by dr. rakesh kumar moderator- dr. sanam anwar. framework background & history definition...

By Dr. Rakesh Kumar Moderator- Dr. Sanam Anwar

Framework Background & History Definition Promotional Vs protective social security Approaches to social security Social security for workers Social security for organized sector Social security for unorganized sector Social security for Old age, Disability and survivors Social security for Maternity and Sickness Social Security coverage in India New Initiative Social security in developed countries Publicly managed social security schemes Vs privately managed schemes References

Introduction Over one third of the world population lives under extreme conditions of poverty and deprivation Characteristics like illiteracy, poor health, unemployment and inadequate access to productive assets make the poor more vulnerable In agrarian culture joint family system took care of the social security needs of all the members Increasing migration, urbanization and demographic changes are making nuclear family system more common

History 1883 -1889- First broad system of social insurance established by German Chancellor Bismarck 1919- International Labour Organisation (ILO) established 1923 -Workmen's compensation act 1935- Social Security Act introduced in USA 1942- Social security programme implemented in the UK, based on Beveridge Report (two- tier system of social security) 1948 - Employees' state insurance act 1952 - Employees' provident funds, with amendments 1964- Department of Social Security created in India under ministry of labour 1972- Payment of gratuity 1976-Employees' deposit-linked insurance 1995- Employees' pension scheme 1995-National social assistance program 2007-National Social Security Bill under process

What is Social Security Definition- The protection which society provides for its members through a series of public measure, against the economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earning resulting from sickness, maternity, employment injury, unemployment, invalidity, old age and death (ILO,1984) Objective: To protect the poor and vulnerable groups or individuals from adverse changes in living standards though public action i.e, It is a comprehensive approach designed to prevent deprivation, assure the individual of a basic minimum income for himself and his dependents and to protect the individual from any uncertainties

Who needs social security? Sickness Employment Injury Informal sector workers Old Age Maternity Unemployed Disablity Survivors Formal sector worker Others special goups Minorities, Schedule Caste & Tribes Women & Children

Basic principles of social security schemes: Universality- should cover whole of population Comprehensiveness- should cover maximum contingencies Benefit should be adequate and appropriate Benefits should be secure and non-discriminatory Transparent and sound administration A strong role for the social partners Tripartite Administration

Promotional Vs protective social security schemes Promotional social security: Implies provision of food, housing, education and heath securities Example- Targeted Public Distribution System ICDS, Sarva Shiksha Abhiyan, Indira Gandhi Awas Yozana, Employment guarantee schemes Protective social security: Implies protection against contingencies that result in reduction or stoppage of income. Example- Various social assistance and social insurance programme

Approaches to social security Social AssistanceSocial Insurance Non-contributoryFinanced by contributions Receives benefits either in cash or in-kind in the form of food aid Worker is actively involved in economic planning for his future Involves a feeling of charity, sympathy Inculcates a sense of responsibility for future planning Designed to supplement the incomes of particularly vulnerable groups (elderly and disabled) Provide for various contingencies that interrupt or stop earnings Example: National old age pension scheme National family benefit scheme National maternity benefit scheme Example: ESI scheme Contributory provident fund scheme LIC schemes

Social Assistance Programmes Entitlement Feeding Programmes Integrated Child Development Services Mid Day Meal Scheme Food Subsidy Programmes Targeted Public Distribution System Antodaya Anna Yojana Annapurna Yojana Employment Programmes Sampoorna Gramin Rojgar Yojana National Rural Employment Guarantee scheme (2005) National Social Assistance Programme (1995)

Social Assistance Programmes National Social Assistance Programme Implemented on on 15th August, 1995 It is a 100 % Centrally Sponsored Programme. Implemented through a synergistic partnership with State Governments and under the direct supervision of DRDAs in close collaboration with the various PRIs Three components : National Old Age Pension Scheme (NOAPS), National Family Benefit Scheme (NFBS) National Maternity Benefit Scheme (NMBS) Objective: To ensure a minimum national standard of social assistance in addition to the benefit that States are already providing in case of old age, death of primary breadwinner and maternity

