Unit 4

1. Social Security
2. introduction and types
3. Social Security in India
4. Health and Occupational safety programs
5. Salient features of Workmen Compensation Act
relating to social security
6. Salient features of Employees’ State Insurance Act
relating to social security
7. Workers’ education objectives
8. Rewarding.

 India’s social security system is composed of a
number of schemes and programs spread
throughout a variety of laws and regulations.
Keep in mind, however, that the government-
controlled social security system in India applies
to only a small portion of the population.
 Furthermore, the generally accepted concept of
the social security system includes not just an
insurance payment of premiums into government
funds (like in China), but also lump sum
employer obligations.

the following types of social insurances:
 Pension
 Health Insurance and Medical
 Maternity
 Gratuity
 Disability

 The Employees’ Provident Fund Organization,
under the Ministry of Labor and Employment,
ensures superannuation pension and family
pension in case of death during service. Presently
only about 35 million out of a labor force of 400
million have access to formal social security in
the form of old-age income protection. 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.

 The schemes under the Employees’ Provident
Fund Organization apply to businesses with at
least 20 employees. Contributions to the
Employees’ Provident Fund Scheme are obligatory
for both the employer and the employee when
the employee is earning up to INR 6,500
(US$120) per month, and voluntary when the
employee earns more than this amount. If the
pay of any employee exceeds this amount, the
contribution payable by the employer will be
limited to the amount payable on the first INR
6,500 (US$120) only.

 The Employees’ Provident Fund Organization
includes three schemes:
The Employees’ Provident Fund Scheme, 1952
The Employees’ Pension Scheme, 1995
The Employees’ Deposit Linked Insurance Scheme, 1976
 The Employees’ Provident Fund Scheme is
contributed to by the employer (1.67-3.67 percent)
and the employee (10-12 percent).
 The Employee Pension Scheme is contributed to by
the employer (8.33 percent) and the government
(1.16 percent), but not the employee.
 the Employees’ Deposit Linked Insurance Scheme is
contributed to by the employer (0.5 percent) only.

Four main types of pension (all monthly) are
offered:
1. Pension upon superannuation or disability;
2. Widows’ pension for death while in service;
3. Children’s pension; and
4. Orphan’s pension.
5. In addition, there are separate pension funds
for civil servants, workers employed in coal
mines and tea plantations in the State of
Assam, and for seamen

 India has a national health service, but this does
not include free medical care for the whole
population. The Employees’ State Insurance Act
creates a fund to provide medical care to the
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.
 In case of sick leave, the employer will pay half
salary to the employees covered under the
Employee’s State Insurance Act.

 The Workmen’s Compensation Act requires the
employer to pay compensation to employees or their
families in cases of employment related injuries
resulting in death or disability.
 In addition, workers employed in certain types of
occupations are exposed to the risk of contracting
certain diseases, which are peculiar and inherent to
those occupations. A worker contracting an
occupational disease is deemed to have suffered an
accident out of and in the course of employment and
the employer is liable to pay compensation for the
same. Occupational diseases have been defined in the
Workmen Compensation Act in parts A, B and C of
Schedule III.

depends on the situation of occupational disability:
(a) Death
50% of the monthly wage multiplied by the
relevant factor (age) or an amount of INR 80,000
(US$1,474), whichever is more.
(b) Total permanent disablement
60% of the monthly wage multiplied by the
relevant factor (age) or an amount of INR90,000
(US$1,667), whichever is more.
 The Compensation Act also includes stipulations for partial
permanent disablement and temporary disablement (total
or partial).

 The Maternity Benefit Act requires an employer to
offer 12 weeks wages during maternity as well as
paid leave in certain other connected
contingencies.
 Every woman shall be entitled to, and her
employer shall be liable for, the payment of
maternity benefit at the rate of the average daily
wage (the average of the woman’s wages payable
to her for the days on which she has worked
during the period of three calendar months
immediately preceding the date from which she
is absent on account of maternity), including the
day of her delivery and for the six weeks
immediately following that day.

 The maximum period for which any woman shall be
entitled to maternity benefit shall be 12 weeks, six
weeks up to and including the day of her delivery,
and six weeks immediately following that day.
 During the one month proceeding the period of six
weeks before her expected delivery or any period
during that six week period for which she does not
take a leave of absence, no pregnant woman shall be
required by her employer to do any work that is
arduous, involves long hours of standing or is in any
way likely to interfere with her pregnancy or the
normal development of the fetus, or is likely to cause
her miscarriage or otherwise adversely affect her
health.

 Any woman working in an organization and allowed to
maternity benefit may give written notice to her
employer stating that her maternity benefit and any
other benefits to which she may be entitled may be paid
to her or to anyone she nominates in the notice, and that
she will not work in any establishment during the period
for which she receives maternity benefit.
 On receipt of the notice, the company shall authorize the
employee to absent herself from the company until the
end of six week period following the day of her delivery.
 The maternity benefit for the period preceding the date
of her expected delivery shall be paid in advance by the
company to the employee after having confirmed that
she is pregnant. The amount due for the subsequent
period shall be paid by the employer to the employee
within 48 hours of the child’s birth.

