SOCIALSECURITYIN INDIA

NIKUNJ SINGH
ASTT. PROF
SOL, IMS
Framework
 Definitions of socialsecurity
• Conceptof SocialSecurities
• Needof socialsecurity
• Mile StonesIn SocialSecurities
• Typesof socialsecurity
• SocialSecurity inIndia
 Organizedsector
 Unorganizedsector
• NewInitiatives bygovt.
Protection Providedbythe
society

Social
Security
AgainstSocial andEconomic Distress
Throughseries of • Sickness
• Maternity
publicmeasure • Injury orDisablement
• Unemployment
• Oldage
• Death
How did it all
Joint
start?
Families

CasteSystem

Self Sufficient Village

Economy
Concept of SocialSecurity

• Social security systemsensure the minimum level of living to the needy bypublic assistance, and
theyalsopromotepublic healthandsocial welfare.

• Social security hasapowerful impact at all levels of society. It provides workers and their families
with accessto healthcareandwith protectionagainstlossof income
• It provides older people with income security in their retirementyears
• For employers and enterprises, social security helps maintain stable labor relations and a
productive workforce
 WhyWeNeed of Social Security

Most of the rural and informal sector workers in the world do not haveanysocial security
measures.

In India almost 90%of families earn their livelihood from the unorganizedsector.

Needs that necessitates social security :

 Physical risks: Sickness, old age,maternity,accidents, death.
 Economic risks : Unemployment
 Economic burden of larger family
  Social Security is the needof thehour

Toguarantee at least long-term sustenance to families when the earning member retires, dies or
suffers adisability.
Help people to plan their own future through insurance and assistance.
To prevent deprivation, assure the individual of abasic minimum income for himself andhis
dependents and to protect the individual from any uncertainties
To protect entire family (dependents) by giving benefit packages in financial
security and health care.
 Social Security systems: Theyplaythreeroles

 Deal with factors that causeneedy circumstances

 Minimum level of living

 Promote public health and social welfare.

  Typesof social security : social security is of two types

 Social assistance : A method to provide benefits to persons usually for the

vulnerable groupsof community( Children, mothers, disabled, old agepeople etc.)
from generalrevenuesof thestate,it isnon- contributory.

 Social insurance: A method to provide benefits to person through contributions of

beneficiarieswith contribution/subsidiesfrom employerandstate.
 .
SOCIALASSISTANCE SOCIALINSURANCE

• Non-contributory • Financed bycontributions

• Receive benefits either in cashor in-kind • Worker is actively involved in economic

(foodaid) planning for hisfuture
• Involves afeeling of charity, sympathy • Inculcates asenseof responsibility for
futureplanning
• Designed to supplement the incomes of • Provide for various contingenciesthat
particularly vulnerable groups (elderly and interrupt or stopearnings
disabled)
• Example: • Example:
1. National old agepension scheme 1. ESIscheme
2. National family benefit scheme 2. Contributory provident fundscheme
3. National maternity benefit scheme 3. LICschemes
 1948
1948 The
1936 The Factories
Employees’
State
1926 Payment of
Act InsuranceAct

1923 Trade Unions

WagesAct

Act
Workmen’s
Compensation
Act
 1965
1961 Payment of

1961
BonusAct
Apprentices
1952 Maternity
Act

1948 Employees’
BenefitAct

Provident Fund
Minimum and Misc.
WagesAct ProvisionsAct
 2013
1986 Sexual Harassment
at
1976 Child Workplace(Preventi
on, Prohibition and

1972
Labour(Prohibition
and Regulation)Act Regulation)Act
Equal

1970 Payment of
RemunerationAct

GratuityAct
Contract
Labour(Regulation
and Abolition) Act
Social security inIndia
 Organisedsector–
defined as workers who are having a direct regular employer-employee relationship within a
organization

 Unorganised sector–
Theunorganizedsector workersarethosewhohavenot beenableto pursuetheir commoninterests
dueto constraintslikecasualnatureof employment,invariably absenceof definiteemployer-employee
relationship,ignorance,illiteracy, etc.
The Acts : Social Securityissuesmentioned in concurrent list
 Item no 23:
 Social Security andInsurance ,
 Employment andunemployment

 Item No 24: Welfare oflabour

 Workingcondition
 Providentfund
 Employerlability
 Workman’s compensation
 Old agepension
 Maternitybenefits
 Workers in India Workers covered under social
security(in million)

