SOCIAL SECURITY IN

INDIA

Dr Manish
Prabhakar Moderator:
Dr Chetna Maliye
Dept. of
Community & Family
Medicine, MGIMS,
Sewagram,
Wardha
Framew
ork
 Definitions of social
security
• Concept of Social
Securities
• Need of social security
• Mile Stones In Social
Securities
• Types of social security
• Social Security in India
 Organized sector
 Unorganized sector
• New Initiatives by govt.
Protecti Provided by
the society
on
Socia
l
Securi
Through ty
series of
Agai
public nst
Social
measure and
 Social
o Security
India has always had a joint family system that took care of social
security needs of all members.
o Social Securities can be provided by Institutional and non
Institutional agencies.
o India is a good example of having non-institutional form of social
o security
its ownmeasures
social in the world.
securitysystem- because village
of Self sufficient System, Joint Family System economy,
and organization of charity. Cast
o It had a religious backing also.
How did it
all Joint

start? Famili
es
Caste System

Self Sufficient
Village
Economy
Concept of Social
Security
• Social security systems ensure the minimum level of living to the
needy by public assistance, and they also promote public health
and social welfare.

• Social security has a powerful impact at all levels of society. It

provides workers and their families with access to health care
and with protection against loss of income
• It provides older people with income security in their retirement
years
• For employers and enterprises, social security helps maintain
stable labor relations and a productive workforce
 Why We Need of Social Security
Most of the rural and informal sector workers in the world do not
have any social security measures.

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

unorganized sector.

 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 need of the hour

To guarantee at least long-term sustenance to families when the

earning member retires, dies or suffers a disability.
 Help people to plan their own future through insurance and
assistance.
To prevent deprivation, assure the individual of a basic
minimum income for himself and his 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 : They play
three roles

 Deal with factors that cause needy

circumstances
 Minimum level of living
Promote public health and social
welfare.
  Types of social security : social security is of
two types

 Social assistance : A method to provide benefits to

persons usually for the vulnerable groups of community
( Children, mothers, disabled, old age people etc.) from
general revenues of the state, it is non- contributory.

 Social insurance: A method to provide benefits to

person through contributions of beneficiaries with
contribution/subsidies from employer and state.
.
SOCIAL ASSISTANCE SOCIAL INSURANCE
• Non-contributory • Financed by contributions
• Receive benefits either in cash or • Worker is actively involved in
in-kind economic
(food aid) planning for his future
• Involves a feeling of charity, • Inculcates a sense of responsibility
sympathy for
future planning
• Designed to supplement the • Provide for various contingencies
incomes of that
particularly vulnerable groups interrupt or stop earnings
(elderly and disabled)
• Example: • Example:
1. National old age pension scheme 1. ESI scheme
2. National family benefit scheme 2. Contributory provident fund
3. National maternity benefit scheme scheme
 1948
1948 The
Employees’
1936 The Factories State
Act Insurance Act
1926 Payment of
1923 Trade Unions
Wages Act

Act
Workmen’s
Compensation
Act
 1965
1961 Payment of
Bonus Act
1961 Apprentices
Act
1952 Maternity
1948 Employees’
Benefit Act

Provident Fund
Minimum and Misc.
Wages Act Provisions Act
 2013
1986 Sexual Harassment
at
1976 Child
Labour(Prohibition
Workplace(Preven
ti on, Prohibition

1972 Equal
Remuneration Act
and Regulation) Act
and Regulation)
Act

1970 Payment of
Gratuity Act
Contract
Labour(Regulation
and Abolition)
Act
Social security in
India
 Organised sector –
defined as workers who are having a direct regular employer-
employee relationship within a organization

 Unorganised sector –
The unorganized sector workers are those who have not been able
to pursue their common interests due to constraints like casual
nature of employment, invariably absence of definite employer-
employee relationship, ignorance, illiteracy, etc.
The Acts : Social Security issues mentioned in
concurrent list
 Item no 23 :
 Social Security and
Insurance ,
 Employment and
unemployment

 Item No 24 : Welfare of
labour
 Working condition
 Provident fund
 Employer lability
 Workman’s compensation

The Directive Principles of State Policy

Article 41 Article 42
Right to work Just and
Humane
conditions of work
Right to Education
Right to Public Maternity relief
Assistance
 Workforce in total workforce

India
 According to NSSO Survey 17.3

2011-2012
Total workforce - 474.23
unorganised
 organized million organised

 sectors
unorganized - 81.92 82.7

sectors million
-
 Composition of workforce392.31
in
organized sector million
 Public -- 37.18
Sector million
 Private -- 44.74
sector
 Workforce million
Participation In India- Rural 39.9 % and
Urban 35.5,
 Maharashtra – Rural 48.6 %, Urban- 36.5%
 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 measure In India: Scheme for
Organised Sector
 Includes establishments covered by the Factories Act, 1948, the
Shops and Commercial
Establishments Acts of the States, Industrial Employment Standing
Orders Act, 1946, etc.
 It has a structure through which social security benefits are extended
to workers Provided through following acts:

 ESI Act,
 EPF & MP Act,
 Workmen’s’ Compensation Act,
 Maternity Benefit Act,
 Payment of Gratuity Act.
 Factories act
 Scheme for organised sector : Employees’ State
Insurance Act, 1948
Medical Sickness Disablement Dependants Other
benefit
• Full medical • Cash • Temporary • Death occurs • Funeral
care is compensation disablement due to expenses
provided to an at the rate of : in case of employment : an
insured person 70 per cent employment injury or amount of
and his family. of wages, for injury. - occupational rs.10,000/-
• Medical care a max of 91 90% of hazards • Vocational
is also days in a wage. • 90% of wage
provided to year. • Permanent in the form of rehabilitat
retired and • Worker is disablement : monthly ion
permanently required to 90% of wage payment.. • Physical
disabled contribute for in the form of rehabilitation
insured 78 days in 6 monthly : in case of
persons and months. payment physical
their spouses depending disablement
on payment upon the due to
of a token extent of loss employment
annual of earning injury.
premium of capacity • Old age
 The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952
(EPF & MP Act)

 Basically meant for security of workers after their retirement.

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

 The Employees’ Provident Fund & Miscellaneous Provisions (Amendment) Act, 1996 :
was made on 16th Nov 1995, : for the word family pension fund “ the
Word Pension Fund” shall be substituted
 The Workmen’s Compensation Act, 1923

Act takes care of two contingencies namely disablement due to

employment injury and death due to employment injury.
A lump sum compensation amount is paid to the disabled worker or the
dependants as the case may be during both the contingencies.
The Workmen’s Compensation Act is not applicable to those workers
who are covered by the ESI Act.
 Maternity benefit act, 1961
 Extends to the whole of India
Entitled for paid holidays not exceeding 12 weeks in the case of
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 : 27th March 2017

In the principal Act, in section 5,— (A) in sub-section (3)— (i) for the
words ‘‘twelve weeks of which not more than six weeks’’, the words
‘‘twenty-six weeks of which not more than eight weeks’’ shall be
substituted.
‘‘Provided that the maximum period entitled to maternity benefit by a
woman having two or more than two surviving children shall be twelve
 Payment of Gratuity Act, 1972
• Provides 15 days wages for each year of service to employees who
have worked for five years or more
• Payable on -
 Superannuation
 Retirement or resignation
 Death or disablement due to accident or disease

 Payment of wage (Amendment) Act, 2017 :

 28th Dec 2016, Changes in Section 6 of Payment wage Act 1936,
All Wage Shall be paid in current coin, cheque or by crediting to bank
account of the employee
 Minimum wages Act
To promote welfare of workers by fixing min
rates of wages in certain industries because in many
industries where labor is not organised.
 To prevent exploitation of workers
 Minimum wages has to be paid without any deductions
Payment of wages less than minimum wages onthe
ground of performance or output is illegal
 Working hours should not exceed more than 48 hrs/week with a
holiday
 Not more than 9 hrs/day with 1 hr rest in between
If person works more than 48hr/week than extra hrs are considered
overtime and overtime payment is double the wage
Minimum Wages : As per 3rd
March 2017 Minimum rates of wages in Rupees
category of Per Day
Schedule of Employments Workmen/Empl
oye
Per Month
All Schedule employments Unskilled 13,350/- 513/-
Semi skilled 14,698/- 565/-
Skilled 16,182/- 622/-
Clerical and
supervisory staff
Non Matriculate 14,698/- 565/-
Matriculate but 16,182/- 622/-
not Graduate
Graduate and 17,604/- 677/-
above
 Unorganised
Sector

The unorganized sector workers are those who have not been able to
pursue their common interests due to constraints like casual nature of
employment, invariably absence of definite employer-employee
relationship, ignorance, illiteracy, etc.

Are also generally low paid and a majority of them are devoid of any of
the social security benefits like life and medical insurance, health care,
maternity benefits, and old age pension etc.
 Category of Unorganised
Sector :
1) Occupation: Small and marginal farmers, landless agricultural
labourers, fishermen, those engaged in animal husbandry, beedi
workers, building and construction workers, etc.
2) Nature of Employment: Attached agricultural labourers, bonded
labourers migrant workers, contract and casual labourers
3) Specially distressed categories: Scavengers, carriers of head loads,
drivers of animal driven vehicles, loaders and unloaders
4) Service categories: Midwives, domestic workers, fishermen ,barbers,
vegetable and fruit vendors, newspapers vendors etc
 Scheme for unorganised
sector Eligibility
Scheme Fund Benefit
Varishtha pension Indian citizens Only single •Monthly
bima aged 55 years premium is pension- rs
yojana(2003-04) and above payable 250-2000
• Loan facility
available
National rural Any adult member Government Atleast 100 days of
employment volunteer to do aided scheme guaranteed wage
guarantee unskilled work employment in every
scheme (2005) financial year to every
household
National Needy elderly Employee- • Old age pension scheme
social persons and poor none • Family benefit scheme
assistance households on the Employer-none • maternity benefit scheme
program(19 death of the primary Government-
95) breadwinner. 100%
Unorganized •Voluntary Income related Triple benefit-
sector social •Age 36-50yrs and flat rate •Pension scheme
  Unorganized Workers Social Security Bill, 2008

