Identifying challenges and devising useful solutions for social Security in India

Identifying challenges and devising useful solutions for social Security in India

Name Roll Number

Akkudalai Shreeya IPM02007

Nimisha Tilekar IPM02045

Ojasvi Vyas IPM02047

Anjali Bhime IPM02083

Gudala Srividya IPM02100

Himanshi IPM02101
Identifying challenges and devising useful solutions for social Security in India

Table of Content

Content Page Number

Introduction

Objectives

Literature Review

Research Methodology

Analysis

Results

Limitations and Recommendations

Conclusion

References

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Identifying challenges and devising useful solutions for social Security in India

Introduction

According to International Labour Organisation,” Social security is the protection that a society provides to individuals
and households to ensure access to health care and to guarantee income security, particularly in cases of old age,
unemployment, sickness, invalidity, work injury, maternity or loss of a breadwinner”. It is a right that is typically given
to people by law or other legislation for their financial and social security at times of illness, disability, or old age. It
ensures the recipients' rights to decent living conditions, family protection, and support, and access to healthcare.
People have social security to rely solely on in difficult circumstances. Social security is necessary for social welfare.
At times of need, it serves as a shield against all threats. It raises the standard of living for people by assisting in the
emancipation of millions of people from poverty.

The Preamble of the Indian Constitution provides the objectives of eradicating income disparity, status inequality, and
standard of living inequality. According to the Indian constitution, all Indian citizens must have equal access to
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Identifying challenges and devising useful solutions for social Security in India

opportunities and status. Right to life (Article 21) states that rights such as food, clothes, house, medicine, and
education are necessary for a person to live in a civilized society. Thus, supports social security for Indians.
The Directive Principles of State Policy lists a number of provisions that attempt to provide social security for Indians.
There is a need of Social security due to variety of reasons such as Poverty and inequality: India has a large population
living below the poverty line, and many people struggle to make ends meet. Social security measures such as cash
transfers, food subsidies, and health insurance can help to alleviate poverty and reduce inequality. Another reason is
Informal economy: A significant portion of the Indian workforce is employed in the informal sector, which often lacks
job security, social benefits, and access to pensions. Social security measures can provide a safety net for workers in the
informal economy and ensure that they have access to basic social protections. Also, Ageing population: India's
population is ageing rapidly, and the number of elderly people is expected to double by 2050. As people age, they
become more vulnerable to poverty, illness, and disability. Social security measures such as old-age pensions and health
insurance can help to ensure that the elderly have access to the resources they need to maintain a decent standard of
living. And lastly, Health care: India has a large population with limited access to healthcare, and many people struggle
to pay for medical expenses. Social security measures such as health insurance can help to ensure that people have
access to affordable healthcare and do not have to worry about the financial burden of illness or injury.

There are various Social Security Schemes for the protection and welfare of elderly people, for organized/unorganized
sectors, and for women. Its main goal is to give people and families the assurance that, to the extent feasible, no social
or economic occurrence will significantly degrade their standard of living or quality of life. Additionally, it offers
crucial social insurance protection to employees who become disabled and to families whose primary breadwinner
passes away or Social Security means that the government, which serves as the face and voice of society, it is
responsible for fixing a minimum standard of living for all its citizens. Overall, social security is essential in India to
reduce poverty, inequality, and vulnerability, and to ensure that all people have access to basic social protections and
resources. Through this project we are going to identify the challenges faced by the citizens and why there is a need for
Social security. We are going to undertake a research study to analyze and understand the situation and devise some
useful solutions for the same.

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Identifying challenges and devising useful solutions for social Security in India

OBJECTIVES
This study's objectives are to assess the social security system's issues and pinpoint effective solutions for tackling
social protection floors in the lives of the general population.

The objectives of conducting research on identifying challenges and devising useful solutions for social security in
India are:

This Research can assist in evaluating the efficacy of current social security programs in India, identifying the gaps and
challenges they face, and coming up with ideas to solve these gaps in order to better understand the current social
security programs and their success. This Research can assist in recognizing the difficulties experienced by various
groups in society, including women, children, the elderly, employees in the unorganized sector, etc., and in coming up
with solutions that cater to their particular needs. This can help provide evidence-based policy recommendations for
upgrading India's social security systems, which policymakers can utilize to make informed decisions.

Now in the research, we also have the objectives of challenges faced in informal and formal sectors-:

Informal sector

The informal sector employs a sizable portion of the workforce in India, yet many of these workers are not entitled for
social security benefits.It's crucial to educate workers in the informal sector about the social security benefits that are
available to them because many of them are unaware of them.It is essential to be aware of the challenges facing
awareness-raising and to develop methods that effectively spread knowledge about these benefits. Giving social
security benefits to employees in the unorganized sector might be expensive, but doing so helps social security services
remain accessible and financially viable.

