SOCIAL SECURITY IN PAKISTAN

SHAH SAUD TORUM. Phil Scholar 2nd Semester

Bacha Khan University Charsadda

Social security

monetary assistance from the state for people with an inadequate or no income. “Uk”

  a federal insurance scheme

providing benefits for pensioners and those who are unemployed or disabled. “USA”

INTRODUCTION

a program in which the government provides money to people who are unable to work because they are old, disabled, or unemployed

the principle or practice or a program of public provision

for the economic security and social welfare of the individual and his or her family

CONTI

Public provision for the economic security and social welfare of all individuals and their families, especially in the case of income losses due to

unemployment ,work injury, maternity, sickness, old age, and death.

The term encompasses not only SOCIAL INSURANCE but also health and welfare services and various income maintenance programs designed to improve the recipient's welfare through public services.

CONTI

social security was not widely established by law until the 19th and 20th centuries,

with the first modern program appearing in Germany in 1883

CONTI.

. Almost all developed nations now have social security programs that provide benefits or services through several major approaches

such as social insurance and social assistance,

a needs-based program that pays benefits only to the poor. 

History

While several of the provisions to which the concept refers have a long history (especially in poor relief),

the notion of ‘social security’ itself is a fairly recent one.

The earliest examples of use of the term date from the 19th century

conti

. In a speech to mark the independence of Venezuela, Simón Bolívar (1819) pronounced that:

“The most perfect system of government is that which produces the greatest amount of happiness, the greatest amount of social security and greater amount of political stability”.

Jewish tradition

In Jewish tradition, charity (represented by tzedakah is a matter of religious obligation rather than benevolence.

Contemporary charity is regarded as a continuation of the Biblical Maaser An, or poor-tithe, as well as Biblical practices, such as permitting the poor to glean the corners of a field and harvest during the  Shmita (Sabbatical year).

Voluntary charity, along with prayer and repentance, is befriended to ameliorate the consequences of bad acts.

Roman Catholic

According to Robert Henry Nelson,

"The medieval Roman Catholic Churchoperated a far-reaching and comprehensive

welfare system for the poor

Islamic Tradition

The concepts of welfare and pension were put into practice in the early Islamic law of the Caliphate as forms of Zakat (charity),

one of the Five Pillars of Islam, since the time of the Rashidun caliph Umar in the 7th century.

Thetaxes (including Zakat and Jizya) collected in the treasury of an Islamic government were used to provide income for the needy, including

the poor, elderly, orphans,widows, and the disabled. According to the Islamic jurist Al-Ghazali (Algazel, 1058–

1111), the government was also expected to store up food supplies in every region in case a disaster or famine occurred

ENGLAND 

In Great Britain the Liberal government of Henry Campbell-Bannerman and David Lloyd George introduced the National Insurance system in 1911, 

a system later expanded by Clement Attlee. The United States did not have an organized welfare system until the Great Depression, when emergency relief measures were introduced under President Franklin D. Roosevelt.

Even then, Roosevelt's New Deal focused predominantly on a program of providing work and stimulating the economy through public spending on projects, rather than on cash payment.

Social Security in Pakistan

In Pakistan,  Social Security Scheme was launched on

1st March, 1967, under West Pakistan Employees' Social Security Ordinance No. X of 1965, with the assistance of the International

Labour Organization.

Government Social Assistance

It is an Islamic tax on the wealth of the rich at the rate of 2.5 percent. It is not applied on Shia community as they do not accept this as a genuine Islamic tax. The commercial banks in Pakistan deduct this tax from the saving bank accounts once a year.

According to official distribution of this tax, twenty five percent Zakat budget is being divided among institutions against various schemes like Educational Stipends (General and Technical), Stipends to students, Health Care (Provincial and National), Social Welfare, Leprosy patients etc. and remaining 75% direct to individuals.

Conti…

Formally, Zakat Committees are been nominated by the governing political parties to distribute Rupees 400 (approximately 85 Rupees in a Dollar) to per person per month to the most needy persons.

This amount is too little and a lot of political favoritism is been witnessed while distributing this meager amount.

Pakistan Bait-ul-Mall (the national treasury. Everybody in the

Muslim state that pays taxes has the money go into the bait ul mall (the house of currency). This money is used to fund the state, its endeavors and to support the poor)

PBM was established as an autonomous body in 1992 with the objective of providing assistance to those groups of people that for certain reasons have been excluded or are not eligible to receive Zakat.

