By Dr. Rakesh Kumar Moderator- Dr. Sanam Anwar. Framework Background & History Definition...
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By Dr. Rakesh Kumar Moderator- Dr. Sanam Anwar Social Security
By Dr. Rakesh Kumar Moderator- Dr. Sanam Anwar. Framework Background & History Definition Promotional Vs protective social security Approaches to social
Framework Background & History Definition Promotional Vs
protective social security Approaches to social security Social
security for workers Social security for organized sector Social
security for unorganized sector Social security for Old age,
Disability and survivors Social security for Maternity and Sickness
Social Security coverage in India New Initiative Social security in
developed countries Publicly managed social security schemes Vs
privately managed schemes References
Slide 3
Introduction Over one third of the world population lives under
extreme conditions of poverty and deprivation Characteristics like
illiteracy, poor health, unemployment and inadequate access to
productive assets make the poor more vulnerable In agrarian culture
joint family system took care of the social security needs of all
the members Increasing migration, urbanization and demographic
changes are making nuclear family system more common
Slide 4
History 1883 -1889- First broad system of social insurance
established by German Chancellor Bismarck 1919- International
Labour Organisation (ILO) established 1923 -Workmen's compensation
act 1935- Social Security Act introduced in USA 1942- Social
security programme implemented in the UK, based on Beveridge Report
(two- tier system of social security) 1948 - Employees' state
insurance act 1952 - Employees' provident funds, with amendments
1964- Department of Social Security created in India under ministry
of labour 1972- Payment of gratuity 1976-Employees' deposit-linked
insurance 1995- Employees' pension scheme 1995-National social
assistance program 2007-National Social Security Bill under
process
Slide 5
What is Social Security Definition- The protection which
society provides for its members through a series of public
measure, against the economic and social distress that otherwise
would be caused by the stoppage or substantial reduction of earning
resulting from sickness, maternity, employment injury,
unemployment, invalidity, old age and death (ILO,1984) Objective:
To protect the poor and vulnerable groups or individuals from
adverse changes in living standards though public action i.e, It is
a comprehensive approach designed to prevent deprivation, assure
the individual of a basic minimum income for himself and his
dependents and to protect the individual from any
uncertainties
Slide 6
Who needs social security? Sickness Employment Injury Informal
sector workers Old Age Maternity Unemployed Disablity Survivors
Formal sector worker Others special goups Minorities, Schedule
Caste & Tribes Women & Children
Slide 7
Basic principles of social security schemes: Universality-
should cover whole of population Comprehensiveness- should cover
maximum contingencies Benefit should be adequate and appropriate
Benefits should be secure and non-discriminatory Transparent and
sound administration A strong role for the social partners
Tripartite Administration
Slide 8
Promotional Vs protective social security schemes Promotional
social security: Implies provision of food, housing, education and
heath securities Example- Targeted Public Distribution System ICDS,
Sarva Shiksha Abhiyan, Indira Gandhi Awas Yozana, Employment
guarantee schemes Protective social security: Implies protection
against contingencies that result in reduction or stoppage of
income. Example- Various social assistance and social insurance
programme
Slide 9
Approaches to social security Social AssistanceSocial Insurance
Non-contributoryFinanced by contributions Receives benefits either
in cash or in-kind in the form of food aid Worker is actively
involved in economic planning for his future Involves a feeling of
charity, sympathy Inculcates a sense of responsibility for future
planning Designed to supplement the incomes of particularly
vulnerable groups (elderly and disabled) Provide for various
contingencies that interrupt or stop earnings Example: National old
age pension scheme National family benefit scheme National
maternity benefit scheme Example: ESI scheme Contributory provident
fund scheme LIC schemes
Slide 10
Social Assistance Programmes Entitlement Feeding Programmes
Integrated Child Development Services Mid Day Meal Scheme Food
Subsidy Programmes Targeted Public Distribution System Antodaya
Anna Yojana Annapurna Yojana Employment Programmes Sampoorna Gramin
Rojgar Yojana National Rural Employment Guarantee scheme (2005)
National Social Assistance Programme (1995)
Slide 11
Social Assistance Programmes National Social Assistance
Programme Implemented on on 15th August, 1995 It is a 100 %
Centrally Sponsored Programme. Implemented through a synergistic
partnership with State Governments and under the direct supervision
of DRDAs in close collaboration with the various PRIs Three
components : National Old Age Pension Scheme (NOAPS), National
Family Benefit Scheme (NFBS) National Maternity Benefit Scheme
(NMBS) Objective: To ensure a minimum national standard of social
assistance in addition to the benefit that States are already
providing in case of old age, death of primary breadwinner and
maternity
Slide 12
Social Insurance Schemes Scheme NameScheme
TypeFinancingCoverage Employee State Insurance Scheme
MandatoryEmployees: 4.75% of wages. Employers: 1.75% of wages.
