Social Security Legislations
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Transcript of Social Security Legislations
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According to Friedlander a programme of
protection provided by society against the
contingencies of modern life- sickness,
unemployment, old age, dependency,
industrial accidents and invalidism against
which the individual cannot be expected to
protect himself and his family by his ownability or foresight.
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According to ILO SOCIAL SECURITY is the
security that society furnishes, through
appropriate organization, against certain risk
to which its members are exposed. The risks
are essentially contingencies against which the
individual of small means cannot effectively
provide by his own ability or foresight alone oreven in private combination with his fellows
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The various risks are:
Sickness
Invalidity
Maternity
Employment injury
Unemployment
Old age
Death
Emergency expenses
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OBJECTIVES OF SOCIAL SECURITY
The purpose of all social security measures in threefold:
I. Compensation: provides for income security and isbased upon the idea that during spells of risks, theindividual and his family should not be subjected to a
double calamity involving both destitution and loss ofhealth, limb, life or work.
II. Restoration: implies cure of the sick and the invalid, re-employment and in habilitation .
III. Prevention: designed to avoid the loss of productivecapacity due to sickness, unemployment or invalidityand to render the available resources which are usedup by avoidable disease and idleness and thus increasethe material, intellectual and moral well being of thecommunity.
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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
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THE PILLARS OF SOCIAL SECURITY
1. SOCIAL INSURANCE
2. SOCIAL ASSISTANCE
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SOCIAL INSURANCE
These schemes are financed mainly through
contributions of employers, workers and other
beneficiaries.
Most are compulsorily established by the law.
Benefits are linked to contributions of insured
persons.
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SOCIAL ASSISTANCE
Provide benefits for meeting the minimum
needs of the persons of small means.
Financed by state funds.
Benefits are changeable according to income
and means of beneficiaries.
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EVOLUTION AND GROWTH OF SOCIAL
SECURITY IN INDIA
Evolution has been slow, sporadic and on a more
or less selective basis.
Only in case of fatal injuries was some relief
provided under the Fatal Accidents Act, 1855.
With coming up of ILO in 1919 emphasis was on
protecting workers against hazards of industrial
lives.
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A beginning was made ultimately in 1923 by
passing of Workmens Compensation Act
The next contingency engaging the attention
of the state was maternity leading to
Maternity Benefit Act 1929.
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SOCIAL SECURITY LEGISLATIONS
Workmens Compensation Act, 1923
Employees State insurance Act, 1948
Employees Provident Fund and
Miscellaneous Provisions Act, 1952
Maternity Benefit Act, 1961
Payment of Gratuity Act, 1972
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THE EMPLOYEES STATE INSURANCE
SCHEME, 1948
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ADMINISTRATION
Administered by a statutory body called the
Employees State Insurance Corp. (ESIC)
Members representing employers, employees,
central, and state govt. , medical profession and the
Parliament.
FUNDING AND OPERATION OF THE
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FUNDING AND OPERATION OF THE
SCHEME Financed by contributions from employers and employees.
Employers contribution is 4.75 % and employees
contribution is 1.75 %
State govt. share the expenditure on the provision of
medical care up to an extent of 12.5 %
The ceiling on expenditure per insured person ,family unithas been raised to Rs. 900 per annum
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HEALTH BENEFITS
Scheme provides full medical facilities , from primary
health care to super specialty treatment.
Medical care scheme is administered by the state
govt.
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The wage sealing for coverage of employees under
the ESI Act, 1948 was enhanced from Rs. 7500 to
Rs.10,000 per month
The daily rate of allowance under vocational
rehabilitation scheme is enhanced from Rs. 45 to Rs.
123 per day.
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THE PAYMENT OF GRATUITY ACT,
1972
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OBJECTIVE
Provides for a scheme of compulsory payment of
gratuity to employees engaged in factories, mines oil
fields, plantations ,ports, railway companies, shops
or other establishments.
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ENTITLEMENT
Every employee , other than apprentice irrespective of his
wages is entitled to receive gratuity after he has rendered
continuous service for 5 years or more
Payable at the time of termination of his services either
i. On superannuation
ii. Retirement or resignation
iii. On death or disablement due to accident or disease
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Termination of services includes retrenchment
In case of death of the employee, gratuity is payable to
nominee, and if no nomination has been made then to
his heirs
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CALCULATION OF BENEFITS
For every completed year of service or part thereof
in excess of 6 months, the employer pays gratuity to
an employee at the rate of 15 days wages based on
the rate of wages last drawn
The amount of the gratuity payable to an employee
not to exceed (3,50,000)
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ADMINISTRATION
Enforced both ,by the central and the state
government.
Section 3 authorizes the appropriate govt. to appoint
any officer as a controlling authority for the
administration of the Act.
the central / state govt. also frame rules for
administration of the Act
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