NTA UGC NET/JRF 2021

Industrial Relations and Labour welfare/HRM

CODE 55
Paper 2

Presented by
Lakshmi Kushwaha
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Topics Covered
1. Definition
2. ILO and Social Security
3. ILO Conventions on Social Security
4. Constitutional Framework
5. History of Social security In India
6. Types of Social Security
7. Features of Social Security
What is social Security ?
1. Every person is faced with social problems and risks at some time in his life span due to risks
associated with sickness, accident, unemployment, disability, maternity and old age.
2. The Social Security Policies are intended to mitigate or provide cover the costs for these
problems and risks faced by persons exposed to these situations.
3. Any of the measures established by legislation to maintain individual or family income or
to provide income when some or all sources of income are disrupted or terminated or
when exceptionally heavy expenditures have to be incurred (e.g., in bringing up children
or paying for health care)
4. Social security may provide cash benefits to persons faced with sickness and disability,
unemployment, crop failure, loss of the marital partner, maternity, responsibility for the
care of young children, or retirement from work
5. Social security benefits may be provided in cash or kind for medical need, rehabilitation,
domestic help during illness at home, legal aid, or funeral expenses
6. It acts as a facilitator – it helps people to plan their own future through insurance and
assistance.
 Definition of Social Security
ILO
• 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.

The ILO and Social Security

• Social security was established as a basic human right in the ILO’s Declaration of
Philadelphia (1944) and its Income Security Recommendation, 1944 (No. 67).
• This right is upheld in the Universal Declaration of Human Rights, 1948, and the
International Covenant on Economic, Social and Cultural Rights, 1966
The ILO - Social Security Conventions
1. The Social Security (Minimum Standards) Convention, 1952 (No. 102)
2. The Equality of Treatment (Social Security) Convention, 1962 (No. 118)
3. The Employment Injury Benefits Convention, 1964 (Schedule I amended in 1980) (No.121)
4. Invalidity, Old-Age and Survivors’ Benefits Convention, 1967 (No. 128)
5. The Medical Care and Sickness Benefits Convention, 1969 (No.130)
6. The Maintenance of Social Security Rights Convention, 1982 (No. 157)
7. The Employment Promotion and Protection against Unemployment Convention, 1988
(No.168)
8. The Job Creation in Small and MediumSized Enterprises Recommendation, 1998 (No. 189)
9. Maternity Protection Convention (Revised) 2000 (No. 183)
RIGHT TO SOCIAL SECURITY: THE
CONSTITUTIONAL FRAMEWORK
1. The preamble expresses the essential features of political and economic
philosophy underlying the provisions of the Constitution. It declares that
India would be a sovereign, socialist, secular democratic republic and to
secure to all its people justice, liberty, equality and fraternity
2. It assures a democratic way of life and embraces the ideal of establishing
social, political and economic justice in the country.
3. Naturally, the dignity of individual occupied a central place of honour in its
scheme.
4. Though the individual rights are protected through Fundamental Rights
under Part III, the claims of social good and egalitarianism are enshrined in
Part IV.
Fundamental Rights
• Fundamental Rights was also included in the Constitution
which guaranteed Right to Equality (Article 14) and Right
against Exploitation (Article 23 and 24).
• Right to life (Article 21) includes all the rights that are
essential to main human life in a civilized society, such as
food, clothes, house, medicine and education.
• The Right to work means the citizens right on his society to
have work according to his ability and skill with suitable
minimum wages that enable him to maintain his life in a
civilized society.
Part IV Directive Principles of State Policy
• Article 38 is a mandate to the state to secure a social order for the
promotion of welfare of the people.

• Article 38 (1) directs the State to promote the welfare of the people by
securing and protecting as efficiently as it may a social order in which
justice as “social, economic and political shall inform all institutions of
national life. This is a re-affirmation of the preambular objective of
securing socio-economic and political justice.
• Article 39 provides for equal rights to adequate means of livelihood to all
citizens and distribution of wealth and material resources to sub serve
common good and prevention of concentration of wealth and means of
production etc.,
Part IV Directive Principles of State Policy
• Article 41
• Right to work, to education and to public assistance in certain cases
• State shall, within the limits of its economic capacity and development, make
effective provision for securing the right to work, to education and to public
assistance in cases of unemployment, old age, sickness and disablement, and in
other cases of undeserved want.
• Article 42
• Provision for just and humane conditions of work and maternity relief
• State shall make provision for securing just and humane conditions of work and for
maternity relief
• Article 43 deals with living wage for workers and
Article 43-A intend to secure workers participation in management of industries.
Concurrent List
• Social Security and labour welfare falls under Concurrent list, it means both union
and state Government can make laws regarding these topics.

• (List III in the Seventh Schedule of the Constitution of India)

• Item No. 23
• Social Security and insurance,
• employment and unemployment.
• Item No. 24
• Welfare of Labour including conditions of work,
• provident funds,
• employers’ liability,
• workmen’s compensation,
• invalidity and old age pension and maternity benefits.
 SOCIAL SECURITY IN INDIA
1. India has always had a Joint Family system that took care of the social security needs of all the
members provided it had access/ownership of material assets like land and gold.
2. However with increasing migration, urbanization and demographic changes there has been a
decrease in large family units.
3. This is where the formal system of social security gains importance.
4. In the Indian context, social security is a comprehensive approach designed to protect deprivation
i.e., to protect the individual from any uncertainties in income.
5. The workforce in India is increasing though the workforce in organized sector is not increasing
proportionately.
6. The principal social security laws enacted in India are: (1)The Employees State Insurance Act, 1948
,(2)The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, (3)The Workmen’s
Compensation Act, 1923, (4)The Maternity Benefit Act, 1961 and (5)The Payment of Gratuity Act,
1972.
History of Social Security in India
The Employees State Insurance Act, 1948
• The question of introducing a Health Insurance Scheme in India has been initiated in 1929
by the Royal Commission of Labour.
• But it was materialized in the year 1944 after submission of Professor Adarkar’s Report
• This was the first social security legislation adopted by the country after independence.
• The E.S.I. Act, 1948 presently applies to the factories using power in the manufacturing
process and employing 10 or persons and non power using factories, shops, hotels, and
restaurants, cinema, pre-view theatres, road motor transport undertakings and news
paper establishments employing 20 or more
• The employees of factories and establishments drawing wages up to Rs. 7,500/- per
month. The medical care services under ESI Scheme are provided by respective state
governments.
 Social Security System In India
1. The making of climate for industrial security in India started from the 10 Session of the
International Labour Conference held in 1927 in which two Conventions and
Recommendations were adopted for social security in the country.
2. India, as a ‘Welfare State’, is expected to take care of the citizens from the ‘cradle to the
grave’
3. India lays down that the State shall, within the limits of its resources and development, make
effective provisions for securing public assistance in event of unemployment, old age,
sickness, and disablement
4. It was the Government of Uttar Pradesh who introduced old-age assistance scheme for the
first time in 1957.
Past Studies/Commissions on Social Security
 Royal Commission on Labour 1931
 National Commission on Labour 1969
 National Commission on self employed women and women in unorganised sector
1989
 National Commission on Rural Labour 1991
 Second National Commission on Labour 2002
 National Commission for Enterprises in Unorganised Sector 2008
 Social Protection for a Changing India – WB 2011
 Social Protection Floor for India - ILO 2013
 Social Security Reform in India – Draft framework – ILO 2016
Recommendations of National Commission on Labour: NCL
2002
Integration of Fragmented Schemes

