What is the importance of social security measures in an organization?
From India, Vijayawada
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1From India, Vijayawada
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i want to know about the importance and how many organizations are fallow this social security measures?
From India, Vijayawada
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From India, Vijayawada
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Overview
Why Do We Need Social Security
Social Security protects not just the subscriber but also their entire family by providing benefit packages in financial security and health care. Social Security schemes are designed to guarantee long-term sustenance to families when the earning member retires, dies, or suffers a disability. The main strength of the Social Security system is that it acts as a facilitator, helping people to plan their future through insurance and assistance. The success of Social Security schemes, however, requires the active support and involvement of employees and employers.
As a worker/employee, you are a source of Social Security protection for yourself and your family. As an employer, you are responsible for providing adequate social security coverage to all your workers.
Background Information on Social Security
India has always had a Joint Family system that took care of the social security needs of all members provided it had access/ownership of material assets like land. In keeping with its cultural traditions, family members and relatives have always discharged a sense of shared responsibility towards one another. To the extent that the family has resources to draw upon, this is often the best relief for the special needs and care required by the aged and those in poor health.
However, with increasing migration, urbanization, and demographic changes, there has been a decrease in large family units. This is where the formal system of social security gains importance. However, information and awareness are vital factors in widening the coverage of Social Security schemes.
Social Security Benefits in India are Need-based, i.e., the component of social assistance is more important in the publicly-managed schemes.
In the Indian context, Social Security is a comprehensive approach designed to prevent deprivation, assure the individual of a basic minimum income for themselves and their dependents, and protect the individual from uncertainties. The State bears the primary responsibility for developing an appropriate system for providing protection and assistance to its workforce. Social Security is increasingly viewed as an integral part of the development process. It helps create a more positive attitude towards the challenge of globalization and the consequent structural and technological changes.
Workforce in India
The dimensions and complexities of the problem in India can be better appreciated by considering the extent of the labor force in the organized and unorganized sectors. The latest NSSO survey of 1999-2000 has brought out the vast dichotomy between these two sectors into sharp focus. While as per the 1991 census, the total workforce was about 314 million with only 27 million in the organized sector, the NSSO's survey of 1999-2000 estimated the workforce to have increased to about 397 million, with only 28 million in the organized sector. Thus, it can be concluded that there has been a growth of only about one million in the organized sector compared to about 55 million in the unorganized sector.
Organized and Unorganized Sectors
The organized sector includes primarily those establishments covered by the Factories Act, 1948, the Shops and Commercial Establishments Acts of State Governments, the Industrial Employment Standing Orders Act, 1946, etc. This sector already has a structure through which social security benefits are extended to workers covered under these legislations.
The unorganized sector, on the other hand, is characterized by the lack of labor law coverage, seasonal and temporary nature of occupations, high labor mobility, dispersed functioning of operations, casualization of labor, lack of organizational support, low bargaining power, etc., making it vulnerable to socio-economic hardships. The nature of work in the unorganized sector varies between regions and also between rural and urban areas.
In the rural areas, it comprises landless agricultural laborers, small and marginal farmers, sharecroppers, persons engaged in various activities like animal husbandry, fishing, horticulture, bee-keeping, toddy tapping, forest work, and rural artisans. In urban areas, it mainly consists of manual laborers in construction, carpentry, trade, transport, communication, street vendors, hawkers, head loaders, cobblers, tin smiths, garment makers, etc.
Synopsis of Social Security Laws
The principal social security laws enacted in India are as follows:
(i) The Employees' State Insurance Act, 1948 (ESI Act), which covers factories and establishments with 10 or more employees and provides comprehensive medical care to employees and their families, as well as cash benefits during sickness, maternity, and in case of death or disablement.
(ii) The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act), which applies to specific scheduled factories and establishments employing 20 or more employees, ensuring terminal benefits like provident fund, superannuation pension, and family pension in case of death during service. Separate laws exist for similar benefits for workers in coal mines and tea plantations.
(iii) The Workmen's Compensation Act, 1923 (WC Act), which requires payment of compensation to the workman or their family in cases of employment-related injuries resulting in death or disability.