Formal Sector
To ensure that social security benefits are accessible to all formal sector employees, Social security payments are a right
for workers in the formal sector, but certain workers may not be able to access them for a number of different reasons.
Social security benefits offered to formal sector employees must be inclusive of all workers, regardless of their
backgrounds, in order to promote social inclusion.

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Identifying challenges and devising useful solutions for social Security in India

Research on identifying issues and creating workable solutions is essential to improving social security systems'
effectiveness, reducing poverty and inequality, promoting economic growth and development, ensuring sustainability,
and promoting social inclusion.

LITERATURE REVIEW-

According to Madhava Rao P (2002), social security is the financial protection offered by the entire society, as well as
by families, governments, societies, and other social groups, for a person's social well-being throughout his lifetime.
There aren't many studies on general public awareness of social security programmes in India. Lack of understanding
of the social welfare programmes was the primary barrier to participation, followed by the programmes' lack of
necessity.
According to IJSDR (2019), social security has been a concept that has evolved over an ambiguous amount of time.
Humanity's struggle to overcome frailty to protect him from nature's whims or to acquire the basic essentials of daily
life was evident in the rudimentary social orders. Early societies handled social security demands through a joint family
system. A separation in family structure that destroyed the traditional system and prompted the demand for social
security came about as a result of fast industrialization. A historical analysis of the social security system would show
that in preindustrial societies, where people were treated as slaves, serfs, and other forms of property, there was no
social fairness regarding the acknowledgement of labour. Subsequently, the global industrial revolution led to numerous
machine inventions and chemical discoveries in the 18th century. From prehistoric periods to the present, man has
undergone a wide range of evolutionary changes.
According to Pramita Gurung(2019), Studying the assessment of social security in India can be done using two basic
categories.
I. Pre-Independence Period- At "Empress Mills Nagpur," there were first-ever labour unrests in 1877 over wage
increases. N.M. Lokhande was the driving force behind the establishment of the first Trade Union Bombay Mill
Workers association in 1890. First Fatal Accident Act passed in 1885. Even yet, the living circumstances for workers
were appallingly bad. Before 1920, social security was not addressed in any way by any provisions. Social security and
labour welfare programmes received a boost from the International Labor Organization in 1920. The ILO's convention
in 1929 included social security programmes for workers. The need of worker social security was emphasised at the
ILO convention in 1929. The appointment of strong proposals for social security and labour welfare followed.

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Identifying challenges and devising useful solutions for social Security in India

The study also discovered that following the First World War, the British government started to take its employees into
account thanks to the Indian National Movement, and as a result, in 1923, the Workmen's Compensation Act and in
1936, the Payment of Wages Act were both passed. In the years following World War II, Mr. B.R. Ambedkar was
chosen to serve as a "labour member of the victory's council," and laws like the Minimum Wage Payment Act and
Maternity Benefits Act were frequently passed. The Whitley Commission additionally suggested that suitable measures
be implemented to aid in the workers' health recovery.The government adopted a contributory medical plan, in which
both the employer and the employee will make contributions to a single fund, in accordance with the commission's
recommendation and following consultation with the "standing Advisory Council of Labour and Industry".
In 1937, a plan was devised for insurance contributions. A health insurance scheme should be established, with funding
coming from the state government, the employee, the employer, and both, according to a second suggestion made at the
same time by the Bombay Textile Investigation Committee. And in 1940, during the first Labour Minister's conference,
the need for a sickness benefit fund was made clear. A commission headed by B.R. Ambedkar was established by the
Indian government in 1943, and it delivered its report in 1944.
The B.R. Ambedkar Commission's recommended strategy called for a maximum age of 60 and separated employment
into three categories: permanent, temporary, and casual. Only regular and temporary employees were required to
contribute to insurance plans; all other workers' contributions had to come from the company. The fundamental purpose
of the Industrial Dispute Act, which was passed in 1947, was to establish guidelines for the examination and settlement
of labour disputes. The biggest contribution was provided by the Employees' State Insurance Act of 1923.