17%

19.5
21
83%

Covered unders Social Security Not covered under social security schemes Govt. and public sector workers Private Sector
 Social Security measureIn India: Schemefor OrganisedSector
 Includes establishments covered bythe FactoriesAct, 1948, the ShopsandCommercial
EstablishmentsActs of the States, Industrial Employment Standing OrdersAct, 1946, etc.
 It hasastructure through which social security benefits are extended to workers Provided through
following acts:

 ESIAct,
 EPF & MPAct,
 Workmen’s’CompensationAct,
 Maternity BenefitAct,
 Paymentof GratuityAct.
 Factoriesact
 Minimum wagesact
 Schemefor organised sector : Employees’StateInsuranceAct, 1948

Medical Sickness Disablement Dependants benefit Other

• Full medical care is • Cash compensation • Temporary • Death occurs due to • Funeralexpenses
provided to an at the rate of 70per disablement : in employment injury : anamount of
insured person and cent of wages, for a caseof or occupational rs.10,000/-
his family. maxof 91days in a employment hazards • Vocational
• Medical care is also year. injury. - 90%of • 90%of wagein the rehabilitation
provided to retired • Worker is required to wage. form of monthly • Physical
and permanently contribute for 78days • Permanent payment.. rehabilitation :in
disabled insured in 6 months. disablement : 90% of caseof physical
persons and their wagein the form of disablement due to
spouseson monthly payment employment injury.
payment of a token depending upon the • Old agemedical
annual premium of extent of loss of care
rs.120/- earning capacity
 TheEmployees’Provident Funds & Miscellaneous ProvisionsAct, 1952(EPF & MPAct)

Basically meantfor security of workers after their retirement.

It provides for lump sumpaymentof provident fund, monthly pension anddeposit linked insurance.
Covers 187 specific scheduled factories and establishments employing 20 or more
employees

 The Employees’ Provident Fund & Miscellaneous Provisions (Amendment) Act, 1996 :
wasmade on 16th Nov 1995, : for the word family pension fund “ theWord Pension Fund”
shall besubstituted
 The Workmen’sCompensationAct, 1923

Act takescare of two contingencies namely disablement due to employment injury and death due to
employment injury.
Alump sumcompensation amount is paid to the disabled worker or the dependants as the casemaybe
during both thecontingencies.
The Workmen’s CompensationAct is not applicable to those workers who are covered by the ESIAct.
 Maternity benefit act,1961
Extendsto the whole of India
Entitled for paid holidays not exceeding 26weeksin the caseof 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: 27thMarch2017

In theprincipalAct,insection5,—(A)insub-section(3)—(i) for thewords‘‘twelveweeks of whichnotmore
thansixweeks’’, thewords‘‘twenty-sixweeksof whichnotmorethan eightweeks’’shallbe substituted.
‘‘Provided that the maximumperiod entitled to maternity benefit by awoman 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;’’;
 Paymentof GratuityAct,1972
• Provides 15dayswagesfor eachyearof service to employeeswho haveworked for five yearsor more
• Payableon -
 Superannuation
 Retirement or resignation
 Death or disablement due to accident or disease

 Paymentof wage(Amendment)Act, 2017:

28thDec2016, Changesin Section 6of PaymentwageAct 1936,
All WageShall be paid in current coin, cheque or bycrediting to bank account of the employee
 Minimum wagesAct
To promote welfare of workers byfixing min rates of wagesin certain industries becausein many
industries where labor is notorganised.
Toprevent exploitation ofworkers
Minimum wageshasto be paid without any deductions
Paymentof wagesless than minimum wageson the ground of performance or output is illegal
Working hours should not exceedmore than 48hrs/week with aholiday
Not more than 9hrs/day with 1hr rest in between
If person works more than 48hr/week than extra hrs are considered overtime and overtime paymentis
double the wage
Minimum Wages: Asper 3rdMarch2017
Minimum rates of wagesinRupees
categoryof Per Day
Schedule ofEmployments Workmen/Emplo
ye
es PerMonth

All Scheduleemployments Unskilled 13,350/- 513/-

Semiskilled 14,698/- 565/-
Skilled 16,182/- 622/-
Clerical andsupervisorystaff
NonMatriculate 14,698/- 565/-
Matriculatebut 16,182/- 622/-
notGraduate
Graduateand 17,604/- 677/-
above
 UnorganisedSector

Theunorganizedsectorworkersarethosewhohavenot beenableto pursuetheir commoninterestsdue

to constraints like casual nature of employment, invariably absence of definite employer-employee
relationship,ignorance,illiteracy, etc.