(iv) The Maternity Benefit Act, 1961 (M.B. Act), which provides for 12 weeks' wages during maternity and paid leave in certain related contingencies.
(v) The Payment of Gratuity Act, 1972 (P.G. Act), which 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.
Separate Provident fund legislation exists for workers employed in Coal Mines and Tea Plantations in the State of Assam and for seamen.
Measures Being Undertaken at Present
- The various Central Acts on Social Security are being examined in light of the recommendations of the 2nd National Commission on Labour. Relevant amendments are proposed in the EPF and MP Act as well as the ESI Act. The consultation process is ongoing with reference to the amendment suggestions received for the Maternity Benefit Act and the Workmen's Compensation Act.
- Innovative measures are proposed in the running of the Social Security Schemes of EPFO and ESIC. This includes flexible benefit schemes tailored to the specific requirements of different segments of the population.
Summary of Present Initiatives in Working of EPFO & ESIC
The profiles of the Employees' Provident Fund Organization and the Employees' State Insurance Corporation are being changed towards greater accessibility and client satisfaction.
The EPFO extends to the entire country covering over 393,824 establishments. Currently, over 3.9 crore EPF Members and their families benefit under the social security schemes administered by the EPFO. The total corpus of the EPF Scheme 1952, EDLI Scheme 1976, and Employees Pension Scheme 1995 together amount to about Rs. 1,39,000 crores. Over the years, the volume of service rendered to subscribers, as well as investments made by EPFO, have grown manifold. To provide better services to subscribers and employers, the organization has launched Project RE-INVENTING EPF, INDIA since June 2001. The prime objectives of this Project are to provide subscribers better and efficient services, help employers by reducing compliance costs, and benefit the organization through geometric growth in all fields. An important part of this project is the allotment of the UNIQUE IDENTIFICATION NUMBER - the SOCIAL SECURITY NUMBER to EPF subscribers, issuing BUSINESS NUMBERS to employers, and Business Process Re-engineering.
The strategy for implementation has been evolved, and the allotment of the Social Security Number has begun with the entire activity being carried out in smaller phases for effective data collection. The criteria considered for the allotment of SSN include centralized control of Uniqueness, ensuring minimal manual intervention during allotment, and near 100% Uniqueness accuracy levels. The Social Security Number is a significant effort towards providing social protection to migrant labor and adapting the EPFO database to the trend of high job mobility among workers.
The Employees State Insurance Scheme provides need-based social security benefits to insured workers in the organized sector. Similar to EPFO, ESIC is tailoring different benefit schemes for various worker groups. The scheme, which was first introduced at two centers in 1952 and initially covered 1.20 lakh workers, now covers 71.59 lakh workers in about 678 centers in the country, benefiting around 310.54 lakh beneficiaries, including family workers of insured persons. The scheme is gradually expanding to cover new centers, and efforts are being made to create necessary infrastructure for providing medical care to a larger number of insured persons and their families.
Social Security to the Workers in the Organized Sector
Social Security to the workers in the Organized Sector is provided through five Central Acts, namely, the ESI Act, the EPF & MP Act, the Workmen's Compensation Act, the Maternity Benefit Act, and the Payment of Gratuity Act. Additionally, there are numerous welfare funds for specific segments of workers like beedi workers, cine workers, construction workers, etc.
Social Security and ILO/ISSA
The Government of India has accepted the international commitment arising from the ratification of the Covenant of Social, Economic and Cultural Rights of the United Nations. This Covenant recognizes the right of everyone to social security, including social insurance. India has also ratified certain Conventions of the ILO, including Workmen's Compensation, Equality of Treatment (Accident Compensation), and Equality of Treatment (Social Security). However, ILO Convention 102 has not been ratified by India.
The ILO Convention No. 102 of 1952 lays down nine benefits, including sickness benefit, medical benefit, maternity benefit, employment injury benefit, old-age benefit, invalidity benefit, survivors benefit, unemployment benefit, and family benefit.
Social Security Coverage in India
Most social security systems in developed countries are linked to wage employment. In India, the situation is different from developed countries due to several key differences. India does not have an existing universal social security system, and about 92% of the workforce is in the informal sector, making the system of payroll deductions challenging to apply.