Conti…

This includes the minorities and certain sects of Muslims. The PBM disburses to the poor under a wide variety of programs that encompass Food Support Programs, Individual Financial Assistance, Child support through the National Centre for Rehabilitation of Child Labour, and Institutional Rehabilitation (Grant to NGO's)

. This institution is normally headed by a political nominee of the governing party to make sure that the amount is spent on their political allies and could be used as a sort of bribe.

The Benazir Income Support Program

( BISP): Funded through the federal budget in 2008, the BISP is a new initiative taken by the present government with the objective to provide unconditional cash grants to the poorest families in the country.

BISP has been initiated with an initial allocation of Rs.34 billion (US $ 425 million approximately) for the year 2008-09 which is the third largest allocation in the total budget and is 0.3% of the GDP for the year 2008-09.

Conti…

The maximum amount that could be given to one person is Rupees one thousand and is been used once again to the favourite ones.

In almost all the bi-elections that have taken place during the last two years of the present civilian government, this Benazir Card is been used particularly in the constituency where the elections are taking place.

Social Security/Social Insurance

Government Servants Pension Fund: The scheme began in 1954. It is a compulsory scheme and covers all government employees after retirement of at least 25 years of service.

Pension and provident fund are two benefits granted to government employees.

The old age pension is financed through government expenditure, while provident fund is deducted at source from the monthly salary of employees.

Provincial Employees Social Security Institutions:

The scheme was initiated in 1967. Initially, this scheme specifically covered workers in the textile industry with the objective of providing protection against contingencies of sickness, maternity, work-related injury, invalidity and death. In1969, the scheme was broadened with the inclusion of workers from commercial and other industrial establishments having ten or more GLOBAL NETWORK 6

employees; and later in July 1970, it was reorganized on a provincial basis. The scheme include a compulsory contribution by the bosses which is minimal, however, out of a total workforce of over 49 million, only 2.1 million workers are enjoying the benefit of this scheme. The bosses are not ready to pay the due amount to the department.

Food Support Program

The coverage of the food support program benefited to 1.2 million poorest households in 2003-04 with monthly income of maximum Rs. 2000. Cash support of Rs. 2400 is provided to them through biannual installments.

Another scheme of Sasti Rooti (cheap bread) was introduced by the Punjab government in 2009 subsidizing the flour mill owners to provide cheap wheat flour to the tandoors (clay ovens) across Punjab. Thus, providing an opportunity to their own class to benefit from the scheme. This was abandoned within a year during the devastating floods in 2010.

Employees’ Old-Age Benefits Institution

A small number of employees of registered industrial or commercial establishment have been covered under EOBI scheme.

The EOBI is funded by an employer contribution of 5% of wages and a limited Federal contribution and provides monetary benefits to its insured persons in their Old Age, in the event of their becoming disabled/invalid owing to injuries/diseases.

Survivor pension is also provided in the event of the death of an insured person to the widow/widower for life.

Workers Welfare Fund The major objectives of the Fund is to finance

development projects like establishment of labour colonies and construction of houses, hospitals and schools for the industrial workers and finance education, training, re-skill and apprenticeship for the welfare of workers, marriage grants and death grants.

Employers of industrial establishments in the private sector under the Workers Welfare Fund (WWF) Ordinance established in 1971 are required to pay 2 per cent of their assessable income exceeding Rs. 0.1 million in any year of accounts to the Fund.

The funds have been used by all the successive civilian and military governments to favour their own banks and insurances and most of the deals of buying the bonds from the market resulted in great losses to this fund.

Educational Stipends (Technical):

Started in the year 2002-03 with annual allocation of Rs. 1 billion. On successful completion of training, Rs 5000 are given as one time grant to each trainee for purchase of relevant tools/equipment.

Punjab Vocational Training Council is running 65 Vocational Training Institutes. Governments of Balochistan and Sindh have shown keen interest in implementing the Punjab model.

Labor Market Programs Known as the Peoples Works Program, includes schemes

which have an immediate impact on the standard of living of ordinary people in facilities such as roads, electrification, gas, telephone, education, health, water supply and sanitation.

The program provides access to credit with subsidized interest rates to enable unemployed persons to start a small business.