State governments min of 12.5 % Firms with more than 20 employee
Employees Provident Fund MandatoryEmployer-10-12% Employee- 10-12%
Government- None Firms with more than 20 employee Employees Pension
Scheme MandatoryEmployer-8.33% Employee- None Government- 1.16%
Firms with more than 20 employee Employees Deposit Linked Insurance
Scheme MandatoryEmployer-0.5% Employee- None Government- N0ne Firms
with more than 20 employee
Slide 13
Social Security in India Directive Principles of State Policy
1. Article 41- Right to work, to education and to public assistance
in certain cases like unemployment, old age, sickness and
disablement, and in other cases of undeserved want. 2. Article 42-
Provision for just and humane conditions of work and for maternity
relief
Slide 14
Workforce in India Source NSS,2004
Slide 15
Social security for workers (Organized sector)
Slide 16
Organized sector includes establishments covered by the
Factories Act, 1948, the Shops and Establishments Acts of the
States, Industrial Employment Standing Orders Act, 1946, etc. It
has a structure through which social security benefits are extended
to workers Provided through five acts The Employees State Insurance
Act, 1948 (ESI Act) Covers factories and establishments with 10 or
more employees Provides for comprehensive 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. The Employees Provident Funds & Miscellaneous
Provisions Act, 1952 (EPF & MP Act) Covers specific scheduled
factories and establishments employing 20 or more employees Ensures
terminal benefits to provident fund, superannuation pension, and
family pension in case of death during service.
Slide 17
Social security for workers (Organized sector) The Workmens
Compensation Act, 1923 (WC Act), Requires payment of compensation
to the workman or his family in cases of employment related
injuries resulting in death or disability The Maternity Benefit
Act, 1961 (M.B. Act), provides for 12 weeks wages during maternity
as well as paid leave in certain other related contingencies. The
Payment of Gratuity Act, 1972 (P.G. Act) Provides 15 days wages for
each year of service to employees who have worked for five years or
more in establishments having a minimum of 10 workers. Others, like
welfare funds for certain specified segments of workers such as
beedi workers, cine workers, construction workers etc.
Slide 18
Social security for workers (Unorganized sector)
Slide 19
Rural areas- landless agricultural labourers, farmers, engaged
in animal husbandry, fishing, horticulture, bee-keeping, forest
workers, rural artisans, etc. Urban areas- Manual labourers in
construction, carpentry, trade, transport, communication, street
vendors, hawkers. No formal system of social security Majority face
the problem of deficiency of basic needs as well as the problem of
adversity arising out of such contingencies as sickness and
accidents National Commission for Enterprises in the Unorganized
Sector (NCEUS) has recommended provision of a statutory package of
National Minimum Social Security to all unorganized workers
Slide 20
Social security for workers (Unorganized sector) Employment is
the best form of social protection Schemes: Varishtha Pension Bima
Yojana (VPBY) Sanjay Gandhi Niradhar Anudhan Yojana, 1980 Sanjay
Gandhi Swawavlamban Yojana 1980 Unorganised sector workers social
security scheme National rural employment guarantee scheme
Rashtriya Swasthya Bima Yojana Provides smart card based cashless
health insurance cover of Rs. 30,000/- to the BPL workers and their
families ( a unit of five)
Slide 21
Social security for workers (Unorganized sector)
SchemeEligibilityFundBenefit Varishtha Pension Bima Yojana(2003-04)
Indian Citizens aged 55 years and above Only Single Premium is
payable Monthly Pension- Rs 250-2000 Loan facility available
National rural employment guarantee scheme (2005) Any adult member
volunteer to do unskilled work Government aided scheme Atleast 100
days of guaranteed wage employment in every financial year to every
household National social assistance program(1995) Needy elderly
persons and poor households on the death of the primary
breadwinner. Employee-None Employer-None Government- 100% National