• Integrated Comprehensive (set of) Scheme for Social Security through single legislation.
• One contribution system – to be paid to a single fund.
• Integrate Employer’s Liability Scheme (such as M.B., Gratuity, E.C.) with the Fund Based
Scheme.
• Integration of Social Security Schemes of various Ministries and State Governments with
the Comprehensive Scheme
• Integrate various Provident Funds run by governments
• Various welfare funds to be integrated with the comprehensive scheme
• Four tier structure of schemes: Social Assistance for BPL- Compulsory Subsidized
scheme for APL earning below ceiling- Compulsory contributory scheme for Others-
Voluntary Schemes
• Social Assistance to be Right Based and to be implemented in a Phased manner.
Recommendations of National Commission on Labour: NCL
2002
Universalisation of Social Security
• Expand coverage to reach Universalisation of the Scheme
• Remove thresholds and wage ceilings
• Make it applicable to all employments
• Unorganised worker to be part of the integrated Scheme
• Create decentralised structures to administer the universalised schemes
• Establish a Central Social Security Board for managing the comprehensive scheme.
• Establish State Social Security Board for delivery/ implementation of the Scheme in the field.
• Municipal bodies / Panchayats to be integrated into the registration,
identification and service delivery system.
• In every locality, a single unified social security office to deal with claims of every kind, and provide
services.
• Comprehensive registration system of workersfor identification of beneficiaries of the Social
Assistance Schemes
• Health set-up available in state government to be integrated with the State Boards’ Health set-up
Recommendations of National Commission on Labour: NCL
2002
Need of overall Regulation

• Social Security being a multidisciplinary and concurrent matter, there should be a

National Policy, and a National plan to coordinate and monitor the various social security
systems – to make them conform to the overall National objective / Social Security Policy.
• Need for a strong (regulating) agency at Central level for-
• Horizontal coordination (amongst ministries)
• Vertical coordination (Centre – State – local bodies)
• Overall Social Security Planning
• Monitoring and Review of Overall Social Security systems
• Constitution of High powered National Social Security Authority(NSSA)
• NSSA – under PM
 Types of Social Security

Social
Security

Retirement Disability Supplemental

Survivors
Benefits Benefits Benefits
 Types of Social Security Benefits
Retirement Benefits Disability Benefits Survivors Benefits Supplemental Benefits

• Such benefits are • Disability benefits • Survivors benefits can • helps people who are
available for retired or support people who help bridge financial gaps unable to earn sufficient
who have worked at cannot work because of for survivors of workers wages on their own.
least 10 years disabilities. and retirees • Unemployment, family
• benefit amount will vary • The amount of work you • Eligible recipients
based on your pre- need depends on your typically include help for
retirement salary as well age, and your monthly widows and widowers,
as the age at which you benefit amount depends divorced spouses and
begin collecting benefits. on your pre-disability children
• your spouse or divorced salary • There also is a “death
spouse may be eligible • Medical care benefit” for survivors
for Social Security
retirement benefits even
if he or she has not paid
into the program.
 Types of Social Security
Social Assistance Social Insurance
• Social assistance refers to the • Social insurance refers to a scheme of
assistance rendered by the maintaining fund from the
Government to the needy persons contributions made by the employees
without asking them to make and employer, with or without a
contributions to be entitled to get such subsidy from the Government
assistance. • a device to provide benefits as of right
• social assistance are provided without for persons of small earnings; in
any contribution from workers and amounts which combine the
employers. contributive efforts of the insured with
• Workmen’s compensation, maternity subsidies from the employer and the
benefits, old age pensions, etc. Government
• provident fund and group insurance.
Features of Social Security
 Most essential features of Social Security are –
(a) Mandatory / Non Optional
(b) government provided and
(c) provisions of entitlements and enforcements.
 Configured through Law
 Can be Taxpayer funded or Contribution funded or Employer funded (or combination of
these)
 Aimed at providing means to the member, a means to handle risks and eventualities
 Procedural guarantees for complaints and appeals

 Components are as per ILO Reference : Social Security (Minimum Standards) Convention
(no. 102)
Current Social Security Schemes in
India
Topics Covered
1. Difference between Organized and Unorganised Sector
2. Schemes for Unorganized Sector
Organised Sector
1. The sector, which is registered with the government is called an organised sector. In this
sector, people get assured work, and the employment terms are fixed and regular.
2. A number of acts apply to the enterprises, schools and hospitals covered under the
organised sector.
3. Entry into the organised sector is very difficult as proper registration of the entity is required.
4. The sector is regulated and taxed by the government.
5. There are some benefits provided to the employees working under organised sector like they
get the advantage of job security, add on benefits are provided like various allowances and
perquisites.
6. They get a fixed monthly payment, working hours and hike on salary at regular intervals.
Unorganised Sector
1. The sector which is not registered with the government and whose terms of employment are
not fixed and regular is considered as unorganised sector.
2. In this sector, no government rules and regulations are followed. Entry to such sector is quite
easy as it does not require any affiliation or registration.
3. The government does not regulate the unorganised sector, and hence taxes are not levied.
4. This sector includes those small size enterprises, workshops where there are low skill and
unproductive employment.
5. The working hours of workers are not fixed. Moreover, sometimes they have to work on
Sundays and holidays.
6. They get daily wages for their work, which is comparatively less than the pay prescribed by
the government.
 BASIS FOR COMPARISON ORGANISED SECTOR UNORGANISED SECTOR
Meaning The sector in which the employment The sector that comprises of small scale
terms are fixed and employees have emterprises or units and are not
assured work is Organised sector. registered with the government.
Governed by Various acts like Factories Act, Bonus Act, Not governed by any act.
PF Act, Minimum Wages Act etc.

