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Social security is the protection that the society provides to its members to ensure access to income and health care during old age or when unemployed or if subjected to injury or maternity or loss of bread winner for the family. Social security is nothing but income security or economic security a state can provide to its citizens. It is dynamic concept to strike the root of poverty and unemployment of the citizens of a country. India has extended various social security assistance to its citizens. India’s social security system is categorized into seven branches as healthcare, old age/retirement, family and childcare, accident assurance, and occupational disease, rural job guarantee and food security. Let us check the types of social security in India along with Social security schemes in India.
Social Security in India
The Code on Social Security, 2020 is the bill that received the presidential assent on 28 September 2020, and section 142 of the Act came into force on 3 May 2021 to amend and consolidate the laws pertaining to social security of India with the aim to extend social security to all employees and workers either in the organised or unorganized or any other sectors of India. The bill was initiated by Santosh Gangwar the Labour Minister. This bill was first passed by the lok Sabha on September 22, 2020 and then by the Rajya Sabha on September 23, 2020.
The code of Social Security 2020 consolidated the followings acts:
- The Employees’ Compensation Act, 1923,
- The Employees’ State Insurance Act, 1948,
- The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952,
- The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959,
- The Maternity Benefit Act, 1961,
- The Payment of Gratuity Act, 1972,
- The Cine Workers Welfare Fund Act, 1981,
- The Building and Other Construction Workers Welfare Cess Act, 1996,
- Unorganised Workers’ Social Security Act 2008.
Employees’ Provident Fund Organisation, EPFO
Came into force on : November 11, 1952
Objective: To secure the future of the employees after retirement
Features Of EPFO:
- This scheme is taken care by social security body the Employees’ Provident fund Organisation
- This scheme is available for every public, private and self-employee under The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
- This scheme is applicable to institutions with more than 20 members
- The scheme is not mandatory in case where the employees are earning upto INR 15000 per month
- The scheme is mandatory when the employees earn more than INR 15000 per month
- Under this act every employee has a Universal Account Number (UAN) . This is fixed for one person through out his life time. It doesn’t change even if the employee changes the work institutions.
- Each UAN has a member id linked for each institutions. The member id will change with institutions but UAN remains the same.
- Ten to twelve percentage of the employees monthly salary will be accounted to this UAN and the employer also has to pay a matching amount monthly to the same UAN. Approximately twenty to twenty four percentage of the gross salary will be credited to this account monthly.
- The contributions to this scheme go towards the mandatory provident fund, a pension scheme and a disability and life insurance.
- The employee is eligible to withdraw the amount along with the interest accumulated once he/she reaches the statutory retirement age.
- The dependent will get a monthly pension through out their life in case of the employee’s death or disability during the work period.
Employees’ State Insurance, ESI
Came into force in : 1948
Objective: This act aims at providing medical care to employees and their families. It also aims at providing cash benefits during sickness and maternity, and monthly payments in case of death or disablement.
Features Of ESI:
- In March 1943, Prof. B.P.Adarkar appointed by the Government created a report on the health insurance scheme for industrial workers. This report became the basis for the Employment State Insurance (ESI) Act of 1948.
- ESI is a self-financing social security and health insurance scheme for Indian workers.
- This fund is managed by the Employees’ State Insurance Corporation (ESIC) according to the ESI Act 1948.
- Employees’ State Insurance Corporation (ESIC),, is an autonomous corporation under Ministry of Labour and Employment, Government of India.
- The scheme is extended to private educational and medical institutions that has 10 or more employees. This is applicable only in few states and union territories only.
- According to the ESI (Central) Amendment Rules, 2016 which was released on December 22, 2016, It expanded coverage to include employees earning INR 21,000 or less .
- For the employees earning INR 21,000 or less per month, the employer has to contribute 3.25% and the employee has to contribute 0.75% that is a total share of 4% to this fund.
- The employees who are registered under this insurance are entitled to the medical treatment for themselves and their dependents, unemployment cash benefit, sick pay and maternity benefit in case of women employees.
- The insurance also has provision for a disablement benefit and a family pension in case of employment-related disablement or death.
- Other benefits that are offered with ESI are Medical benefits, Maternity benefits, Unemployment allowance, Confinement expenses, Funeral expenses, Physical rehabilitation, Vocational training, Skill up-gradation training under Rajiv Gandhi Shramik Kalyan Yojana (RGSKY).
Atal Pension Yogna, APY
Came into force on : June 01, 2015
Objective: This Scheme aims at providing a monthly pension to eligible subscribers who are not covered under any organized pension scheme. Atal Pension Yogna is open to all bank and post office account holders within the age group of 18 to 40 years.
Features Of APY:
- Atal Pension Yojana was formerly known as Swavalamban Yojana
- APY was first mentioned by Finance Minister Arun Jaitley in the year 2015 Budget speech
- APY was launched by Prime Minister Narendra Modi on 9 May in Kolkata.
- According to this scheme, the government will co-contribute 50% of the total contribution or ₹1,000 – ₹5,000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years.
- The Minimum pension amount ₹1,000 – ₹5,000 is guaranteed by the Government of India to the subscriber at the age of 60 years
- After the demise of the subscriber, the spouse of the subscriber is eligible to receive the same amount as pension until the death of the spouse.