Social Security

Topics: Insurance, Pension, Retirement Pages: 11 (3793 words) Published: January 31, 2013
Social Security| |
Social security is one of the key components of labour welfare. Labour welfare refers to all such services,amenities and facilities to the employees that improves their working conditions as well as standard of living. Social security benefits provided by an enterprise should protect not only their employees but also their family members through financial security including health care. Social security envisages that the employees shall be protected against all types of social risks that may cause undue hardships to them in fulfilling their basic needs.In India, provision for social security to the workers occupies a very important place in the industrial set up. It is included in our Constitution under the Directive Principles of State Policy. It thus makes the 'State' bear the primary responsibility for developing an appropriate system for protecting and assisting its workforce. Hence, a Social Security Division has been set up under the Ministry of Labour and Employment. The division deals with framing of social security policy for the workers, administration of all the legislations relating to social security and implementation of the various social security schemes. Social Security to the workers is provided through the five Central Acts:- (i) The Employees' State Insurance Act, 1948; (ii) Employees' Provident Funds & Miscellaneous Provisions Act, 1952; (iii) The Workmens' Compensation Act; (iv)The Maternity Benefit Act;and (v) The Payment of Gratuity Act.  In addition, there are a large number of welfare funds for certain specified segments of workers such as beedi workers, cine workers, construction workers etc. The social security package broadly covers two categories of labour welfare measures:- (i) those relating to the medical facilities, compensation benefits and insurance coverage to the employees; (ii) those relating to the provident fund and gratuity provisions. It thus consists of all types of preventive, promotional and protective measures for labour welfare.|

Social Security protects not just the subscriber but also his/her entire family by giving benefit packages in financial security and health care. Social Security schemes are designed to guarantee at least long-term sustenance to families when the earning member retires, dies or suffers a disability. Thus the main strength of the Social Security system is that it acts as a facilitator - it helps people to plan their own 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 the 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 the 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 himself...
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