Government rules Strictly followed Not followed

Remuneration Regular monthly salary. Daily wages
Job security Yes No
Working hours Fixed Not fixed
Overtime Workers are paid remuneration for No provision for overtime.
overtime.
Salary of workers As prescribed by the government. Less than the salary prescribed by the
government.
Contribution to Provident fund by the Yes No
employer
Increment in salary Once in a while Rarely
Benefits and perquisites Employees get add-on benefits like Not provided.
medical facilities, pension, leave travel
compensation, etc.
Social security schemes for unorganised
sector
In order to provide social security benefits to the workers in the unorganised sector, the
Government has enacted the Unorganised Workers Social Security Act, 2008. Some of the
welfare schemes for unorganised workers stipulated under this act are:

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.
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.

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.
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
Aam Admi Bima Yojana
• aunched 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.
Rashtriya Swasthya Bima Yojana (RSBY)
• launched in 2008, aims to provide health insurance coverage to the
unrecognised 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.
Recently launched schemes
Atal Pension Yojna (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.
 Pradhan Mantri Shram Yogi Maan-dhan
(PM-SYM)
1. Government of India has introduced a pension scheme for unorganised workers
namely Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) to ensure old age
protection for Unorganised Workers.
2. The unorganised workers mostly engaged as home based workers, street vendors,
mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers,
domestic workers, washer men, rickshaw pullers, landless labourers, own account
workers, agricultural workers, construction workers, beedi workers, handloom
workers, leather workers, audio- visual workers and similar other occupations whose
monthly income is Rs 15,000/ per month or less and

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 Pradhan Mantri Shram Yogi Maan-dhan
(PM-SYM)
1. Belong to the entry age group of 18-40 years.
2. They should not be covered under New Pension Scheme (NPS),
Employees’ State Insurance Corporation (ESIC) scheme or Employees’
Provident Fund Organisation (EPFO). Further, he/she should not be an
income tax payer.
3. Contribution by the Central Government: PM-SYM is a voluntary
and contributory pension scheme on a 50:50 basis where
prescribed age-specific contribution shall be made by the
beneficiary and the matching contribution by the Central
Government

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Benefits of PM-SYM
Minimum Assured Pension Family Pension In case of Death

• Each subscriber under the • During the receipt of • If a beneficiary has given
PM-SYM, shall receive pension, if the subscriber regular contribution and
minimum assured dies, the spouse of the died due to any cause
pension of Rs 3000/- per beneficiary shall be (before age of 60 years),
month after attaining the entitled to receive 50% of his/her spouse will be
age of 60 years the pension received by entitled to join and
the beneficiary as family continue the scheme
pension. subsequently by payment
• Family pension is of regular contribution or
applicable only to spouse. exit the scheme as per
provisions of exit and
withdrawal.

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Pradhan Mantri Suraksha
Bima Yojana (PMSBY)
1. Pradhan Mantri Suraksha Bima Yojana is a government-backed accident
insurance scheme in India.
2. It was originally mentioned in the 2015 Budget speech by Finance
Minister Late Arun Jaitley in February 2015.It was formally launched by
Prime Minister Narendra Modi on 8 May in Kolkata.
3. Pradhan Mantri Suraksha Bima Yojana is available to people (Indian
Resident or NRI) between 18 and 70 years of age with bank accounts
4. The premium of Rs. 12 per annum is to be deducted from the account
holder’s bank account through ‘auto-debit’ facility in one installment.

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 Pradhan Mantri Jeevan Jyoti
Bima Yojana (PMJJBY)
1. The scheme is available to people in the age group of 18 to 50 years having a
bank/ Post office account who give their consent to join / enable auto-debit.
2. The life cover of Rs. 2 lakhs shall be for the one year period stretching from 1st
June to 31st May and will be renewable.
3. Risk coverage under this scheme is for Rs. 2 Lakh in case of death of the
insured, due to any reason.
4. The premium is Rs. 330 per annum which is to be auto-debited in one
installment f rom the subscriber’s bank account
5. The scheme is being offered by Life Insurance Corporation and all other life
insurers who are offering the product on similar terms with necessary approvals
and tie up with Banks and Post Offices for this purpose.
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 Atal Pension Yojana
1. Atal Pension Yojana (APY) is being implemented with effect from 1st June, 2015. The
Scheme aims to provide monthly pension to eligible subscribers not covered under
any organized pension scheme.
2. APY is open to all bank and post office account holders in the age group of 18 to 40
years.
3. The APY is primarily focused on all citizens in the unorganised sector, However, all
citizens of the country in the eligible category may join the scheme.
4. Minimum pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 is
guaranteed by the Government of India to the subscriber at the age of 60 years, with a
minimum monthly contribution (for those joining at age 18) of Rs. 42 or Rs. 84 or Rs.
126 or Rs. 168 and Rs. 210, respectively.

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Pradhan Mantri Vaya Vandana Yojna
1. This This scheme is aimed at benefiting persons beyond the age of 60
against a full fall in their income due to some unexpected market
Conditions
2. Under this scheme an initial lump sum payment of any amount between
Rs. 150000 to Rs. 750000 will be entitle the individual for a monthly
pension of Rs. 1000 per month to Rs.5000 per month depending on the
payment made.
3. A guaranteed return of 8% per annum will be paid to the individual on the
monthly basis.

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Pradhan Mantri Kisan Mandhan Yojana
• Honourable 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.
• This is an optional scheme.
• The government started registrations for the Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) on August 9,2019.
• The enrolment for the voluntary scheme is being done through the Common Service Centres (CSCs) located across
the country.
• No fee is charged for registration under the scheme.
• The Centre pays Rs 30 to CSC for every enrolment to ensure that the scheme witnesses maximum coverage.
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 enrol for this scheme.
• The scheme would benefit more than 3 crore small shopkeepers and traders.
• The scheme is based on self-declaration as no documents are required except Aadhaar and bank
account.
• Interested persons can enrol through CSCs across the country.
• To be eligible, the applicants should not be covered under the National Pension Scheme, Employees’
State Insurance Scheme and the Employees’ Provident Fund or be an Income Tax assessee.
• The Central Government will make matching contribution(same amount as subscriber contribution)
i.e. equal amount as subsidy into subscriber’s pension account every month.
• Five crore traders are expected to join the scheme in the next three years.
 The Unorganized Workers social Security Act,
2008
1. An Act to provide for the social security and welfare of unorganised workers and
for other matters connected therewith or incidental thereto.
2. Unorganised Workers' Social Security Act 2008 is an Act of the Parliament of
India enacted to provide for the social security and welfare of the unorganised
workers(meaning home-based workers, self-employed workers or daily-wage
workers).
3. The act provides for the constitution of National Social Security Board at the
Central level which shall recommend formulation of social security schemes viz
life and disability cover, health and maternity benefits, old age protection and any
other benefit as may be determined by the Government for unorganised workers

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 Sec 2(l) Unorganised sector
• an enterprise owned by individuals or self-employed workers and engaged in
the production or sale of goods or providing service of any kind whatsoever, and
• where the enterprise employs workers, the number of such workers is less than
10;

Sec 2(m) Unorganised worker

• means a home-based worker, self-employed worker or a wage worker in the
unorganised sector and
• includes a worker in the organised sector who is not covered by any of the Acts
mentioned in Schedule II to this Act

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 Sec 3 : Framing of Scheme
Central Government State Government

• (1) The Central Government shall • The State Government may formulate
formulate and notify, from time to and notify, from time to time, suitable
time, suitable welfare schemes for welfare schemes for unorganised
unorganised workers on matters workers, including schemes relating
relating to-- to--
(a) life and disability cover; (a) provident fund;
(b) health and maternity benefits; (b) employment injury benefit;
(c) old age protection; and (c) housing;
(d) any other benefit as may be (d) educational schemes for children;
determined by the Central (e) skill upgradation of workers;
Government. (f) funeral assistance; and
(g) old age homes.
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 Sec 5 : National Social Security Board

• The Central Government shall, constitute a National Board to be known as the National Social Security
Board

• (2) The National Board shall consist of the following members, namely:--
(a) Union Minister for Labour and Employment-Chairperson, ex officio;
(b) the Director General (Labour Welfare)-Member-Secretary, ex officio; and
(c) 34 members to be nominated by the Central Government, out of whom--
(i) 7 representing unorganised sector workers;
(ii) 7 representing employers of unorganised sector;
(iii) 7 representing eminent persons from civil society;
(iv) 2 representing members from Lok Sabha and one from Rajya Sabha;
(v) 5 representing Central Government Ministries and Departments concerned; and
(vi) 5 representing State Governments.
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 Sec 9 Workers facilitation centres
• The State Government may set up such Workers' facilitation centres as may be
considered necessary from time to time to perform the following functions,
namely:--
(a) disseminate information on available social security schemes for the
unorganised workers;
(b) facilitate the filling, processing and forwarding of application forms for
registration of unorganised workers;
(c) assist unorganised worker to obtain registration from the District
Administration;
(d) facilitate the enrollment of the registered unorganised workers in social
security schemes.

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 Eligibility for registration and social
Sec 10 security benefits.
• 1) Every unorganised worker shall be eligible for registration subject to the fulfilment of
the following conditions, namely:--
(a) he or she shall have completed 14 years of age; and
(b) a self-declaration by him or her confirming that he or she is an unorganised worker.

• (2) Every eligible unorganised worker shall make an application in the prescribed form to
the District Administration for registration.
•
(3) Every unorganised worker shall be registered and issued an identity card by the
District Administration which shall be a smart card carrying a unique identification
number and shall be portable.

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 The code on Social Security, 2019
1. The Code on Social Security, 2019 was introduced in Lok Sabha by the
Minister of State for Labour and Employment, Mr. Santosh Kumar
Gangwar, on December 11, 2019
2. It replaces nine laws related to social security, including the Employees’
Provident Fund Act, 1952, the Maternity Benefit Act, 1961, and the
Unorganised Workers’ Social Security Act, 2008.
3. The Social Security Bill has introduced several new aspects for the welfare
of those working in the unorganized as well as the organized sectors of the
Economy.

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 The code on Social Security, 2019
The Social Security Bill proposes to simplify, amalgamate, rationalize and replace the following
central labour legislations:
1. The Employees' Compensation Act, 1923;
2. The Unorganised Workers' Social Security Act, 2008.
3. The Payment of Gratuity Act, 1972;
4. The Employees' State Insurance Act, 1948;
5. The Cine Workers Welfare Fund Act, 1981;
6. The Employees' Provident Fund and Miscellaneous Provisions Act, 1952;
7. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959;
8. The Maternity Benefit Act, 1961;
9. The Building and Other Construction Workers Cess Act, 1996;

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER

Topics Covered
1. Social Security Legislation in India
 Social Security Legislation in India
The Employee Provident
The Maternity Benefit The Employee State
Funds and Miscellaneous
Act, 1961 Insurance Act, 1948
Provisions Act, 1952
• An Act to regulate the • An Act to provide for • An Act to provide for
employment of women the institution of certain benefits to
in certain provident funds pension employees in case of
establishments for fund and deposit-linked sickness, maternity and
certain periods before insurance fund for employment injury and
and after child-birth and employees in factories to make provision for
to provide for maternity and other certain other matters in
benefit and certain establishments. relation thereto.
other benefits.

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER

 Social Security Legislation in India
The Employee The Payment of Gratuity The Unorganised Workers
Compensation Act, 1923 Act, 1972 Social Security Act, 2008
• An Act to provide for the • An Act to provide for a • An Act to provide for the
payment by certain scheme for the payment social security and
classes of employers to of gratuity to employees welfare of unorganised
their workmen of engaged in factories, workers and for other
compensation for injury mines, oilfields, matters connected
by accident. plantations, ports, railway therewith or incidental
companies, shops or thereto.
other establishments and
for matters connected
therewith or incidental
thereto.

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER

 The Maternity Benefit Act, 1961
An Act to regulate the employment of women in certain establishments for certain periods
before and after child-birth and to provide for maternity benefit and certain other benefits.
This Act may be called the Maternity Benefit Act, 1961.
It extends to the whole of India
3) It shall come into force on such date as may be notified in this behalf in the Official Gazette,—
(a) in relation to mines and to any other establishment wherein persons are employed for the
exhibition of equestrian, acrobatic and other performances, by the Central Government; and
(b) in relation to other establishments in a State, by the State Government.
 Sec 2: Applicability
1. To every establishment being a factory, mine or plantation including any such establishment
belonging to Government and to every establishment wherein persons are employed for the
exhibition of equestrian, acrobatic and other performances;
2. To every shop or establishment in which 10 or more persons are employed, or were
employed, on any day of the preceding twelve months
3. The State Government may, with the approval of the Central Government, after giving not
less than 2 months’ by notification in the Official Gazette, declare that all or any of the
provisions of this Act shall apply also to any other establishment or class of establishments,
industrial, commercial, agricultural
4. Shall not apply to any factory or other establishment to which the provisions of the
Employees’ State Insurance Act, 1948
 Definitions
Sec 3(a)
Appropriate Govt

Central Govt.
establishment being a mine, or an
establishment wherein persons are State Govt
employed for the exhibition of any other establishment
equestrian, acrobatic and other
performances
 Sec 3(d) : Employer

Employer

Establishment under control of

Govt. Other cases
Local Authority
Head of Dept. or who control Person having ultimate control
CEO or person appointed for
and supervise the employee , managing agent, manager
control and supervision
director, Manager
 Sec 3(e) Establishment
• (i) a factory;
(ii) a mine;
(iii) a plantation;
(iv) an establishment wherein persons are employed for the exhibition of equestrian, acrobatic and other performances;
• (iva) a shop or establishment; or

Sec 3(h) Maternity Benefit

• the payment referred to in sub-section (1) of section 5

Sec 3(ha) Medical termination of pregnancy

• the termination of pregnancy permissible under the provisions of Medical Termination of Pregnancy Act, 1971

Sec 3(j) Miscarriage

• means expulsion of the contents of a pregnant uterus at any period prior to or during the twenty-sixth week of
pregnancy
• does not include any miscarriage, the causing of which is punishable under the Indian Penal Code
 Sec 3(n): Wages
Includes Does Not Include

• all remuneration paid or payable in cash to a • (i) any bonus other than incentive bonus;
woman, if the terms of the contract of • (ii) over-time earnings and any deduction or
employment, express or implied, were fulfilled payment made on account of fines;
• such cash allowances (including dearness • (iii) any contribution paid or payable by the
allowance and house rent allowance) as a employer to any pension fund or provident
woman is for the time being entitled fund or for the benefit of the woman under
• Incentive Bonus any law for the time being in force; and
• the money value of the concessional supply of • (iv) any gratuity payable on the termination of
food grains and other articles service

Sec 3(o) Woman

• a woman employed, whether directly or through any agency, for wages in any establishment
 Sec 4 : Prohibition of
employment

No employer shall
knowingly employ a
woman in any
establishment
No woman shall work in any no pregnant woman shall, do
the six weeks immediately establishment during the six
following the day of her delivery weeks immediately following the any work of arduous nature or long hours of
[, miscarriage or medical day of her delivery [, miscarriage standing, likely to interfere with her pregnancy
termination of pregnancy or medical termination of or the normal development of the foetus, cause
miscarriage, affect her health
pregnancy

1 Month preceding , the Six weeks, before

date of her delivery or expected

Any period within 6 weeks does not avail of

leave of absence
 Right to payment of maternity
Sec 5 benefit
• Every woman shall be entitled to, and her employer shall be liable for, the payment of
maternity benefit
• At the rate of the average daily wage of preceding 3 months for the period of her actual
absence
• the period immediately preceding the day of her delivery, the actual day of her delivery
and any period immediately following that day
• No woman shall be entitled to maternity benefit unless she has actually worked in an
establishment of the employer from whom she claims maternity benefit, for a period of
not less than 80 days in the twelve months immediately preceding the date of her
expected delivery
• period of 80 days aforesaid shall not apply to a woman who has immigrated into the State
of Assam and was pregnant at the time of the immigration.
 Sec 5 Right to payment of maternity benefit
• The maximum period for which any woman shall be entitled to maternity benefit shall be 26
weeks(Amendment 2016) of which not more than 8 weeks shall precede the date of her expected delivery
• the maximum period entitled to maternity benefit by a woman having two or more than two surviving
children shall be 12 weeks of which not more than 6 weeks shall precede the date of her expected delivery
• woman dies during this period, the maternity benefit shall be payable only for the days up to and including
the day of her death
• woman, having been delivered of a child, dies during her delivery or during the period immediately
following the date of her delivery for which she is entitled for the maternity benefit,
• but if the child also dies during the said period, then, for the days up to and including the date of the death
of the Child
• A woman who legally adopts a child below the age of 3 months or a commissioning mother shall be entitled
to maternity benefit for a period of 12 weeks from the date the child is handed over to the adopting mother
or the commissioning mother
• where the nature of work assigned to a woman is of such nature that she may work from home, the
employer may allow her to do so after availing of the maternity benefit for such period and on such
conditions as the employer and the woman may mutually agree
 Right of Payment of
maternity benefit

woman having two Legally adopts child

or more than two Child also dies of 3 months
Max. 26 weeks Women Dies after
surviving children for the days up to Work from home
which of 8 weeks delivering child 12 weeks leave
preceding her date shall be 12 weeks and including the can be provided
from date child is
of which not more Entitled for benefit date of the death
of delivery handed
than 6 weeks shall of the Child
precede the date of
her expected
delivery
 Continuance of payment of maternity benefit in
Sec 5A certain cases
• Every woman entitled to the payment of maternity benefit continue to be so entitled
until she becomes qualified to claim maternity benefit under ESIC Act

Sec 5B Payment of maternity benefit in certain cases.

• (a) who is employed in a factory or other establishment to which the provisions of the
Employees’ State Insurance Act, 1948 (34 of 1948), apply;
(b) whose wages (excluding remuneration for overtime work) for a month exceed the
amount 15000 PM in ESIC Act and
 Notice of claim for maternity benefit and
Sec 6 payment thereof
• Woman has to give notice in writing(before 6 weeks of her day of delivery) to her employer, stating that her maternity
benefit and any other amount to which she may be entitled under this Act may be paid to her or to such person as she
may nominate in the notice
• that she will not work in any establishment during the period for which she receives maternity benefit.
• such notice shall state the date from which she will be absent from work, not being a date earlier than 6 weeks from the
date of her expected delivery.
• Any woman who has not given the notice when she was pregnant may give such notice as soon as possible after the
delivery
• On receipt of the notice, the employer shall permit such woman to absent herself from the establishment during the
period for which she receives the maternity benefit
• The amount of maternity benefit for the period preceding the date of her expected delivery shall be paid in advance by
the employer to the woman on production of such proof as may be prescribed that the woman is pregnant, and the
amount due for the subsequent period shall be paid by the employer to the woman within 48 hours of production of
such proof as may be prescribed that the woman has been delivered of a child
• The failure to give notice , an Inspector may either of his own motion or on an application made to him by the woman,
order the payment of such benefit or amount
Women gives notice to employer within before 6 week of DOD(if
fail can give notice soon after delivery)

Mentioning number of days absent, nominee, and that she wont

work with any other employer

the employer shall permit such woman to absent herself

Payment made in advance for week preceding and remaining

within 48 hrs. of child delivery

failure to give notice , an Inspector can order for payment

 Payment of maternity benefit in case of death of a
Sec 7 woman
• dies before receiving such maternity benefit or amount, or where the employer is liable
for maternity benefit
• or amount to the person nominated by the woman in the notice
• there is no such nominee, to her legal representative.

Sec 8 Payment of medical bonus

• a medical bonus of 3500 rupees, if no pre-natal confinement and post-natal care is
provided for by the employer free of charge
• The Central Government may before every 3 years, by notification in the Official Gazette,
increase the amount of medical bonus subject to the maximum of twenty thousand
rupees
 Sec 9 Leave for miscarriage, etc
• case of miscarriage or medical termination of pregnancy
• on production of such proof
• be entitled to leave with wages at the rate of maternity benefit, for a period of 6 weeks immediately following
the day of her miscarriage

Sec 9 A Leave with wages for tubectomy operation

• be entitled to leave with wages at the rate of maternity benefit for a period of 2 weeks immediately following the
day of her tubectomy operation

Sec 10 Leave for illness arising out of pregnancy, delivery, premature birth of child
• A woman suffering from illness arising out of pregnancy, delivery, premature birth of child, miscarriage, medical
termination
• on production of such proof
• in addition to the period of absence allowed to her under section 6,under section 9 to leave with wages at the
rate of maternity benefit for a maximum period of 1 month.
 Sec 11 Nursing breaks
• in addition to the interval for rest allowed to her, be allowed in the course of her
daily work 2 breaks of the prescribed duration for nursing the child until the child
attains the age of 15 months.

Sec 11 A Crèche facility

• Every establishment having 50 or more employees shall have the facility of créche
within such distance as may be prescribed, either separately or along with
common facilities
• allow four visits a day to the creche by the woman, which shall also include the
interval for rest allowed to her
• Every establishment shall intimate in writing and electronically to every woman at
the time of her initial appointment regarding every benefit available under the
AcT
 Sec 12 Dismissal during absence of pregnancy
• it shall be unlawful for her employer to discharge or dismiss her during or on
account of such absence or to give notice of discharge or dismissal on
absence of pregnancy
• The discharge or dismissal of a woman :would have been entitled to
maternity benefit or medical bonus
• dismissal is for any prescribed gross misconduct, the employer may, by order
in writing communicated to the woman, deprive her of the maternity benefit
or medical bonus or both
• Any woman deprived of maternity benefit or medical bonus, or both, or
discharged or dismissed during or on account of her absence from work ,
within 60 days appeal to such authority
 Power of Inspector to direct payments
Sec 17 to be made
• Any woman claiming that—
(a) maternity benefit or any other amount to which she is entitled and any person claiming that payment
due under section 7 has been improperly withheld;
b) her employer has discharged or dismissed her during or on account of her absence from work in
accordance with the provisions of this Act,
• 2) The Inspector may, of his own motion or on receipt of a complaint referred to in sub-section (1), make an
inquiry or cause an inquiry to be made and if satisfied that—
• (a) payment has been wrongfully withheld, may direct the payment to be made in accordance with his
orders;
• (b) she has been discharged or dismissed during or on account of her absence from work in accordance
with the provisions of this Act, may pass such orders as are just and proper according to the circumstances
of the case.
• person aggrieved by the decision of the Inspector may, within 30 days appeal to authority
• Any amount payable under this section shall be recoverable by the Collector on a certificate issued for that
amount by the Inspector as an arrear of land revenue
 Sec 18 Forfeiture of maternity benefit
• If a woman works in any establishment after she has been
permitted by her employer to absent herself under the provisions
of section 6 for any period during such authorised absence, she
shall forfeit her claim to the maternity benefit for such period

Sec 20 Registers, etc

• Every employer shall prepare and maintain such registers, records
and musterrolls and in such manner as may be prescribed.
 Sec 21 : Penalty for contravention of Act by employer
Fails to pay No penalty mentioned Obstruction of inspector

• employer fails to pay • Imprisonment of 1 year • Imprisonment of

any amount of • Fine of Rs. 5000 extended to 1 year
maternity benefit to a • Or both • Fine of Rs. 5000 or both
woman or discharges or
dismisses such woman
during or on account of
her absence
• Imprisonment of 3
months extended to
1year
• Fine Rs.2000 extended
to Rs. 5000 or both
 The Employee’s State Insurance Act, 1948
1. An Act to provide for certain benefits to employees in case of sickness, maternity and ‘
employment injury ’ and to make provision for certain other matters in relation thereto
2. Enacted on 19th April, 1948
3. This Act may be called the Employees’ State Insurance Act, 1948.
4. It extends to the whole of India
5. It shall come into force on such date or dates as the Central Government may, by
notification in the Official Gazette, appoint, and different dates may be appointed for
different provisions of this Act and for different States or for different parts
 Applicability
1. It shall apply, in the first instance, to all factories where 10 or more persons are employed or
were employed on any day of the preceding 12 months, and in any part of which a
manufacturing process is being carried on or is ordinarily so carried on,(including
government factories)
2. But does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952), or
a railway running shed, seasonal factories.
3. The appropriate Government may, in consultation with the Corporation and where the
appropriate Government is a State Government, with the approval of the Central
Government after giving one month’s notice of its intention of so doing by notification in the
Official Gazette, extend the provisions of this Act or any of them, to any other establishment,
or class of establishments, industrial, commercial, agricultural or otherwise
 Definitions
Sec 2(1)
Appropriate Govt.

Central Govt
Establishment under the control of central State Govt
govt, railway administration, major port,
mine or oilfield Other cases
 Sec 2(3) Confinement
• labour resulting in the issue of a living child, or labour after twenty-six weeks
of pregnancy resulting in the issue of a child whether alive or dead ;

Sec 2(4) Contribution

• the sum of money payable to the Corporation by the principal employer in
respect of an employee and includes any amount payable by or on behalf of
the employee in accordance with the provisions of this Act

Sec 2(6) Corporation

• The Employees’ State Insurance Corporation set up under this Act
 Sec 2 (6A) : Dependent
Parents Paternal grandparent
Father & Mother widowed (D) if no parent alive Widow (D)
or widower
W/P W/P

Deceased Employee

Widowed
Minor Sister Daughter In Son Daughter
Minor child of Son or daughter
Bother law
Widow Predeceased attained 18 years but
W/P minor & W/P infirm or sick is wholly Legitimate
W/P Legitimate( Adopted(Un
married Minor) D dependent (Unmarried Illegitimate(
married) Unmarried)
minor )
D W/P
W/P Adopted(Mi D
nor) D
Married &
Illegitimate( Minor
Minor) W/P
Or widowed
& Minor
 Sec 2(8) Employment injury
• means a personal injury to an employee caused by accident or
• an occupational disease arising out of and in the course of his employment
• being an insurable employment, whether the accident occurs or the occupational
disease is contracted within or outside the territorial limits of India

Sec2(9) Employee
• who is directly employed by the principal employer
• who is employed by or through an immediate employer on the premises of the factory
or establishment or under the supervision of the principal employer or his agent
• in any other establishment, any person responsible for the supervision and control of
the establishment
Sec 2(19 A)
Seasonal factory
• factory which is exclusively engaged in one or more of the following manufacturing
processes
• cotton ginning, cotton or jute pressing,
• decortication of ground-nuts, the manufacture of coffee, indigo, lac, rubber, sugar
(including gur)
• or tea or any manufacturing process
• which is incidental to or connected with any of the aforesaid processes and includes
a factory which is engaged for a period not exceeding 7 months in a year
• (a)in any process of blending, packing or repacking of tea or coffee ; or
• (b) in such other manufacturing process as the Central Government may, by
• notification in the Official Gazette, specify
Sec 2(22) : Wages
Includes Does Not Include

• all remuneration paid or payable in cash to • (a) any contribution paid by the employer
an employee, if the to any pension fund or provident fund
• terms of the contract of employment, • any travelling allowance or the value of
express or implied, were fulfilled any travelling concession
• Any payment to an employee in respect of • any sum paid to the person employed to
any period of authorised leave, lock-out, defray special expenses entailed on him by
strike which is not illegal or layoff and the nature of his employment
• other additional remuneration [paid at • any gratuity payable on discharge
intervals not exceeding 2 months
 CHAPTER II
CORPORATION, STANDING COMMITTEE AND MEDICAL
BENEFIT COUNCIL
Establishment of Employees’
Sec 3 State Insurance Corporation.
• Central Government may, established for the administration of the scheme
of Employees’ State Insurance
• Corporation to be known as the Employees’ State Insurance Corporation
• The Corporation shall be a body corporate by the name of Employees’
State Insurance Corporation having perpetual succession and a common
seal and shall by the said name sue and be sued.
 Sec 4 Constitution of Corporation
• Chairman appointed by the Central Government ;
• a Vice-Chairman appointed by the Central Government
• not more than 5 persons to be appointed by the Central Government
• one person each representing each of the States appointed by the State Government concerned ;
• one person Appointed by the Central Government to represent the Union territories
• 10 persons representing employers appointed by the Central Government
• 10 persons representing employees appointed by the Central Government
• 2 persons representing the medical profession appointed by the Central Government
• 3 members of Parliament of whom two shall be members of the House of the People (Lok Sabha)
and one shall be a member of the Council of States (RajyaSabha) elected respectively by the
members of the House of the People and the members of the Council of States ; and
• the Director-General of the Corporation, ex-officio.]
 Constitution of Standing
Sec 8 Committee. —
• a Chairman appointed by the Central Government
• 3 members of the Corporation, appointed by the Central Government
• 3 members of the Corporation representing such three State Governments
• 8 members elected by the Corporation as follows
• three members from among the members of the Corporation representing employers
• three members from among the members of the Corporation representin employees ;
• one member from among the members of the Corporation representing the medical
profession ; and
• one member from among the members of the Corporation elected by Parliament
• the Director-General of the Corporation, ex-officio
 Sec 10 Medical Benefit Council.
• The Central Government shall constitute a Medical Benefit Council consisting of
• (a) the Director General, the Employees’ State Insurance Corporation, ex-officio as
Chairman
• (b) the Director General, Health Services, ex-officio as Co-Chairman
• (c) the Medical Commissioner of the Corporation, ex-officio
• (d) one member each representing each of the States (other than Union territories)
appointed by the State Government
• (e) 3 members representing employers to be appointed by the Central Government
• (f)3 members representing employees to be appointed by the Central Government
• (g) 3 members, of whom not less than one shall be a woman, representing the
medical profession, appointed by the Central Government
 Duties of Medical Benefit
Sec 22 Council.
• advise the Corporation and the Standing Committee on matters
relating to the administration of medical benefit, the certification
for purposes of the grant of benefits and other connected matter
• have such powers and duties of investigation as may be
prescribed in relation to complaints against medical practitioners
in connection with medical treatment and attendance
• perform such other duties in connection with medical treatment
and attendance as may be specified in the regulations
 CHAPTER III
FINANCE AND AUDIT
Sec 26 Employees’ State Insurance Fund.
• All contributions paid under this Act and all other moneys received on behalf of the
Corporation shall be paid into a fund called the Employees’ State Insurance Fund
which shall be held and administered by the Corporation
• The Corporation may accept grants, donations and gifts from the Central or any State
Government, Local authority, or any individual or body whether incorporated or not,
• all moneys accruing or payable to the said Fund shall be paid into the Reserve Bank of
India or such other bank as may be approved by the Central Government to the credit
of an account styled the Account of the Employees’ State Insurance Fund
 Purposes for which the Fund
Sec 28 may be expended
• payment of benefits and provision of medical treatment and attendance to
insured persons and, where the medical benefit is extended to their families
• payment of fees and allowances to members of the Corporation, the Standing
Committee and the Medical Benefit Council, the Regional Boards, Local
Committees and Regional and Local Medical Benefit Councils
• Payment of salaries, leave and joining time allowances, travelling and
compensatory allowances, gratuities and compassionate allowances, pensions,
contributions to provident or other benefit fund of officers and servants of the
Corporation
• establishment and maintenance of hospitals, dispensaries and other institutions
 CHAPTER IV
CONTRIBUTIONS
Sec 38 All employees to be insured
• Subject to the provisions of this Act, all employees in factories or establishments to which this Act
applies shall be insured in the manner provided by this Act