II. Post-Independence Period- Once India gained its independence in 1947, the Indian government strengthened its
social security and labour welfare policies. The period of social insurance for Indian workers began in 1948 when the
Employees State Insurance was appropriately adjusted. "In 1952, the International Labor Organization gave guidance
from eight social security experts over a lengthy six-month period to ensure that the Employee State Insurance Act's
plans were implemented properly. To expand the programme across the nation, they developed the panel system of
medical benefits, provided advice on how to administer it, and trained the required staff.
The Indian government also significantly amended the pre-existing Indian factories Act 1934 in 1948 and introduced a
brand-new statute known as "The Factory Act 1948" with the primary objective of regulating working conditions in
manufacturing establishments to ensure adequate health, welfare measures, hours of work, and leave with wages. The
Government passed the Maximum Wages Act in 1948 to stop the exploitation of labour caused by the payment of
unreasonably low salaries. And finally, with the primary goal of providing industrial workers and their families with
substantial amounts of financial stability and prompt financial help, the government passed the Employee's Provident
Fund and Miscellaneous Provision Act in 1952.
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Identifying challenges and devising useful solutions for social Security in India

"In addition to this"

(i) "The Assam Tea Plantations Provident Fund Act of 1995" The Personal Injury (Compensation Insurance) Act of
1963
(ii) The Seamen's Provident Fund Act of 1966
(iii) The Plantation Labour Act of 1951
(iv) The 1961 Central Maternity Benefit Act
were put into place to provide social security to the society's most vulnerable groups, who were more likely to be
targets of abuse and exploitation.

Further, a study by Sachdev, R., Garg, K., Shwetam, S., Srivastava, A. R., & Srivastava, A. (2022) found that, the
government's recently implemented social security programmes have reached a bigger rural population than the
previous social security programmes. This might be the result of the Government of India's widespread advertising. For
instance, a significant portion of the villagers had registered for and were aware of the farmer's pension plan. When
talking about migrant workers, Shwetha and Prasad's (2018) research claimed that the people have poor health-seeking
habits and put off getting medical attention when they are sick. Interstate migrant workers in India are allegedly
excluded from different social and development initiatives, according to Manas (2018). Thus, the Supremen Court in
the case of People's Rights and Social Research Centre v. Union of India (2019) ordered the central government to
implement the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, which
provides for social security benefits to migrant workers. The responsiveness of health care and their social requirements
are put at risk by the lack of political space for migrant workers. Innovative approaches must be developed to increase
migrant workers' involvement in social protection programmes. S.N. Roy et al. (2017) elaborated various Acts and
Provisions for the security of various workers and came to the conclusion that Indian States' implementation of the Acts
paints a bleak picture of general tardiness and delay. Further, in the case of Mukesh Kumar v. The State of Uttarakhand
and Ors. (2017), the High Court of Uttarakhand directed the state government to implement the Building and Other
Construction Workers' Welfare Cess Act, 1996, which provides for social security benefits to construction workers,
including migrant workers.

In a study by Nivedita, B. M., Mangala, S., & Subrahmanyam, G. (2014) conducted in Kannamangala, Bangalore, it
was discovered that 77% of men and 50% of women use social security programmes in some capacity. 79% of elderly
people report that social security does not cover their basic requirements, and 53% report difficulty using the
programmes. Therefore, it was determined that for 48% of elderly people, social security is their main source of
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Identifying challenges and devising useful solutions for social Security in India

revenue. Although its sufficiency, affordability, and sustainability are still debatable, it is drawing attention to the need
to increase social security payments for elderly rural residents. The same has been recognized in the case of People's
Union for Democratic Rights vs. Union of India (1982), where the Supreme Court of India held that the government
has a duty to provide social security benefits to elderly persons who are destitute and unable to support themselves.
According to a study by AgeWell Foundation (2019), it was found that, despite the existence of numerous social
security programmes and social protection levels at various levels, the majority of elderly people, especially those over
the age of 80, are unable to take advantage of the benefits that are available due to a variety of barriers, such as a lack
of transportation options, a shortage of carers, and a lack of knowledge about the programmes designed to improve the
wellbeing of older people. As a result, it was determined that India urgently needs to create its own Uniform Social
Security Floor tailored especially for the elderly based on the nation's resources, needs, and socioeconomic realities.
Further, in their study of Andhra Pradesh, Reddy et al (1998) conclude that the policy for the development of small
farmers was unable to have a significant effect on the target populations. Even tough, the Supreme Court directed the
government, in the case of People's Union for Civil Liberties (PUCL) v. Union of India (1997), to take measures to
provide social security to agricultural workers and marginal farmers, yet, plans turned out to be too disjointed to work
(Reddy et al, 1998). Some of the plans even turned out to be unsuccessful. Not only are the agricultural labourers
ignored, but they also endure tremendous suffering. The administrative apparatus does not prioritise property and does
not support the underprivileged with zeal. As a consequence, the middlemen have been taking the advantages. To get
past the severe drawbacks of a public policy and an unequal socioeconomic system, the poor as a class still need to
create a participatory culture. As a result, the Small Farmers Development Agency, another crucial public policy like
the Green Revolution, was unable to improve the lives of rural impoverished people.

