SOCIAL

SECURITIES AND
REWARDS
Sanjana shah, Saba Khan,
Sandhya kabbal, Rateesh
keshwan, Rajiv
Social security
Social Security is a contributory social insurance
program where everyone pays in and everyone
gets the benefits.
It takes away 12.4 % on wages, the biggest
amount any household pays as taxes.
The Social security Act was passed in US in the
year 1935 and the Indian system is also based on
the same law.
It is a comprehensive approach designed to
prevent deprivation, assure the individual of a
basic minimum income for himself and his
dependents and protect him from any
uncertainties.

Social Security and the Budget
3
Social Security
23%
All other
77%
Social Security is already the biggest item on the budget. It could take away
29% of the budgetary allocation by the year 2020.
Need for Social Security
It protects not only the subscriber but also his\her
entire family by giving benefit packages in financial
security and health care.
This is designed to guarantee long term sustenance
to families when the earning member retires, dies or
suffers a disability.
Thus it acts as a facilitator in by helping people plan
their own future through insurance and assistance.
It is viewed as the an integral part of the
development process. It helps to create a more
positive attitude to the challenges of globalization
and the consequential structural and technological
changes.
Social Security in India
Traditionally India was a society where families
lived jointly with family members and relatives
have always discharged a sense of shared
responsibility towards each other.
However with increasing migration,
urbanization, and demographic changes
there has been a decrease in large family
units.
This is where the formal system of social
security gains importance.
Social Security in India
Social Security benefits in India are need
based i.e the component of social
assistance is more important in the
publicly managed schemes.
The problem of a complex and a multi-
dimensional workforce both in the
organized and unorganized sectors
complicates the establishment of a
uniform system.

Organized sector
The organized sector consists primarily of
establishments which are covered primarily by
the Factories Act , 1948, the Shops and
Commercial Establishment Acts of State
Governments, the Industrial Employment
Standing Orders Act 1946 etc.
This sector already has a structure through
which social security benefits are extended.
But there is a vast dichotomy between the
organized and unorganized sectors growth.
While organized sectors growth is very slow,
the other sector grew very strongly.
Unorganized sector
The unorganized sector is characterized
by the lack of labour law coverage,
seasonal and temporary nature of
occupations, high labour motility,
dispersed functioning of operations,
casualization of labour, low bargaining
power etc.
This makes a huge chunk of working class
vulnerable to socio-economic hardships.
Components of Social Security
Laws
The Employers State Insurance Act, 1948
The Employers Provident Funds &
Miscellaneous Provisions Act, 1952
The Employers Compensation Act, 1923
The Maternity Benefit Act, 1961
The Payment of Gratuity Act, 1927
Separate Provident fund legislation exists
for workers employed in coal mines and
seamen.

Funding Social Security
Contributions made from both employees and
employers.
Employees- 1.75% of wages
Employers- 4.75% of wages
State governments- 1/8
th
share of
expenditure(expenditure on Medical care)
In a corporate unit employee contributes 6.2% of
the monthly wage, the employer contributes 6.2%
of the monthly wage of the employee. Another
1.45% is contributed by the employee and with
matching contributions of the employer for the
medical tax program.
Social Security Benefits
Social security benefits in monetary terms that could
be availed are as follows
People faced with sickness and disability.
Unemployment.
Crop failure.
Loss of marital partner.
Maternity responsibility for the care of young
children
Retirement from work
Provided to people on court order, by employees,
state or central government in the form of
compensations.
Reward
Workplace reward systems are incentive
programs that encourage employee
engagement and productivity by offering
bonuses, increased pay, additional time off or
other rewards for a job well done.
Rewards, both financial or non-financial
reinforce desirable behavior and spur them to
higher levels of productivity.
Four major component of workplace reward
system are compensation, benefits,
recognition and appreciation.
Non-Financial Rewards
Non-Financial Rewards
Performance Awards
Letters of appreciation
Sponsorships of foreign tours, seminars,
conferences etc.
Financial Rewards
Financial Rewards
Salary increase.
Bonus and profit sharing.
Commissions for sales persons.
Stock options
Benefits of Rewards
Increased Productivity.
Improve Attendance.
Improve Morale.
Improve Retention.