Even today, one-eighth of the
From India, Mumbai
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Why Do We Need Social Security
Social Security protects not just the subscriber but also their entire family by providing benefit packages in financial security and health care. Social Security schemes are designed to guarantee long-term sustenance to families when the earning member retires, dies, or suffers a disability. The main strength of the Social Security system is that it acts as a facilitator, helping people to plan their future through insurance and assistance. The success of Social Security schemes, however, requires the active support and involvement of employees and employers.
As a worker/employee, you are a source of Social Security protection for yourself and your family. As an employer, you are responsible for providing adequate social security coverage to all your workers.
Background Information on Social Security
India has always had a Joint Family system that took care of the social security needs of all members provided it had access/ownership of material assets like land. In keeping with its cultural traditions, family members and relatives have always discharged a sense of shared responsibility towards one another. To the extent that the family has resources to draw upon, this is often the best relief for the special needs and care required by the aged and those in poor health.
However, with increasing migration, urbanization, and demographic changes, there has been a decrease in large family units. This is where the formal system of social security gains importance. However, information and awareness are vital factors in widening the coverage of Social Security schemes.
Social Security Benefits in India are Need-based, i.e., the component of social assistance is more important in the publicly-managed schemes.
In the Indian context, Social Security is a comprehensive approach designed to prevent deprivation, assure the individual of a basic minimum income for themselves and their dependents, and protect the individual from uncertainties. The State bears the primary responsibility for developing an appropriate system for providing protection and assistance to its workforce. Social Security is increasingly viewed as an integral part of the development process. It helps create a more positive attitude towards the challenge of globalization and the consequent structural and technological changes.
Workforce in India
The dimensions and complexities of the problem in India can be better appreciated by considering the extent of the labor force in the organized and unorganized sectors. The latest NSSO survey of 1999-2000 has brought out the vast dichotomy between these two sectors into sharp focus. While as per the 1991 census, the total workforce was about 314 million with only 27 million in the organized sector, the NSSO's survey of 1999-2000 estimated the workforce to have increased to about 397 million, with only 28 million in the organized sector. Thus, it can be concluded that there has been a growth of only about one million in the organized sector compared to about 55 million in the unorganized sector.
Organized and Unorganized Sectors
The organized sector includes primarily those establishments covered by the Factories Act, 1948, the Shops and Commercial Establishments Acts of State Governments, the Industrial Employment Standing Orders Act, 1946, etc. This sector already has a structure through which social security benefits are extended to workers covered under these legislations.
The unorganized sector, on the other hand, is characterized by the lack of labor law coverage, seasonal and temporary nature of occupations, high labor mobility, dispersed functioning of operations, casualization of labor, lack of organizational support, low bargaining power, etc., making it vulnerable to socio-economic hardships. The nature of work in the unorganized sector varies between regions and also between rural and urban areas.
In the rural areas, it comprises landless agricultural laborers, small and marginal farmers, sharecroppers, persons engaged in various activities like animal husbandry, fishing, horticulture, bee-keeping, toddy tapping, forest work, and rural artisans. In urban areas, it mainly consists of manual laborers in construction, carpentry, trade, transport, communication, street vendors, hawkers, head loaders, cobblers, tin smiths, garment makers, etc.
Synopsis of Social Security Laws
The principal social security laws enacted in India are as follows:
(i) The Employees' State Insurance Act, 1948 (ESI Act), which covers factories and establishments with 10 or more employees and provides comprehensive medical care to employees and their families, as well as cash benefits during sickness, maternity, and in case of death or disablement.
(ii) The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act), which applies to specific scheduled factories and establishments employing 20 or more employees, ensuring terminal benefits like provident fund, superannuation pension, and family pension in case of death during service. Separate laws exist for similar benefits for workers in coal mines and tea plantations.
(iii) The Workmen's Compensation Act, 1923 (WC Act), which requires payment of compensation to the workman or their family in cases of employment-related injuries resulting in death or disability.
(iv) The Maternity Benefit Act, 1961 (M.B. Act), which provides for 12 weeks' wages during maternity and paid leave in certain related contingencies.
