The document summarizes key social security legislations in India. It discusses legislations related to workmen's compensation, employees' state insurance, maternity benefits, payment of gratuity, and employees' provident fund. The main objectives of social security are to provide compensation during risks or contingencies, restoration of health and employment, and prevention of losses. Social security in India evolved gradually and key milestones included the Workmen's Compensation Act of 1923 and Maternity Benefit Act of 1929. Major social security programs are financed through social insurance and social assistance models.

1. SOCIAL SECURITY LEGISLATIONS Presented by: AnukritiBhatnagar (08 MBA 104) DeepikaSehrawat (08 MBA 112)

2. 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.”

3. 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”

4. The various risks are: Sickness Invalidity Maternity Employment injury Unemployment Old age Death Emergency expenses

5. OBJECTIVES OF SOCIAL SECURITY The purpose of all social security measures in three fold: 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.

6. 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.

7. 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

8. THE PILLARS OF SOCIAL SECURITY

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.”

14. 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

15. WORKEMEN’S COMPENSATION ACT, 1923

16. 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

17. 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

18. 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.

19. 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

20. 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.

21. THE MATERNITY BENEFIT ACT, 1961

22. 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.

23. 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.

24. 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

25. THE EMPLOYEES STATE INSURANCE SCHEME, 1948

26. 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

27. 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.

28. 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

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

30. 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.

31. THE PAYMENT OF GRATUITY ACT, 1972

32. 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.

33. 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 On superannuation Retirement or resignation On death or disablement due to accident or disease

34. 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

35. 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)

36. 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

37. EMPLOYEES PROVIDENT FUND AND MISCELLANOUS PROVISION ACT, 1952

38. 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.

39. 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

40. 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

41. 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

42. 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.

43. 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

44. BENEFITS Superannuation pension Early pension Permanent total disablement Widow or widower’s pension Children pension or orphan pension Nominee pension/dependant parents pension

45. 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

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