Social Security Legislature

7/28/2019 Social Security Legislature

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1. SOCIAL SECURITY LEGISLATIONSPresented by:AnukritiBhatnagar (08

MBA 104)DeepikaSehrawat (08 MBA 112)

2. ACCORDING TO FRIEDLANDERAccording to Friedlander a programme of

protection provided by society against the contingencies of modern life-

sickness, unemployment, old age, dependency, industrial accidents andinvalidism 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:SicknessInvalidityMaternityEmployment

injuryUnemploymentOld ageDeathEmergency expenses

5. OBJECTIVES OF SOCIAL SECURITYThe 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 OBJECTIVESTo increase the productivity of industrial workersTo

improve health and control sickness of industrial workersTo prevent

occupational diseases and take the remedial measuresTo remove mental and

physical hazards to prevent industrial accidentsTo take care of old age and

the other consequences resulting there fromTo ensure that various

legislations are implemented properly to achieve the above objectives

8. THE PILLARS OF SOCIAL SECURITY

9. SOCIAL INSURANCEThese 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 ASSISTANCEProvide benefits for meeting the minimum needs of

the persons of small means.Financed by state funds.Benefits are changeable


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according to income and means of beneficiaries.

11. EVOLUTION AND GROWTH OF SOCIAL SECURITY IN INDIAEvolution 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 againsthazards of industrial lives.

12. A beginning was made ultimately in 1923 by passing of Workmens

Compensation ActThe 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 LEGISLATIONSWorkmens Compensation Act,

1923Employees State insurance Act, 1948Employees Provident Fund and

Miscellaneous Provisions Act, 1952Maternity Benefit Act, 1961Payment of

Gratuity Act, 1972

15. WORKEMENS COMPENSATION ACT, 1923

16. OBJECTIVETo 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. ENTITLEMENTA Person should be employed He should be employed for

the purposes of the employers trade or businessThe capacity in which he

works should be one set out in the list in Scheduled II of the Act

18. BENEFITSTo 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 moreIn 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. ADMINISTRATIONState govt. administer the provisions of this Act


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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 womenThe Act prohibits the

working of pregnant women for a specified periodApplies 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. COVERAGEProvides 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. ADMINISTRATIONAdministered 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 SCHEMEFinanced 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 BENEFITSScheme provides full medical facilities , from primaryhealth 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 monthThe daily rate of

allowance under vocational rehabilitation scheme is enhanced from Rs. 45 to

Rs. 123 per day.


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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. ENTITLEMENTEvery employee , other than apprentice irrespective of

his wages is entitled to receive gratuity after he has rendered continuous

service for 5 years or morePayable at the time of termination of his services

eitherOn superannuationRetirement or resignationOn death or disablement

due to accident or disease

34. Termination of services includes retrenchmentIn 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 BENEFITSFor 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 drawnThe amount

of the gratuity payable to an employee not to exceed (3,50,000)

36. ADMINISTRATIONEnforced 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 establishmentsThe act aims at providing

timely monetary assistance to industrial employees and their families.

39. SCHEMES UNDER THE ACT THROUGH THE EPFOEmployees Provident

Fund Scheme, 1952Employees Deposit Linked Insurance Scheme,

1976Employees Pension Scheme, 1995

40. COVERAGEExtends to the whole of India , excluding the state of J&KAct

is applicable to factories and other classes of establishments engaged in

specific industries, classes of establishments employing 20 or morepersons.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


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42. EMPLOYEES DEPOSIT LINKED INSURANCE SCHEMEApplicable 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 SCHEMEWas 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 moreEarly pension can

be taken at a reduced rate between 50 -58 years of age , on completion of 10

years pensionable service

44. BENEFITSSuperannuation pensionEarly pensionPermanent total

disablementWidow or widowers pensionChildren pension or orphan

pensionNominee pension/dependant parents pension

45. CONTRIBUTIONFrom 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 employees pension

fundEmployer to pay for cost of remittanceCentral govt. contributes 1.16% of

the pay

46. THANK YOU

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Social Security Legislature

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