SOCIAL SECURITY

By: Archana Patil

SOCIAL SECURITY

Social security refers to protection provided by

the society to its members against providential
mishaps over which a person has no control.

ACCORDING TO I.L.O
Social security is the security that society
furnishes through appropriate organization
against certain risks to which its members are
exposed. These risks are essentially
contingencies of life which the individual of small
means cannot effectively provide by his own
ability, or foresight alone or even in private
combination with his fellows.

PURPOSE OF SOCIAL SECURITY

To give individuals and families the confidence that
their level of living and quality of life will not erode by
social or economic eventuality.
To provide medical care and income security against
the consequences of defined contingencies
To facilitate the victims physical and vocational
rehabilitation
To prevent or reduce ill health and accidents in the
occupations
To protect against unemployment by maintenance and
promotion of job creation
To provide benefit for the maintenance of any children.

OBJECTIVES OF SOCIAL SECURITY

Compensation

Compensation ensures the security of

income

Restoration

It ensures cure of ones sickness,

reemployment so as to restore him/her to
earlier condition.

Prevention

These measures imply to avoid the loss of

productive capacity due to sickness,
unemployment or invalidity to earn income

TYPES OF SOCIAL SECURITY

Social Assistance
A method to provide benefits as of right to person
,usually of small means in amounts of sufficient
to meet a minimum standards.
The beneficiaries do not make any contribution
towards various benefits which are made
available to them.
Its is an non-contributory benefits towards
maintenance of vulnerable groups such as
childrens,mothers,aged peoples, disabled etc.

Social insurance

method to provide the benefits as a matter of

right for persons of small earnings
It is mainly contributed towards employers,
workers & other beneficiaries
It is for the well organized ,legally regulated,
financially stable community.

Examples of social insurance

Pension
Health insurance & medical
Gratuity
Disability

SOCIAL SECURITY BENEFITS

Medical care
Sickness benefits
Unemployment benefits
Old age benefits
Employment injury benefits
Maternity benefits
Retired Benefits

SOCIAL SECURITY SCHEMES

1.
.
.

Employees State Insurance (ESI) Act 1948

Beneficiaries :
Small factories employing 10 or more employees whether
power is used in the process of manufacture or not

Shops

Hotel & restaurants

Cinema Halls

This act covers all employees manual

,clerical ,supervisory and technical getting up
to Rs.15,000 per month or above.

Benefits:
Full and comprehensive healthcare and medical
benefits for insured workers and their families
Payment of the full average wage for 12 weeks for
confinement /miscarriage, or sickness arising out of
pregnancy
Payment of funeral expenses in cash on death of
insured person (not exceeding Rs.5000)
In case of death as a result of employment injury ,the
dependents of the insured person are eligible for
periodical payments. Pensions @ 70 % of the wages is
payable.
Sickness benefits ,maximum payable up to 91 days, in
any continuous period of 365 days

2. Employees Provident Fund &Miscellaneous

Provisions Act, 1952 (EPF)

A fixed percentage is deducted from the

persons salary and
A fixed percentage added by the company.
This amount is kept in an account, which
accumulates and then received back after
retirement.
The minimum service for eligibility is 10
years and pensionable service of 33 years
[50% of the last wages are paid]
Should cover 20 employes.

Benefits:

Retirement Pension Benefits

Survival benefits incase of death during
service (maximum 25000 is paid).

3.The Workmens Compensation Act, 1923

This

Scheme covers workers in factories,

mines, plantations, railways, and other
scheduled employments
It provides compensation to workmen or their
survivors in case of injuries, death, and
occupational diseases sustained during
employment service

Benefits:

In case of death : 40% of monthly wages is

multiplied to relevant factors or 20,000.
In case of total permanent disablement :
50% of monthly wages or Rs.24,000.
In case of temporary disablement 25% of
the wages can be paid half a monthly

4.The Maternity Benefit Act, 1961

This Act regulates employment of women in certain

establishments for a certain period before and after

childbirth and provides for maternity and other
benefits.
In case of miscarriage , a woman is entitled to leave
with wages for a period of 6 weeks immediately after
the day of miscarriage or abortion.
In case of any diseases or any complication arising out
of pregnancy , the lady is allowed to take leave with full
wages for 1 month ,provided she submits proper
documents related.

 The

Payment of Gratuity Act, 1972

Gratuity is a lump sum amount that your employer

pays you when you retire or resign from the
organization. An Employee does not contribute any
portion of his salary towards this amount.
Applicable to various establishments employing over
10 workers
Eligible to those who have paid a minimum continuous
service of 5 years.
Formula Used : Gratuity Calculation In India
= [ (Basic Pay + D.A) x 15 days x No. of years of service ] /26

THANK YOU