Social security

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Social security

  1. 1. Introduction Social security is the protection that a society provides to individuals and households to ensure access to health care and to guarantee income security, particularly in cases of •old age, •unemployment, • sickness, •work injury, • maternity or •loss of a breadwinner.
  2. 2. 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.
  3. 3. Workforce In India • As per the 2001 census, the total work force in our country is 402 million, of which 313 million are main workers and 89 million are marginal workers. Out of the 313 million main workers, about 285 million is in the unorganised sector, accounting 91 percent (Economic Survey: 2005-06). • As per the NSSO estimates for the year 2004-05,India population of 1093 million, with a workforce of about million. Of these, about 7 per cent belong to organised the rest 93 per cent of the workforce include those employed and employed in unorgnaised sector had 385 and self
  4. 4. • According to Arjun Sengupta report on the ‘Conditions of Work and Promotion of Livelihood in the Unorganised Sector’, an overwhelming 836 million people in India live on a per capita consumption of less than Rs 20 a day. • The middle class from 162 million(15.5%) to 253(19.3%) million. • The extreme poor have also benefited (274 to 237 million) – 43 million of them to be precise. • Their per capita consumption has gone up from Rs 9 to Rs 12 *Report is based on government data for the period between 1993-94 and 2004-05
  5. 5. Estmd contribution to employment Industrial Category No. of persons (in millions) Agriculture 238.87 Non-Agriculture 131.5 Mining & Quarrying 1.25 Manufacturing 37.07 Electricity, Gas And Water 0.04 Construction 16.36 Trade, Hotels And Restaurants 40.37 Transport, Storage & Communication 11.48 Financial Services 3.29 Community Services 21.64 All Sectors 370.07 (93%) Year: 1999/00 (Total labour force: 406 million)
  6. 6. Unorganised Labour • • • • Part of the workforce who have not been able to organize in pursuit of a common objective because of constraints such as casual nature of employment ignorance and illiteracy small size of establishments with low capital investment per person employed superior strength of the employer ”The unorganized Sector consists of all private enterprises having less than ten total workers, operating on a proprietary or partnership basis.” - by National Commission on Enterprises in the Unorganized Sector(NCEUS) in 2004
  7. 7. Characteristics of Unorganised Labour • The unorganised labour is overwhelming in terms of its number range and therefore, they are omnipresent throughout India. • As the unorganised sector suffers from cycles of excessive seasonality of employment, majority of the unorganised workers does not have stable and durable avenues of employment. • The workplace is scattered and fragmented. The workers do the same kind of job(s) in different habitations and may not work and live together in compact geographical areas. • In rural areas, the unorganised labour force is highly stratified on caste and community considerations. • The unorganised workers are subject to exploitation significantly by the rest of the society. The unorganised workers receive poor working conditions, especially wages such below that in the formal sector, even for closely comparable jobs i.e., where labour productivity are no different. • The unorganised workers do not receive sufficient attention from the trade unions.
  8. 8. Trends in Employment in Organised and Unorganised Sectors in India Year Organised Unorganised Workforce(in millions) 1983 24.01 (7.93) 278.74 (92.07) 302.75 1987-1988 25.71 (7.93) 298.58 (92.07) 324.27 1993-1994 27.37 (7.31) 347.08 (92.69) 374.45 1999-2000 28.11 (7.08) 368.89 (92.91) 397.00 2005-2006 26.46 (7.54) 358.45 (92.46) 384.91 Source: Ministry of Labour and Employment, Director General of Employment and Training and Economic Survey (various years)
  9. 9. The Social Security Laws in India Workmen’s Compensation Act, 1923 This Act takes care of disablement and death due to employment injury. The maximum amount of compensation for disablement is Rs.5.48 lakhs and for death is Rs. 4.56 lakhs Maternity Benefit Act, 1961 Under this Act female workers are entitled for paid holidays in certain establishments for a certain period before and after childbirth and provides for maternity and other benefits. Payment of Gratuity Act, 1972 16 September 1972 The gratuity is payable in the contingency of superannuation, retirement, resignation, death or disablement due to accident or disease subject to completion of 5 years continuous service. Under the Scheme Gratuity is payable @ 15 day‘ wages for every completed year of service subject to monetary ceiling of Rs.3.50 lakh
  10. 10. Social Security Laws in India THE EMPLOYEES’ PROVIDENT FUND 1st November 1952 The Employees’ Deposit Linked Insurance Scheme, 1976 1st August 1976 Family Pension 1st March 1971 The basic rate of provident fund contribution is 10% of basic wage/salary and the higher rate is 12%. 8.33% of wages is diverted to pension fund account The Scheme is financed with the contribution from the employer of the establishment @ 0.50% of the wages of the employees. Central Government also used to contribute to the fund @0.25% of the wage The employees share of contribution @ 1.16% of their wage with an equal amount of employers share. The Central Govt. also contribute @ 1.16%.
  11. 11. Social Security Laws in India The Employees’ Pension Scheme, 1995 • The pension scheme is compulsory for all members of the family pension scheme • On completion of 33 years contributory service, 50% of pay is payable as pension. The minimum pension for the widow is Rs.450/- per month and maximum may go up to Rs.2, 500/- per month payable as normal members pension on completion of 33 years service. • In addition to widow pension the family is also entitled to children pension @ 25% of widow pension payable up to two children till they attain the age of 25 years. • The Scheme is financed by diverting employers share of PF contribution @ 8.33% of wage to the pension fund and The Central govt. also contributes to the pension fund @ 1.16% of the wage.
  12. 12. Social Security Laws in India Employees’ State Insurance Scheme • • • • • The Employees’ State Insurance Act, 1948 applies to non-seasonal power using factories employing 10 or more persons and non-power using factories and certain other specified establishments employing 20 or more persons for wages. Employees contribute @ 1.75% of their wages, while the employers contribute @ 4.75% of the wages of insurable workers. The Scheme provides the following benefits: a. Sickness benefit including medical care. b. Disablement benefit (which includes temporary and permanent disablement) c. Maternity benefit. d. Dependants benefit in case of death due to employment injury. In case of maternity, the insured woman is entitled to maternity benefit @ full wage for 12 weeks In case of disablement caused due to injuries sustained in the course of and out of employment, the Insured worker is entitled to receive wages @ about 70% of normal wages from the ESIC for the entire period during which he/she is undergoing treatment and is unable to attend to his or her duties.
  13. 13. Labour laws in India • FACTORIES ACT, 1948 1. Factories Act includes a)Health, b)Safety, c)Welfare, d)Working Hours Of Adults, e)Annual Leave With wages. 2. The main objective of Factories Act, 1948 is to ensure adequate safety measures and to promote the health and safety and welfare of the workers employed in factories. The act also makes provisions regarding employment of women and young persons(including children & adolescents), annual leave with wages etc.
  14. 14. Summary and Conclusion • The analysis of information available from the Census and National Sample Survey Organisation revealed that the unorganised workers account for about 93 per cent of the total workforce and there is a steady growth in it over years. • In this context, it is argued that the major security needs of the unorganised workers are food security, nutritional security, health security, housing security,employment security, income security, life and accident security, and old age security. • Convergence of various Social Security Schemes for the organized and unorganised sector avoids duplication of benefits (both EPFO and ESIC provide disablement and death benefits). This will also result in reduction of administrative costs since both the organizations have vast infrastructure which can be utilized if some of the functions are combined. • In sum,the study calls for a Comprehensive, Universal and Integrated Social Security System for the unorganised workers in India.
  15. 15. Thank You

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