ACCORDING TO FRIEDLANDER

According to Friedlander a programme of protection provided by society against the contingencies of modern life- sickness,

unemployment, old age, dependency,

industrial accidents and invalidism against which the individual cannot be expected to protect himself and his family by his own ability or foresight.

ACCORDING TO ILO
SOCIAL SECURITY is the security that

society
members

furnishes,
are

through
The

appropriate
risks are

organization, against certain risk to which its exposed. essentially contingencies against which the individual of small means cannot effectively

provide by his own ability or foresight alone or

even in private combination with his fellows

THE VARIOUS RISKS ARE:

Sickness Invalidity Maternity Employment injury Unemployment Old age

Death
Emergency expenses

OBJECTIVES OF SOCIAL SECURITY

The purpose of all social security measures in
three fold: I. Compensation: provides for income security and is based upon the idea that during spells

of risks, the individual and his family should

not be subjected to a double calamity involving both destitution and loss of health, limb, life or work.

II. Restoration: implies cure of the sick and the invalid, re-employment and in habilitation .

III. Prevention: designed to avoid the loss of

productive capacity due to sickness,

unemployment or invalidity and to render the

available resources which are used up by avoidable disease and idleness and thus increase the material, intellectual and moral well being of the community.

THE MAIN OBJECTIVES

To increase the productivity of industrial workers

To improve health and control sickness of industrial workers

To prevent occupational diseases and take the remedial

measures
To remove mental and physical hazards to prevent industrial accidents

To take care of old age and the other consequences resulting

there from To ensure that various legislations are implemented properly to achieve the above objectives

THE PILLARS OF SOCIAL SECURITY

SOCIAL INSURANCE
These schemes are financed mainly through contributions of employers, workers and other beneficiaries.

Most are compulsorily established by the law.

Benefits are linked to contributions of insured persons.

SOCIAL ASSISTANCE
Provide benefits for meeting the minimum needs of the persons of small means. Financed by state funds. Benefits are changeable according to income and means of beneficiaries.

EVOLUTION AND GROWTH OF SOCIAL SECURITY IN INDIA

Evolution has been slow, sporadic and on a
more or less selective basis. Only in case of fatal injuries was some relief provided under the Fatal Accidents Act, 1855. With coming up of ILO in 1919 emphasis was on protecting workers against hazards of industrial lives.

 A beginning was made ultimately in 1923 by passing of Workmens Compensation Act

The next contingency engaging the attention

of the state was maternity leading to

Maternity Benefit Act 1929.

ARTICLE 41 OF THE CONSTITUTION

The state shall, within the limits of its economic capacity and development, make effective provision for securing the right to

work, to education and the public assistance

in cases of unemployment, old age, sickness

and disablement and in other cases of

undeserved want.

SOCIAL SECURITY LEGISLATIONS

Workmens Compensation Act, 1923 Employees State insurance Act, 1948 Employees Provident Fund and Miscellaneous Provisions Act, 1952 Maternity Benefit Act, 1961 Payment of Gratuity Act, 1972

WORKEMENS COMPENSATION ACT, 1923

OBJECTIVE
To impose an obligation upon the employers to

pay compensation to workers for accidents

arising out of and in course of employment.

Under Section 2(3) of the Act, the state govt. are

empowered to extend the scope of act to any

class

of

persons

whose

occupations

are

considered hazardous. Does not apply to armed forces of Indian Union

ENTITLEMENT
A Person should be employed He should be employed for the purposes of the employers trade or business The capacity in which he works should be one set out in the list in Scheduled II of the Act

BENEFITS
To be paid by the employer to a workman for any personal injury cost in course of his employment (Section 3) Employer will not be liable to pay compensation for any kind of disablement, (except death) which does not continue for more than 3 days.

 The rate of compensation incase of death is

an amount equal to 50 % of the monthly

wages multiplied by the relevant factor or an

amount of Rs. 80,000 which ever is more In permanent total disablement the compensation will be amount equal to 60 % of the monthly wages multiplied by relevant factor or an amount of Rs. 90,000 which ever is more

ADMINISTRATION
State govt. administer the provisions of this Act through the commissioners appointed for specified areas.

State govt. also make rules for ensuring that

the provisions of the Act are complied with.

THE MATERNITY BENEFIT ACT, 1961

 Enacted to promote the welfare of working

women
The Act prohibits the working of pregnant

women for a specified period

Applies to every establishment being a

factory mine or plantation and every shop or

establishment in which 10 or more persons are employed.

 Female workers are entitled for paid holidays not exceeding 12 weeks in a case of maternity

and during this period they are eligible to

receive full wages.

