SOCIAL

SECURITY
Meaning
• The securing of an income to take the place of earnings
when they are interrupted by unemployment, sickness or
accident, to provide for retirement through old age, to
provide against loss of support by death of another
persons & to meet exceptional expenditure connected
with birth, death or marriage.
• The purpose of social security is to provide an income up
to a minimum & also medical treatment to bring the
interruption of earnings to an end.
Cont’d…
Social security is the protection that a society provides to
individuals and households to ensure access to health care
and to guarantee income security, particularly in cases of:
• Old age,
• Unemployment,
• Sickness,
• Work injury,
• Maternity or
• Loss of a breadwinner.
Definition
• Acc to ILO:
– “ Social Security is that security that society furnishes through
appropriate organization against certain risks to which its
members are exposed.
NEED FOR SOCIAL SECURITY
• Social Security protects the subscriber and his/her entire
family by giving beneficial packages in financial security
and health care. It facilitates people to plan their future
through insurance and assistance.
• Social Security schemes are designed to guarantee at
least long-term sustenance to families when the earning
member retires, dies or suffers a disability.
THE MAIN OBJECTIVES
• 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 provide benefit for the maintenance of any children.
SCOPE OF SOCIAL SECURITY
Scope: The scope of social security is, therefore, very wide.
It covers the aspects relating to social and economic justice.

All social security schemes furnished by the government are

broadly classified into two types:

(i) Social Assistance, and

(ii) Social Insurance.
SOCIAL ASSITANCE
• A social assistance includes those benefits which are
provided by the Government without any
contribution from workers and employers.
• Workmen’s compensation, old age pensions, etc. are
the examples of social assistance.
• It is a “Non-contributory benefits” towards the
maintenance of vulnerable groups such as children,
mothers, aged peoples, disabled etc.
SOCIAL INSURANCE
• A Social insurance refers to a scheme of maintaining
fund from the contributions made by the employees
and employer, with or without a subsidy from the
Government.
• Characteristics feature of this is the beneficiaries,
employers and the government make contributions
towards the creation of common pool, out of which
benefits are paid to the members in the event of any
contingencies.
• Examples of social insurance are provident fund and
group insurance.
BENEFITS OF SOCIAL SECURITY
According to the Social Security (Minimum Standards) Convention
(No. 102) adopted by the ILO in 1952, the following are the nine
components of social security that configure its scope:
(i) Medical care,
(ii) Sickness benefit,
(iii) Unemployment benefit.
(iv) Old age benefit,
(v) Employment injury benefit,
(vi) Family benefit,
(vii) Maternity benefit,
(viii) Invalidity benefit, and
(ix) Survivor’s benefit
SOCIAL SECURITY IN INDIA
India is a welfare state as envisaged in her constitution,
hence several laws have been enacted since independence
to provide for social security to the workers. The principal
social security laws enacted in India are following:
• The Employees’ State Insurance Act, 1948 (ESI ACT)
• The Employees’ Providing Fund & Miscellaneous
Provision Act, 1952 (EPF & MP Act)
• The Workmen’s Compensation Act, 1923 (WC Act),
• The Payment of Gratuity Act, 1972 (P. G. Act),
• The Maternity Benefit Act, 1961.
Employee’s state insurance Act, 1948
• Provide Medical facility and unemployment Insurance to
industrial worker during their sickness.
• It is compulsory and contributory in nature.
• It is applicable to all factories who employ more then 20
workers.
Benefits of this Act
• Medical benefit
• Sickness benefit
• Maternity benefit
• Disabled benefit
• Dependent benefit
Employees’ Provident Funds &
Miscellaneous Provisions Act, 1952
• The object of the Act is the institution of compulsory
contributory Provident funds. Pension and insurance for
employees. Presently the following three schemes are in
operation under the act through the Employees’
Provident Fund Organization:
• Employees’ Provident Funds Scheme, 1952
• Employees’ Deposit Linked Insurance Scheme, 1976
• Employees’ Pension Schemes,1995
The Workmen’s compensation Act, 1923
Compensation to employee in case of:

 Industrial accident- disability, death.

 Occupational diseases causing death.

(Compensation subject to state insurance Act 1948)

PAYMENT OF GRATUITY ACT, 1972
 The payment of gratuity act , 1972 applies to factories
and other establishments employing ten or more
persons.

 The coverage under the act is restricted to employees

drawing wages not exceeding Rs.3,500 per month. The
act provides for payment of gratuity at the rate of 15
days’ wages for each completed year of service, subject
to a maximum of Rs.2,50,000. In the case of seasonal
establishment, the gratuity is payable at the rate of seven
days’ for each season.
The Maternity Benefit Act, 1961
Maternity benefit is “an indemnity for the loss of wages
incurred by a woman who voluntarily before child-birth and
compulsorily thereafter abstains from work in the interest
of the health of her child and herself.”
The main purpose of Maternity Benefit Act, 1961 are:
• To regulate the employment of women employees in
certain establishments for certain specified periods
before and after child-birth.
• To provide for certain benefits in case of miscarriage,
premature birth, or illness arising out of pregnancy.
Benefits
• Sickness Benefits
• Medical Benefits
• Maternity Benefits
• Disablement Benefits
• Dependants Benefits
• Funeral Benefits