ALLIANCE UNIVERSITY

ALLIANCE SCHOOL OF LAW

LABOUR LAW 1 PROJECT

SOCIAL SECURITY AND ITS IMPORTANCE AND
CONSTITUIONAL BASIS

SUBMITTED TO SUBMITTED BY
Prof .PRADEEP KUMAR AKHILA RAJ.G
15040142100
BBA.LLB-B
CONTENTS

1. ABSTARCT
2. INTRODUCTION AND MEANING OF SOCIAL SECURITY
3. CONCEPT OF SOCIAL SECURITY
4. ANALYSIS OF VARIOUS DEFINITIONS OF SOCIAL SECURITY
 Definition by Sir William Beveridge
 Definitions by ILO
 Definition by National Commission on Labour
 Definition by Fried Lander
 Definition by Giri (V.V.)
5. THE SOCIAL SECURITY MOVEMENT IN INDIA
6. NEED FOR SOCIAL SECURITY
7. APPROACHES OF SOCIAL SECURITY
8. OBJECTIVES OF SOCIAL SECURITY
9. SOCIAL ASSISTANCE
10. SOCIAL INSURANCE
11. CONSTITUTIONAL STATUS OF SOCIAL SECURITY IN INDIA
12. SOCIAL SECURITY LEGISLATIONS IN INDIA
13. CONCLUSION
ABSTRACT:

In this paper I will discussing about the Social Security and its importance and its
constitutional relations in India. This paper will be talking about the definitions by various
acts, by few organisations and few social activists. And will also be discussing about the
concept of meaning of the social security.

There will be analysis of each definitions of social security and how is it actually
implemented in our society and then will talk about the social security movement in India.
The traditional aspect of the social security and how as it evolved from ancient day till
today.

The need for social security is an essential part in this paper along with the characteristics
and approaches of social security through Compensation, Restoration and Prevention. And
then the fundamental objectives of Social Security.

Objectives include Social Assistance and Social Insurance which talks about the way the
security is being implemented. And then I am drawing the importance to the Constitutional
Provisions related to Social Security and the present social status of those provisions. And
will end with the present legislations in India regarding Social Security.
Introduction and Meaning of Social Security:

In day to day insecurities of life has increased to great extent and to safe guard the
individual and the society from these uncertainties. Today’s society is facing a position
which has been never known before and is full ambiguity of life. Social security is a wise
investment which produce good returns in the long run. It is guarantee that society
furnishes through appropriate organizations, against certain risks to which its member are
exposed. These risks are all those contingencies against which the individual of small means
cannot effectively provide from its narrow means.

The idea behind the approach of social security is that the state shall be answerable for
protecting its citizens against certain cross-roads of life. There is no such definition of social
security which may be country to country according to the prevailing social legislations,
traditions ideals.

The basic principle of social security implies collective action by the community to help a
member against hardships and wants he cannot meet with his own resources. It is based on
business ethics “ideals of human dignity and social justice”.

Broadly speaking the idea of social security is that “The state shall make itself duty bound
for ensuring a minimum standard of material well-being to all its citizen on a basis wide
enough to cover all contingencies of life from womb to the tomb.

Social security is an attack on five “Giants” namely

1. Want,
2. Disease,
3. Ignorance,
4. Squalor and
5. Illness.

Security against giant of “squalor” mean security against all those evils which come through
the unplanned and unorganized growth of cities. The ultimate aim one’s economic and
political protection. It is to protect the poor and to ensure that they have an acceptable
standard of living.

Like other socio-economic concepts, the significance of the term “social security” varies
from country to country with varying political credo. For example, social security in the
socialist countries implies complete assurance to every citizen of this country from the
cradle to the grave.

In other countries which are relatively less regimented ones, social security refers to
measures of protection afforded to the needy citizens by means of schemes evolved by
democratic processes consistent with resources of the State.

CONCEPT OF SOCIAL SECURITY

All the industrial countries of the world have developed measures to promote the economic
security and welfare of individual and his family. These measures have come to be called as
social security.1 Social security is effective concept and an indispensable chapter of a
national programme to beat at the root of poverty, unemployment and diseases.

