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Unit 4 Social Security
Unit 4 Social Security
Social security is the security that society furnishes through appropriate organizations against
certain risks to which its members are exposed. Broadly speaking the idea of social security is
that “The state shall make itself responsible for ensuring a minimum standard of material welfare
to all its citizen on a basis wide enough to cover all contingencies of life from womb to the tomb.
According to ILO “Social security is the protection which society provides for its members
through a series of public measures against the economic and social distress resulting from
sickness, maternity, employment injury, unemployment, invalidity, old age and death. These
measures are also of a great importance to a country which is on the way of large scale
industrialization as they improve employee’s morale by providing sense of security to them
again various industrial hazards.”
In fact social security is an attack on five “Giants” namely Want, Disease, Ignorance, Squalor
and illness. Security against giant of “squalor” mean security against all those evils which come
through the unplanned and unorganized growth of cities. The ultimate aim one’s economic and
political protection. It is to protect the poor and to ensure that they have an acceptable standard
of living.
Definitions:
“Social Security is a program of protection provided by society against the contingencies of
modern life like-sickness, unemployment, old age, industrial accident against which the
individual cannot be expected to protect himself and his family by his own ability and
foresightedness.” --Fridlander
“By social security we undertake a programme of protection provided by society against those
contingencies against which the individual of small means cannot effectively provided by his
own ability and foresight.” --International Labour Organization
“Social security is an attack on five giants namely want, disease, Ignorance, Squalor and illness.”
--Sir William Devergidge
“Social security is a controversial and dynamic subject with various facets, philosophical,
theoretical, humanitarian, financial, administrative, social, economic, political, statistical,
medical and legal.” --Weher and Cohen
Ans. Social security provides financial helps in case of contingencies such as unemployment,
maternity, industrial disease, old age and death etc.
From the analysis of these above mentioned definitions one can identify the following features of
social security.
(i) Social security in some countries is applied to all governmental programmes and in some
countries it is applied only to Social Insurance programme.
(ii) It covers wide variety of health and welfare schemes, the coverage of social security is very
wide meeting the different contingencies of an employee member.
(iii) Social Security is a dynamic concept and its coverage changes with social, economic and
political system prevailing in a given country at a given time.
(iv) A comprehensive scheme of social security consist of “Social Insurance and social
assistance".
(v) The modern social security scheme is the integration of its two important elements of social
insurance and social assistance and covering of all social risks.
(vi) Social security must provide protection against all the ordinary risks of life and as well as
special risks of employment.
(vii) It should bring under protection all member workers by hand and brain who live solely by
their mere earnings.
(viii) All social security programme although differ from country to country but they aims at
providing some form of cash payments to individuals to individuals to replace at least a part of
the lost income that occurred due to any such contingencies.
(ix) It provides financial helps in case of contingencies such as unemployment, maternity, work
injury, industrial disease, old age, widowhood and orphan hood etc.
(x) Under social security the members of a particular category are offered safeguards and
benefits such as medical and financial and to injured and financial help to widows, orphans and
educational assistance in the form of scholarship and free ships to the needy students.
Q.3 What are the various approaches of Social Security?
Ans. Broadly speaking the approaches of social security are three fold in nature:
(i)Compensation
(ii)Restoration
(iii)Prevention
(i) Compensation means income security during spell of risks because the individual and his
family not be subjected to a double calamity involving both destitution and loss of life, health
and work. Under worker compensation, workers are compensated in case of any permanent
disability reducing permanently or temporary earning capacity of aggrieved employee. It is
compensating a suffered employees due to contingencies and unexpected mishaps by providing
financial support.
(ii) Restoration. It means giving individuals and their families the confidence that their level of
living and quality of life will not suffer as far as possible due to any social and economic loss. “It
aims at restoring the previous social and economic status of the employee by providing financial
and social help under different provisions of social security Acts. Due to restoration of one’s
previous status financial position the self- confidence and self-esteem of the employee can be
maintained.”