Are also generallylow paidandamajority of themaredevoidof anyof the social security benefits like life
andmedicalinsurance,healthcare,maternitybenefits,andold age pensionetc.
 Categoryof Unorganised Sector:

1) Occupation: Small and marginal farmers, landless agricultural labourers, fishermen, those engaged in
animalhusbandry,beediworkers,building andconstructionworkers, etc.
2) Natureof Employment:Attachedagriculturallabourers,bondedlabourersmigrant workers,contractand
casual labourers
3) Specially distressed categories: Scavengers, carriers of head loads, drivers of animal driven vehicles,
loadersandunloaders
4) Service categories: Midwives, domestic workers, fishermen ,barbers, vegetable and fruit vendors,
newspapersvendorsetc
 Schemefor unorganised sector
Scheme Eligibility Fund Benefit

Varishthapensionbima Indian citizens aged55 Only single premium is •Monthlypension- rs

yojana(2003-04) yearsandabove payable 250-2000
• Loanfacilityavailable
National rural employment Anyadult member volunteer Governmentaided Atleast 100daysof guaranteed wage
guarantee scheme(2005) to dounskilled work scheme employmentin every financial yearto
everyhousehold
National social Needyelderly persons and Employee-none • Old agepensionscheme
assistance poor householdson the death Employer-none • Familybenefitscheme
program(199 of the primary breadwinner. Government- • maternity benefitscheme
5) 100%

Unorganizedsector social •Voluntary Income relatedand flat Triplebenefit-

securityscheme (2004) •Age36-50yrs rate •Pensionscheme
•Monthly income<rs •Personal accidentinsurance
6500 •Medicalinsurance
  UnorganizedWorkersSocial Security Bill, 2008

Ministry of labour & Employment hasenacted the Unorganised workers social security Act,2008.
Govt of India hasapproved aproposal for convergenceof 3major social Security Scheme for Unorganised
workers on asingle smart card platform –
RSBY,AABY,IGNOAPS for old ageprotection
Unorganised Sector RashtriyaSwasthyaBimaYojana, 2008

 Initially designed to target only the BPLhouseholds, but hasbeen expandedto cover-
Building andother construction workers, Licensed RailwayPorters , Street Vendors, Beedi Workers,
Domestic Workers, Mine Workers, Rickshaw pullers, Rag pickers, Auto/Taxi Driver and MNREGA
Workers,
 Covers all BPLunorganized sector workers and their families (of five member )
 Beneficiary will be required to payRs30per annumasregistration/ renewalfee.
Prescribed premium of Rs750per member-family will be borne bythe Central and State Governments in
the ratio of 75:25.
 Benefits-
 cashless attendance to all coveredailments;
 Hospitalization expenses,taking care of most common illnesses,
 all pre-existing diseases to becovered,
 transportation costs subject to prescribed limits payableto the beneficiary.
 Unorganised sector : Janashree BimaYojana,2008,

Provides insurance cover of Rs20000in caseof natural death, Rs50000in caseof death or total
permanent disability due to anaccident, and Rs25000in caseof partial disability
Premium is Rs200per beneficiary ( 50%of the from the ‘Social Security Fund’ and50% contributed bythe
beneficiary/State Government/nodal agency)
Eligibilitycriteria:
 Persons in the agegroup of 18to 60 years
 Living below or marginally above the poverty line
 Mahatma Jyotiba Phule Jan ArogyaYojna(MJPJY)
earlier know asRajiv Gandhi JeevandayeeArogyaYojana( RGJAY)

 OBJECTIVE:
Toimprove access of BPLand APLto quality medical care for identified speciality services requiring
hospitalization for surgeries and therapies or consultations through an identified Network of health
careproviders.

 SCHEME:
Theinsurancepolicy/coverageundertheRGJAYcanbeavailedbyeligiblebeneficiary familiesresiding
in all the35districts of Maharashtra.