Social security may provide for the welfare of persons who become incapable of working by
reason of old age, sickness and invalidity and or unable to earn anything for their livelihood 2

1 Encyclopaedia Britanica, Vol.20, p.762.

2Dr.S.C.Srivastava, Treatise on Social Security and Labour Law (Lucknow: Eastern Book
Company) 1985 Edition p.5.
ANALYSIS OF VARIOUS DEFINITIONS OF SOCIAL SECURITY:

Definition by Sir William Beveridge

In 1942, Sir William Beveridge headed a committee that outlined the national schemes of
social insurance in Great Britain during the post war period. In his report he defines social
security as follows:

“The security of an income to take place of the earnings when they are interrupted by
unemployment by sickness or accident to provide for retirement through age, to provide
against the loss of support by the death of another person and meet exceptional
expenditure, such as those connected with birth, death and marriage3.

The Beveridge report argued that there were ‘five giants’ that were stalking the land and
that should be tackled. They are want, disease, ignorance, squalor and idleness4.

Beveridge report is seen as the ground work of the current social security system as he has
suggested that social security system would play a role in diminishing inequality and
preventing poverty if social security is intended to fulfill the need “to abolish want by
ensuring that every citizen willing to serve according to his powers has at all times an
income sufficient to meet his responsibilities5.

3Dr. N. H. Gupta, Social Security for Labour in India (New Delhi: Deep & Deep
Publications) 1986 Edition p.32.

4Stephen Mckay & Karen Rowlingson, Social Security in Britain (Palgrave Macmillan) 1989
Edition p.54

5 Srivatsava, Supra note 3, at 10

Definitions by ILO

A standardized attempt was made by ILO in defining social security. ILO defines social
security as follows:

“The security that society furnishes, through appropriate organisation, against certain risks,
to which its members are exposed. These risks are essentially contingencies against which
the individuals of small means cannot effectively provide by his, own ability or foresight
alone or even in private combination with fellows”6.

These risks are being sickness, maternity, invalidity, old age and death. It is the
temperaments of these contingencies that they imperil the ability of the working man to
support himself and his dependents in health and decency.

ILO Social Security (Minimum Standards) Convention No.102 of 1952 defines Social Security
to mean:

“The result achieved by a comprehensive and successful and series of measures for
protecting the public (or a large sector of it) from the economic distress, that, in the absence
of such measures, would be caused by the stoppage of earning in sickness, unemployment
or old age and after death; for making available to that same public medical care as needed;
and for subsidizing families bringing up young children”7.

As per the contention of ILO social security is a multi-winged and multi-faceted concept. It
also observed that social security is the basic need of all people regardless of employment in
which they work and live. It should be begun with birth and should continue till death8.

6 ILO, Approach as to Social Security, (Geneva 1942) p.81.

7 MK Srivatsava, Agricultural Labour and the Law (New Delhi: Deep & Deep Publications)
1993 Edition p.151.
8 Meenakshi Gupta, Labour Welfare and Social Security in Unorganized Sector (New Delhi:

Deep & Deep Publications) 2007 Edition p.90.

Definition by National Commission on Labour

“Social security envisages that the members of the community shall be protected by
collective action against social risks causing undue hardship and privation to individuals
whose primary resources can seldom be adequate to meet them. The concept of social
security is based on ideals of human dignity and social justice. The under lying idea behind
social security measures is that a citizen who has contributed or is likely to contribute to his
country’s welfare should be given protection against certain hazards or as consequence of
it”9.

Thus the National Commission on Labour inspected that the citizen who has contributed to
his country’s welfare should be given protection against certain fortuity of work life to which
he is exposed as every worker is an active partner in a protective process and hence, he has
legitimate right to claim social security benefits to safe guard against economic insecurity as
a condition of human survival.

Definition by Fried Lander

Fried Lander defines social security as “a programme of protection provided by the society
against these contingencies of modern life- sickness, unemployment, old age, dependency,
industrial accidents and invalidsm against which the individual cannot be expected to
protect himself and his family by his own ability or foresight10.

