Saturday 30 April 2016

The Scenario of India's Social Security

When we talked about social security, first we have to understand what it is? Well Social Security is a concept enshrined in Article 22 of Universal Declaration of Human Rights, which says that society, in which a person lives should help them to develop and to make the most of all the advantages like – culture, social welfare, work etc. which are offered to them in the country. The service providing social security are often called social services. This term is known by many of us.
Now in our country India, social security system is decided as a number of schemes and programs which are extended throughout a variety of laws and restrictions. But one main thing, the Indian Government controlled social security system in very small portion of the population. This is not foe each and very Indians.
India has a very basic social security system,
1)      Employee’s Provident Fund Org. (EPFO).
2)      Employee’s state Insurance Corporation (ESIC).

The ESFO is also known as a pension Scheme and as an insurance Scheme. On the other hand ESIC covers low earning employees providing them with basic healthcare and social security schemes.
In more specific Indian Social Security schemes are generally the following and they cover social insurances:
Health Insurance and Medical,

Pension: the EPFO under the ministry of labor and Employment. Presently only about 35 million out of a labour force of 400 million have access to formal social security in the from of old age income protection.out of these 35 million, 26 million workers are members of the EPFO.

Health Insurance and Medical:indan has a national health service, but this does not include free medical care for the whole population. In case of sick leave, te employer will pay half salary to the employees covered under the Employee’s State Insurance Act.

Disability: the workmen’s compensation Act requires the employer to pay compensation to employment related injuries resulting in death or disability.
Death: 50% of the monthly wage multiplied by the age factor.
Total permanent disablement 60% of the monthly wage multiplied by the age factor.

Maternity: the maternity benefit act requires an employer to offer 12 weeks wages during maternity as well as paid leave in certain other connected contingencies.

Gratuity:for establishments with ten or more employees, the payment of gratuity act requires the payment of 15 days of additional wages for each year of service to employees who have worked at a company for five years or more.

Anyone working in india for a prolonged period of time will have to pay social security contributions of 12% of their income if they are employed by a the EPFO. Which will in turn match the 12% contributed by the employee. 

Pallavi Das
( PG MEDIA 2015-2017)

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