Old Age Pension Scheme National Family Benefit Scheme National
Maternity Benefit Scheme Unorganized Sector Social Security Scheme
(2004) Voluntary Age 18-50yrs Monthly income < Rs 6500
Employee-Rs 50-200/mth Employer-Rs 100/mth Government- 1.16% of
wage Triple Benefit- Pension scheme- Rs 500/ mth Personal Accident
Insurance of one lakh Medical Insurance
Slide 22
Social security schemes for Old age, Disability &
survivors
Slide 23
SchemeEligibilityFundBenefits Employeess Provident fund scheme
Establishments with a min of 20 employees Monthly income < Rs
5000 Employee-10-12% Employer-10-12% Government-None Old age
benefits Disability Benefits Survivors Benefits Survivor
(deposit-linked) insurance Employee-None Employer-0.5%
Government-None Survivor Benefit Pension fundMonthly income < Rs
6500Employee-None Employer-8.33% Government-1.16% Old age Benefit
Disability Benefit Survivors Benefit Gratuity schemes
(1972)Employees of factories, mines, oilfields, plantations, ports,
railways, and shops with at least 10 workers Employee-None
Employer-4% Government-none Old age Benefit Disability Benefit
Survivors Benefit National social assistance program(1995) Needy
elderly persons and poor households on the death of the primary
breadwinner. Employee-None Employer-None Government-100% Old age
Benefit Survivors Benefit Unorganized Sector Social Security Scheme
(2004) Voluntary Age 18-50yrs Monthly income < Rs 6500
Employee-Rs 50- 200/mth Employer-Rs 100/mth Government-1.16% of
wage Triple Benefit- Pension scheme Personal Accident Medical
Insurance
Slide 24
Social security Benefits for Old age Provident fund: A lump sum
is paid equal to total employee and employer contributions plus
interest. Drawdown payment: the value of the minimum payment varies
from 1 month of wages to total employee and employer contributions
plus accrued interest. Pension scheme: With 10 or more years of
coverage, a monthly pension is paid based on a members pensionable
service and earnings, subject to a minimum pension; With less than
10 years, a lump sum is paid equal to total employee and employer
contributions plus interest. Early pension: The basic pension is
reduced by 3% for each year that retirement is taken before age
58.
Slide 25
Social security Benefits for Old age Gratuity scheme: Based on
the insureds final salary, a lump sum is paid equal to 15 days of
wages for each year of continuous service (a reduced amount is paid
for part years in excess of 6 months). Maximum benefit is 350,000
rupees. For seasonal employees, employers pay the gratuity at the
rate of 7 days wages for each season worked. National Old Age
Pension Scheme Eligibility criteria Age of the applicant (male or
female) is 65 years or above. Applicant is destitute i.e having
little or no regular means of subsistence from his/her own sources
of income or through support from family members or other sources
Pension amount- Rs 200 per month from the year 200607
Slide 26
Social security Benefits for Disability Permanent Disability
Benefits Provident fund: Lump sum is paid equal to total employee
and employer contributions plus interest. Pension scheme: Monthly
pension -min Rs 250 rupees or a lump sum is paid equal to total
employee and employer contributions plus interest. Gratuity scheme:
a lump sum equal to 15 days of wages for each year of continuous
service Maximum benefit is Rs 350,000 Seasonal employees are paid
at the rate of 7 days of wages for each season worked.
Slide 27
Social security Benefits for Survivors Provident fund: A lump
sum is paid equal to total employee and employer contributions plus
interest. Death grant: Up to Rs 2,000 rupees Survivor
(deposit-linked) insurance scheme: A lump sum is paid equal to the
average balance of the deceaseds provident fund account during the
12 months before death Maximum benefit is Rs 60,000 Widows pension
(pension scheme): 50% of the deceaseds pension. Minimum monthly
pension -450 rupees. Orphans pension (pension scheme): Paid for one
or two orphans up to age 25 (no limit if totally and permanently
disabled). Pension is equal to 25% of the widow s pension(min Rs
150 per month). Full orphans or dependent parent receive 75% of the
widow pension (min Rs 250 per month).