According to him the concept of social security is used to describe as a scheme of protection
to assure the justified share to the working class by covering certain risks to which a person
is exposed in which these risks are such that an individual with meagre earnings cannot
afford.

9 Government of India, Report of National Commission on Labour, (1969), p.162.

10
Deepak Bhatnagar, Labour Welfare and Social Security Legislation in India (New Delhi:
Deep & Deep Publications) 1984 Edition pp.46-47
Definition by Giri (V.V.)

V.V. Giri defines Social security as “Social security, as currently understood, is one of the
dynamic concepts of the modern age which is influencing social as well as economic policy.
It is the security that the state furnishes against the risks which an individual of small means
cannot, today, stand up to by himself or even on private combination with his fellow
countrymen11.

Sinfield describes Social security situational i.e., as a state of complete protection against
the loss of resources.12
Berghman views social security as a situation of complete protection against human
damage13.

The Social Security Movement in India:

The modern factory system of creation is
 of recent origin in India. Until early twenties,

there was no workers' organization at all-India
 level. So, the British Government continued

with
 its traditional policy of profiteering and some measures were adopted only after

1920, when a little awakening started. Thus, the study of social security in India may be
taken to have started from 1920.

The pre-1920 period can be called as the
 period of unconcern on the part of government,

the employer and the workers. Large scale factories
 began to evolve in India from 1850.

However, by 1881, the factory system had clearly come forth in
 India but the workers did

11V.V. Giri, Labour Problems in Indian Industry (Bombay: Asia Publishing House) 1972
Edition p.269.

12Danny Pieters, Social security: An Introduction to the Basic Principles (Kluwer Law
International) p.2.

13 http://mbaexamnotes.com/social-security.html
not organize themselves simultaneously with the industrialization. The government also did

not show any concern for the enrichment of workers' conditions. Therefore,
 this period

can be called as the period of unconcern in the history of Indian Labour. A.N. Agrawal rightly
calls it "the period of inactivity in social insurance movement in India".

The establishment of International Labour Organization in 1919, greatly influenced the

public opinion in favour of social security measures for workers based on the principle to
secure universal peace based on social justice.

There was haphazard growth during 1921 to 1941. This period saw two enactments in the
field of social security, namely, the Workmen’s Compensation Act, 1923, and the various
maternity benefit Acts, passed by different Provinces. However, other contingencies of life,
like sickness, old age, unemployment, etc., were still unprotected.

There was conscious planning during the period of 1942 to 1951. This period saw many

significant developments in the field of social security on
 a firm and sound footing. The

outbreak of the. Scheme For this, a number of concessions were made to the working class
under the Defence of India Rules14.

1952 to 1957 can be called the period of concrete action. The adoption of the Constitution
in 1950, the beginning of the Planned era, etc. greatly Influenced the social security efforts
of State and Central Governments.

The Government had gradually but fully realised
 the importance of the social security

measures for the working class and had, therefore, enacted
 a number of enactments for

their welfare, insuring employees of various classes against the unwarranted contingencies
of life.

NEED FOR SOCIAL SECURITY

Contraption and urbanisation have resulted in radical socio-economic changes and give rise

14 (Rule 81-A) defence of Indian rules

to new conflicts and tensions consequent upon the erosion of age old family and fraternal
security15. The transition from agricultural economy to an industrial economy brought in
special accompanied problems like industrial accidents in serious dimensions. Hence the
joint family system, workers mutual aid societies, private savings etc. are found to be out
dated and inadequate to the tempo of modern life to provide relief in the event of sickness,
old age, maternity, unemployment, employment injury etc.

Human development insists that everyone should enjoy minimum level of security. Workers
also want to be free from economic threats which disrupt in their daily lives. Hence, there
must be a system in which the state bears the responsibility for providing and ensuring a
basic level of social security which is an essential ingredient in the protection, development
and full utilisation of human resources.