Scope of the study

A thorough examination of India's current social security programmes, their implementation, and their effects on
society are necessary to pinpoint problems and provide practical alternatives.
We aim to study social security in India in depth. The preamble of the constitution provides a better understanding of
the rights of citizens. This will enable giving appropriate knowledge required for social security. The evaluation of
social security allows us to understand how social security in India was pre- and post-Independence period. The case
laws covered give a better understanding of the acts and how they affect society. The limitations and challenges tell
about the difficulties. The proper analysis throws light on issues and factors affecting social security. From it we can
tell about the solutions for improving social security.
For the study, we have used the qualitative method. We have used secondary data here. qualitative research is done by
the content analysis on employee reviews, government policies, and solving and identifying glitches in social security
in India.

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Identifying challenges and devising useful solutions for social Security in India

Analysis:

Limitations of social security in India:

It is commendable that India has recently taken a number of initiatives to protect the unorganized workers, but at best,
this is just the beginning. The amount of money spent on social security is extremely small. When compared to
comparable figures in developing nations, India's social security spending in 1996 accounted for 1.8% of GDP,
according to the World Labour Report from 2000. In India only about 7% of workers get the benefits of social security
laws and the rest belonging to the unorganized workers are actually not getting the benefits available under laws
because either they are not eligible for coverage, or laws are just not implemented for them. India's social security
system is characterized by unclear policy. There are many different schemes, but they were all developed at different
times, so they don't follow any overarching pattern that would indicate a thorough and consistent policy or direction.
Indeed, until the 9th Five Year Plan, social security was not mentioned in the plans.
Unorganized workers are helpless as they age because they must pay for everything out of their meager incomes,
including illness and their children's education. These workers use highly expensive informal strategies, like borrowing
money or selling assets, and their continued reliance on them only makes them more vulnerable. NCEUS Report (2006)
states that 62 unorganized workers in India work in "deplorable conditions" and have "extremely few options for a
living." Despite the fact that they contribute more than 60% of the nation's GDP, this continues.

For analysis, we have analysed the challeneges in informal sector, formal sector and we have taken curtain social
security schemes like Employment Compensation Act, Maternity Benefit schemes and the Payment of Gratuity Act.
Having these acts in place is indeed one of the crucial steps in improvement and upliftment of social security of
workmen and employees in the country. We have analysed these two sectors and these acts and have devised
appropriate suggestions for the same in the results section.

Challenges in informal sector

The informal sector, also known as the shadow economy or grey economy, is the part of every financial system that is
neither imposed nor regulated by any kind of authority. Even though the shadow economy plays a significant role in
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Identifying challenges and devising useful solutions for social Security in India

many areas of the economies of developing countries, it is occasionally stigmatised as unruly and problematic.
However, this shadow economy has been expanding quickly since the 1960s and provides significant economic
opportunities for the underprivileged. How to integrate the black market into the formal economy is a serious policy
conundrum. (IMF, 2020). Currently, the shadow economy continues to account for 15% of business creation in
developed countries and about a third of business creation in countries with middle incomes. 75% of workers,
according to the Peroidic Labor Force Survey, are self-employed or work as casual labourers, earning wages that are
lower than those of regular salaried employees. They don't have the standard social security policies that the Indian
government enforces. (World Economics, Quarterly Informal Survey, 2021) The informal sector in India makes up
roughly 43.1% of the economy, making it one of the largest contributors to GDP. (Research paper by Dr. Raj Shekhar at
ResearchGate) Casual workers are employed in the non-agricultural sector as either manufacturing workers or
employees of shady businesses involved in commerce and other non-agricultural industries. They work in the
transportation industry or in jobs that are similar but have weaknesses like inadequate social security. They struggle
with problems like low educational attainment, effectiveness below that of mainstream employment, lower pay,
unpleasant workplace conditions, sporadic and ambiguous work, and a challenge accessing adequate and dependable
social protection, among others. Other issues that workers in the informal economy deal with include long hours, low
pay, and a difficult work environment. The inability to exercise rights, inadequate protection regulations, inadequate
employment rights, and little job satisfaction are just a few more on the list.