Social Insurance Schemes Scheme NameScheme TypeFinancingCoverage Employee State Insurance Scheme MandatoryEmployees: 4.75% of wages. Employers: 1.75% of wages. State governments min of 12.5 % Firms with more than 20 employee Employees Provident Fund MandatoryEmployer-10-12% Employee- 10-12% Government- None Firms with more than 20 employee Employees Pension Scheme MandatoryEmployer-8.33% Employee- None Government- 1.16% Firms with more than 20 employee Employees Deposit Linked Insurance Scheme MandatoryEmployer-0.5% Employee- None Government- N0ne Firms with more than 20 employee

Social Security in India Directive Principles of State Policy 1. Article 41- Right to work, to education and to public assistance in certain cases like unemployment, old age, sickness and disablement, and in other cases of undeserved want. 2. Article 42- Provision for just and humane conditions of work and for maternity relief

Workforce in India Source NSS,2004

Social security for workers (Organized sector)

Organized sector includes establishments covered by the Factories Act, 1948, the Shops and Establishments Acts of the States, Industrial Employment Standing Orders Act, 1946, etc. It has a structure through which social security benefits are extended to workers Provided through five acts The Employees State Insurance Act, 1948 (ESI Act) Covers factories and establishments with 10 or more employees 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. The Employees Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act) Covers specific scheduled factories and establishments employing 20 or more employees Ensures terminal benefits to provident fund, superannuation pension, and family pension in case of death during service.

Social security for workers (Organized sector) The Workmens Compensation Act, 1923 (WC Act), Requires payment of compensation to the workman or his family in cases of employment related injuries resulting in death or disability The Maternity Benefit Act, 1961 (M.B. Act), provides for 12 weeks wages during maternity as well as paid leave in certain other related contingencies. The Payment of Gratuity Act, 1972 (P.G. Act) 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. Others, like welfare funds for certain specified segments of workers such as beedi workers, cine workers, construction workers etc.

Social security for workers (Unorganized sector)

Rural areas- landless agricultural labourers, farmers, engaged in animal husbandry, fishing, horticulture, bee-keeping, forest workers, rural artisans, etc. Urban areas- Manual labourers in construction, carpentry, trade, transport, communication, street vendors, hawkers. No formal system of social security Majority face the problem of deficiency of basic needs as well as the problem of adversity arising out of such contingencies as sickness and accidents National Commission for Enterprises in the Unorganized Sector (NCEUS) has recommended provision of a statutory package of National Minimum Social Security to all unorganized workers

Social security for workers (Unorganized sector) Employment is the best form of social protection Schemes: Varishtha Pension Bima Yojana (VPBY) Sanjay Gandhi Niradhar Anudhan Yojana, 1980 Sanjay Gandhi Swawavlamban Yojana 1980 Unorganised sector workers social security scheme National rural employment guarantee scheme Rashtriya Swasthya Bima Yojana Provides smart card based cashless health insurance cover of Rs. 30,000/- to the BPL workers and their families ( a unit of five)

Social security for workers (Unorganized sector) SchemeEligibilityFundBenefit Varishtha Pension Bima Yojana(2003-04) Indian Citizens aged 55 years and above Only Single Premium is payable Monthly Pension- Rs 250-2000 Loan facility available National rural employment guarantee scheme (2005) Any adult member volunteer to do unskilled work Government aided scheme Atleast 100 days of guaranteed wage employment in every financial year to every household National social assistance program(1995) Needy elderly persons and poor households on the death of the primary breadwinner. Employee-None Employer-None Government- 100% National Old Age Pension Scheme National Family Benefit Scheme National Maternity Benefit Scheme Unorganized Sector Social Security Scheme (2004) Voluntary Age 18-50yrs Monthly income < Rs 6500 Employee-Rs 50-200/mth Employer-Rs 100/mth Government- 1.16% of wage Triple Benefit- Pension scheme- Rs 500/ mth Personal Accident Insurance of one lakh Medical Insurance