 In addition to the above, the act states that no
company shall deliberately employ a woman in
any organization during the six weeks
immediately following the day of her delivery or
her miscarriage. No company shall compel its
female employees to do tasks of a laborious
nature or tasks that involve long hours of
standing or which in any way are likely to
interfere with her pregnancy or the normal
development of the fetus, or are likely to cause
her miscarriage or otherwise adversely affect her
health.

 For establishments with ten or more
employees, the Payment of Gratuity Act
requires 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.

 The Workmen’s Compensation Act, 1923
provides for payment of compensation to
workmen and their dependants in case of injury
and accident (including certain occupational
disease) arising out of and in the course of
employment and resulting in disablement or
death. The Act applies to railway servants and
persons employed in any such capacity as is
specified in Schedule II of the Act. The schedule II
includes persons employed in factories, mines,
plantations, mechanically propelled vehicles,
construction works and certain other hazardous
occupations

 The amount of compensation to be paid depends on
the nature of the injury and the average monthly
wages and age of workmen.The minimum and
maximum rates of compensation payable for death
(in such cases it is paid to the dependents of
workmen) and for disability have been fixed and is
subject to revision from time to time.
 has been set up under the Ministry of Labour and
Employment , which deals with framing of social
security policy for the workers and implementation of
the various social security schemes. It is also
responsible for enforcing this Act. The Act is
administered by the State Governments through
Commissioners for Workmen's Compensation.

 The main provisions of the Act are:-
 An employer is liable to pay compensation:-
 (i) if personal injury is caused to a workman
by accident arising out of and in the course of
his employment;
 (ii) if a workman employed in any
employment contracts any disease, specified
in the Act as an occupational disease peculiar
to that employment.

 However, the employer is not liable to pay
compensation in the following cases:-
◦ If the injury does not result in the total or partial
disablement of the workman for a period exceeding three
days.
◦ If the injury, not resulting in death or permanent total
disablement, is caused by an accident which is directly
attributable to:- (i) the workman having been at the time of
the accident under the influence of drink or drugs; or (ii)
the willful disobedience of the workman to an order
expressly given, or to a rule expressly framed, for the
purpose of securing the safety of workmen; or (iii) the
willful removal or disregard by the workman of any safety
guard or other device which has been provided for the
purpose of securing safety of workmen.

 The State Government may, by notification in the Official
Gazette, appoint any person to be a Commissioner for
Workmen's Compensation for such area as may be
specified in the notification. Any Commissioner may, for
the purpose of deciding any matter referred to him for
decision under this Act, choose one or more persons
possessing special knowledge of any matter relevant to
the matter under inquiry to assist him in holding the
inquiry.
 Compensation shall be paid as soon as it falls due. In
cases where the employer does not accept the liability for
compensation to the extent claimed, he shall be bound to
make provisional payment based on the extent of liability
which he accepts, and, such payment shall be deposited
with the Commissioner or made to the workman, as the
case may be.

 If any question arises in any proceedings under
this Act as to the liability of any person to pay
compensation (including any question as to
whether a person injured is or is not a workman)
or as to the amount or duration of compensation
(including any question as to the nature or extent
of disablement), the question shall, in default of
agreement, be settled by a Commissioner. No
Civil Court shall have jurisdiction to settle, decide
or deal with any question which is by or under
this Act required to be settled, decided or dealt
with by a Commissioner or to enforce any liability
incurred under this Act.

 The State Government may, by notification in the
Official Gazette, direct that every person
employing workmen, or that any specified class
of such persons, shall send at such time and in
such form and to such authority, as may be
specified in the notification, a correct return
specifying the number of injuries in respect of
which compensation has been paid by the
employer during the previous year and the
amount of such compensation together with such
other particulars as to the compensation as the
State Government may direct.

 Whoever, fails to maintain a notice-book
which he is required to maintain; or fails to
send to the Commissioner a statement which
he is required to send; or fails to send a
report which he is required to send; or fails to
make a return which he is required to make,
shall be punishable with fine.

 The provides for health care and cash benefit payments in
the case of sickness, maternity and employment injury.
The Act applies to all non-seasonal factories run with
power and employing 10 or more persons and to those
factories which run without power and employing 20 or
more persons. The appropriate Government may after
notification in the Official Gazette, extend the provision of
the Act to any other establishment or class of
establishments, industrial, commercial, agriculture or
otherwise.
 Under the Act, cash benefits are administered by the
Central Government through the Employees State
Insurance Corporation (ESIC), whereas the State
Governments and Union Territory Administrations are
administering medical care.

 The is the premier social security organization in
the country. It is the highest policy making and
decision taking authority under the ESI Act and
oversees the functioning of the under the Act.
The corporation comprises members
representing Central and State Governments,
employers, employees, Parliament and the
medical profession. Union Minister of Labour
functions as the Chairman of the Corporation. A
constituted from among the members of the
Corporation acts as the Executive Body for the
administration of the Scheme.