Ministry of labour & Employment has enacted the Unorganised workers

social security Act,2008.
Govt of India has approved a proposal for convergence of 3 major
social Security Scheme for Unorganised workers on a single smart card
platform –
 RSBY, AABY, IGNOAPS for old age protection
 Unorganised Sector Rashtriya Swasthya Bima Yojana, 2008

 Initially designed to target only the BPL households, but has been
expanded to cover -
Building and other construction workers, Licensed Railway Porters ,
Street Vendors, Beedi Workers , Domestic Workers, Mine Workers,
Rickshaw pullers, Rag pickers, Auto/Taxi Driver and MNREGA
Workers,
 Covers all BPL unorganized sector workers and their families (of five
member )
 Beneficiary will be required to pay Rs 30 per annum as registration/
renewal fee.
Prescribed premium of Rs 750 per member-family will be borne by the
Central and State Governments in the ratio of 75:25.
 Benefits -
 cashless attendance to all covered ailments;
 Unorganised sector : Janashree Bima
Yojana, 2008,

Provides insurance cover of Rs 20000 in case of natural death, Rs

50000 in case of death or total permanent disability due to an
accident, and Rs 25000 in case of partial disability
Premium is Rs 200 per beneficiary ( 50% of the from the ‘Social
Security Fund’ and 50% contributed by the beneficiary/State
Government/nodal agency)
 Eligibility criteria:
 Persons in the age group of 18 to 60 years
 Living below or marginally above the poverty line
 Mahatma Jyotiba Phule Jan Arogya Yojna (MJPJY)
earlier know as Rajiv Gandhi Jeevandayee Arogya Yojana
( RGJAY )

 OBJECTIVE:
To improve access of BPL and APL to quality medical care for
identified speciality services requiring hospitalization for surgeries
and therapies or consultations through an identified Network of
health care providers.

 SCHEME:
The insurance policy/coverage under the RGJAY can be availed by
eligible beneficiary families residing in all the 35 districts of
Maharashtra.

 BENEFITS:
The scheme entails around 971 surgeries/therapies/procedures
 Newer Initiatives : Pradhanmantri Jan Dhan
Yojana

• To ensure access to financial services,namely,

Banking/ Savings & DepositAccounts, Remittance, Credit,
Insurance, Pension in an affordable manner.
• Under the scheme:
 Account holders will be provided zero-balance bank account
After Six months of opening of the bank account, holders can avail
₹5,000 overdraft from the bank.
A person can transfer funds, check balance through a normal phone
which was earlier limited only to smart phones so far.
 Social Insurance Schemes
Pradan Mantri • Premium Rs.330/- Year
Jeevan • Coverage: Rs.200000/-
Bima • Age group : 18-50 years
Yojana
Pradhan Mantri • Accident cum Death Insurance
Suraksha • Coverage: Rs.200000/-
Bima • Premium: Rs.12/- year
Yojana
• 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 • Physically Challenged above 45 years are entitled to
Age Pension pension along with education, lodging and boarding
Scheme 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 primary breadwinner

Janani Suraksha • Reduce Maternal and Infant Mortality Rate

Yojana • 100% Centrally Sponsored Scheme

Handloom Weavers’ • Sponsored by both Central Govt. and State Govt.

Comprehensive
• Health Insurance Scheme
Welfare
Scheme
Handicraft Artisans’ • All artisans below 80 years of age
Comprehensive • Health care benefits
Welfare • Self and Dependents
Scheme
 • 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 • Housing, Drinking water, community hall, etc. for fishers
Fishermen and • Improve Living Standards
Training and • Skill Development
Extension
• 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
Bima Yojana
registration for biometric enabled smart cards
• Medical care up to Rs.30000 per year
The Way
ahead
• Policy andlaws must be framed in such
away that they are mostly concentrated for
benefits of unorganized workforce.
• Public should made aware about the social security
schemes.
• Effort should be made for public private partnership.
Referenc
es 1) Park K. Park’s Textbook of Preventive and social medicine. 24rd edition.
Bannout publication;
Jabalpur: 2015. p.702.
2) Social Security Online . The Official Website of The U.S Social Security
Administration Available from: URL: http://www.socialsecurity.gov/
3) International Labour Organization ; Available from: URL:http:// www.ilo.org/
4) Government of 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 and Employment , Government of India.
2016;1–9.
7) Policy H, Premium S, Payment O, Is W, Nav LIC. About LIC – Life Insurance
Corporation of India LIC of India Profile. 2016;1–17.
8) THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT,
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 from http://www.esic.nic.in/esi_act.php