1. Social Security Schemes in India
Presenter: Dr. Mrigesh
Facilitator: Dr. Nidhi
Moderator: Dr. Jyoti Khandekar
2. Plan of presentation
• Definition
• Approach to social security
• Social Insurance scheme in India
• Social Assistance scheme in India
• References
3. Definition:
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 substantial
stoppage of earnings resulting from:
• sickness
• maternity
• injury
• unemployment
• old age and
• death
International Labour Organization (I.L.O) 1984
4. Approach to social security
Social assistance
• Benefit as of right to
person in amount
sufficient to meet the
minimum standard of
living.
• From general revenue
of the state.
• Non-contributory
benefits provided.
• Vulnerable groups:
Children, mother, aged
people, disabled etc.
Social insurance
• Benefits as of right to
the person to be paid to
the beneficiaries in case
of any contingencies.
• Contribution from the
beneficiaries, with
subsidies from the
employer and the state.
• For well organized
legally regulated,
financially stable
community.
5. Social Insurance schemes in India
• Employee’s State Insurance (ESI) Act 1948
• Employee’s Provident Fund (EPF) Act 1952
• Central Government Health Scheme (CGHS)
1954
• Workmen’s Compensation Act 1923
• Ex-servicemen Contributory Health Scheme
(ECHS) , 2003
6. Social Insurance schemes in India contd…
• Pradhan Mantri Jan Dhan Yojana, 2014
• Atal Pension Yojana (APY), 2015
• Pradhan Mantri Suraksha Bima Yojana
(PMSBY), 2015
• Pradhan Mantri Jivan Jyoti Bima Yojana
(PMJJBY), 2015
• Krishi Shramik Samajik Suraksha Yojana
• Rajiv Gandhi Shilpi Swasthya Bima Yojana.
7. Employee’s State Insurance, 1948
• Applies to non-seasonal power using factories
employing >= 10 persons and non power using
factories and certain establishment employing
>=20 persons.
• Beneficiaries: Employees drawing wages upto
Rs 20,000 /month (w.e.f. 01/01/2017). Rs 25,000
/month for permanently disabled employees.
• Contribution: Employee @ 1.75% of their wages,
employer @ 4.75% of their wages.
• State contribution : 1/8th of the expenses on
medical care.
9. Employee’s State Insurance, 1948 contd…
• Medical benefit: “Full medical care” to the
insured person free of cost in case of sickness,
employment injury, and maternity.
• Sickness benefit: For maximum 91 days @ 70%
of the monthly wage.
Extended sickness benefit @ 80% of the
wages for 2 years in case employee fall In the
list of 34 chronic diseases provided he/she has
been on a continuous 2 year employment.
10. Employee’s State Insurance, 1948 contd…
Enhanced sickness benefit: 14 days for
tubectomy and 7 days for vasectomy @ full
wages.
• Maternity benefit: Confinement 12 weeks (16
weeks on medical advice), miscarriage 6 weeks,
sickness arising out of confinement 30 days @
full wages
11. Employee’s State Insurance, 1948 contd…
• Disablement benefit: For temporary disablement
90% of the wages as long as the disability last.
For permanent disablement upto 90% of the wages in
the form of monthly payment as decided by the
medical board.
• Funeral expenses: Upto Rs 10,000 (01/01/2011) on
death of insured person.
• Dependant benefit: @ 90% of the wages to be
shared by dependents (son and daughter up to age 18
yrs) in fixed ratio.
• Rehabilitation benefit: On payment of Rs 10/month
insured person and his family member continue to get
medical care after permanent disablement or
retirement.
12. Employee’s State Insurance, 1948 contd…
Rajiv Gandhi Shramik Kalyan Yojana
• Launched on 1st April, 2005.
• Unemployment allowances for those who are
involuntarily unemployed due to closure of the
factory/ establishment.
• Criteria: Those who have contributed in the
scheme for at least 2 years (wef 06/09/2016).
• Benefit: a)Allowance for 24 months @ 50% of
the wages for 0-12 months, and @ 25% of the
wages from 13-24th month (wef 06/09/2016).
b) Also eligible for medical care during
that period.
13. Employee’s provident Fund (EPF) Act 1952
• Covers company over 20 workers.
• Meant for the security of the worker after the
retirement.
• Employer’s contribution: 10% of (basic wages+
DA+ retaining allowances if any )
• Employee’s contribution: Equal to contribution by
the employer. (Chapter V section-29).
• It permits withdrawal for the purpose of life
insurance policies (section 67), house
building(68-BC), medical treatment(68-J),
marriage and higher education(68-K),
etc.(Chapter VIII)
14. Employee’s provident Fund (EPF) Act 1952
contd…
• Government has taken the initiative to enroll all
employees by the employer before 31/03/2017.