Social security schemes for Old age, Disability & survivors

SchemeEligibilityFundBenefits Employeess Provident fund scheme Establishments with a min of 20 employees Monthly income < Rs 5000 Employee-10-12% Employer-10-12% Government-None Old age benefits Disability Benefits Survivors Benefits Survivor (deposit-linked) insurance Employee-None Employer-0.5% Government-None Survivor Benefit Pension fundMonthly income < Rs 6500Employee-None Employer-8.33% Government-1.16% Old age Benefit Disability Benefit Survivors Benefit Gratuity schemes (1972)Employees of factories, mines, oilfields, plantations, ports, railways, and shops with at least 10 workers Employee-None Employer-4% Government-none Old age Benefit Disability Benefit Survivors Benefit National social assistance program(1995) Needy elderly persons and poor households on the death of the primary breadwinner. Employee-None Employer-None Government-100% Old age Benefit Survivors Benefit Unorganized Sector Social Security Scheme (2004) Voluntary Age 18-50yrs Monthly income < Rs 6500 Employee-Rs 50- 200/mth Employer-Rs 100/mth Government-1.16% of wage Triple Benefit- Pension scheme Personal Accident Medical Insurance

Social security Benefits for Old age Provident fund: A lump sum is paid equal to total employee and employer contributions plus interest. Drawdown payment: the value of the minimum payment varies from 1 month of wages to total employee and employer contributions plus accrued interest. Pension scheme: With 10 or more years of coverage, a monthly pension is paid based on a members pensionable service and earnings, subject to a minimum pension; With less than 10 years, a lump sum is paid equal to total employee and employer contributions plus interest. Early pension: The basic pension is reduced by 3% for each year that retirement is taken before age 58.

Social security Benefits for Old age Gratuity scheme: Based on the insureds final salary, a lump sum is paid equal to 15 days of wages for each year of continuous service (a reduced amount is paid for part years in excess of 6 months). Maximum benefit is 350,000 rupees. For seasonal employees, employers pay the gratuity at the rate of 7 days wages for each season worked. National Old Age Pension Scheme Eligibility criteria Age of the applicant (male or female) is 65 years or above. Applicant is destitute i.e having little or no regular means of subsistence from his/her own sources of income or through support from family members or other sources Pension amount- Rs 200 per month from the year 200607

Social security Benefits for Disability Permanent Disability Benefits Provident fund: Lump sum is paid equal to total employee and employer contributions plus interest. Pension scheme: Monthly pension -min Rs 250 rupees or a lump sum is paid equal to total employee and employer contributions plus interest. Gratuity scheme: a lump sum equal to 15 days of wages for each year of continuous service Maximum benefit is Rs 350,000 Seasonal employees are paid at the rate of 7 days of wages for each season worked.

Social security Benefits for Survivors Provident fund: A lump sum is paid equal to total employee and employer contributions plus interest. Death grant: Up to Rs 2,000 rupees Survivor (deposit-linked) insurance scheme: A lump sum is paid equal to the average balance of the deceaseds provident fund account during the 12 months before death Maximum benefit is Rs 60,000 Widows pension (pension scheme): 50% of the deceaseds pension. Minimum monthly pension -450 rupees. Orphans pension (pension scheme): Paid for one or two orphans up to age 25 (no limit if totally and permanently disabled). Pension is equal to 25% of the widow s pension(min Rs 150 per month). Full orphans or dependent parent receive 75% of the widow pension (min Rs 250 per month).

