SOCIAL SECURIT Y
L A B O U R L A W I I – P R O F. A R J I T PA N D E Y
The idea behind the concept of social security is that the state shall be responsible for protecting its citizens against
certain contingencies of life.
The basic principle of social security implies collective action by the community to help a member against
misfortunes and wants he cannot meet with his own resources. It is based on business ethics “ideals of human dignity
and social justice”.
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.
All the industrial countries of the world have developed measures to promote the economic security and welfare of
individual and his family. These measures have come to be called as social security. Social security is dynamic concept
and an indispensable chapter of a national programme to strike at the root of poverty, unemployment and diseases.
Social security may provide for the welfare of persons who become incapable of working by reason of old age,
sickness and invalidity and or unable to earn anything for their livelihood.
Social security is a human right which responds to the universal need for protection against certain life risks and
social needs. Effective social security systems guarantee income security and health protection, thereby contributing
to the prevention and reduction of poverty and inequality, and the promotion of social inclusion and human dignity.
They do so through the provision of benefits, in cash or in kind, intended to ensure access to medical care and
health services, as well as income security throughout the life cycle, particularly in the event of illness,
unemployment, employment injury, maternity, family responsibilities, invalidity, loss of the family breadwinner, as
well as during retirement and old age.
Social security systems therefore constitute an important investment in the well-being of workers and the
community as a whole, and facilitate access to education and vocational training, nutrition and essential goods and
services. In relation with other policies, social security contributes to improving productivity and employability, and
to economic development. For employers and enterprises, social security helps to maintain a stable workforce that
can adapt to changes. Finally, it reinforces social cohesion and therefore contributes to building social peace,
inclusive societies and a fair globalization by ensuring decent living conditions for all.
ILO defines social security as follows: The security that society furnishes, through appropriate organization, against
certain risks, to which its members are exposed. These risks are essentially contingencies against which the
individuals of small means cannot effectively provide by his, own ability or foresight alone or even in private
combination with fellows. These risks are being sickness, maternity, invalidity, old age and death. It is the
characteristics of these contingencies that they imperil the ability of the working man to support himself and his
dependents in health and decency.
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 against various industrial
hazards.
Features of Social Security
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 programme 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.
Approaches of Social Security
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.” Restoration
mean reemployment and providing self-confidence through cure of sick/injured employees.
(iii) (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. Prevention aims at avoiding loss of productive capacity due to sickness i/injure or
Unemployment. 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.”
Evolution of Social Security
In Vedic period, there were four varnas, viz., Brahmans, Kshatriyas, Vaisyas and Sudras. These were based
on their profession and status. The Brahmans were concerned with study, teaching and officiating as
priests. But serving in army was the hereditary profession of Kshatriyas. Cultivation of soil, tending
cattle, trading and money lending were the professions of the Vaisyas. Those who had to serve the
higher classes were called the Sudras. Buddha had raised a voice against the Brahminical supremacy
with his dictum of universal equality and brotherhood among human beings.
The old rule that particular caste should follow only particular profession was rejected. Buddha said
that right knowledge and right conduct of man alone determine his status in the society.
According to Kautilya’s Arthashastra, during the period of Ashoka, the labourers were treated very
kindly with their wages and benefits, regularly with fairly high esteem. But the conditions of this class
got deteriorated during the muslim regime. The payment of wages and of providing other benefits was
with Amirs’ who were selfish and manipulators having vested interests.
Generally the poor people were called Sudras, who were maltreated like animals in ancient India. The
labour policy and administration during that time was punitive and feudalistic in structure and character.
However, the slave labour enjoyed better economic conditions and status as compared with free labour
because the former could share the homes of their masters.
India has enjoyed a joint family system that took care of the social security needs of all the members
even with minimal ownership of material assets like land. In keeping with its cultural traditions, family
members and relatives have discharged their 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, and the need for a formal system of
social security gains importance.
The British colonial rule in the Indian subcontinent witnessed the formation and growth, though to a
limited extent, of a wage-earning industrial labour force. This labour was employed in the manufacturing
enterprises, mines, transport and communications, and plantations. At the time of independence in 1947
barely 10 per cent of the workforce in India and Pakistan was employed in the manufacturing sector, 0.5
per cent in the mines, 1.5 per cent in transport and communications, and 2.4 per cent in plantations and
allied activities, In spite of its relative smallness, in absolute terms the industrial labour force was fairly
large. Thus, manufacturing employment in the Indian union totaled 126 million. However, the number of
factory workers in the subcontinent stood at just 2.9 million in 1951.