(iii) Prevention. Social Security is a basic instrument of social and economic justice among
members of the society.” It not only aims at compensation and restoration of one’s financial and
social status; it further aims prevention of mishaps, industrial injury and occupational diseases.
Factory Act, Industrial safety Act and worker’s Compensation Act are helpful in the preventions
of different Industrial hazards leading to injury and occupational diseases. Prevention is better
than cure.”
Q.4 What is the impotance of social security? Explain it with relevant examples.
Ans. Social security is of great importance to developing and underdeveloped countries which
aims at large scale rapid industrialization. It helps in improving morale of employees by
providing sense of security to them against various industrial hazards, occupational diseases and
any other types of unfair practices.
These are some of the important objectives of social security
(i) Access to social security is a fundamental human right to which every individual is entitled as
a member of the society.
(ii) Its main objective is to give individual that confidence through which they must be sure that
their level of living and quality of life will be adversely affected due to any mishaps and
contingencies.
(iii) The aim of social security has been widened to include the complete quality of working and
living life in each aspect.
(iv) Society security is a wise investment which motive the employees and boost their morale.
Leavingto higher quality production.
(v) It is basic instrument of social and economic justice among members of the society.
(vi) Social security leads to adoption of the schemes of unemployment, insurance and creation of
new employment through a drive for rational planning and industrial development.
(vii) It further aims at the establishment of a scheme of old age and unemployment pension.
(viii) Social Security emphasis covering more different types of risks like sickness, maturity and
employment injuries.
(ix) Under Social security cash benefits were to be given for employment injuries for permanent
partial incapacity.
(x) The main objective of social security is that a citizen who has contributed or is likely to
contribute to his country’s welfare should be given protection against certain hazards of life.
(xi) It emphasizes and ensures that the ideals of human dignity and social justice are duty taken
care.
The main objective of social security is that a citizen to his country’s welfare should be given
protection against certain hazards of life.
According to the International Labour Organization “ Social security is the protection which
society provides for its members through a series of public measures against the economic and
social distress that otherwise would be caused by the stoppage or substantial reduction of earning
resulting from sickness, maternity, unemployment, invalidity, old age and death.”
Q.5 Discuss the scope of social security in India?
Ans. International Labour organization in its convention divided scope of social security into
nine components.
(i) Medical care, social security under medical care covers pregnancy confinement and its
consequences and disease which lead to a morbid condition. “The need for pre-natal and post-
natal care was emphasized. It may include practitioner care, specialist care, provision of essential
pharmaceutical and hospitalization.”
(ii) Sickness Benefit. Sickness includes incapability to work resulting a loss of earning. Under
this benefit worker need not be paid for three days of suspension of earnings and the payment of
benefits may be limited to 26 weeks in a year.
(iii) Unemployment Benefit. Under the social security benefit cover the loss of earning during a
worker’s unemployed period when he is capable and available for work but remains unemployed
because of lack of suitable employment. As per Act this benefit may be limited to 13 weeks
payment in year.
(iv) Employment Injury Benefit. Under Employment Injury benefit proper medical care and
periodical payment are made to injured employee as per the legal provisions of Worker’s
compensation Act. In these days industrial work is subject to different kind of contingencies
mishaps and occupational diseases which are covered under employment injury benefit of social
security.
It may include (i) Morbid condition (ii) Inability to work (iii) Due to Morbid condition may lead
to suspension of earning (iv) Total or partial loss of earning capacity. (v) Death of the bread
earner in family. Under this proper medical car and periodical payment are made to injured
employee as per the legal provisions of Worker’s compensation Act.
(v) Old Age Benefit. Old age benefits is applicable in India only in few states. Under this benefit
the quantum of payment depends upon on individuals working capacity during the period before
retirement.It further includes a certain amount beyond a prescribed age and continues till one’s
death.
(vi) Maternity Benefit. There is complex maternity benefit Act 1961 which covers benefit due
to pregnancy. Confinement and their consequences resulting in the suspension of earnings. There
is legal provision for medical including pre-natal confident, post-natal care and also
hospitalization if required. Fixed periodical payment of three month before birth of the child and
three month after that.