Social security for Survivors Gratuity scheme: a lump sum is paid equal to 15 days of wages for each year of continuous service Maximum benefit is Rs 350,000 Seasonal employees are paid at the rate of 7 days of wages for each season worked Funeral grant: Lump sum up to 3,000 rupees. Survivor grant (National Family Benefit Scheme) Eligibility criteria: Death of primary breadwinner aged between 18 to 65 years Earnings of primary breadwinner should contribute substantially to the household income Bereaved household should qualifies as below the poverty line Benefit amount - Rs. 10,000/- in the case of death of primary breadwinner due to natural or accidental cause

Social security for Maternity,Sickness, Unemployment & employment injuries

Social security for Sickness and Maternity SchemeEligibilityFundBenefits Employees State Insurance Scheme Firms with more than 20 employee Employees: 4.75% of wages. Employers: 1.75% of wages. State governments min of 12.5 % Sickness benefit Maternity benefit Disability benefit Survivors benefit Unemployment benefit National social assistance program(1995) Needy pregnant women may receive assistance for the first two births. Employee-None Employer-None Government-100% Maternity benefit Family benefit Unorganized Sector Social Security Scheme (2004) Voluntary Age 18-50yrs Monthly income < Rs 6500 Employee-Rs 50-200/mth Employer-Rs 100/mth Government-1.16% of wage Sickness benefit Maternity benefit Disability benefit Survivors benefit Unemployment benefit

Social security Benefit for Maternity National Maternity Benefit Scheme (2001) (merged into Janani Suraksha Yojana in 2005 under NRHM) Eligible for women of 19 years and above. Upto first two live births Below poverty line families Benefit amount- Rs. 1000 per pregnancy to women Maternity benefit (ESI): Benefit is equal to 100% of average earnings, according to wage class, and is paid for up to 12 weeks (increased to six month ). Minimum daily benefit is 20 rupees. Family planning (sterilization) (ESI): Cash sickness benefit is paid at double rate for 7 days (men) or 14 days (women); may be extended in case of complications.

Social security Benefit for Sickness (ESI) Sickness benefit: Benefit varies but is around 60% of the average daily wage. Benefit is paid up to 91 days in any two consecutive 6-month periods Workers & their dependents Medical Benefits Benefits include outpatient treatment, specialist consultations, hospitalization, surgery and obstetric care, imaging and laboratory services, transportation, and the free supply of drugs, dressings, artificial limbs, aids, and appliances. Duration of benefits is from 3 months to 1 year, according to the insureds contribution record Eligible dependents - Spouse, children under age 18 (age 21 if a student, no limit if disabled or an unmarried daughter), widowed mother, and dependent parents Funeral grant : Lump sum up to 3,000 rupees.

Social security Benefit for Workers Injury (ESI) Temporary Disability Benefits Around 75% of the average daily wage. Paid for the entire duration of the disability, ( min of 3 days). Permanent Disability Benefits Permanent disability pension: Separate medical boards assess the loss of earning capacity resulting from a work injury or an occupational disease. Maximum daily rate -around 75% of the average daily wage May be paid as a lump sum not exceeding 30,000 rupees (If the daily value of the pension is equal to 5 rupees or less) Partial disability: A percentage of the full pension is paid according to the assessed loss of earning capacity

Social security Benefit for Workers Injury (ESI) Survivor Benefits Survivor pension (widows pension): 60% of the deceaseds total disability pension Orphans pension: 40% of the deceaseds pension to orphan younger than age 18 (no limit if disabled or an unmarried daughter). Maximum total survivor pension - 100% of the deceaseds pension. Minimum daily benefit is 14 rupees. Maximum total pension for other eligible survivors is 50% of the deceaseds pension.

Social security Benefit during Unemployment (ESI) Qualifying Conditions Must be involuntarily unemployed as the result of retrenchment or a nonwork- related permanent disability. Must have at least 5 years of contributions. Unemployment Benefits Unemployment allowance: Benefit equal to 50% of the insureds average wages and is paid for up to 6 months. Access to medical care is also provided to beneficiaries and their dependents.

