social security legislations

7/31/2019 Social Security Legislations

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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 ownability or foresight.


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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 oreven in private combination with his fellows


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The various risks are:

Sickness

Invalidity

Maternity

Employment injury

Unemployment

Old age

Death

Emergency expenses


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OBJECTIVES OF SOCIAL SECURITY

The purpose of all social security measures in threefold:

I. Compensation: provides for income security and isbased upon the idea that during spells of risks, theindividual and his family should not be subjected to a

double calamity involving both destitution and loss ofhealth, 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 productivecapacity due to sickness, unemployment or invalidityand to render the available resources which are usedup by avoidable disease and idleness and thus increasethe material, intellectual and moral well being of thecommunity.


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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


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THE PILLARS OF SOCIAL SECURITY

1. SOCIAL INSURANCE

2. SOCIAL ASSISTANCE


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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.


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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.


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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.


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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.


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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


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THE EMPLOYEES STATE INSURANCE

SCHEME, 1948


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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


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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 unithas been raised to Rs. 900 per annum


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HEALTH BENEFITS

Scheme provides full medical facilities , from primary

health care to super specialty treatment.

Medical care scheme is administered by the state

govt.


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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.


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THE PAYMENT OF GRATUITY ACT,

1972


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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.


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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


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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


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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)


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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


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social security legislations

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