social security (part -1)

1. SOCIAL SECURITY
(part-1)
Presented by- Under guidance:
Dr. Sadhana Meena (Resident) Dr. Mahesh Verma
(prof.)
Dep. of PSM Dep. of PSM
SMS medical college SMS medical

2. Outline of presentation:
1. Definition
2. why do we need social security?
3. Evolution of social security
4. Characteristics standards of social
security
5. Protection afforded in the different
branches of social security
6. Social security in India
7. Major Steps has been taken by
GOI(legislation)
8. Example from foreign countries
9. conclusion

3. Social security:
 Defined as “security that society
furnishes through some appropriate
organisation, against certain risks to
which its members are exposed. The
risk that social security covers in most
countries are sickness, invalidity,
maternity, old age and death”.

4. Social security
 Concept of social security has been captured
in Article 22 of the Universal Declaration of
Human Rights (UN General Assembly
Resolution 21A, 1948) which pronounced
that:
 “Everyone, as a member of society, has the
right to social security and is entitled to
realization, through national effort and
international cooperation and in accordance
with the organization and resources of each
State, of the economic, social and cultural
rights indispensable for his dignity and the
free development of his personality.”

5.  At the international level, Article 22 of the
Universal Declaration of Human Rights
could be considered a core premise for
social security.

6. Why do we need social
security?
 India’s population status:
26.98
59.03
6.39
Age structure
0-14 yr
15-54
65 + yr

7. Workforce in India
 According to NSSO survey 2011-2012
o Total workforce - 474.23 million
 organised sectors – 81.92 million
 unorganised sectors- 392.31 million
o Composition of workshop in organised sector-
 Public sector - 37.18 million
 Private sector- 44.74 million
o Workforce participation in India-(census 2011)
 Rural 41.8% and Urban 35.3%
 Female 25.51% and male 53.26%
 Rajasthan – rural 47.3% and urban 32.27%
81.9
2
392.
31
organi
sed
sector
unorga
nised
sector

8. Evolution of social
security:(global scenario)
 Germany is often considered a
pioneer in social security mechanisms
and initiated a series of initiatives
including-
 worker’s compensation program
(1884),
‘sickness’ insurance program (1888),
and
social insurance program (1989).
 By early twentieth century, Germans

9. Contd..
 Around the same time, in 1897, United
Kingdom (UK) enacted Workmen’s
compensation Act, followed by National
Insurance Act, 1911.
 The government of UK had set up the first
unified social security system immediately
after the World War II.
 One of the well-known existing initiatives
based on Beveridge Plan National Health
System (NHS) of UK is considered a model
for health service delivery in modern times.

10. Contd...
 Between 1900 and 1920, the United
States of America (USA) witnessed
an evolution of the philosophy from
providing old age assistance
(‘pension’) to economic security and
finally, to ‘social security’ (economic
security with social insurance).
 The USA had enacted the ‘Social
Security Act’ which led to the start of
‘Unified National Social Insurance
System’ in 1943.

11.  France, in 1946, designed a national
social security system that covered the
entire population under a social security
umbrella.
 Around these years, the International
Labour Organization (ILO) and the
United Nations strongly and repeatedly
promoted and endorsed social security in
international laws and conventions.
 The ILO’s Declaration of 1944, which
called for effective national and
international action, cooperation and
knowledge exchange among social
security institutions, could be considered
a key milestone.

12. Contd...
 The Declaration formally recognized that
nations must be supported to extend social
security measures and provide a basic
income to all in need of such protection and
comprehensive medical care.
 In 1952, the ILO adopted the Social
Security (Minimum Standards) Convention
(No. 102), which listed contingencies to be
covered by social security.

13. Contd..
 This Convention is the flagship of all
ILO social security Conventions, as it
is the only international instrument,
based on basic social security
principles, that establishes worldwide-
agreed minimum standards for social
security.
 A report published by the ILO in 2014
estimated that only 27 per cent of the
world’s population has access to
comprehensive social security.

14. TYPES
Social security
Social assistance Social insurance

15. Types:
 Social assistance: A method to provide
benefits to person usually for the
vulnerable groups of community from
general revenues of the state, it is non
contributory. Eg. National old age
pension scheme etc
 Social insurance: A method to provide
benefits to person through contributions
of beneficiaries with
contributory/subsidies from employee
and state. Eg. ESI

16. Concept:
 Social security mechanisms have widely
been recognized as a shock absorber
and a step towards protecting people
against vulnerabilities, bridging societal
inequities, ending poverty and hunger,
and for strengthening human dignity,
social cohesion and democracy.
 Under constitution of India, social
security is an integral part which has
been also described under DPSP apart
from fundamental rights.

17. THE DIRECTIVE PRINCIPLES
OF STATE POLICY(DPSP)
 This is a robust legal framework to expand the social
security measures.
Article 41
Right to work
Right to education(now
under article 21A)
Right to public
assistance
Article 42
Human condition of
work
Maternity relief

18. Characteristics of social security
standards:
1. Universality and flexibility
 Ratification.
 Scope of the Conventions in terms
of the persons protected.
 Temporary exceptions for developing
countries.
 Method of calculating the rate of
cash benefits.

