Social Security Legislation

Social Security Legislation

Social Security

Social security can be understood as security that furnishes through appropriate organizations against certain risk to which its members are exposed. It is a program of protection provided by society against the contingencies of modern life like sickness, unemployment, old age dependency, industrial accidents against which the individual cannot be expected to protect himself and his family by his own ability.

The Employees Compensation Act, 1923

A beginning was made in social security with the passing of the Workman’s Compensation Act, 1923. The Act provides for payment of compensation to the employees and their dependents in case of injury and accident among railway servant and person employed in any such capacity as specified in the schedule IInd of the Act. It includes person employed in factories, mines, plantation, machinery propelled vehicles, construction works and certain other hazardous occupations.

The Maternity Benefit Act, 1961

The Act enacted to promote the welfare of working women. The Act prohibits the working of pregnant women for a specific period before and after delivery. It also provides for maternity leave for a specific period before and after delivery. It also provides for maternity leave and payment of certain monetary benefits to women workers. The services of women workers cannot be terminated during the period of their absence on account of pregnancy except for the gross misconduct. Maximum period to which women can get maternity benefits is twelve weeks. Of this six weeks must be taken prior to the date of delivery of the child and six weeks immediately following that date.

The Employee’s State Insurance Act, 1948

The employee state insurance act, 1948 is applicable to non seasonal factories using power and employing 10 or more person and non power using factories employing 20 or more persons. It covers employees drawing wages not exceeding Rs. 15000/- per month with effect from 1stMay 2010. The act provides for medical care in kind and cash benefits payments in contingency and sickness, maternity and employment inquiry and pension for dependents in the event of death of a worker because of employment injury.

The Employee Provident Funds and Miscellaneous Provision Act, 1952

The Act seeks to provide the financial security to the employees in the form of provident fund, pension and deposit linked insurance. It extends the whole of India except the state of Jammu & Kashmir. It applies to every establishment specified in the schedule and in which twenty or more persons are employed.

The Employees Provident Fund Scheme, 1952

The employee provident fund scheme, 1952 provides financial security to the employees in an establishment by providing a system of compulsory savings. The scheme covers the employees getting wages not exceeding Rs. 6500/- per month from 1st November 1990 onward the employees becomes the member of fund from the date of joining the factory/establishment.

The Employee Pension Scheme, 1995

The employee pension scheme, 1995 came into effect from 16th November 1995 aims at providing for economic support during old age and survivorship coverage. The employee pension scheme, 1995 provides the following benefits to member and their families:

  • Monthly member pension
  • Permanent total disablement pension
  • Widow/widower pension
  • Children pension
  • Orphan Pension
  • Disabled children
  • Nominee pension
  • Pension to dependent father/mother

The scheme is financed by diversion of 8.33 percent of wages from employers’ share of provident fund contribution and central government contribution at the rate 1.16 percent of the wage of the employee. The upper wage limit is raised to Rs.6500 with effect from 1st June 2001.

The Payment of Gratuity Act, 1972

The payment of gratuity act, 1972 is applicable to factories, mines, oil fields, plantation, ports, railways, motor transport undertakings, companies, shops and other establishments. The act provides payment of gratuity at the rate of 15 days wages of each completed year of service or part thereof in excess of six months subject the maximum of Rs. 10 Lakh.