Slide 28
Social security for Survivors Gratuity scheme: a lump sum is
paid equal to 15 days of wages for each year of continuous service
Maximum benefit is Rs 350,000 Seasonal employees are paid at the
rate of 7 days of wages for each season worked Funeral grant: Lump
sum up to 3,000 rupees. Survivor grant (National Family Benefit
Scheme) Eligibility criteria: Death of primary breadwinner aged
between 18 to 65 years Earnings of primary breadwinner should
contribute substantially to the household income Bereaved household
should qualifies as below the poverty line Benefit amount - Rs.
10,000/- in the case of death of primary breadwinner due to natural
or accidental cause
Slide 29
Social security for Maternity,Sickness, Unemployment &
employment injuries
Slide 30
Social security for Sickness and Maternity
SchemeEligibilityFundBenefits Employees State Insurance Scheme
Firms with more than 20 employee Employees: 4.75% of wages.
Employers: 1.75% of wages. State governments min of 12.5 % Sickness
benefit Maternity benefit Disability benefit Survivors benefit
Unemployment benefit National social assistance program(1995) Needy
pregnant women may receive assistance for the first two births.
Employee-None Employer-None Government-100% Maternity benefit
Family benefit Unorganized Sector Social Security Scheme (2004)
Voluntary Age 18-50yrs Monthly income < Rs 6500 Employee-Rs
50-200/mth Employer-Rs 100/mth Government-1.16% of wage Sickness
benefit Maternity benefit Disability benefit Survivors benefit
Unemployment benefit
Slide 31
Social security Benefit for Maternity National Maternity
Benefit Scheme (2001) (merged into Janani Suraksha Yojana in 2005
under NRHM) Eligible for women of 19 years and above. Upto first
two live births Below poverty line families Benefit amount- Rs.
1000 per pregnancy to women Maternity benefit (ESI): Benefit is
equal to 100% of average earnings, according to wage class, and is
paid for up to 12 weeks (increased to six month ). Minimum daily
benefit is 20 rupees. Family planning (sterilization) (ESI): Cash
sickness benefit is paid at double rate for 7 days (men) or 14 days
(women); may be extended in case of complications.
Slide 32
Social security Benefit for Sickness (ESI) Sickness benefit:
Benefit varies but is around 60% of the average daily wage. Benefit
is paid up to 91 days in any two consecutive 6-month periods
Workers & their dependents Medical Benefits Benefits include
outpatient treatment, specialist consultations, hospitalization,
surgery and obstetric care, imaging and laboratory services,
transportation, and the free supply of drugs, dressings, artificial
limbs, aids, and appliances. Duration of benefits is from 3 months
to 1 year, according to the insureds contribution record Eligible
dependents - Spouse, children under age 18 (age 21 if a student, no
limit if disabled or an unmarried daughter), widowed mother, and
dependent parents Funeral grant : Lump sum up to 3,000 rupees.
Slide 33
Social security Benefit for Workers Injury (ESI) Temporary
Disability Benefits Around 75% of the average daily wage. Paid for
the entire duration of the disability, ( min of 3 days). Permanent
Disability Benefits Permanent disability pension: Separate medical
boards assess the loss of earning capacity resulting from a work
injury or an occupational disease. Maximum daily rate -around 75%
of the average daily wage May be paid as a lump sum not exceeding
30,000 rupees (If the daily value of the pension is equal to 5
rupees or less) Partial disability: A percentage of the full
pension is paid according to the assessed loss of earning
capacity
Slide 34
Social security Benefit for Workers Injury (ESI) Survivor
Benefits Survivor pension (widows pension): 60% of the deceaseds
total disability pension Orphans pension: 40% of the deceaseds
pension to orphan younger than age 18 (no limit if disabled or an
unmarried daughter). Maximum total survivor pension - 100% of the
deceaseds pension. Minimum daily benefit is 14 rupees. Maximum
total pension for other eligible survivors is 50% of the deceaseds
pension.
