SOCIAL SECURITY

Social security is
primarly a social
insurance programme
providing social
protection against
socially recognised
conditions including
poverty,oldage,disablem
ent,unemployment etc…
 IMPORTANCE OF SOCIAL
SECURITY
 Social security need in India has
been felt by wage earning and low
salaried class
 Due to lack of official sympathy.
 Lack of interest in welfare of worker
 Comparitive weakness of trade union
for the demand of social wage.
 To provide Basic security such as
food,clothing,education etc..
 The starting…..Employee’s state
insurance act -1948
To provide compulsory & contributory health insurance facility
to workers
Financing
• Setting up of a fund “employee’s state and insurance fund”
• Contribution from employer-4.75%
• From employee-1.75%
• State government share from expenditure &provision of
medical care-12.5%
• Central and state govt provide grants for working scheme.
How it has benefited the worker?
• Sickness benefit
• Medical benefit
• Maternity benefit
• Disablement benefit
• Dependent’s benefit
 Some recent statistics….(as per 2001
census)

 Total workforce in the country-

402 million
Of which 303 are main workers
and 89 million marginal workers
 Out of the 303 million 285
million are from unorganised
sector ie,91%
Recent social security acts :
 AAM ADMI BHIMA YOJANA (AABY)

• Provides insurance for the Head of the family or to

earning member only (not to members of the family).
• Age group 18-59 against accidental death coverage is
Rs.75000.In case of natural death sum will be Rs.37500.
• Annual premium is Rs.200 shared by central and state
Govt in 50-50 ratio.
 RASHTRIYA SWASTHYA BIMA
YOJANA (RSBY) 1 OCT 2007:
• Total sum insured is Rs.30000 per annum per BPL
family.
• Coverage of health services, hospitalization and
surgeries.
• Central Govt bears 75% and state Govt bears 25% in
premium payment.
 JANSHREE BIMA YOJANA:
• Provides Life insurance protection to rural and urban
persons living BPL.
• Covers artisans irrespective of gender in age group
18-60.
• Annual premium of Rs.200 of which Rs.40 paid by
artisan, Rs.60 by Govt of India and Rs.100 by LIC
  JANANI SURAKSHA YOJANA (JSY)

• Aim is to reduce maternal death and infant mortality

rate in BPL.
• JSY falls under National Rural Health Mission which
covers all pregnant women who are above 19 years
old are assisted with a sum of Rs.500 per
month.
 INDIRA GANDHI NATIONAL OLD AGE
PENSION SCHEME (IGNOAPS)
• Launched by Ministry of Rural Development which
provides a sum of Rs.400 per month for people belonging to
the age group of 65 years and above.
• People who don’t have any source of remuneration can also
avail this scheme.
 ANNAPURNA SCHEME

• This Scheme provides 10 kg of food grains per month to

people BPL.
Food grains are provided at free of cost under NOAP
scheme and covers those who don’t receive pension.

 NATIONAL FAMILY BENEFIT SCHEME (NFBS)

• It grants a one time financial assistance of Rs.10000 to

families BPL.
• This scheme can be availed when the bread winner of
the family dies or suffers from permanent disability.
 UNORGANIZED WORKERS’ SOCIAL
SECURITY BILL 2008

• This scheme gives a minimum of 100 days of

employment to unorganized sector.
• Income of the workers raised from Rs.20 to
equivalent of $2 a day.
• Scheme will be implemented in a phased manner to
cover 6 crore unorganized workers in India.
 The facts…
 All the acts are applicable only to BPL families.
 Most of the schemes are to be sourced from workers
and operated by insurance companies.
 The state governments has been given free hands to
design their own provident fund and other schemes.
 The funding of the acts is too vague
Excluded sections
 Non regular workers in the organised sectors(2.92
crores) including contract and casual
workers,trainees ie,1/3 rd of organised workers.
 Unorganised workers in the cooperative including
weavers.
 6.5 lakh anganwadi workers,17 lakh health
workers,municipal workers etc.
 Nearly 50 million workers excluded from this.
 Limitations of unorganised sector act

 Agricultural labourers have been excluded.

 Contract labourers,para workers cooperative sector
workers excluded.
 Construction sector have been exempted.
 No central welfare fund for this act.
 Working conditions of unorganised workers
including working hours,mandatory holidays,safety
measures ,trade union rights are not mentioned
 No unemployement allowance.
 No appellate authority to watch.
Major issues

 Financing of social security

contribution from workers and
empolyer is mandatory now.
 Unequal distribution of social security
benefits.
 These measures may distort savings
and labour market may cause people
to remain idle(unemployement
alowances).
Suggestions
 Financing could be switched to income taxation
&consumption tax.
 Reduce dependency by raising retiring
age,accomodating older in work force.
 Increase the participation of international financing
agencies.
 World solidarity fund on a voluntary basis for this.
 Social protection by pvt systems.
 Social security should be based on individual’s earning
history.
 Government should make sure that every one is
included under the schemes.