Social security coverage in India

New Initiatives: Unorganized Sector Workers Social Security Bill, 2007 Aam Admi Bima Yojana (AABY), 2007 Health Insurance Scheme for Unorganized Sector BPL Workers, 2007 (Rashtriya Swasthaya Bima Yojana) Janashree Bima Yojana Micro-credit Programmes Re-Inventing Employees Provident Fund

Unorganized Sector Workers Social Security Bill, 2007 Establishment of National Social Security Advisory Board and State Social Security Advisory Boards Benefits shall be admissible to all persons above 14 years of age Persons are provided with an identity card in the form of a smart card. 11 schemes including the AABY and the Health Insurance Scheme for Unorganized Sector BPL workers. Benefits: life and disability cover, health and maternity benefits, old age protection, provident fund, employment injury benefits, Provision of housing, educational schemes for children, skill upgradation of workers, funeral assistance, and old age homes.

Aam Admi Bima Yojana, 2007 Replaced Group Insurance Schemes as It do not provide the annuity in the cases of survivor members. Lack of awareness about schemes amongst rural population Poor delivery mechanism at the village level State Government will be the Nodal Agency. Members of All Rural Landless Households, in the age group of 1859 years will be eligible. Premium of Rs 200 per member will be borne by the Centre and States equally. A sum of Rs 30000 in case of natural death and Rs 75000 in case of accidental death will be payable. A compensation of Rs 75000 will be payable in case of total permanent disability and of Rs 37500 in case of partial permanent disability. Provision for the payment of a scholarship of Rs 300 per quarter per child for two children of the beneficiaries studying in 9th to 12th standard for its beneficiaries.

Rashtriya Swasthaya Bima Yojana A transparent scheme that lists the entitlements, administered through a smart card obviating the need for out of pocket expenses Covers all BPL unorganized sector workers and their families (of five members), a smart card will be issued Beneficiary will be required to pay Rs 30 per annum as registration/ renewal fee. Prescribed premium of Rs 750 per member-family will be borne by the Central and State Governments in the ratio of 75:25. Benefits cashless attendance to all covered ailments; Hospitalization expenses, taking care of most common illnesses, all pre-existing diseases to be covered, transportation costs subject to prescribed limits payable to the beneficiary.

Janashree Bima Yojana Janashree Bima Yojana provides insurance cover of Rs 20000 in case of natural death, Rs 50000 in case of death or total permanent disability due to an accident, and Rs 25000 in case of partial disability Premium is Rs 200 per beneficiary ( 50% of the from the Social Security Fund and 50% contributed by the beneficiary/State Government/nodal agency) Eligibility criteria: Persons in the age group of 18 to 60 years Living below or marginally above the poverty line Scheme is extended to a group of 25 members or more

Micro credit Programmes A way of enabling those at risk of poverty and social exclusion to participate in the economic and political processes of society through self-employment Addresses income and economic security Pre-dominantly focused on women Mostly delivered through group based approach Best suited for delivery of basic social security for poor Enhances local accountability and transparency Government and public sector banks play major role Involvement private sector like NGOs No regulation and comprehensive legislation available District Rural Development Agency (DRDA) - principal organ at the District level to over-see the implementation of different anti-poverty programmes

Re-Inventing Employees Provident Fund Launched since June, 2001. a effort towards solving the problem of providing social protection to migrant labour & nomads Objective: To provide the subscribers better and efficient services, to help the employers by reducing the cost of compliance and to benefit the organization to register geometric growth in all fields. Initiatives: Allotment of the Unique Identification Number-the Social Security Number to the EPF subscribers Issuing of Buisness Numbers to the employers Business Process Re-engineering