• Employer has to pay Re 1/ annum as a fine for not
enrolling the employee.
15. Central Government Health Scheme (CGHS) 1954
• Beneficiaries: Government employee (working or
retired) and their families.
• Benefit: Comprehensive health care.
• Contribution: Mainly from the central
government tax revenues and some by the
employees.
• All the CGHS beneficiaries and their dependents
are being provided with photo ID plastic cards
with unique beneficiary ID no. required to be
produced at service points to avail facilities.
16. Workmen’s Compensation Act, 1923
• Renamed as Employee’s Compensation Act in
2009.
• Covers worker in factories, mines plantation,
railways.
• Provides compensation to the workmen or their
survivors in case of injuries, death and
occupational disease.
• Compensation according to the damage:
a) Death: 50% of the max. wage * age factor
(Max 10 lakh rupee)
b) Total Disablement: 60% of the max. wage*age
factor.
17. Workmen’s Compensation Act, 1923 contd….
(c) Temporary Disablement: monthly payment
@50% of the wages upto 5 years
• Maximum wage limit is changed from Rs 4,000 to
Rs 8,000.(2009 amendment)
18. Ex-servicemen Contributory Health Scheme
(ECHS) , 2003
• Exclusive for ex-army personnel.
• Launched on Apr 1st 2003.
• Contribution: Lifetime contribution ranging
from Rs 15,000 – Rs 60,000 depending upon
the grade pay.
• Benefits :
No age or medical condition bar for becoming
a member.
No monetary ceiling on treatment.
Covers all eligible dependents.
19. Pradhan Mantri Jan Dhan Yojana(PMJDY), 2014
• Account can be opened in any bank branch.
• PMJDY account can be opened with zero
balance.
• Benefits:
Interest on deposit
Accidental insurance cover of Rs 1 lakh.
Life insurance cover of Rs 30,000.
Easy transfer of money across India.
Access to pension and insurance products.
Overdraft facility upto Rs 5,000 in only one
account per household preferably lady.
20. Atal Pension Yojana (APY), 2015
• Beneficiaries : 18-40 yrs with bank account.
• Contribution: Government contributes for 5 yrs
@50% of the total contribution or Rs 1,000/
annum whichever is lower.
• Benefit: Pension of Rs 1,000 to Rs 5,000 given
after the age of 60 depending upon the age of
joining and premium paid.
21. Pradhan Mantri Suraksha Bima Yojana
(PMSBY), 2015
• Its an accident insurance scheme.
• Benefit: Accidental death and disability cover on
account of an accident, offered through public
sector general insurance companies in tie up with
the banks.
• Beneficiaries: 18-70 yrs of age with savings
account in participating bank.
• On death Rs 2 lakh
• Total and irrecoverable loss of both eyes/ loss of
use of both hands/feetloss of sight of one eye and
22. Pradhan Mantri Suraksha Bima Yojana
(PMSBY), 2015 contd..
Loss of use of hand/foot. : Rs 2 lakh
• Total and irrecoverable loss of sight of one eye
or loss of use of one hand/foot : Rs 1 lakh.
• Premium of Rs 12/annum per member,
deducted from account holder’s savings bank
account.
23. Pradhan Mantri Jivan Jyoti Bima Yojana
(PMJJBY), 2015
• Life insurance cover for death due to any
reason.
• Offered through LIC and other life insurance
companies in tie up with the banks for this
purpose.
• Beneficiaries: all savings bank account holder
18-50 years in participating banks are eligible
to join this scheme.
24. Pradhan Mantri Jivan Jyoti Bima Yojana
(PMJJBY), 2015 contd..
• Premium to be paid is Rs 330/ annum/
member.
• Benefit: Rs 2 lakh is paid on death of member
due to any reason.
25. Krishi Shramik Samajik Suraksha Yojana
• Launched on 01/07/2001.
• Started in 50 blocks in as many districts to cover
20,000 landless agricultural labourers.
• 150 crore rupee for the scheme was made
available from LIC funds.
• 30 crore agricultural worker will be covered
under the scheme. In later stages.
• Eligibility criteria: 18-50yrs agricultural worker.
• Benefit: In case of death, partial or permanent
disability before 60 yrs, the subscriber or his
nominee would receive payment ranging
Rs 20,000-50,000.
26. Krishi Shramik Samajik Suraksha Yojana
contd..
• On surviving upto 60yrs the survivor will
receive a monthly payment of Rs100-1900 and
in case of death the family will receive
between Rs 13,000 to Rs 2.5 lakh depending
on the age of entry.