As social security is one of the fundamental needs of the modern human society to provide
for alternative sources of income to the workers at the time of contingencies through a
concerted effort of the most appropriate organisations, it was very much realised by the
state regarding the importance of protecting the victims from the contingencies in work life.
It is to meet this type of need the institution of social security is developed.

CHARACTERISTICS OF SOCIAL SECURITY:

The purpose of any social security measure is to provide individuals and families the
confidence that their standard of living will not be eroded by meeting with such socio-
economic contingencies in their life.

The concept of social security varied from country to country16. This is understandable in a
way because of the differential social and economic development of societies in difference

15 M.Velusamy, Labour Welfare : Legislation and Social Security (Delhi: Dominant

Publishers and Distributers Private Ltd) 2014 Edition p.230

16Dr.V.G.Goswami, Labour and Industrial Law (Allahabad: Central Law Agency) 2011
Edition p.3
parts of the world. But the need for economic protection is universal and hence social
security measures have three major characteristics even though they vary from country to
country and from time to time according to the need of the people and countries resources.
They are as follows:
 Social security measures are established by law.
 They provide cash benefit to replace at least a part of income in meeting
contingencies such as unemployment, maternity, employment injury, sickness, old
age etc.
 These benefits are provided in three major ways such as social assistance, social
insurance and public services.

Approaches of Social Security

“Social Security is a dynamic concept considered in all the advance countries of the world as
an indispensable chapter on all national programmes to strike at the root of poverty,
unemployment and disease, it was considered most essential for industrial workers’ as
stated by R.C. Saxena17.

A program of social security would guide the way to a new and better life for masses in
India. The different comprehensive schemes on social security and labour welfare would
keep industrial morale and efficiency and is an indispensable means to production and
productivity.
Broadly speaking the approaches of social security are three fold in nature:
(i) Compensation
(ii) Restoration
(iii) Prevention

(i) Compensation means income security during spell of risks because the individual and his
family not be subjected to a double calamity involving both destitution and loss of life,
health and work. Under worker compensation, workers are compensated in case of any

17 R.c Saxena
permanent disability reducing permanently or temporary earning capacity of aggrieved
employee. It is compensating a suffered employees due to contingencies and unexpected
mishaps by providing financial support.

(ii) Restoration. It means giving individuals and their families the confidence that their level
of living and quality of life will not suffer as far as possible due to any social and economic
loss. “It aims at restoring the previous social and economic status of the employee by
providing financial and social help under different provisions of social security Acts. Due to
restoration of one’s previous status financial position the self- confidence and self-esteem
of the employee can be maintained.”

Restoration mean reemployment and providing self-confidence through cure of sick/injured

employees.

(iii) Prevention. Social Security is a basic instrument of social and economic justice among
members of the society.” It not only aims at compensation and restoration of one’s financial
and social status; it further aims prevention of mishaps, industrial injury and occupational
diseases.
Prevention aims at avoiding loss of productive capacity due to sickness i/injure or
Unemployment.
Factory Act, Industrial safety Act and worker’s Compensation Act are helpful in the
preventions of different Industrial hazards leading to injury and occupational diseases.
Prevention is better than cure.”

Objectives of Social Security:

Social security is of great importance to developing and underdeveloped countries which

aims at large scale rapid industrialization. It helps in improving morale of employees by
providing sense of security to them against various industrial hazards, occupational diseases
and any other types of unfair practices.

“The State shall within the limits of its economic capacity and development make effective
provision for securing public assistance in case of unemployment, old age, sickness,
disablement makes the concept of social security of high importance to the country.”

From its modest beginning in the 20th century. Social security in the present 21st century
has become a fact of life for millions of people throughout the world. In some countries it
includes only economic security while in other countries it covers wide different fields of
social security. It has now widely influenced by the economic and social policies of all the
developed and developing countries.

These are some of the important objectives of social security

(i) Access to social security is a fundamental human right to which every individual is
entitled as a member of the society.

(ii) Its main objective is to give individual that confidence through which they must be sure
that their level of living and quality of life will be adversely affected due to any mishaps and
contingencies.

(iii) The aim of social security has been widened to include the complete quality of working
and living life in each aspect.

(iv) Society security is a wise investment which motive the employees and boost their
morale. Leaving to higher quality production.

(v) It is basic instrument of social and economic justice among members of the society.

(vi) Social security leads to adoption of the schemes of unemployment, insurance and
creation of new employment through a drive for rational planning and industrial
development.

(vii) It further aims at the establishment of a scheme of old age and unemployment pension.
(viii) Social Security emphasis covering more different types of risks like sickness, maturity
and employment injuries.

(ix) Under Social security cash benefits were to be given for employment injuries for
permanent partial incapacity.

(x) The main objective of social security is that a citizen who has contributed or is likely to
contribute to his country’s welfare should be given protection against certain hazards of life.

(xi) It emphasizes and ensures that the ideas of human dignity and social justice is duty
taken care.

The most well known techniques adopted by social security at present are no doubt social
assistance and social insurance which are discussed as follows:

Social Assistance

Social Assistance plans will concede advantages to individuals requiring them. Social help is
a devise sorted out by the state by giving money help and medicinal alleviation, to such
individuals from the general public as they can't get them from their own assets.

The ILO characterizes social help conspire as one that gives advantages to people of little
means conceded starting at right in sums adequate to meet a base standard of need and
financed from tax collection. The extraordinary normal for this measure is that it is financed
entirely from the general incomes of the state and the advantages are sans given of
expense. Be that as it may, the recipient needs to fulfil implies test which implies certain
recommended conditions.

The first risk to be covered was that old age, but gradually non-contributory benefits were
also introduced for invalids, survivors and unemployed persons as well. Today social
assistance programmes cover programme like unemployment assistance, old age assistance,
national assistance18. Thus, the social assistance underlines the idea that the care of people
could not be left to voluntary charity and should be placed on a compulsory and statutory
basis. It represents, “the unilateral obligation of the community towards its dependent
groups”19.

Social Insurance

Social Insurance was first introduced in Germany by Bismark and since spread all over the
world20. Social insurance is a plan insurance which aimed for protecting the wages of those
workers who do not have sufficient source to support their own self or their families in case
of loss of income due to meeting contingencies in their work life.

Lord William Beveridge has defined social insurance as “plan of insurance of giving in return
for contributions benefits upon subsistence level, as a right and without means test so that
individuals made build freely upon it.”21

From the above analysis the following ingredients may be regarded as basic features of
scheme of social insurance:

 Certain risks which cannot be faced by the persons in their individual capacity are
faced collectively by a group of persons;

 For that purpose they have pooled together their resources;

18 Meenakshi Gupta, Supra note 9, at 85.

19 S.N.Mehrotra, Labour Problems in India (New Delhi: S.Chand and Company Limited), 1981
Edition p.307.
20 R.K.A.Subrahmanya, Strategies for Protective Social Security In: Rehana Jhabwala and

R.K.A.Subrahmanya editors, The Unorganised Sector Work Security and Protection, (New
Delhi: Sage Publications) 2008 Edition p.38. 22 Nayan Barua, Social Security and Labour
Welfare in India (New Delhi: Ashish Publishing House) 1995 Edition p.25.

21Nayan Barua, Social Security and Labour Welfare in India (New Delhi: Ashish Publishing
House) 1995 Edition p.25.
  Benefits are provided to them in case of contingency;

 This makes them maintain their standard up to a subsistence level;

 Benefits are payable to them according to rates prevalent as a matter of right in

accordance with their salary or income; and

 The payment of contribution is obligatory since they are insured against the risk
compulsorily.

CONSTITUTIONAL STATUS OF SOCIAL SECURITY IN INDIA

The constitution of India guarantees fundamental rights to every citizen including the right
to life and as the Supreme Court has pointed out that the right to livelihood is inherent in
the right to life22. The ultimate aim of social security is to ensure that everyone has the
means of livelihood and hence the right to social security and protection of the family are
integral part of right to life23.