Under the scheme, National Bank of Pakistan is offering Community Transport, Community Utility Stores, Community Mobile Utility Stores, and PCO/Tele-Centers, Commercial Vehicle Financing, Shopkeeper Financing and Primary Healthcare Equipment to Medical Graduates. Maximum financing limit ranges from 200,000 to 700,000 for the period of five years.

There are some micro finance and micro credit programs for the informal sector. This has been used mainly by the elected representatives in pleasing their supporters. Merits was the main causality in this process.

Transfers and Beneficiaries [2007-08]

Disbursement Beneficiaries

Million Rupes Percentage Million Persons

Percentag

Workers’ Welfare Fund EOBI Zakat Pak Bait-ulMal Peoples Worker Program People Rozgar Program Microsoft

7840

4227 4090 5521 1896

2337

13138

20.08

10.82 10.47 14.14 4.86

5.98

33.64

0.17 0.27 2.01 2.13 0.04

0.01

1.15

2.92

4.72 34.67 36.77 0.77

0.22

19.93

Total 39049 100.00 5.79 100.00

Source: Poverty Reduction Strategy Paper -II, Government of Pakistan (2009)

Current Scenario, Labour Laws and 18th Amendment

18th amendment, introduced in 2010, withdrew ―Concurrent List‖, implying that policies and legislations hitherto done by the Federal Government/Legislatures on its 47 entries now stand transferred to the provinces.

The concurrent list also included 6 labour related issues – dealing with:

no 26 on welfare of labour, conditions of labour, provident fund, employers’ liability, workmen’s compensation, health insurance including invalidity pensions, old age pension,

no 27 on trade unions; and industrial and labour disputes no 28 on setting up and carrying out of labour (employment)

exchanges, employment information bureaus and training establishments

no 30 regulation of labour and safety in mines, factories and oil fields

no 31 on unemployment insurance, and

no 45 on inquiries and statistics for the purpose of any matters in this list

CSO actions

Mainstream civil society groups working on the issue of social security in general

and worker’s rights in particular are as following

Labour Education Foundation

Labour Education Foundation (LEF) - was set up as a non-government organization in 1993

to provide informed and intellectual input to trade unions

and civil society organizations for highlighting issues

and advocating alternatives for workers.

Pakistan Institute of Labour Education and Research

Pakistan Institute of Labour Education and Research (PILER) - established in 1982,

is a not for-profit, non-government, citizen sector organization engaged in research,

training and advocacy in the areas of labour rights and labour legislation, social justice and human development,

and regional solidarity and peace.

National Trade Union Federation

is trade unions based federation of the working class on national level. Set up in 1998,

it has brought together over 100 unions on one platform.

One of the main tasks of this federation is to organize campaigns for trade union rights,

implementation of minimum wages, wage increase,

providing legal support to workers and establishing new trade unions.

Pakistan Workers Federation

Pakistan Workers Federation - is working to establish,

maintain and develop a powerful and effective national organization consisting of free and democratic trade unions.

Making efforts to co-ordinate, direct and guide the activities of regional federations, the affiliated industry-wise unions and their industrial federations.

Pakistan Workers Federation in involved in activities to preserve, secure, maintain and seek universal recognition for the workers of Pakistan

All Pakistan Trade Union Federation

All Pakistan Trade Union Federation APTUF) - is a national trade union center in Pakistan.

It was formed in 1948 and has 240 affiliated unions, including workers in unorganized sectors such as brick kilns, oil tankers and carpet workers.

It is the second largest trade union federation in Pakistan. All Pakistan Trade Union Federation is an Independent and Democratic National Trade Union Federation which organizes workers throughout all Pakistan regions

Home Net Pakistan

Home Net Pakistan - is a network of organizations working for the recognition and labour rights of home-based workers. Home Net Pakistan is a member of Home Net, South Asia, which consists of Bangladesh, India, Nepal and Sri Lanka.

Home Net Pakistan believes that home-based women workers should not only be seen as poor women, deserving charity and some welfare schemes. They should be recognized as workers.

Women Workers Help Line

Women Workers Help Line (WWHL) - was established in January 2000 and is a national- level member-based organization.

It is working to resolve working women problems; ranging from workplace difficulties to legal issues.