27. Rajiv Gandhi Shilpi Swasthya Bima Yojana
(RGSSBY) 2007
• Objective:To enable the artisans to access best
health care in the country.
• Eligibility: Non-BPL artisans along with his 3
family member in the age group of 0 days- 80 yrs
(from 2009).
• Funding patterns: Contribution by
GOI: Rs 697 or Rs 797/ annum
Arisans: Rs 200 or Rs 100/ annum(for north east,
SC/ST, or BPL families).
28. Rajiv Gandhi Shilpi Swasthya Bima Yojana
(RGSSBY) 2007 contd…
• Benefits: For a period of 3 yrs,
Personal accidents, death or total and
irrecoverable loss of any limb: sum assured is Rs
1 lakh
Mediclaim annual limit: Rs 15,000/ family.
OPD: Rs 7,500
Limit per illness: Rs 7,500.
• Health card is issued for talking service from
empaneled hospital or any institution not enlited.
29. Social security for those living outside India
Mahatma Gandhi Pravasi Suraksha yojana
• Launched on 01/05/2012
• Objective: All Indian overseas worker between
18-50 years of age having electronic clearing
required (ECR) passport who voluntarily:
Wish to save for their return and resettlement.
Save for their old age pension.
Obtain free of cost life insurance cover against
death or disability.
30. Mahatma Gandhi Pravasi Suraksha yojana
contd..
• Contribution:
1. Rs 1,000-12,000/annum towards National
Pension Scheme. (Rs 1,000 contribution by
GOI, extra Rs 1,000 contribution if the worker
is female)
2. Rs 4,000/annum towards return and
resettlement (Rs 900 by GOI)
3. Rs 100/annum contribution by GOI towards
life insurance cover
31. Mahatma Gandhi Pravasi Suraksha yojana
contd..
• Life insurance cover is provided under
Janashree Bima yojana (JBY) of LIC of India
• Benefit under JBY :
Rs 30,000 to be paid to nominee in case of
natural death.
Rs 75,000 for in case of accidental death or
permanent disability.
Rs 37,500 for partial disability.
32. Social Assistance scheme in India
• National Social Assistance Program.
• Maternity Benefit Act 1961
• Payment of Gratuity Act 1972
• Krishi Shramik Samajik Suraksha Yojana
• Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA), 2005
• Aam Aadmi Bima Yojana, 2007
• Rashtriya Swasthya Bima Yojana, 2007
34. National Social Assistance Program (NSAP)
• Launched on 15/08/1995.
• It’s a step towards fulfillment of the directive
principle in Article 41 of the constitution.
• There are a total of 3,21,63,927 beneficiaries till
21/02/2017.
• Schemes under NSAP are:
a)Indira Gandhi National Old Age Pension
(IGNOAP) Scheme.
b) Indira Gandhi National Widow Pension
(IGNWP) Scheme.
c) Indira Gandhi National Disability Pension
(IGNDP) Scheme.
d) Annapurna Scheme.
35. Indira Gandhi National Old Age Pension
(IGNOAP) Scheme.
• Eligibility criteria: Person must me >= 60 years of
age and belong to a BPL family. BPL widows and
BPL person with severe disability in the age group
of 60-79 years are excluded.
• Pension: Rs 200/month and Rs 500/month for
people aged 80 years or more.
• Delhi government has made a hike of Rs.
1000/month in old age pension (announced on
06/01/2017). So, a pension of Rs 2000(1800+200)/
month will be given, 2500(2000+500) to people
over80 years of age.
36. Indira Gandhi National Widow Pension
(IGNWP) Scheme
• Eligibility criteria: BPL widow 40-79 yrs of age.
• Pension: Rs 300/month
• Delhi government has made a hike of Rs.
1000/month in widow pension (announced on
06/01/2017). So, a pension of Rs 2500
(2200+300)/ month will be given.
37. Indira Gandhi National Disability Pension
(IGNDP) Scheme
• Eligibility criteria: Disabled aged 18-79 yrs
belonging to BPL family.
• Pension: Rs 300/month.
• Delhi government has made a hike of Rs.
1000/month in pension for disabled
(announced on 06/01/2017). So, a pension of
Rs 2500 (2200+300)/ month will be given.
38. Annapurna Scheme
• Eligibility criteria: 65 years and old people
belonging to BPL family and should not be
getting old age pension.
• Benefit: 10 kg of food grain through F&S
department.
• 100% central assistance.
39. Maternity Benefit Act 1961
• Provides payment of full wages for 26 weeks in
case of confinement up till the 2nd child (2016
amendment)
• 12 weeks of full wages is provided in case of
commissioning, adopting mother and mother having
more than two children (2016 amendment)
• Provision of creche if there are 50 or more
employees. (2016 amendment)
• Medical bonus of Rs 1,000 to be provided by the
employer if no pre natal confinement or post natal
care is provided by the employer. (2007
amendment)
40. Maternity Benefit Act 1961 contd..
• In case of MTP or abortion leave with full
wages are provided for a period of 6 weeks on
production of a proof.