There is also provision for pre-natal

confinement and post-natal care free of

charge failing which employer is liable to pay

medical bonus of Rs. 250.

 Incase of miscarriage , leave is available for a period not exceeding 6 weeks

Implementation of the Act depends upon the

goodwill of the employer. A woman is entitled to maternity benefit if she has actually worked In an establishment for not less than 70 days in 12 months

THE EMPLOYEES STATE INSURANCE SCHEME, 1948

COVERAGE
Provides For health care and cash benefit payments incase of sickness , maternity and employment injury. Applicable to non-seasonal factories using power

and employing 10 or more employees.

The Act is being implemented area-wise, in a

phase manner.
The ESI scheme is operated in 728 centers

ADMINISTRATION
Administered by a statutory body called the Employees State Insurance Corp. (ESIC) Members representing employers, employees, central, and state govt. , medical profession and the Parliament.

FUNDING AND OPERATION OF THE SCHEME

Financed by contributions from employers and

employees.
Employers contribution is 4.75 % and employees

contribution is 1.75 %
State govt. share the expenditure on the provision

of medical care up to an extent of 12.5 %

The ceiling on expenditure per insured person

,family unit has been raised to Rs. 900 per annum

HEALTH BENEFITS
Scheme provides full medical facilities , from primary health care to super specialty treatment. Medical care scheme is administered by the state govt.

 The wage sealing for coverage of employees under the ESI Act, 1948 was enhanced from Rs. 7500 to Rs.10,000 per month

The daily rate of allowance under vocational rehabilitation scheme is enhanced from Rs. 45 to Rs. 123 per day.

THE PAYMENT OF GRATUITY ACT, 1972

OBJECTIVE
Provides for a scheme of compulsory payment

of gratuity to employees engaged in factories,

mines oil fields, plantations ,ports, railway companies, shops or other establishments.

ENTITLEMENT
Every employee , other than apprentice irrespective of his wages is entitled to receive gratuity after he

has rendered continuous service for 5 years or more

Payable at the time of termination of his services either i. On superannuation

ii. Retirement or resignation iii. On death or disablement due to accident or disease

 Termination of services includes retrenchment

In case of death of the employee, gratuity is payable to nominee, and if no nomination has been made then to his heirs

CALCULATION OF BENEFITS
For every completed year of service or part thereof in excess of 6 months, the employer pays gratuity to an employee at the rate of 15

days wages based on the rate of wages last

drawn

The amount of the gratuity payable to an

employee not to exceed (3,50,000)

ADMINISTRATION
Enforced both ,by the central and the state government. Section 3 authorizes the appropriate govt. to appoint any officer as a controlling authority for the administration of the Act. the central / state govt. also frame rules for administration of the Act

EMPLOYEES PROVIDENT FUND AND MISCELLANOUS PROVISION ACT, 1952

 It is a Legislation enacted for purpose of instituting a provident fund for employees working in factories and establishments

The act aims at providing timely monetary

assistance to industrial employees and their

families.

SCHEMES UNDER THE ACT THROUGH THE EPFO

Employees Provident Fund Scheme, 1952 Employees Deposit Linked Insurance Scheme, 1976 Employees Pension Scheme, 1995

COVERAGE
Extends to the whole of India , excluding the

state of J&K
Act is applicable to factories and other classes

of establishments engaged in specific

industries, classes of establishments

employing 20 or more persons.

does not apply to employees of state and

central govt. or local authority

 The membership of the fund is compulsory for employees drawing a pay not exceeding Rs. 6500 per month. The employees drawing more than 6500 per month may become member on a joint option of employer and employee

EMPLOYEES DEPOSIT LINKED INSURANCE SCHEME

Applicable to all factories/ establishments

with effect from August 01, 1976.

Employers are required to pay contributions

to the insurance fund at the rate of 0.5 % of

pay i.e. basic wages, DA including cash value of food concession and retaining allowance, if any.

EMPLOYEES PENSION SCHEME

Was amended and a separate pension scheme was launched in 1995 replacing the then Employees Family Pension Scheme, 1971. Superannuation pension will be payable on attaining the age of 58 years and completion of 20 years of service or more

Early pension can be taken at a reduced rate

between 50 -58 years of age , on completion of 10 years pensionable service

BENEFITS
Superannuation pension Early pension Permanent total disablement Widow or widowers pension

Children pension or orphan pension

Nominee pension/dependant parents pension

CONTRIBUTION
From and out of the contributions payable by the employer in each month to the PF , apart of contribution representing 8.33 percent of the employees pay is remitted to the employees pension fund

Employer to pay for cost of remittance

Central govt. contributes 1.16% of the pay

THANK YOU