 BENEFITS:
Theschemeentailsaround971surgeries/therapies/proceduresalongwith 121follow uppackagesin
following 30identified specialized categories.
 Newer Initiatives : PradhanmantriJan DhanYojana

• To ensure accessto financial services, namely,Banking/ Savings& DepositAccounts, Remittance, Credit,

Insurance, Pension in anaffordable manner.
• Under thescheme:
Account holders will be provided zero-balance bank account
After Sixmonths of opening of the bank account, holders canavail ₹5,000overdraft from thebank.
Aperson cantransfer funds, checkbalance through anormal phone which wasearlier limited only to
smart phones so far.
 Social Insurance Schemes
Pradan Mantri • Premium Rs.330/- Year
JeevanBima • Coverage: Rs.200000/-
Yojana • Age group : 18-50 years

Pradhan Mantri • Accident cum Death Insurance

SurakshaBima • Coverage: Rs.200000/-
Yojana • Premium: Rs.12/- year

• Workers in unorganized sector

Atal Pension • Age group:18-40
Yojana • Govt. to contribute 50% of total contribution or
Rs.1000/- for the first five years
 • 65+ years of age
Indira Gandhi • Widows are entitled to a pension for one year
National Old Age • Physically Challenged above 45 years are entitled to
Pension Scheme pension along with education, lodging and boarding
facilities
• Fully sponsored by Central Govt.
National Family
• Lump sum benefit for households below the poverty line
Benefit Scheme
• Rs.10000 in case of death of primarybreadwinner

Janani Suraksha • Reduce Maternal and Infant Mortality Rate

Yojana • 100% Centrally Sponsored Scheme
Handloom Weavers’ • Sponsored by both Central Govt. and State Govt.
Comprehensive
Welfare Scheme • Health Insurance Scheme

Handicraft Artisans’ • All artisans below 80 years of age

Comprehensive • Health care benefits
Welfare Scheme • Self and Dependents
 • Above 60 years of age
Pension to Master
• In receipt of National Awards, National merit certificates or State
Crafts persons
Award

National Scheme for • Centrally sponsored

Welfare of Fishermen • Housing, Drinking water, community hall, etc. for fishers
and Training and • Improve Living Standards
Extension • Skill Development

• Life Insurance Protection to the rural and urban workers below

poverty line
• Aged between 18-59
Janshree Bima Yojana
• Covers 45 occupational groups
• Coverage: Rs.30000 for natural deathand Rs.75000 for accidental or
fatal death

Aam Admi Bima • Head of the family, one earning member

Yojana • Income falling below or marginally above poverty line

• Cashless Insurance for hospitalization in public as well as private

hospitals
Rashtriya Swasthya
• Family holding a yellow ration card to pay Rs.30 towards
BimaYojana
registration for biometric enabled smart cards
• Medical care up to Rs.30000 per year
The Wayahead
• Policy and laws mustbe framed in such awaythat they are mostly concentrated for
benefits of unorganizedworkforce.
• Public should madeaware about the social securityschemes.
• Effort should be madefor public private partnership.
References
1) Park K. Park’sTextbookof Preventive andsocial medicine. 24rd edition. Bannoutpublication;
Jabalpur: 2015.p.702.
2) Social Security Online . TheOfficial Website of TheU.SSocial SecurityAdministration Available from: URL:
http://www.socialsecurity.gov/
3) International Labour Organization ; Available from: URL:http://www.ilo.org/
4) Governmentof India. Ministry of Labour ; Available from:URL:http://www.labour.nic.in
5) Ministry of Rural Development(GOI)Available from:URL:http://www.rural.nic.in
6) Overview G. Ministry of Labour andEmployment, Governmentof India.2016;1–9.
7) Policy H, PremiumS,PaymentO, Is W,NavLIC.About LIC – Life Insurance Corporation of India LIC of India
Profile.2016;1–17.
8) THEEMPLOYEES’PROVIDENTFUNDSANDMISCELLANEOUSPROVISIONSACT,1952(Act No. 19 of
1952)4.1952;1952(19).
9) Govt of Delhi, labour dept.http://www.delhi.gov.in
10) Employees State Insurance Act. Available fromhttp://www.esic.nic.in/esi_act.php
11) Atal Pension Yojana. Available fromhttp://financialservices.gov.in/APY.asp
12) Rashtriya Swasthya Bima Yojana. Available fromhttp://www.rsby.gov.in/about_rsby.aspx
13) Slide share :https://www.slideshare.net
THANK YOU