(v) The Payment of Gratuity Act, 1972 (P.G. Act), which 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.
Separate Provident fund legislation exists for workers employed in Coal Mines and Tea Plantations in the State of Assam and for seamen.
Measures Being Undertaken at Present
- The various Central Acts on Social Security are being examined in light of the recommendations of the 2nd National Commission on Labour. Relevant amendments are proposed in the EPF and MP Act as well as the ESI Act. The consultation process is ongoing with reference to the amendment suggestions received for the Maternity Benefit Act and the Workmen's Compensation Act.
- Innovative measures are proposed in the running of the Social Security Schemes of EPFO and ESIC. This includes flexible benefit schemes tailored to the specific requirements of different segments of the population.
Summary of Present Initiatives in Working of EPFO & ESIC
The profiles of the Employees' Provident Fund Organization and the Employees' State Insurance Corporation are being changed towards greater accessibility and client satisfaction.
The EPFO extends to the entire country covering over 393,824 establishments. Currently, over 3.9 crore EPF Members and their families benefit under the social security schemes administered by the EPFO. The total corpus of the EPF Scheme 1952, EDLI Scheme 1976, and Employees Pension Scheme 1995 together amount to about Rs. 1,39,000 crores. Over the years, the volume of service rendered to subscribers, as well as investments made by EPFO, have grown manifold. To provide better services to subscribers and employers, the organization has launched Project RE-INVENTING EPF, INDIA since June 2001. The prime objectives of this Project are to provide subscribers better and efficient services, help employers by reducing compliance costs, and benefit the organization through geometric growth in all fields. An important part of this project is the allotment of the UNIQUE IDENTIFICATION NUMBER - the SOCIAL SECURITY NUMBER to EPF subscribers, issuing BUSINESS NUMBERS to employers, and Business Process Re-engineering.
The strategy for implementation has been evolved, and the allotment of the Social Security Number has begun with the entire activity being carried out in smaller phases for effective data collection. The criteria considered for the allotment of SSN include centralized control of Uniqueness, ensuring minimal manual intervention during allotment, and near 100% Uniqueness accuracy levels. The Social Security Number is a significant effort towards providing social protection to migrant labor and adapting the EPFO database to the trend of high job mobility among workers.
The Employees State Insurance Scheme provides need-based social security benefits to insured workers in the organized sector. Similar to EPFO, ESIC is tailoring different benefit schemes for various worker groups. The scheme, which was first introduced at two centers in 1952 and initially covered 1.20 lakh workers, now covers 71.59 lakh workers in about 678 centers in the country, benefiting around 310.54 lakh beneficiaries, including family workers of insured persons. The scheme is gradually expanding to cover new centers, and efforts are being made to create necessary infrastructure for providing medical care to a larger number of insured persons and their families.
Social Security to the Workers in the Organized Sector
Social Security to the workers in the Organized Sector is provided through five Central Acts, namely, the ESI Act, the EPF & MP Act, the Workmen's Compensation Act, the Maternity Benefit Act, and the Payment of Gratuity Act. Additionally, there are numerous welfare funds for specific segments of workers like beedi workers, cine workers, construction workers, etc.
Social Security and ILO/ISSA
The Government of India has accepted the international commitment arising from the ratification of the Covenant of Social, Economic and Cultural Rights of the United Nations. This Covenant recognizes the right of everyone to social security, including social insurance. India has also ratified certain Conventions of the ILO, including Workmen's Compensation, Equality of Treatment (Accident Compensation), and Equality of Treatment (Social Security). However, ILO Convention 102 has not been ratified by India.
The ILO Convention No. 102 of 1952 lays down nine benefits, including sickness benefit, medical benefit, maternity benefit, employment injury benefit, old-age benefit, invalidity benefit, survivors benefit, unemployment benefit, and family benefit.
Social Security Coverage in India
Most social security systems in developed countries are linked to wage employment. In India, the situation is different from developed countries due to several key differences. India does not have an existing universal social security system, and about 92% of the workforce is in the informal sector, making the system of payroll deductions challenging to apply.
Even today, one-eighth of the
From India, Mumbai
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