & Deposit Accounts,
Remittance, Credit, Insurance, Pension in an affordable manner.
• Under the scheme:
Account holders will be provided zero-balance bank account
After Six months of opening of the bank account, holders can avail ₹5,000 overdraft
from the bank.
A person can transfer funds, check balance through a normal phone which was earlier
limited only to smart phones so far.

26. Social Insurance Schemes
Pradan Mantri
Jeevan Bima
Yojana
• Premium Rs.330/- Year
• Coverage: Rs.200000/-
• Age group : 18-50 years
Pradhan Mantri
Suraksha Bima
Yojana
• Accident cum Death Insurance
• Coverage: Rs.200000/-
• Premium: Rs.12/- year
Atal Pension
Yojana
• Workers in unorganized sector
• Age group: 18-40
• Govt. to contribute 50% of total contribution or
Rs.1000/- for the first five years

27. The Way ahead
• Policy and laws must be framed in such a way that they are mostly
concentrated for benefits of unorganized workforce.
• Public should made aware about the social security schemes.
• Effort should be made for public private partnership.