Social Security Measures for Special groups

Social Security Measures for Women Swayamsiddha an integrated scheme for womens empowerment through SHGs Women empowerment and capacity building of poor women through SHGs, promoting thrift and credit activities amongst the women. Support to Training and Employment Programme (STEP): Rashtriya Mahila Kosh Under ICDS scheme - a component of conditional maternity benefits under which pregnant and lactating mothers will be entitled to cash incentives for six months ( proposal in 11 th 5-year plan)

Social Security Measures for Children Nutrition Programme for Adolescent Girls (2002-03) It envisages that all adolescent girls (1019 years) will be weighed four times a year families of girls weighing less than 35 kg will be given 6 kg of foodgrains/month for three months. Kishori Shakti Yojana provides self-development, nutrition, health care, literacy, numerical skills, and vocational skills to adolescent girls aged 11-18 yrs Programme for Juvenile Justice Establishment and maintenance of various levels of institutions for juveniles in conflict with law and children in need of care and protection Integrated Child Protection Scheme- (i) An Integrated Programme for Street Children ii) A programme for Juvenile Justice (iii) Shishu Greha scheme, etc.

Social Security Measures for Minorities Constitutional Provisions for Minorities Article 15 -Prohibition of discrimination on grounds of religion Article 16 -Equality of opportunity in matters of public employment Article 30- Right to establish and administer educational institutions Most Muslims are engaged in non-agricultural occupations

Legislative Measures Minimum Wages Act, 1948 Equal Remuneration Act, 1976 - ensures equal pay Denying work to women based on gender discrimination Protection of Women from Domestic Violence Act, 2005 Immoral Traffic (Prevention) Act: - to ensure that women in prostitution are not victimized further Child Labour Act and related legislations likeThe Bonded Labour System (Abolition) Act, 1976 - prohibit employment of children under 14 years only. Protection of Civil Rights Act, 1976. Prevention of Atrocities Act, 1989- To check and deter atrocities against Scheduled Castes and the Scheduled Tribes

Social security in developed country In developed countries most social security systems are linked to wage employment. Characteristics: i) Existance of universal social security system ii)Most of the workforce is in the organized sector hence a system of pay roll deduction is applied. iv)Main approach for social security is social insurance

Publicly managed Vs Privately managed social security scheme In Indian context, privately managed schemes can best act as supplementary schemes Only publicly managed scheme can extend to all the sectors of the workforce

Issues Extension of coverage of social security Ageing and its impact on social security Governance and administration of social security systems Equality, with an emphasis on gender and disability Financing of social security HIV/AIDS and its impact on social security

References Park K. Parks Textbook of Preventive and social medicine. 19 th edition. Bannout publication; Jabalpur: 2006. p.658-9. Detel R, McEwan J, Beaglehole R, Tanaka H. Oxford Textbook of Public Health. 4 th edition. Oxford university press; Newyork:2004. p.343-44. Last JM, Wallace RB. Public Health and Preventive Medicine. 13 th edition. Appelton & Lange; USA: 1992. p.982-84 Social Security Online. The Official Website of The U.S Social Security Administration [Online]. [cited 2009 Apr 8]; Available from: URL: http://www.socialsecurity.gov/ International Social Security Administeration [Online]. [cited 2009 Apr 9]; Available from: URL:http://www.issa.net International Labour Organization [Online]. [cited 2009 Apr 9]; Available from: URL:http:// www.ilo.org/ Government of India. Ministry of Labour [Online]. [cited 2009 Apr 6]; Available from: URL:http://www.labour.nic.in Ministry of Rural Development (GOI) [Online]. [cited 2009 Apr 11]; Available from: URL:http://www.rural.nic.in Microcredit Foundation of India [Online]. [cited 2009 Apr 18]; Available from: URL:http://www.microcreditindia.org National Commission for Enterprises in the Unorganized Sector (GOI) [Online]. [cited 2009 Apr 13]; Available from: URL:http://nceus.gov.in/

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by dr. rakesh kumar moderator- dr. sanam anwar. framework background & history definition...

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