SOCIAL SECURITY

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.
The Conventions and Recommendations which make up the ILO’s standards
framework on social security are unique: they set out minimum standards of
protection to guide the development of benefit schemes and national social
security systems, based on good practices from all regions of the world. They
are therefore based on the principle that there is no single model for social
security, and that it is for each country to develop the required protection. For
this purpose, they offer a range of options and flexibility clauses for the
progressive achievement of the objective of the universal coverage of the
population and of social risks through adequate benefit levels. They also set out
guidance on the design, financing, implementation, governance and evaluation
of social security schemes and systems, in accordance with a rights-based
approach. In a globalizing world, in which individuals are exposed to ever
greater economic risks, it is clear that a significant national policy of social
protection can contribute to attenuating the many negative effects of crises. It
was for this reason that the International Labour Conference adopted a new
instrument in 2012, the Social Protection Floors Recommendation (No. 202) .
Moreover, the 2019 General Survey , focusing on universal social protection for
life in dignity and health, prepared by the Committee of Experts, which will be
examined by ILO constituents at the International Labour Conference in 2019,
covers this Recommendation.
Relevant ILO instruments
 Social Security (Minimum Standards) Convention, 1952 (No. 102)
 Social Protection Floors Recommendation, 2012 (No. 202)
 Medical Care and Sickness Benefits Convention, 1969 (No. 130)
 Medical Care and Sickness Benefits Recommendation, 1969 (No. 134)
 Invalidity, Old-Age and Survivors' Benefits Convention, 1967 (No. 128)
 Invalidity, Old-Age and Survivors' Benefits Recommendation, 1967 (No.
131)
 Employment Injury Benefits Convention, 1964 [Schedule I amended in
1980] (No. 121)
 Workmen's Compensation (Agriculture) Convention, 1921 (No. 12)
 Employment Injury Benefits Recommendation, 1964 (No. 121)
 Employment Promotion and Protection against Unemployment
Convention, 1988 (No. 168)
 Employment Promotion and Protection against Unemployment
Recommendation, 1988 (No. 176)
 Equality of Treatment (Social Security) Convention, 1962 (No. 118)
 Maintenance of Social Security Rights Convention, 1982 (No. 157)
 Maintenance of Social Security Rights Recommendation, 1983 (No. 167)

 Social Security (Minimum Standards) Convention, 1952 (No. 102)

This Convention sets out minimum standard for the level of social
security benefits and the conditions under which they are granted. It
covers the nine principal branches of social security, namely medical
care, sickness, unemployment, old age, employment injury, family,
maternity, invalidity and survivors' benefits. To ensure that it could be
applied in all national circumstances, the convention offers states the
possibility of ratification by accepting at least three of its nine branches
and of subsequently accepting obligations under other branches, thereby
allowing them to progressively attain all the objectives set out in the
convention. The level of minimum benefits can be determined with
reference to the level of wages in the country concerned. Temporary
exceptions may also be envisaged for countries whose economy and
medical facilities are insufficiently developed, thereby enabling them to
restrict the scope of the convention and the coverage of the benefits
provided.
 Social Protection Floors Recommendation, 2012 (No. 202)
This instrument provides guidance on introducing or maintaining social
protection floors and on implementing social protection floors as part of
strategies to extend higher levels of social security to as many people as
possible, in accordance with the guidance set out in ILO social security
standards
Concept Of Social Security
The International Labour Organisation (ILO) defines Social Security as "the
security that society furnishes through appropriate organization against
certain risks to which its members are perennially exposed. These risks are
essentially contingencies against which an individual of small means cannot
effectively provide by his own ability or foresight alone or even in private
combination with his fellows. The mechanics of social security therefore
consists in counteracting the blind injustice of nature and economic activities
by rational planned justice with a touch of benevolence to temper it.”

Modernization and urbanization have resulted in radical socio-economic

changes and give rise to new conflicts and tensions consequent upon the
erosion of age old family and fraternal security. The transition from
agricultural economy to an industrial economy brought in special
accompanied problems that called for social security.

Indian Social Security System

In India, in the past, social security in a crude form of social protection was
made available to the needy and the unfortunate under the joint family and
caste system. Though the joint family system suffered from deficiencies and
shortcomings, its members received some crude form of protection from the
evil effects of various contingencies. Unemployment or any other economic
hardships, old age and other contingencies were not suffered by individual
members in isolation. In these circumstances, the joint family discharged the
responsibilities of the social security agency. Similarly, members of a
particular caste were offered safeguards and benefits, such as medical aid to
the invalid, financial help to widows and orphans and educational assistance
in the form of scholarships and to needy students.

There was, of course, no definite principle or system of law governing these

collections and distributions. In this manner, the joint family and case system
provided social security in the past. Both these system lost their strong hold
on society following the development of liberalism and individualism which
were fostered by western influence in India. Urbanization and
industrialization made their own contribution to the disintegration of these
systems. The growth of the concept of the secular state in India has further
eroded the continuance of the caste system.

The social security system in India has evolved in obedience to the impact of
Western influence and of the modern urban industrial system. Though the
non-industrial classes also are in urgent need of social security, their needs
have been more acutely felt after the advent of industrialization in the 19th
century. Social reformers, labor welfare organizations and many progressive
employers persuaded the government to undertake social security measures
as a protection for the workers at least against a few contingencies. “Social
security is a major aspect of public policy today and the extent of its
prevalence is a measure of the progress made by a country towards the idea
of a welfare state”.

Article 43 of the Indian Constitution speaks of state's responsibility to

provide social security to the citizens of this country.

The social security strategies in India include the following:

· Social insurance with the participation of the beneficiary pooling risks and
resources.
· Social assistance financed from general revenues and granting benefits on
the basis of means test.
· Employers liability schemes where there is an identifiable employer and
within the economic capacity of the employer.
· National Provident Funds.
· Universal schemes for social security.

The following few legislative measures have been adopted by the

Government of India to promote social security schemes for industrial
workers.

Workmen’s Compensation Act, 1923: The Workmen’s Compensation Act

was passed in March 1923, and was put into effect on 1st July 1924. This
Act followed the British model, but was adapted to suit Indian conditions.
Was-time injuries were also covered by the Act. The 1962 Amendment
raised the wage limit covered under the Act to Rs.500 per month. It also
amended the clauses bearing on industrial diseases, and revised the rates of
compensation. With effect from 1st October 1975, the wage limit coverage
under this Act has been raised from Rs.500 to Rs.1000 per month.

Employees’ State Insurance Act, 1948:

The dependents of workers who died as a result of any employment injury
were paid compensation in the form of a pension.

The ESI Scheme offer both direct and indirect medical care. The direct
method is called the “Service System” by which the ESI Corporation
provides medical care, either through its own Employees’ State Insurance
Hospital or through reservation of beds in State Government hospitals. The
indirect method is known as the “Panel System”, under which medical care
is provided through private doctors selected by the State Government with
the approval of the ESI Corporation.

The benefits provided by the Act are:

· Sickness Benefits;
· Maternity Benefits;
· Disablement Benefit;
· Dependents’ Benefit;
· Funeral Benefit; and
· Medical Benefit.

All workers, earning less than Rs.3000 per month and employed in power-
run factories employing 20 or more persons are covered by this scheme.
However, it does not cover workers employed by seasonal factories. An
insured person under ESI Scheme is not eligible for similar benefits under
the Workmen’s Compensation Act and State Acts relating to maternity
benefits.

INTERNATIONAL LABOUR ORGANIZATION AND SOCIAL

SECURITY

The International Labor Organization was founded in 1919 for the primary
purpose of promoting social justice and improving the living and working
conditions of workers thought out the world. It made a beginning in this field
by emphasizing the importance of comprehensive social security measures in
the Preamble to its Constitution, in which it promised “protection of the
worker against sickness, disease and injury arising out of his employment,
the protection of children, young persons and women, provision for old age
and injury”

In order to implement these measures, the ILO took certain steps:

· It formulated international standards by way of recommendations regarding
the definition of social security.
· It collected and spread the information about social security schemes in
various countries.
· It’s provided technical assistance and guidance so that social security
schemes might be properly formulated by means of co-operation with other
social organizations.

For this purpose, an International Social Security Association was

established in 1927.

The 1952 ILO Convention on Social Security (Minimum Standard) divided

social security into nine components
· Medical Care: This should cover pregnancy, confinement and its
consequences and any disease which may lead to a morbid condition. The
need for pre-natal and post-natal care, in addition to hospitalization was
emphasized.

Sickness Benefit: This should cover incapacity to work following morbid

condition resulting in a loss of earnings. This calls for periodical payments
based on the convention specification.

Unemployment Benefit: This should cover the loss of earning during a

worker’s unemployment period when he is capable and available for work,
but remains unemployed because of lack of suitable employment.

Old age Benefit: This benefit provides for the payment – the quantum
depending upon an individual’s working capacity during the period before
retirement.

Employment Injury Benefit : This should cover the following

contingencies resulting from accident or disease during employment

(a) Morbid condition;

(b) Inability of work following a morbid condition, leading to suspension of
earnings;
(c) Total or partial loss of earning capacity which may become permanent;
and
(d) Death of the breadwinner in the family, as a result of which the family is
deprived of financial support.

Family Benefit: This should cover responsibility for the maintenance of

children during the entire period of a contingency.

Maternity Benefit: This benefit should cover pregnancy, confinement and

their consequences resulting in the suspension of earnings. Provision should
be for medical care, including pre-natal confinement, post-natal care and
hospitalization if necessary.

Invalidism Benefit: This benefit, in the form of periodical payments should

cover the needs of workers who suffer from any disability arising out of
sickness or accident and who ware unable to engage in any gainful activity.

Survivors’ Benefit: This should cover periodical payments to a family

following the death of its breadwinner and should continue during the entire
period of contingency.

The ILO has suggested various methods of organizing, establishing and

financing various social security schemes. For the benefit of the less
developed countries, it has fixed the level of benefits fairly low, so that the
schemes may be practicable.

Hence we see that social security is an indispensable factor for any labor
scenario.
The purpose of any social security measure is to give individuals and
families the confidence that their level of living and quality of life will not
erode by social or economic eventuality. A worker works not only for the
economic motivation but also for the sense of belongingness and security
within his workplace. Hence it is the duty of the employer to ensure as best
as he can that his workers have this psychological satisfaction that their as
well as their families lives are socially secure and cared for. Indian
legislations have gone a long way in strengthening this cause and because of
this and many other factors, today in the world of labour and employment,
the employee and employers’ interest is at par with each other and the
principal focus is on the combined interest and satisfaction of both. If these
conditions are fulfilled with a joint effort and contribution from both the
employer and the employee then the workplace to a great extent will become
a home of sorts.