Slide 35
Social security Benefit during Unemployment (ESI) Qualifying
Conditions Must be involuntarily unemployed as the result of
retrenchment or a nonwork- related permanent disability. Must have
at least 5 years of contributions. Unemployment Benefits
Unemployment allowance: Benefit equal to 50% of the insureds
average wages and is paid for up to 6 months. Access to medical
care is also provided to beneficiaries and their dependents.
Slide 36
Social security coverage in India
Slide 37
New Initiatives: Unorganized Sector Workers Social Security
Bill, 2007 Aam Admi Bima Yojana (AABY), 2007 Health Insurance
Scheme for Unorganized Sector BPL Workers, 2007 (Rashtriya
Swasthaya Bima Yojana) Janashree Bima Yojana Micro-credit
Programmes Re-Inventing Employees Provident Fund
Slide 38
Unorganized Sector Workers Social Security Bill, 2007
Establishment of National Social Security Advisory Board and State
Social Security Advisory Boards Benefits shall be admissible to all
persons above 14 years of age Persons are provided with an identity
card in the form of a smart card. 11 schemes including the AABY and
the Health Insurance Scheme for Unorganized Sector BPL workers.
Benefits: life and disability cover, health and maternity benefits,
old age protection, provident fund, employment injury benefits,
Provision of housing, educational schemes for children, skill
upgradation of workers, funeral assistance, and old age homes.
Slide 39
Aam Admi Bima Yojana, 2007 Replaced Group Insurance Schemes as
It do not provide the annuity in the cases of survivor members.
Lack of awareness about schemes amongst rural population Poor
delivery mechanism at the village level State Government will be
the Nodal Agency. Members of All Rural Landless Households, in the
age group of 1859 years will be eligible. Premium of Rs 200 per
member will be borne by the Centre and States equally. A sum of Rs
30000 in case of natural death and Rs 75000 in case of accidental
death will be payable. A compensation of Rs 75000 will be payable
in case of total permanent disability and of Rs 37500 in case of
partial permanent disability. Provision for the payment of a
scholarship of Rs 300 per quarter per child for two children of the
beneficiaries studying in 9th to 12th standard for its
beneficiaries.
Slide 40
Rashtriya Swasthaya Bima Yojana A transparent scheme that lists
the entitlements, administered through a smart card obviating the
need for out of pocket expenses Covers all BPL unorganized sector
workers and their families (of five members), a smart card will be
issued Beneficiary will be required to pay Rs 30 per annum as
registration/ renewal fee. Prescribed premium of Rs 750 per
member-family will be borne by the Central and State Governments in
the ratio of 75:25. Benefits cashless attendance to all covered
ailments; Hospitalization expenses, taking care of most common
illnesses, all pre-existing diseases to be covered, transportation
costs subject to prescribed limits payable to the beneficiary.
Slide 41
Janashree Bima Yojana Janashree Bima Yojana provides insurance
cover of Rs 20000 in case of natural death, Rs 50000 in case of
death or total permanent disability due to an accident, and Rs
25000 in case of partial disability Premium is Rs 200 per
beneficiary ( 50% of the from the Social Security Fund and 50%
contributed by the beneficiary/State Government/nodal agency)
Eligibility criteria: Persons in the age group of 18 to 60 years
Living below or marginally above the poverty line Scheme is
extended to a group of 25 members or more
Slide 42
Micro credit Programmes A way of enabling those at risk of
poverty and social exclusion to participate in the economic and
political processes of society through self-employment Addresses
income and economic security Pre-dominantly focused on women Mostly
delivered through group based approach Best suited for delivery of
basic social security for poor Enhances local accountability and
transparency Government and public sector banks play major role
Involvement private sector like NGOs No regulation and
comprehensive legislation available District Rural Development
Agency (DRDA) - principal organ at the District level to over-see
the implementation of different anti-poverty programmes
Slide 43
Re-Inventing Employees Provident Fund Launched since June,
2001. a effort towards solving the problem of providing social
protection to migrant labour & nomads Objective: To provide the
subscribers better and efficient services, to help the employers by
reducing the cost of compliance and to benefit the organization to
register geometric growth in all fields. Initiatives: Allotment of
the Unique Identification Number-the Social Security Number to the
EPF subscribers Issuing of Buisness Numbers to the employers
Business Process Re-engineering
Slide 44
Social Security Measures for Special groups
Slide 45
Social Security Measures for Women Swayamsiddha an integrated
scheme for womens empowerment through SHGs Women empowerment and
capacity building of poor women through SHGs, promoting thrift and
credit activities amongst the women. Support to Training and
Employment Programme (STEP): Rashtriya Mahila Kosh Under ICDS
scheme - a component of conditional maternity benefits under which
pregnant and lactating mothers will be entitled to cash incentives
for six months ( proposal in 11 th 5-year plan)
Slide 46
Social Security Measures for Children Nutrition Programme for
Adolescent Girls (2002-03) It envisages that all adolescent girls
(1019 years) will be weighed four times a year families of girls
weighing less than 35 kg will be given 6 kg of foodgrains/month for
three months. Kishori Shakti Yojana provides self-development,
nutrition, health care, literacy, numerical skills, and vocational
skills to adolescent girls aged 11-18 yrs Programme for Juvenile
Justice Establishment and maintenance of various levels of
institutions for juveniles in conflict with law and children in
need of care and protection Integrated Child Protection Scheme- (i)
An Integrated Programme for Street Children ii) A programme for
Juvenile Justice (iii) Shishu Greha scheme, etc.