19. Contd..
2. Common principles-
 General responsibility of the State
 Participation of insured persons
 Financing of benefits
 Other questions - Right of appeal of
claimants , Suspension of benefit

20. Protection afforded in the
different branches of social
security1. Medical care.
2. Sickness benefit.
3. Unemployment benefit.
4. Old-age benefit.
5. Employment injury benefit .
6. Family benefit.
7. Maternity benefit.
8. Invalidity benefit.
9. Survivors’ benefit

21. Social security in India:
SOCIAL SECURITY
IN INDIA
ORGANISED
SECTOR
UNORGANISED
SECTOR

22. Major Steps has been taken by
GOI for providing social security:
• which requires payment of
compensation to the workman or his
family in cases of employment related
injuries resulting in death or disability.
1923
Workmen’s
compensation Act
• Was enacted in pre-independent India
with the objects of promoting social
justice among workers.
1926
Trade union Act
• Enacted, with the object of doing social
justice to workman, who were
employed in certain unorganised
employment by the capitalist classes.
1948
minimum wages
Act

23. • Is the principle legislation,
which governs the health,
safety and welfare of workers in
factories (mines & railways are
excluded).
1948
The factories
act
• Is to provide for certain benefits
to employees in case of
sickness, maternity and
employment injury and to make
provision for certain other
matters in relation thereto.
1948
The employee’s
state insurance
act

24. • (EPF & MP Act) which applies to
specific scheduled factories and
establishments employing 20 or more
employees and ensures terminal
benefits to provident fund,
superannuation pension, and family
pension in case of death during
service.
1952
Employee’s
provident fund and
misc. Provision fund
• which provides for 12 weeks
wages during maternity as well
as paid leave in certain other
related contingencies.
1961
Maternity benefit act
• Main purpose of act is to
provide practical training to
technically qualified persons in
various trade and promotion of
new skilled manpower.
1961
Apprentices act

25. • Provides for the payment of bonus to
persons employed in certain
establishments, employing 20 or more
persons, on the basis of profile or on
the basis of production or productivity
and matters connected therewith.
1965
Payment of
bonus act
• Is to regulate the employment of
contract labour in certain
establishments and to provide for its
abolition in certain circumstances and
for matters connected therewith.
1970
Contract
labour(regulation
and abolition) act
• which provides 15 days wages for
each year of service to employees
who have worked for five years or
more in establishments having a
minimum of 10 workers.
Payment of
gratuity act
1972

26. • to provide for the payment of equal
remuneration to men and women
workers and for the prevention of
discrimination, on the ground of sex,
against women in the matter of
employment and for matters
connected therewith or incidental
thereto.
1976
Equal
remuneration act
• Is to prohibit the engagement of
children in certain employments
and to regulate the conditions of
work of children in certain other
employments.
1986
Child labour act
• To provide for the social security
and welfare of the unorganised
workers.
2008
Unorganised
worker’s social
security act

27. • Establishment of
committee at workshop
for sexual harassment
complains.
2013
Sexual
harassment
at workplace

28. Example from foreign
countries
 Finland is considered to have one of the most
advanced and comprehensive social security
systems in the world.
 In Finland, all residents are covered by social
security schemes and the country has different
systems for specific populations. The residence-
based social security is financed by tax and
administered by autonomous agency.
 The employment based, earnings-related social
security is financed by contributions to private
insurance companies and pension funds, and
administered by the Finnish Centre for Pensions.
These encompass social insurance as well as
welfare provisions.

29. Summary of social security
initiatives in select Countries:
 Australia:
 Australia’s welfare system is wide ranging and in addition to
traditional recipients(retirees, spouses, children, disabled,
unemployed, sick, parents caring for their newborn, etc.), the
payments cover students, care givers (those caring for the sick) and
to the Aborigines. There is provision for additional supplementary
payments as well.
China
 The social security schemes in China are customized to the
provinces (states equivalent). The rules are promulgated by the
Central Government but local authorities decide on its administration
and specifications.
 There are number of schemes and provisions, there are a few which
are funded by employer-employee contribution and a few others are
entirely funded through contributions from the employer.
 These insurance schemes are subject to capping, i.e., the wage
ceiling for individuals capped based upon their income in the
previous year, including cap on their social security contribution.

30. Cuba
 The social security system (SSS) in Cuba is
almost universalized and major burden of
financing is borne by government. Breadth
and width of SSS is much wider than many
developed countries. In addition, Cuba has a
comprehensive free healthcare.
Japan
 Japan has a social security system which is
nearly universal. In Japan, it is mandatory for
everyone to participate in this system, at least
in principle.
 Japan also has public assistance programs to
cover basic living expenses, housing costs,
compulsory education and skill training costs,
health insurance, and funerals.

31. Philippines
 The Philippine Social Security System is a
state-run, social insurance program for
workers in the private, professional, and
informal sectors.
 There are three programmes being
administered by SSS, namely
 (a) Social Security Programme;
 (b) Medicare Programme; and
 (c) The Employees’ Compensation (EC)
Programme.
 The government employees are covered
under a separate state-pension fund
managed by the Government Service
Insurance System (GSIS).

32. Seven ways forward for India from global
implementation experience in social security:
1.Develop and agree on a roadmap for
universalization.
E.g. Aadhaar card and Jan Dhan
Yojana
2.Consider establishing an
autonomous national social security
organization.
3.Develop a social sector investment
plan with innovative financing
mechanisms.
4. Focus on solidarity as well as public
awareness and engagement.

33. Contd..
5. Consider universal health coverage (UHC) as part of
social security measures. India, annually an estimated 63
million people fall into poverty due to health related Out of
Pocket Expenditures (OOPE). People who are already below
poverty line, go deeper into poverty.
6. Proactive leadership by State governments.
7. Consider legislative and legal reforms.

34. Pictorial presentation of social
security:

35. Conclusion:
 Social security has been part of Indian
constitutional provision and prioritised to
various extent by successive governments in
India. However, these schemes continue to
remain with limited in coverage and impact.
The global learning could be used by India to
make progress towards universalization and
sustainability.
 This is possible through development of
social sector investment plan, integration of
agencies and schemes involved in these
schemes, focus on solidarity amongst people
to contribute finances for such schemes, and
leadership by Indian states.