(vii) Family Benefit. In case of death of the bread earner this cover responsibility for
maintenance of children during the entire period of children is provided.
(viii) Survivor’s benefit. It refers to the benefits to the affected family in form of periodical
payments to a family following the death of its bread earner and should continue during the
entire period of contingency.
(ix) Invalidism benefit. In fact this benefit continue till invalidism changes into old age then old
age benefit would become payable under this benefit as per ILO convention “ a periodical
payment should cover the needs of workers who suffer from any disability arising out of sickness
or accident and who are unable to engage into any gainful activity.”
(ii) Payment of gratuity Act 1972. It provides reward for providing a decent and long service of
an employee towards his organization.
(iii) Workmen’s Compensation Act 1923. It aims to provide medical care. Periodical payment
during sickness and industrial accident/ occupational diseases to which a worker is expected to
while on the job.
(iv) Employee’s State Insurance Act. The Act provides insurance to employee’s at a highly
economical premium and providing all types of insurance coverage for meeting different
contingencies during his life and giving a handsome amounts after death to the family members.
(v) Maturity Benefit Act. It covers pregnancy, confinement their consequences and medical care
before and after delivery of the child.
(vi) Group Insurance. Employees are given life insurance policies at very nominal premium as
compared to individual insurance.
(vii) Payment of Wages Act 1936. Ensures timely right salary after permissible deduction to the
employees.
(viii) The Minimum wages Act 1948--- It safeguard the workers to get minimum wages from
their respective employers at the prevailing price index.
(ix) The Factories Act 1948: It is wide act which provide security to workers against health,
cleanliness, safety good working condition and employment of women and children.
Note: “All these Acts have been discussed in detail in the relevant chapter. Please refer for
details.”
Besides these important Acts social security is being provided to different segment of employees
by these sub acts like.
Beside these above mentioned Act. There are certain other schemes introduced at different levels
for the purpose of providing social security measures with different conditions.
Q.6 What are various social security schemes prevailing in India.
Ans. These programes are now useful and necessary instruments for the protection and stability
of workforce. It is a wise investment which yields good dividends in the long run. Various
schemes of social security are:
1. Schemes of Social insurance are financed by the small contribution made by the
employees and the major portion by the employer.
3. Under these schemes contributions are accumulated in special funds out of which benefits
are paid.
4. Under social insurance, benefits are so planned to cover everyone who has participated.
5. Social Insurance protect the employees and reduce their sufferings arising out of
contingencies faced by the individuals.
6. Social insurance helps the employees to maintain their minimum standard of living.
Ans. In social Assistance grants are given to the needy by the state or community. It is
provided a supplement to social insurance for those needy persons who cannot get social
insurance payment. Social Assistance is a kind of help which depends upon certain
conditions and legalities between the worker and the state.
“ The social assistance schemes are designed to help people who are in financial
difficulties.”
“The social assistance represents the unilateral obligation of society towards its
dependent groups. It is provided by the government to the poor and needy individuals.”
Social assistance is given as a voluntary help while social insurance is given to those
persons who pay a contribution
Social assistance is a kind of help which depends upon certain conditions and legalities
between the worker and the state.
It is a unilateral obligation of the society towards its members who are really in need.
Social assistance doesn't provide any legal obligation to its members to give monthly
contributions towards its schemes for getting the benefits.
Labor welfare means all those efforts to make life worth living for workman.
-Oxford dictionary
The Encyclopedia of Social Sciences defines, “Labor welfare is a voluntary effort of the
employer to establish within the existing industrial system, working, living & cultural
conditions of employees beyond what is required by the law.”
So, labor welfare activities include anything done for the intellectual, physical, moral and
economic betterment of workers whether by the employer, by government or by the other
agencies over and above what is required by the Law or what is normally expected says the
Labor investigation committee.
Ans. Labor welfare Services helps in improving the worker’s health, mental and social
status.
Labor welfare contribute towards the maintenance of the morale and self respect of the
employees.