Slide 47
Social Security Measures for Minorities Constitutional
Provisions for Minorities Article 15 -Prohibition of discrimination
on grounds of religion Article 16 -Equality of opportunity in
matters of public employment Article 30- Right to establish and
administer educational institutions Most Muslims are engaged in
non-agricultural occupations
Slide 48
Legislative Measures Minimum Wages Act, 1948 Equal Remuneration
Act, 1976 - ensures equal pay Denying work to women based on gender
discrimination Protection of Women from Domestic Violence Act, 2005
Immoral Traffic (Prevention) Act: - to ensure that women in
prostitution are not victimized further Child Labour Act and
related legislations likeThe Bonded Labour System (Abolition) Act,
1976 - prohibit employment of children under 14 years only.
Protection of Civil Rights Act, 1976. Prevention of Atrocities Act,
1989- To check and deter atrocities against Scheduled Castes and
the Scheduled Tribes
Slide 49
Social security in developed country In developed countries
most social security systems are linked to wage employment.
Characteristics: i) Existance of universal social security system
ii)Most of the workforce is in the organized sector hence a system
of pay roll deduction is applied. iv)Main approach for social
security is social insurance
Slide 50
Publicly managed Vs Privately managed social security scheme In
Indian context, privately managed schemes can best act as
supplementary schemes Only publicly managed scheme can extend to
all the sectors of the workforce
Slide 51
Issues Extension of coverage of social security Ageing and its
impact on social security Governance and administration of social
security systems Equality, with an emphasis on gender and
disability Financing of social security HIV/AIDS and its impact on
social security
Slide 52
References Park K. Parks Textbook of Preventive and social
medicine. 19 th edition. Bannout publication; Jabalpur: 2006.
p.658-9. Detel R, McEwan J, Beaglehole R, Tanaka H. Oxford Textbook
of Public Health. 4 th edition. Oxford university press;
Newyork:2004. p.343-44. Last JM, Wallace RB. Public Health and
Preventive Medicine. 13 th edition. Appelton & Lange; USA:
1992. p.982-84 Social Security Online. The Official Website of The
U.S Social Security Administration [Online]. [cited 2009 Apr 8];
Available from: URL: http://www.socialsecurity.gov/ International
Social Security Administeration [Online]. [cited 2009 Apr 9];
Available from: URL:http://www.issa.net International Labour
Organization [Online]. [cited 2009 Apr 9]; Available from:
URL:http:// www.ilo.org/ Government of India. Ministry of Labour
[Online]. [cited 2009 Apr 6]; Available from:
URL:http://www.labour.nic.in Ministry of Rural Development (GOI)
[Online]. [cited 2009 Apr 11]; Available from:
URL:http://www.rural.nic.in Microcredit Foundation of India
[Online]. [cited 2009 Apr 18]; Available from:
URL:http://www.microcreditindia.org National Commission for
Enterprises in the Unorganized Sector (GOI) [Online]. [cited 2009
Apr 13]; Available from: URL:http://nceus.gov.in/