Challenges in formal sector

The portion of a financial system completely under the control of the state and governed by its institutions, particularly
in the areas of contract and corporation legislation, taxation policy, and labour relations (UNESCWA, 2022). 2022's
Economic Times According to the labour ministry's quarterly workforce study, which was ordered in 2022, there were
0.4 million more official job openings in India during the January–March quarter of 2022 than there were during the
third quarter of 2021–2022, bringing the total number of employees working across nine industries to 31.8 million from
31.4 million. Currently, a lot of skilled and semi-skilled workers are being laid off because there aren't enough stick
shift jobs available. To maintain their demand, highly qualified labour must update and improve their understanding.
These are just a few of the significant problems the labour force is currently dealing with.

Three social security programmes in India, the Employee's Compensation (EC) Act, the Maternity Benefit (MB) Act,
and the Payment of Gratuity Act, all seek to benefit employees in various ways. Here is a basic outline of these
schemes' effects, even though their application and efficacy can differ:
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Identifying challenges and devising useful solutions for social Security in India

1. Employee's Compensation Act: The EC Act offers benefits to workers or their dependents in the event of an
injury or death brought on by a workplace accident. The act has been successful in giving workers and their
families financial assistance in the event of accidents, but it has encountered difficulties with regard to
coverage, awareness, and implementation.
2. Maternity Benefit Act: The MB Act grants female employees paid time off for maternity-related reasons. The
law seems to have been effective in advancing gender equality in the workplace and enhancing the health and
wellbeing of new mothers and infants. The act's execution is still unbalanced, and many female workers are not
getting the advantages to which they are obligated.
3. Payment of Gratuity Act: Employees who have completed at least five years of continuous service in an
organisation are eligible for a lump sum payment under the Gratuity Act. The act has been effective in offering
employees financial security upon retirement or resignation, but its execution is frequently subpar, with many
employees failing to receive their gratuity timely.

Overall, despite some success in providing benefits to workers, there is still room for improvement in terms of
coverage, knowledge, and implementation of these social security programmes. Additionally, there is a requirement for
improved coordination and integration between various social security programmes to make sure that workers are not
cut off from the safety net.

Case laws related to social security

(D.S. Nakara v. Union of India, AIR 1983 SC 130) The Constitution Bench of the Supreme Court has ruled that
pensions aren't just rewards for previous unwavering support, but also, in a larger sense, a social assistance way of
measuring that promotes economic and educational justice by ensuring financial security in later life when one's
cognitive and physical capabilities begin to wane in line with ageing and one must rely on savings.

The case laws have seen several examples of employment injury as well. A case where the concept of employment can
be observed was that of E.S.I. Corpn. Indore v. Babulal, 1982 Lab. I.C. 468, The M.P. High Court ruled that an
employee's injury resulted from his employment when he reported to work after finishing his shift despite being
threatened by those who were calling for a strike and was attacked by them. Despite the fact that the laborer's
carelessness prompted the harm, an employment injury resulted from him knocking the moving pulley's belt
(Jayanthilal Dhanji Co. v. E.S.I.C., AIR AP 210).
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Identifying challenges and devising useful solutions for social Security in India

The Supreme Court correctly noted that the date of the accident, not the date of the order, should be used to calculate
interest under one of the seminal rulings in The Employee's Compensation Act of 1923. A worker who cut sugarcane
was the one who perished in this particular case.

In an interesting and important case of Babu Ram V. Phoenix Mills (1999 (1) labour law Journal 2 58), The court ruled
that because the petitioner's employment was concluded by termination, it wasn't possible to claim that he had
continuity of service from the time of his job until the time of his superannuation.

(Pooja Jignesh Doshi Vs. The State of Maharashtra and Ors) Throughout this ruling, the High Court considered the
concepts of maternity and pregnancy. As stated by the High Court in this instance, maternity is understood to include
both the time a person is pregnant and the time frame immediately post a baby's birth.

(Anshu Rani vs State Of Uttar Pradesh And Ors) In this case, The Allahabad High Court stated that “Maternity leave is
social insurance. The maternity leave is given for maternal and child health and family support.” The judgement is also
remarkable because it linked this act to artice 42 and its provisions which talks about just and humane working
conditions.

India's formal sector faces several challenges when it comes to social security. Here are some of the most significant
ones:

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Identifying challenges and devising useful solutions for social Security in India

(Low Coverage) One of the biggest challenges is the low coverage of social security schemes in the formal sector.
According to the International Labour Organization (ILO), only 10-12% of the Indian workforce has access to any kind
of formal social security. (Informalization of Formal Sector) Another major challenge is the growing trend of
informalization of the formal sector. Many companies are hiring workers on a contractual or temporary basis, which
makes it difficult for them to access social security benefits. (Lack of Awareness) A significant percentage of workers
in the formal sector are not aware of their entitlements to social security benefits. This can be due to a lack of
information or education about the schemes available. (Fragmentation of Schemes) There are several social security
schemes available for workers in the formal sector, but they are often fragmented and uncoordinated. This can lead to
duplication of efforts and inefficiencies. (Weak Implementation) Even when social security schemes are available, the
implementation can be weak, with limited resources and inadequate monitoring mechanisms. This can result in delays,
corruption, and other issues that undermine the effectiveness of the schemes. (Gender Bias) Women workers in the
formal sector face unique challenges when it comes to social security. They are often employed in low-paying jobs,
which can limit their ability to contribute to social security schemes. Additionally, they may face discrimination in
accessing social security benefits.