In order to get best out of the worker in context of production the working conditions
needs to be improved.
Q. 13 Discuss various aspects& approaches of Labor Welfare with relevant examples.
Humanitarian Aspect
Economic Aspect
Civic Aspect
Futuristic Aspect
Humanitarian Aspect:
Enabling the workers to enjoy a healthy, richer lifestyle leading to high morale and
motivation
It presumes its ethical duty to provide a reasonable quality of life with self respect and
dignity.
Economic Aspect:
Compensation
To maintain the self respect and dignity of the worker and his family members
Civic Aspect :
Aims to develop a feeling of affection, love, regard and affection between the
employees and employer and amongst the employees.
Futuristic Aspect:
It aims to provide secure ,safe and bright future with professional growth and career.
Workers are given assurance of being taken care in case of any contingency or
mishappening.
Q. 14 What do you mean by Intra-Mural Activities?
Ans. All those amenities and services which have been provided by the employers: Inside the
factory.
Ans. It includes all those services and facilities which are available to workers outside the
factory.
Education facilities
Housing facilities
Worker’s co-operative societies including consumer’ cooperative stores, fair price shops.
Adequate Light
Minimum wages
Pension schemes
Library Facilities
Sport facilities
Facilitative Services:
Housing Facility
Medical Facility
Educational Facilities
LTC
Ans. Labor Welfare Work may be Statutory when such activities have to be undertaken in
furtherance of the legislation enacted by the government.
It is Voluntary when the activities are undertaken at their own accord by the employers or some
philanthropic bodies and the labor organization undertakes such activities for the welfare of their
members.
Labor Welfare is Mutual when all the parties join hands to bring about the social and economic
uplift of the workers.
Certain facilities are provided at the site of the work itself such as canteen, mess,
creches, medical facilities etc.
Some facilities relate to the economic needs of the workers, basic amenities, staff
benefits funds, the educational assistance to workers’ children, consumers’
cooperative stores, cooperative credit societies etc.
Certain Institutes become the focal point for the involvement of the workers and
their families e.g. welfare centers, educational institutes, community centers etc.
Dispensaries
Creches
Canteens
Cooperative stores
Housing
Paper, Cement and Sugar industries are also providing dispensaries for the free
medical treatment, schools for the free education, recreational facilities, They have also
opened Worker’s clubs etc.
Mines Industries The coals& mines labor Welfare fund is responsible for providing
welfare facilities for workers in mines. They have also started providing recreational
Facilities, play grounds, Schools for children and adult education Centre
Q. 19 What are various Labor Welfare Activities conducted by the Trade Unions?
Indian Federation of labor looks after various types of labor welfare activities
Establishment of workers’ clubs, libraries, cooperative stores, housing etc. with the help
of Trade Unions
In Indore the Mill Mazdoor Union runs labor welfare centres consists centres(Mahila
Mandirs) for female employees where they organizez music, dance, social gatherins etc.
Mazdoor Sabha of kanpur and The Indian Federation of Labor in Uttar Pradesh are
providing funds for retirement, death unemployment, sickness for its members.
The Indian Railwaymen’s Union and Assam Branch of the indian National Trade union
Congress are providing money for life insurance and legal defence.
Cooperative societies run by the Trade Unions provide loan facilities and ration items at
highly subsidized rates at many industries.
Q. 20 What are various Labor Welfare Activities conducted by the Labor Welfare work done
by Social Organizations?
The welfare work is done by“Bombay Social Service league”, “Seva sadan Society”,
“Women Council”.
The “United Nation Organization” has also organized many labor welfare works in
India.
The United Nation International:Children’s Emergency Fund was set up in India with the
aim to provide proper nutrition, milk to the children and the mothers and for the
establishment of Maternity House and Welfare centres.
The “Bombay Presidency Women’s council” and the” Maternity and Infant welfare
association”.
The depressed classes mission society, Seva sadan Society in Pune and Mumbai are very
active in maintaining welfare activities e.g. education, medical and social work for
women and children and have also trained social workers for the purpose.
References: