SOCIAL SECURITY LEGISLATIONS

Presented by:

Anukriti Bhatnagar (08 MBA 104)

Deepika Sehrawat (08 MBA 112)

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

furnishes, through appropriate organization,

against certain risk to which its members are

exposed. The risks are 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 Workmen’s 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

Workmen’s Compensation Act, 1923

Employee’s State insurance Act, 1948

Employee’s Provident Fund and

Miscellaneous Provisions Act, 1952

Maternity Benefit Act, 1961

Payment of Gratuity Act, 1972

WORKEMEN’S 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 employer’s 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

Employee’s Provident Fund Scheme, 1952

Employee’s Deposit Linked Insurance

Scheme, 1976

Employee’s 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

EMPLOYEE’S 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 widower’s 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 employee’s pension fund

Employer to pay for cost of remittance

Central govt. contributes 1.16% of the pay

THANK YOU