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Identifying challenges and devising useful solutions for social Security in India

As a whole, these upgrades could indeed help the EC Act work more effectively by providing staff who are hurt or
killed at work with appropriate compensation and assistance. Implementing these adjustments and ensuring that
employees are supported and shielded under the act will require a coordinated effort from the government, business
owners, and civilized society.

How are companies implementing social security in India?

Social security schemes in India vary from company to company. In general, the majority of businesses provide access
to employee assistance programmes, life insurance, retirement plans, and health insurance. Access to an employee
health club, which offers health services like medical checkups, vaccinations, and access to health-related products,
may also be made available by some employers. Additionally, some businesses might give needy workers financial aid.
The extent of coverage and accessibility of these services, however, varies from business to business.

A variety of benefits related to social security are provided to staff members by the Tata Group. This included
healthcare coverage, life insurance, pensions, and financial aid for learning. The organisation also gives staff members
access to Tata Aid, which helps struggling staff members financially. Workers are entitled to the Tata Employee Health
Club through the organisation, which offers healthcare like medical exams, immunisations, and access to health-related
products. In addition, the company gives workers access to its Employee Assistance Program, which offers them
counselling and other facilities.

Reviews indicate that most Tata Group staff members are happy with the group's social security benefits. The group has
received praise from its members for offering extensive healthcare coverage, retirement plans, availability to Tata Aid,
and an employee assistance programme. The group's provision of access to the Employee Health Club and support for
educational opportunities is also valued by the staff. Some staff members have suggested that the organisation could do
more to offer better coverage for life insurance and mental health support.

The social security programmes offered by Reliance are generally regarded favourably by its employees. The group's
comprehensive health insurance, life insurance, and retirement plans have received high marks from staff. Workers
have also praised the company for its dedication to helping out financially to those in need. Additionally, the business
gives employees access to its Employee Assistance Program, which offers counselling as well as other facilities.

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Identifying challenges and devising useful solutions for social Security in India

Additionally, the business gives staff members access to the Reliance Employee Health Club, which offers medical
services like physicals, immunisations, and availability to health-related product lines.

Reliance's social security programmes have received generally favourable reviews, but there are some areas where the
business could do better. For instance, some workers have suggested that the business could offer better mental health
care and more comprehensive life insurance coverage. The employee health club may also provide additional services
like immunisations and physicals. Finally, the business could do more to help out financially struggling employees.

Results

People can infer the nation's social security problems in both the formal and unofficial sectors of the economy from the
assessment above. This section of the results offers a comprehensive set of improvement recommendations that the
government can use to enhance the nation's social security system.

Improving social security in informal sector

Social security is essential to a strong economy, but in many countries, social security programmes do not cover enough
of the unorganised sector's workforce. Among the ways to improve social security for those who work informally are

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Identifying challenges and devising useful solutions for social Security in India

increasing protection, developing new social security programmes, increasing awareness, streamlining administrative
processes, and establishing public-private partnerships.
The unorganised sector employs a large number of people who are not covered by social security programmes. In order
to provide these workers with the social protections they require, it is essential to include them in the coverage
expansion. The registration process can be streamlined, social security programmes can be expanded to cover the
unorganised sector, and employers can be incentivized to register their workers, among other options.
(Develop new social security initiatives) For workers in the informal sector, traditional social security programmes like
pensions and health insurance might not be appropriate. New initiatives like microinsurance that are more suited to
these workers' requirements could be developed in order to increase their access to social security. Raising awareness
through targeted campaigns and community outreach programmes can ensure that workers are aware of their rights and
have access to the social protections they need. (Simplify administrative processes) Administrative processes to access
social security benefits can be laborious and time-consuming. If these procedures are made easier, such as by reducing
the amount of documentation needed or streamlining the registration process, it may be simpler for workers in the
informal sector to access social security benefits. Public-private partnerships Governments can work with players in the
private sector to expand social security coverage to workers in the unorganised sector. For instance, microfinance
institutions could be urged to encourage their clients to buy microinsurance products, or mobile network operators
could be used to provide digital social security platforms.

By implementing these changes, social security for workers in the unorganised sector can be improved, resulting in
greater social inclusion and economic growth.

Improving social security in formal sector

In-depth discussion has been given to the challenges that the formal sector faces. The three programmes that are the
focus of the discussion in this section are the Employment Compensation Scheme, the Maternity Benefit Scheme, and
the Payment of Gratuity Scheme.

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Identifying challenges and devising useful solutions for social Security in India

A number of ways to make the Employee's Compensation (EC) Act in India extra effective at providing workers who've
been hurt or killed while on the job with fair compensation and aid. However, after investigating the problems with the
EC Act's application, we are in a position to make some recommendations.

(Raise Awareness) Both employers and employees need to be made aware of the EC Act and their rights. Interventions
in education, campaigns to increase awareness, and the dissemination of information through various media can all help
with this. (Boost Execution) Better EC Act implementation may entail expanding the number of labour investigators,
streamlining the court process, and establishing a fast-track system for handling complaints. (Increase Compensation)
The compensation provided under the EC Act needs to be increased in order to adequately cover the cost of the injury
or death. Raising the maximum allowable compensation ceilings and ensuring that compensation is based on the
worker's actual loss of earning potential are two ways to accomplish this.(Extend Coverage) The EC Act's protection of
workers in the unorganised sector and other workplace dangers like exposure to radioactive materials or toxic
chemicals can be expanded. (Provide Assistance for Rehabilitation) The EC Act can be improved by providing workers
with disabilities with assistance for their medical, psychological, and vocational rehabilitation. As they recover from
their injuries and return to the workforce, workers may gain from this. Improved regulatory oversight The EC Act's
regulation must be strengthened by increasing the fines for non-compliance, establishing a grievance procedure, and
ensuring that employees are not punished for offences.
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Identifying challenges and devising useful solutions for social Security in India

Overall, these upgrades can help the EC Act work more effectively by providing workers who are hurt or killed at work
with adequate compensation and support. Implementing these changes and ensuring that workers are supported and
protected under the act will require a concerted effort from the government, employers, and civil society.

In India's formal economy, women employees are entitled to paid maternity leave under the Maternity Benefit (MB)
Act. We provide some recommendations for improvements that might be made to social security benefits related to
maternity benefits in the paragraph that follows.

(Increase Awareness) The lack of knowledge among employees and employers about the MB Act and its rights is one
of the main obstacles to its implementation. There is a need to spread information through various media channels,
launch awareness campaigns, and conduct training programmes to increase awareness. The MB Act can be extended to
include all women workers, even those in the unorganised sector (increase coverage). Having access to paid maternity
leave and other maternity-related benefits can be made possible thanks to this. (Increase Leave Duration) To meet
international standards, the maternity leave period stipulated by the MB Act may be lengthened. The act currently
allows for 26 weeks of maternity leave, but this can be increased to 30-36 weeks to give mothers enough time to care
for their infants. (Increase Compensation) The compensation made available by the MB Act may be increased to pay
for all maternity-related costs, including medical bills and lost wages. This can lessen the financial burden placed on
female employees during the postpartum period. (Fast-track Gender Equality) By urging employers to foster a
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Identifying challenges and devising useful solutions for social Security in India

welcoming work environment for female employees, the MB Act can be used as a tool to advance gender equality in
the workplace. This can include activities like flexible work schedules, breastfeeding assistance, and child care
facilities.(Strengthen Enforcement) The MB Act's enforcement needs to be strengthened by raising the penalties for
non-compliance, putting in place a grievance redressal system, and making sure that female employees aren't punished
for pursuing their rights.

Overall, these upgrades could help the MB Act work better at giving women employees in India's formal economy
access to paid maternity leave and other maternity-related benefits. The government, businesses, and civil society will
need to work together to implement these changes and guarantee that women workers are supported and protected
under the act.

Given that they offer a lump sum payment to employees after they have completed a specific amount of service with
their employer, gratuity schemes are a crucial part of social security for formal workers. We provide some
recommendations for improvements that could be made to social security benefits related to annuity payments in the
paragraph that follows.

Many gratuity programmes have minimum service requirements that must be met before an employee is eligible to
receive a gratuity payment. To make sure that workers who have invested a significant amount of their careers in their

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Identifying challenges and devising useful solutions for social Security in India

employer are fairly compensated, this period can be extended. (Increase the gratuity rate) To give employees a larger
lump sum payment upon retirement or termination of their employment, the rate at which gratuity payments are
calculated can be raised. (Mandatory participation) Employees should be automatically enrolled in a gratuity
programme once they start working for the company, and employers should be required to take part as well. This will
guarantee that the programme covers all formal workers. Employees should be able to move their gratuity benefits from
one employer to another (portable gratuity accounts). This will guarantee that workers are not penalised for changing
jobs and will encourage employers to uphold positive working relationships with their staff. (Indexing) Gratuity
payments can be adjusted to account for inflation, preserving their purchasing power over time. Employees should be
made aware of their rights under gratuity schemes and educated on the significance of such programmes. This will
make it possible for workers to make well-informed decisions about their employment and to be aware of the benefits
that are available to them.

By making these changes, gratuity programmes can benefit formal workers more and be more valuable, which will
strengthen the social security system.

Indian Businesses

Indian businesses are working to increase their employees' social security. For instance, many businesses now offer
their employees more life insurance and support for their mental health. Likewise, employers are giving employees
access to employee health clubs that offer more services like immunizations and physicals. Companies are also giving
needy workers more financial support. The government has also passed a number of laws and rules to guarantee that
workers are not taken advantage of and receive sufficient social security benefits.

Limitations

Analysis and interpretation take a lot of time because of the volume of data.

1) In qualitative research, the researcher's presence during data collection, which is frequently unavoidable, can
influence the subjects' responses.

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Identifying challenges and devising useful solutions for social Security in India

2) This research is a self selection bias. This can lead to a non-representative sample that may not accurately
reflect the population being studied, and can thus affect the validity and generalizability of the study's findings.
3) Some softwares like SPSS can be used for statistical analysis, but were not used because that is a licensing
software. Inaccessibility is also considered as a limitation since we have the least to access certain individuals,
groups, or data sources that are needed to conduct a study. This is due to a variety of factors, such as
geographical, social, or ethical barriers.
4) In this research, we use secondary data to analyze the social security of the workers in India. The fact that
secondary data may not specifically address the researcher's research questions or contain the information the
researcher would like to have has been a significant drawback of using secondary data.

Recommendations on Proposed Implementation Architecture:

Identification of Unorganized Sector Workers:

The principle for identifying unorganized sector workers should be based on self-reporting by individuals, rather than
at the district administration, as is the case with NPS-S at the moment (as recommended by the UWSSA). This may be
a successful and economical method of locating employees in the unorganized sector.
Use of Existing, Modified Schemes:

Remain using the current, modified schemes, such as the National Pension Scheme-Swavalamban (NPS-S), which have
been significantly changed to account for numerous design and implementation-related flaws and are now offered
through a single-window architecture.

NSSA's (National Social Security Administration) Purpose and Duties:

The NSSA Trust should not be an operating entity; rather, it should be a controlling and coordinating entity. It should
be in charge of: defining the scheme; clarifying the roles and responsibilities of the various stakeholders; designing the
implementation; monitoring and evaluating it; appointing distributors; maintaining records; designing systems;
managing finances; building capacity; research and development and standardizing procedures.

Conclusion

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Identifying challenges and devising useful solutions for social Security in India

Although the Indian government makes every effort to provide its residents with social security, the situation is still
dire. In India, there are several laws and rules in place to deal with social security, but they only apply to a relatively
small portion of the population. In order to ensure appropriate program implementation, the construction of delivery
infrastructure, the dissemination of awareness, and the prevention of corruption, there is a need for cooperation among
diverse stakeholders. For everyone to receive a fair share of the benefits of growth, social protection is essential. Good
health, nutrition, and education are necessary for sustainable growth and can help people move from low-productivity,
subsistence work to well-paying, high-productivity positions in the formal economy. When social security is effectively
thought out and integrated with other policies, it increases productivity, and employability, and promotes economic
growth. Sufficient social security encourages firms and employees to invest in human capital, enables employees to
adapt to change, and promotes fair and inclusive structural change brought on by globalization. Constant examination
of the short- and long-term effectiveness and efficiency of specific programs and social security systems by the social
partners, including actuarial studies, is a crucial process that may result in reform and adjustments whenever required.
All employees and employers must be informed of and comprehend current social security regulations as well as
upcoming issues in order to play the required active part in securing good social security governance. Member States
should think about incorporating fundamental social security information into the training and education curriculum at
various levels of their national education systems. Employers' and workers' groups must develop considerable capacity
in order to educate their members about social security, to actively engage in social dialogue about social security
policy, and to monitor and oversee social security programs.
The expansion of social security coverage is particularly difficult where there is a sizable informal economy. Although
it tends to concentrate on formal employees, social insurance is still the basic tenet of social security systems in the
majority of Member States.

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