WWHL launched campaigns, organized rallies, seminars, workshops and dialogues to highlight women issues and create awareness about constitutional and legal rights of women

Trade Union Action Committee for Minimum Wage

Trade Union Action Committee for Minimum Wage - on the initiative of Labour Education Foundation, Trade Union Action Committee for Minimum Wage was formed on 9 September 2009 to launch a campaign for the implementation of the minimum wage announced by the government.

Given the situation that unskilled workers function in very un-favorable environment and were not getting the announced wages Rupees 7000.

Despite the announcement of minimum wage, owners were utterly reluctant to implement that. Eleven organizations are member of this Committee and taking actions to improve the situation in favor of workers.

Labour Relief Campaign

Labour Relief Campaign (LRC) - was set up in October 2005 by several working class organizations as response to the most devastating earthquake in the history of Pakistan. The organizations include LEF, WWHL, Pakistan For Palestine, Labour Party Pakistan, Campaign for Cancellation of Third World Debts, National Trade Union Federation, Pakistan Kissan Rabita Committee and Progressive Youth Front. LRC most recent activity was to collect funds from national and international labor movement and to spend it on various areas affected by the floods in 2010.

Pakistan Kissan Rabita Committee

Pakistan Kissan Rabita Committee (PKRC) - (literal meanings Pakistan Peasant’s Coordination Committee) the decision to form a national organization of the peasantry was taken after the very successful campaign of farmers for land rights at Military Farms Okara. It was felt that a campaign in one district or two cannot be successful in longer terms. The land rights and food sovereignty campaign has to spread all over Pakistan through peasants movements and networking. The PKRC is run by a general body of 23 peasant, social organization and movements. It is run by a secretariat of four persons on volunteer basis

Khyber Pakhtunkhwa Employees Social Security Institution

The Employees Social Security Institution has been established in Pakistan under the Provincial Employees Social Security Ordinance 1965, on recommendation of International Labor Organization (ILO).

The Khyber Pakhtunkhwa Employees Social Security Institution came into being on the break-up of one unit in July 1970.

http://www.khyberpakhtunkhwa.gov.pk/cms/pages/13935660935310180770c04.jpg

Role & Task 

The main objectives of the Social Security Scheme is to provide benefits to certain employees & their dependents including parents in the event of Sickness, Maternity, Employment Injury & Death. The benefits admissible under the scheme, comprise: 

Medical Care. Cash Benefits.

Medical Care facilities

free of cost medical care facilities to secured person and their dependents through its medical units and Govt: hospitals.

hospitalization in its medical units and Govt: hospitals  where necessary.

free of cost medicines   as prescribed  by doctors of the Institution and specialists on panel.

dental care in employment injury. facilities of angiography, angioplasty and heart 

surgery  in  Lady Reading Hospital (LRH) Peshawar and Armed Forces Institute of Cardiology (AFIC) Rawalpindi.

 hospitalization  in Burn Trauma  Centres, Wah Cantt and Jehlum if necessary.

Ambulances are available in all medical units round the clock except  Medical Posts.

Cash Benefits

The Following cash benefits are admissible under the ESSI law / rules: -

Sickness BenefitPayable equal to 75% of wages in case of ailment upto 121

days in a year  in routine cases and equal to 100% of wages upto 365 days to CANCER and TB patients. 

Maternity BenefitFor female worker equal to her wages for 12 weeks.

Injury BenefitEqual to employee's wages for 180 days in a year in case of

employment injury.Death GrantEqual to the daily rate of sickness benefit multiplied by

thirty on the death of secured worker. 

conti

 Disablement Gratuity  For disability as a result of an employment injury from 5% to

20% of physical lose determin  by the Medical Board.Partial  Disablement Pension: For disability as a result of an employment injury from 21% to

66 % of physical lose determined by the Medical Board.Total Disablement Pension: For disability as a result of an employment injury above  66 % of

physical lose determined by the Medical Board. Survivor's Pension.Family pension for widow of deceased worker who dies as a

result of an employment injury. Iddat BenefitTo female workers for 130 days on the death of her husband

equal to her monthly wages

Social Welfare Departments

The core government department to implement and oversee social protection related activities is Social Welfare Departments in different provinces and the capacity of its staff, concepts regarding human rights and gender prospect, selection process and distribution system always remain a concern amongst the civil society. The department lacks systematic planning in terms of implementing the social protection schemes and beneficiaries are selected on the basis of biased and politically determined criteria instead of merit thus the most deserving citizens remain outside this preview.