Thousands of workers belonging to this labour force faced various and widespread uncertainties and hazards and
their consequences were severe. In their everyday life they were threatened with uncertainties with respect to
livelihood and life arising from sickness, accident, pregnancy, death, unemployment and underemployment due to
business decline and depression and strikes or lock-outs. The problems were compounded by the absence of any
government-operated or -supported programmes for compensation for disability or death due to accident, facilities
for health care and support during sickness, benefits for maternity, old age pensions, unemployment benefit, and
education. Even thereafter, government support for social security of labour remained non-existent or negligible and
haphazard.Welfare provisions by the capitalist employers too were virtually absent or of extremely limited coverage.
Scope of Social Security
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 postnatal 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. 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 care 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.
Importance of Social Security
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 not 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 motivates the employees and boost their morale. Leaving to 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.”
Schemes of Social Security
In order to provide social security benefits to the workers in the unorganized sector, the Government has
enacted the Unorganized Workers Social Security Act, 2008. Some of the welfare schemes for
unorganized workers stipulated under this act are:
1.The National Social Assistance Programme (NSAP), launched in 1995 is a Centrally Sponsored Scheme
of the Government of India that provides financial assistance to the elderly, widows and persons with
disabilities in the form of social pensions.
2.Janani Suraksha Yojana (JSY), launched in 2005, is a safe motherhood intervention under the National
Rural Health Mission (NRHM) being implemented with the objective of reducing maternal and neonatal
mortality by promoting institutional delivery among the poor pregnant women.
3.Rajiv Gandhi Shilpi Swasthya Bima Yojana aims at financially enabling the artisans’ community to access
to the best healthcare facilities in the country. This scheme covers not only the artisans but his wife and two
children also.
4.National Scheme of Welfare of Fishermen aims at providing better living standards for fishermen and
their families and social security for active fishers and their dependants.
5.Aam Admi Bima Yojana, launched in 2013, is a social security scheme aimed at unorganised sector
workers aged between 18 and 59 years, which offers a cover of Rs 30,000.
6. Rashtriya Swasthya Bima Yojana (RSBY), launched in 2008, aims to provide health insurance coverage
to the unrecognized sector workers belonging to the BPL category and their family members. It provides
for inpatient medical care of up to ₹30,000 per family/year in public as well as empaneled private hospitals.
7. Atal Pension Yojana (APY) - Under the APY, subscribers would receive a fixed minimum pension at the
age of 60 years, depending on their contributions, which itself would vary on the age of joining the APY.
The Central Government would also co-contribute 50 percent of the total contribution or Rs. 1000 per
annum, whichever is lower, for a period of 5 years, who are not members of any statutory social security
scheme and who are not Income Tax payers. The pension would also be available to the spouse on the
death of the subscriber and thereafter, the pension corpus would be returned to the nominee. The
minimum age of joining APY is 18 years and maximum age is 40 years.
8. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Under PMJJBY, life insurance of Rs. 2 lakh would
be available on the payment of premium of Rs. 330 per annum by the subscribers. The PMJJBY will be
made available to people in the age group of 18 to 50 years having a bank account from where the
premium would be collected.
9. Pradhan Mantri Suraksha Bima Yojana (PMSBY): Under PMSBY, the risk coverage will be Rs. 2 lakh for
accidental death and full disability and Rs. 1 lakh for partial disability on the payment of premium of Rs. 12
per annum. The Scheme will be available to people in the age group 18 to 70 years with a bank account,
from where the premium would be collected.
10. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Yojana: Under the scheme, the government has
promised a direct payment of Rs. 6000 in three equal instalments of Rs. 2000 each every four months into
the Aadhar bank accounts of eligible landholding Small and Marginal Farmers (SMFs) families.
11. Pradhan Mantri Kisan Mandhan Yojana: Prime Minister Narendra Modi recently launched a pension
scheme for farmers from Ranchi, Jharkhand. Under the scheme, farmers between 18 and 40 years of age will
get Rs 3,000 monthly pension after reaching 60. The scheme has an outlay of Rs 10,774 crore for the next
three years. All small and marginal farmers (with less than 2 hectares) who are currently between 18 to
40 years can apply for the scheme. Registration for the farmers’ pension scheme was started on August 9,
2019. Life Insurance of India (LIC) has been appointed insurer for this scheme. The farmers will have to
make a monthly contribution of Rs 55-200, depending on the age of entry, in the pension fund till they
reach the retirement date.
12. Pradhan Mantri Laghu Vyapari Mandhan Yojana 2019: The new scheme that offers pension coverage
to the trading community was launched from Jharkhand. Under the scheme, all shopkeepers, retail traders
and self-employed persons are assured a minimum monthly pension of Rs. 3,000/- month after attaining
the age of 60 years. All small shopkeepers and self-employed persons as well as the retail traders with GST
turnover below Rs. 1.5 crore and age between 18-40 years, can enroll for this scheme. The scheme
would benefit more than 3 crore small shopkeepers and traders.