Further, the Supreme Court has also held that security against sickness and disablement24
and also right to family pension held to be forming part of right to life under Article 2125.The
Directive Principles of State policy set standard of achievement of socialistic pattern of
society as it embraces principles and policies pertaining to social security measures which
are to be followed by the state in future.

It is pertinent to discuss the following provisions which are relevant to social security:

22 Olga Tellis v. Bombay Municipal Corporation AIR 1986 SC 180.

23Calcutta Electricity Supply Corporation (India) Limited v. Subhas Chandra Bose AIR 1992
SC 573.

24 Regional Director, ESI Corporation v. Francis De Costa (1993) Supp 4 SCC 100.

25 S.K.Mastan Bee v. G.M., South Central Railway, JT 2002 (10) SC 50

To Secure a Social Order for the Promotion of Welfare of the People26

It is the duty of the state is to promote the welfare of its people by securing and protecting
social order in which justice, social, economic and political, shall inform all the institutions of
the national life.27 Art.38 incorporates part of the preamble within it concerning justice,
social, economic and political. This class has often been relied upon to sustain and demand
social welfare measures and to remain the state about the kind of society the constitution
expects it to create.28

Further, the constitution mandates the state to strive to minimise inequalities in status,
facilities and opportunities, not only amongst individuals but also amongst groups of people
residing in different areas or engaged in different vocations.29

Directives to the State to Secure Social Security Measures While Enacting Legislations30

While enacting social security legislations the state has been directed to secure the
following measures:
 Adequate means of livelihood;
 Proper distribution of ownership and control of the material resources of the
community so that it may sub serve the common need;
 Prevention of the concentration of wealth and means of production; x Equal pay for
equal work for men and women;
 The health and strength of workers; and
 Childhood and youth are protected against exploitation.

26 Article 38 of the Constitution of India.

27 Article 38(1) of the Constitution of India.

28 Air India Statutory Corporation v. United Labour Union AIR 1997 SC 645.
29 Article 38(2) of the constitution of India.
30 Article 39 of the constitution of India.
Right to Work, to Education and to Public Assistance in Certain Cases31

The state has been directed to ensure to the people within the limits of its economic
capacity and development to secure the right work, employment, education and public
assistance in cases of unemployment, old age, sickness and disablement and in other cases
of underserved want.

It is usual to refer to matters specified in the directive as measures of social security. The
Article 41 has no bearing on the interpretation of Article 16 as it is manifest that the term
public assistance or relief to people who are unemployed or old, or sick or disabled, or in
other similar cases of undeserved want.32

Provision for Just and Humane Conditions33

It exhibits the concerns of the framers for the welfare of the workers by requiring the state
to make provisions for securing just and humane condition of work and for maternity
benefit. While upholding the claim of non-regularised female workers for maternity relief,
the Supreme Court has stated:34

“Since Article 42 specifically speaks of ‘just and humane conditions of work’ and maternity
relief, the validity of an executive or an administrative action in denying maternity benefit
has to be examined on the anvil of Article 42 which, though not enforceable at law, is
nevertheless available for determining the legal efficacy of the action complaint of.”

31 Article 41 of the constitution of India.

32 Sukhanandan Takur v. State of Bihar, AIR 1957 pat 617
33 Article 42 of the constitution of India.
34 Municipal Corporation of Delhi v. Female Workers, AIR 2000 SC 1274.
Living Wage, etc. for Workers 35

Article 43 requires the state to strive to secure to the worker work, a living wage, conditions
of work ensuring a decent standard of life and full enjoyment of leisure and social and
cultural opportunities.

In Standard Vacuum Refining Co. of India v. Workmen,36 it has been observed that every
workman shall have a wage which will maintain him in the highest state of industrial
efficiency, which will enable him to provide his family with the material things which are
needed for their health and physical well-being, enough enable him to qualify to discharge
his duties as a citizen.

The amount of living which in terms of money will vary as between trade and trade. It is in
this broad and idealistic sense that Article 43 of the Constitution refers to living wage when
it enunciates the directive principles that the state shall endeavour, inter-alia to secure by
suitable legislation or economic organisation or in any other way, to all workers,
agricultural, industrial or otherwise, work, a living wage and conditions of work ensuring a
decent standard of life and full enjoyment of leisure and social and cultural opportunities.