• For tubectomy: leave with full wages for 2
weeks.
• In case of any disease or complication arising
out of pregnancy, 30 days leave with full wages
is provided on submitting valid documents.
41. Payment of Gratuity Act 1972
• Gratuity is the lump sum amount paid by the
employer on retirement or resignation from the
organization. An employee doesn’t contribute
towards it.
• Applicable to various establishment employing
over 10 workers.
• Eligibility criteria: Minimum 5 years of
continuous service.
• Gratuity calculation:
[(Basic pay+DA)*15days*No. of years of service]
26
42. Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA), 2005
• Guarantees right to work.
• Benefit: Livelihood security in rural areas by
providing 100 days of wage employment in a
financial year to every household whose adult
members volunteer to do unskilled manual work.
• Implemented by the gram panchayat.
43. Aam Aadmi Bima Yojana, 2007
• Provides death and disability cover to rural and
landless households between 18-59 yrs.
• Head of the family or earning member of the
family will be insured.
• Benefits:
Insurance cover of Rs 30,000in case of natural
death.
Rs 75,000 in case of accidental death or
permanent disability.
Rs 37,500 in case of partial permanent disability.
Scholarship upto 2 children studying in 9th -12th
standard @ Rs300/quarter/ child.
44. Rashtriya Swasthya Bima Yojana(RSBY), 2007
• Benefits: For BPL families smart card based
cashless health insurance cover of Rs 30,000
/family/year.
• Coverage for all pre existing diseases.
• Coverage for hospital expenses including
maternity benefit.
• Payment of transportation cost @ Rs 100/visit.
• Contribution: Central:State =75:25 of the
premium.
45. Rashtriya Swasthya Bima Yojana, 2007
contd…
• Extension: RSBY extended to cover building
and other construction worker, street vendors,
bidi workers, domestic workers and MNREGA
beneficiaries who worked more than 15 days
during the preceding financial year.
46. References
• Park K. Park’s textbook of preventive and social
medicine. 23rd ed. Jabalpur: M/s Banarsidas Bhanot;
2015.
• Sunder L, Adarsh, Pankaj. Textbook of community
medicine preventive and social medicine. 4th ed. New
Delhi: CBS Publishers &Distributors Pvt Ltd;2014.
• Rashtriya Swasthya Bima Yojana [internet]. 2007
[updated Apr 2015; cited Feb 25, 2017]. Available from:
http://www.rsby.gov.in/about_rsby.aspx .
• Welfare of Labourers [internet]. 2008 [updated 2016;
cited Feb 25, 2017]. Avalable from:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=147631 .
47. • Rajiv Gandhi Shilpi Swasthya Bima Yojana [internet]. 2007
[updated May 2011; cited Feb 25 2017]. Available from
http://www.ilo.org/dyn/travail/docs/685/Handicrafts%20Artisa
ns%20Comrehensive%20Welfare%20Scheme%20-
%20Rajiv%20Gandhi%20Shilpi%20Swasthya%20Bima%20Y
ojana.pdf
• Mahatma Gandhi Pravasi Suraksha Yojana [internet]. May
2012 []
• Facts on social security, ILO[internet]. 2001[cited on Feb 25,
2017]. Available from http://www.google
.co.in/url?sa=t&source=we&rct=j&url=http://www.ilo.org/wc
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• The Employee’s Provident Fund Scheme [internet] 1952
[updated Jan 2017; cited Feb 20, 2017]. Available from
http://epfindia.gov.in/site_docs/PDFs/Downloads_PDF.pdf
48. • The Employee’s Deposit Linked Scheme [internet]. 1976
[cited 25 Feb 2017]. Available from
http://epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/
EDLI_1976.pdf
• The workmen’s Compensation Act [internet]. 1923 [cited
25 Feb 2017]. Available from
http://www.labour.nic.in/sites/dafault/files/Theworkmen’s
Act1923(1).pdf
• ESIC [internet]. 1948 [cited 3 march 2017]. Available
from http://www.esichospitals.gov.in/
• The Maternity Benefit Act [internet]. 1961 [cited 08th
March 2017] amended 2017. Available from
http://www.prsindia.org/uploads/media/1182409028/1182
409028_THE_MATERNITY_BENEFIT__AMENDMEN
T__BILL__2007.pdf
• Central Government Health Scheme [internet]. 1954
Amended 2017 [cited 4 March 2017]. Available from
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id=268&lid=184