 Every factory or establishment to which this Act applies
shall be within such time and in such manner as may
be specified in the regulations made in this behalf.
 It provided for an integrated need based social
insurance scheme that would protect the interest of
workers in contingencies such as sickness, maternity,
temporary or permanent physical disablement, death
due to employment injury resulting in loss of wages or
earning capacity.
 It also provided for:-
◦ Medical Benefit
◦ Sickness Benefit (SB)
◦ Maternity Benefit (MB)
◦ Disablement Benefit
◦ Dependants' Benefit(DB)
◦ Funeral Expenses

 The basic provisions of the Act are :-
 The Central Government may, by notification in the Official
Gazette, establish a Corporation to be known as the
'Employees' State Insurance Corporation' for the
administration of the scheme of Employees' State
Insurance in accordance with the provisions of the Act.
 The Corporation may, in addition to the scheme of
benefits specified in this Act, promote measures for the
improvement of the health and welfare of insured persons
and for the rehabilitation and re-employment of insured
persons who have been disabled or injured and may incur
in respect of such measures expenditure from the funds of
the Corporation within such limits as may be prescribed by
the Central Government.

 All contributions paid under this act and all other
moneys received on behalf of the Corporation shall
be paid into a fund called the 'Employees' State
Insurance Fund' which shall be held and administered
by the Corporation for the purposes of this Act.
 Whoever, for the purpose of causing any increase in
payment or benefit under this Act, or for the purpose
of causing any payment or benefit to be made where
no payment or benefit is authorised by or under this
Act, or for the purpose of avoiding any payment to be
made by himself under this Act or enabling any other
person to avoid any such payment, knowingly makes
or causes to be made any false statement or false
representation, shall be punishable with
imprisonment or with fine or with both.

 If the person committing an offence under
this Act is a company, every person, who at
the time the offence was committed was in
charge of, and was responsible to, the
company for the conduct of the business of
the company, as well as the company, shall
be deemed to be guilty of the offence and
shall be liable to be proceeded against and
punished accordingly.

 Knowledge is a tool to empower and raise the
awareness in order to be able to analyse, interpret
and act on the material conditions that dictate their
reality. Hence the act of learning simultaneously also
becomes an act of producing knowledge.
 Class analysis and class struggle are at the centre of
any class conscious education that seek to transform
society by revealing the unequal nature of all social,
political and economic relations in society that give
rise to the hegemonic ideas in society.
 Workers education is a product of worker struggles
and experiences accumulated in the course of their
daily interaction with reality.

 Hence worker education can generally be
categorised into the following three spheres:
 Workplace skills training
 Trade union rights
 Theoretical and ideological

Each of these spheres targets a particular area of workers’ needs
and is aimed at a particular outcome.
1. Work place skills’ training is aimed at improving workers
productivity and ensuring that they progress through
promotions into more skilled jobs; however, this kind of
training supports the capital agenda, makes the worker a
better ‘slave’, and does not contribute to change in the
structural relations between the forces of production;
2. Trade union rights education is aimed at empowering trade
unionist to be able to effectively represent and defend worker;
but more importantly, to advance the working class interests
and agenda;
3. The theoretical and ideological education of workers is aimed
at making them understand the material basis of their class
position in society and link that with their everyday struggles
as workers, and to bring about fundamental change in society.

 As an organisation that plays a transformative role in
society, the Workers’ College educational
programmes focus on the last two aspects above of
worker education, because these bring about the
fundamental change that the working class struggle
for.
 Its aim is to equip the working class with analytical
tools that will help it interpret their world, and act
upon it from a working class perspective.
 The workers college views worker education from an
activist perspective and sees it as being about raising
working class consciousness and promoting the
values of activism among its students and staff.

 There is not a set of standard rewards to be used for employees
everywhere. Instead, each person has his/her own nature and
needs. The following guidelines will help you to determine what
might be the best ways to reward your employees.
 Reward employees by letting them hear positive comments from
customers about how the employees’ activities benefited the
customer.
 Occasionally have a Board member come to an employee
meeting to thank them. This usually means a lot to employees,
almost as much as having customers provide positive feedback
about the employees’ activities.
 Understand what motivates each of your employees. You can do
this by applying the “Checklist of Categories of Typical
Motivators” in the previous subsection about supporting
employee motivation on page 199. A major benefit of this
approach is that each employee is afforded the opportunity to
explain what motivates him or her.

 In each monthly staff meeting, take a few minutes to open the
meeting by mentioning major accomplishments of various
employees.
 Present gift certificates to employees who have made major
accomplishments. Guidelines for determining who gets this
reward should be clearly explained in your personnel policies in
order to ensure all employees perceive the practice as fair and
equitable. Allow employees to recommend other employees for
awards.
 Probably the most fulfilling for employees is to be able to do
useful work. Be sure that each employee understands the
mission of the business and how his/her work is contributing to
that mission. Post your mission statement on the walls. Discuss
the action-planning section of your strategic plan with
employees so that they see how their activities tie directly to
achieving the strategic goals of the organization.


Unit 4

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