Article 43 sets out the ideals to which our social welfare state has to approximate in an
attempt to ameliorate the living conditions of the workers .Considering the question of
wages in the background of the directive principles, a wage structure should serve to
promote a fair remuneration to labour ensuring due social dignity, personality and security,
a fair return to capital, and strengthen incentives to efficiency, without being unmindful of
the legitimate interest and expectation of the consumer in the matter of prices.37

35 Article 43 of the constitution of India.

36 AIR 1961 SC 895, 901.

37 Poly Chem Ltd. v. R.D.Tulpule, Industrial Tribunal Bombay, AIR 1972 SC 1967.
It is an indispensable component of labour welfare and extent of its prevalence is a measure
of the progress made by any country towards ideal the welfare state. The concept of social
security has been further widened, so as to include provisions for housing, safe drinking
water, sanitation, health, educational and cultural facilities and also a minimum wage which
can guarantee workers a decent life. Social Security is a more positive concept, assuming
that with the provision of these systems and mechanisms the unorganised sector will
become part of the main stream of the economy and enhance the national income
significantly.

Hence, social security in the modern era is essentially conceived as a related concept to the
high ideals of human dignity and social justice. From the above discussion it is clear that
social security measures have introduced an element of stability and protection in the midst
of the stresses and strains of modern life. Lack of social security impedes production and
prevents the formation of a stable and efficient labour force. Social security is, therefore,
not a burden, but a wise investment which yields good dividends in the long run.

Social Security legislations in India:

There are several legislative acts that are providing social security to workers in India. These
legislations provide social security to workers from each and every contingencies like risks
and mishaps which they are exposed to:

(i) “Employee’s provident fund and Miscellaneous provision 1952: It emphasis on

employee’s pension and family pension.

(ii) Payment of gratuity Act 1972. It provides reward for providing a decent and long service
of an employee towards his organization.

(iii) Workmen’s Compensation Act 1923. It aims to provide medical care. Periodical payment
during sickness and industrial accident/ occupational diseases to which a worker is expected
to while on the job.
(iv) Employee’s State Insurance Act. The Act provides insurance to employee’s at a highly
economical premium and providing all types of insurance coverage for meeting different
contingencies during his life and giving a handsome amounts after death to the family
members.

(v) Maturity Benefit Act. It covers pregnancy, confinement their consequences and medical
care before and after delivery of the child.

(vi) Group Insurance. Employees are given life insurance policies at very nominal premium
as compared to individual insurance.

(vii) Payment of Wages Act 1936. Ensures timely right salary after permissible deduction to
the employees.

(viii) The Minimum wages Act 1948--- It safeguard the workers to get minimum wages from
their respective employers at the prevailing price index.

(ix) The Factories Act 1948: It is wide act which provide security to workers against health,
cleanliness, safety good working condition and employment of women and children.

Besides these important Acts social security is being provided to different segment of
employees by these sub acts like.
(i) Coal Mines Provident and Bonus scheme Act 1948.
(ii) The plantation labour Act 1951.
(iii) Assam Tea Plantation Provident Act 1955.
(iv) Personnel Injuries (Compensation Insurance) Act , 1963
(v) Seamen’s Provident Act 1968.

India’s social security schemes cover the following types of social insurances:

 Pension
 Health Insurance and Medical Benefit
  Disability Benefit
 Maternity Benefit
 Gratuity

Pension or Employees’ Provident Fund:

The Employees’ Provident Fund Organization, under the Ministry of Labour and
Employment, ensures superannuation pension and family pension in case of death during
service. Presently, only about 35 million out of a labour force of 400 million have access to
formal social security in the form of old-age income protection in India. Out of these 35
million, 26 million workers are members of the Employees’ Provident Fund Organization,
which comprises private sector workers, civil servants, military personnel, and employees of
State Public Sector Undertakings (PSUs).

