Social Security

Social security is a concept enshrined in Article 22 of the Universal Declaration of Human Rights which states, "Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality".

Social Security is both a concept as well as a system. It represents basically a system of protection of individuals who are in need of such protection by the State as an agent of the society. Such protection is relevant in contingencies such as retirement, resignation, retrenchment, death, disablement which are beyond the control of the individual members of the Society.

Main components of social security include

1. Pension
2. Provident Fund 
3. Insurance  etc.

Constitutional Provisions in India:-

• Article 41 of the Constitution requires that the State should within the limits of its economic capacity make effective provision for securing the right to work, to education and to public assistance in case of unemployment, old age, sickness and disablement. 
• Article 42 requires that the State should make provision for securing just and humane conditions of work and for maternity relief. 
• Article 47 requires that the State should raise the level of nutrition and the standard of living of its people and improvement of public health as among its primary duties. 

The obligations cast on the State in the above Articles constitute Social Security.

Synopsis Of Social Security Laws in India:- 

 

The principal social security laws enacted in India are the following:

1. The Employees’ State Insurance Act, 1948 (ESI Act) which covers factories and establishments with 10 or more employees and 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.
2. The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act) which applies to specific scheduled factories and establishments employing 20 or more employees and ensures terminal benefits to provident fund, superannuation pension, and family pension in case of death during service. Separate laws exist for similar benefits for the workers in the coal mines and tea plantations.
3. The Employees' Compensation Act, 1923 (WC Act), which requires payment of compensation to the workman or his family in cases of employment related injuries resulting in death or disability.
4. The Maternity Benefit Act, 1961 (M.B. Act), which provides for 12 weeks wages during maternity as well as paid leave in certain other related contingencies.
5. 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.

Social Security in Organized and Unorganized Sectors:-

The organized sector includes primarily those establishments which are 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 labour law coverage, seasonal and temporary nature of occupations, high labour mobility, dispersed functioning of operations, casualization of labour, lack of organizational support, low bargaining power, etc. all of which make it vulnerable to socio-economic hardships. There are very less schemes targeted at Unorganized Sector.

The working group of planning commission also recommended that  "Social Security cover for the un-organised sector which can take care of medical care, accident benefits and old age pension should receive priority attention. This Sector Comprises of near 92% work force of the country. It is essential to enhance the coverage under national social assistance programmes  providing old age pension, maternity and other benefits to the workers in the unorganised sector."

Source : 

1. Wikipedia

2. Website of Ministry of Labour and Elpmoyment

3. Report of the working group on social security (Planning Commission), 2001