1. Social security measures in India1 1

2. Refer:
Francis Cherunilam: Business Environment, “Labour Welfare and Social Security;” Chapter 28.
Suresh Bedi: Business Environment, “Labour Environment;” Chapter 32.
Ruddar Datt, K.P.M. Sundharam (2010): Indian Economy, “Labour Problems and Labour Policy;” Chapter 40.

3. Social Security Introduction
In any industrial economy, the workers are subject to periodic unemployment due to cyclical fluctuations in business, sickness, industrial accidents and old age. While the capitalists have all the resources to face the risk of modern business, the worker does not have any financial resources to face the aforesaid risks, nor he/she has alternative sources of livelihood or accumulated property to help him/her through in period of adversity. Therefore, it becomes the responsibility of the State (government) to provide them security. Thus, all such measures of the government providing shield to workers to cope up in their difficult times are collectively called social security measures (benefits).

4. Social Security Measures (benefits) in India
1. Workmen’s Compensation Act, 1923: It provides for compensation to workers in case of industrial accidents and injury. Under this Act compensation is paid by the employer and the amount of compensation depends upon the nature of injury and the salary of the worker concerned. There is no wage limit for coverage under the Act. It covers all workers employed in factories, mines, plantations, mechanically propelled vehicles, construction workers, and certain other hazardous occupations. The Act is, however, not applicable to the persons who are covered by Employees State Insurance Act, 1948.

5. Social Security Measures (benefits) in India
2. Employees’ State Insurance Act, 1948:
The purpose of this Act is to provide compulsory and contributory health insurance facilities to workers. It provides for medical care and treatment (to workers and to their families), cash benefit during sickness, maternity benefits, employment injury, pension to the dependents on the death of worker. The Act covers employees working in organised industrial sector and whose monthly income is less than Rs. 7,500.

6. Social Security Measures (benefits) in India
3. Employees’ Provident funds and Miscellaneous Provision Act, 1952 :
The Act provides for provident fund (PF), family pension, and deposit linked insurance for employees working in industrial establishments. The pay (Basic pay + D.A) limit for the purpose of coverage under the Act is Rs. 6,500 p.m. The scheme is compulsory and contributory. Both, the employer and the employee contribute equally (a fixed percent of employee’s monthly pay) on a monthly basis into the PF account of the employee with the PF department (of government). Interest is credited on a regular basis on the accumulated balance in the account. On retirement (or death), the money is given to the employee (or to his family).

7. Social Security Measures (benefits) in India
4. Payment of Gratuity Act, 1972:
The Act covers employees working in factories, mines, oilfields, plantations, ports, railways, companies, shops or other establishments employing more than 10 persons;
There is no wage ceiling for getting benefit under this Act;
On completion of 5 years of service, the employee is entitled to gratuity payable at the rate of 15 days wages for each completed year of service, subject to a maximum of Rs. 3.5 lacs.

8. Social Security Measures (benefits) in India
5. Employees Pension Scheme, 1995:
It provides for pension at the rate of 50% of pay on retirement, subject to minimum 10 years of service for entitlement;
The scheme also provides for family pension in case of death of the worker;
The scheme is financed by diverting a portion of employers’ and employees’ contribution in ‘Employees’ Provident Fund’ to ‘Employees Pension Scheme’ along with an additional contribution by the Central Govt.

9. Social Security Measures (benefits) in India
6. The Maternity Benefit Act, 1961:
The Act covers all industrial women workers, except those covered under Employees State Insurance Act, 1948.
It provides for grant of leave and payment of maternity benefit, at the rate of average daily wage for a total period of 24 weeks.
The administration of the Act in all States is the responsibility of the factory inspectorates.

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