The Employees’ Provident Fund Organization includes three schemes:

 The Employees’ Provident Fund Scheme, 1952;

 The Employees’ Pension Scheme, 1995; and,
 The Employees’ Deposit Linked Insurance Scheme, 1976.

Four main types of pension (all monthly) are offered:

 Pension upon superannuation or disability;

 Widows’ pension for death while in service;
 Children’s pension; and,
 Orphan’s pension.

Health Insurance and Medical Benefit:

India has a national health service, but this does not include free medical care for the whole
population. The Employees’ State Insurance (ESI) Act creates a fund to provide medical care
to employees and their families, as well as cash benefits during sickness and maternity, and
monthly payments in case of death or disablement for those working in factories and
establishments with 10 or more employees.
Disability Benefit:

The Employee’s Compensation Act, 1923, formerly known as the ‘Workmen’s Compensation
Act, 1923’, requires the employer to pay compensation to employees or their families in
cases of employment related injuries that result in death or disability.

Maternity Benefit:

The Maternity Benefit (Amendment) Act, 2017 came into force on April 1, 2017, and
increases some of the key benefits mandated under the previous Maternity Benefit Act of
1961. The amended law provides women in the organized sector with paid maternity leave
of 26 weeks, up from 12 weeks, for the first two children. For the third child, the maternity
leave entitled will be 12 weeks. India now has the third most maternity leave in the world,
following Canada (50 weeks) and Norway (44 weeks).

Gratuity:

The Payment of Gratuity Act, 1972 directs establishments with ten or more employees to
provide the payment of 15 days of additional wages for each year of service to employees
who have worked at a company for five years or more.

Gratuity is provided as a lump sum pay out by a company. In the event of the death or
disablement of the employee, the gratuity must still be paid to the nominee or the heir of
the employee.

Medical benefits:

Medical care, social security under medical care covers pregnancy confinement and its
consequences and disease which lead to a morbid condition. “The need for pre-natal and
post-natal care was emphasized. It may include practitioner care, specialist care, provision
of essential pharmaceutical and hospitalization.”
Sickness Benefit.

Sickness includes incapability to work resulting a loss of earning. Under this benefit worker
need not be paid for three days of suspension of earnings and the payment of benefits may
be limited to 26 weeks in a year.

Unemployment Benefit.

Under the social security benefit cover the loss of earning during a worker’s unemployed
period when he is capable and available for work but remains unemployed because of lack
of suitable employment. As per Act this benefit may be limited to 13 weeks payment in
year.

Employment Injury Benefit:

Under Employment Injury benefit proper medical care and periodical payment are made to
injured employee as per the legal provisions of Worker’s compensation Act. In these days
industrial work is subject to different kind of contingencies mishaps and occupational
diseases which are covered under employment injury benefit of social security.

Family Benefit:

In case of death of the bread earner this cover responsibility for maintenance of children
during the entire period of children is provided.

Survivor’s benefit:

It refers to the benefits to the affected family in form of periodical payments to a family
following the death of its bread earner and should continue during the entire period of
contingency.
Invalidism benefit:

In fact this benefit continue till invalidism changes into old age then old age benefit would
become payable under this benefit as per ILO convention “ a periodical payment should
cover the needs of workers who suffer from any disability arising out of sickness or accident
and who are unable to engage into any gainful activity.”

Conclusion:

Today, just 0.2% of the whole GDP is allotted for Social Security. Out of this designation, the
majority of the assets don't achieve the concerned area or network. In spite of the fact that
the legislature has upheld numerous laws and enactment for the defence less networks, just
10% of these laws are implemented in the sorted out division. There is a gigantic hole in the
usage and arranging of approaches. Dreary misuse of ladies and kids are occurring in our
networks. It is our obligation to guarantee that each type conceived in any case to the
networks, must be socially secure and satisfactory assets are given to the new conceiver’s
family every now and then. Each individual has a privilege to be glad and nobody,
independent of its networks should kick the bucket in craving and dread. The social
wellbeing nets are intended to ensure each individual from the network and not at all like
numerous nations, India has yet not understood the fantasy of a socially secure society.