Social Security

Introduction

Social security is the protection given by society to its members
against contingencies of modern life such as sickness,
unemployment, old age, invalidity, industrial accidents, etc.
The basic purpose of social security is to protect people of small
means from risks which impair a persons ability to support himself
and his family.
Social security is an attack on five giants that affect workers
wants, disease, ignorance, squalor and idleness.

Types

Social security benefits are provided in two
major ways in India:
Social insurance
Social assistance

Social Security in India

The social security schemes in India cover only
a very small segment of the workers.
The workers employed in the public sector, are
provided with a budget financed medical and
old age benefits.

Social Security Benefits

Medial care
Sickness benefit in cash
Old age pension or retirement benefits
Invalidity pension
Maternity benefit
Accident benefit
Survivors benefit

The Workmens Compensation Act,
1923
The main objective of the Act is to impose an
obligation upon the employer to pay compensation to
the workman. The main features of the Act are as
under:
Coverage
Administration
Benefits

The Employees State Insurance Act,
1948 (The ESI Act)

The ESI Act provides for medical help and unemployment insurance to
industrial workers during their illness. The main features of the Act are as
follows:
Coverage
Administration
Funds
Benefits
-Sickness benefit
-Disablement benefits
-Dependents benefits
-Funeral benefit

The Maternity Benefits Act, 1961

Coverage: The Act is applicable to all establishments not
covered under the ESI Act, 1948.
Benefits:
A woman worker gets maternity leave up to 12 weeks, six weeks
prior to delivery and six weeks immediately thereafter.
During this period full wages are paid.
An additional amount of Rs 25 per day is paid to the woman
worker if the employer offers no free medical care.

The Employees Provident Funds and
Miscellaneous Provisions Act, 1952

Coverage: The Act applies to factories in any industry mentioned in
Schedule I where 20 or more persons are employed.
Administration: A Tripartite Central Board of Trustees consisting of
representatives of employees, employers and Government
oversee the implementation of the provisions of the Act.
Benefits:
Provident Fund Scheme
Family Pensions Scheme, 1971
Deposit Linked Insurance Scheme, 1976
The Employees Pension Scheme, 1995
The Social Security Number (SSN) Initiative
Social Security System in India:
Drawbacks

Cover only workers in organised sector.
Does not offer unemployment insurance
Several schemes hare in-built weakness; as a result, the beneficiaries are
put to lot of trouble and inconvenience.
Lack of funds, facilities, trained staff to implement the schemes.
There is considerable overlapping of schemes.
Most measures are in the nature of social assistance and not social
insurance.
Mostly employers have to make contributions.