Sec 39 Contributions.
• The contribution payable under this Act in respect of an employee shall comprise contribution
payable by the employer (hereinafter referred to as the employer’s contribution)
• and contribution payable by the employee (hereinafter referred to as the employee’s contribution)
and shall be paid to the Corporation
• If any contribution payable under this Act is not paid by the principal employer on the date on
which such contribution has become due, he shall be liable to pay simple interest at the rate of
twelve per cent. per annum
 Total Contribution
6.5 %

An employer is liable to pay his contribution in

respect of every employee and deduct employees
contribution from wages bill and shall pay these
contributions at the above specified rates to the
Corporation within 21 days of the last day of the
Calendar month

Employee Contribution
Employer Contribution 1.75 %
4.75% Employees in receipt of a daily average wage upto
Rs.50/- are exempted from payment of
contribution
 Contribution Period
There are two contribution periods each of six months duration and two corresponding benefit
periods also of six months duration as under.
Contribution period Corresponding Cash Benefit period
1st April to 30th Sept.1st January of the following year to 30th June.
1st Oct. to 31st March 1st July to 31st December of the year following
 The Employee Provident Fund & Miscellaneous
ProvisionAct,1952
1. An Act to provide for the institution of provident funds Pension fund and deposit-linked
insurance fund for employees in factories and other establishments.
2. This Act may be called the Employees‟ Provident Funds and Miscellaneous Provisions Act,
1952.
3. It extends to the whole of India
Objectives:
1. Protecting the interest of the employees after their retirement and their dependents after
death of the employee.
2. The Act provides insurance to workers and their dependents against risks of old age,
retirement, discharge, retrenchment or death.
 Applicability
1. The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 extends to whole of
India including the state of Jammu & Kashmir and union territory of Ladakh(2019 provisions)
2. It applies on every establishment employing 20 or more persons & engaged in industry
specified in Schedule I of the Act or any other activity notified by the Central Government
3. It applies to all departments / branches of an establishment wherever situated
4. Any establishment employing even less than 20 persons can be covered by giving notification
of Atleast 2 months in official Gazattee.
5. that provident fund contribution is now mandatory for all employees whose monthly basic
salary is lower than or equal to INR 15,000
6. New entrants whose basic salary is more than INR 15,000 per month have the option to not
opt for PF
 Definitions

Sec 2(a)
Appropriate Govt

Central Govt.
under the control of, the State Govt.
Central Government, railway
Any other Establishment
company, major port, a mine or
oilfield or a controlled industry
 Sec
2(aa) Authorised officer
• Central Provident Fund Commissioner,
• Additional Central Provident Fund Commissioner,
• Deputy Provident Fund Commissioner,
• Regional Provident Fund Commissioner or
• such other officer as may be authorised by the Central
Government, by notification in the Official Gazette
 Sec 2(b) : Basic Wages
Includes Does Not Include

• all emoluments which are earned by an

• the cash value of any food concession;
employee while on duty or on leave or
on holidays with wages in either case • any dearness allowance (that is to say, all
cash payments by whatever name called
• in accordance with the terms of the paid to an employee on account of a rise in
contract of employment and which are the cost of living),
paid or payable in cash to him • house-rent allowance, overtime
allowance, bonus commission or any other
similar allowance payable to the employee
in respect of his employment or of work
done in such employment;
• any presents made by the employer;
Sec 2(e) : Employer
Employer

Any other Establishment

Factory
authority which, has the ultimate
Owner, occupier, agent, manager, control over the affairs of the
legal representative of deceased establishment
employer
Managing director, managing agent
 Sec 2(kb) Recovery Officer
• means any officer of the Central Government, State Government or
the Board of Trustees constituted under section 5A, who may be
authorised by the Central Government, by notification in the Official
Gazette, to exercise the powers of a Recovery Officer under this Act

Sec 2(ll) Superannuation

• in relation to an employee, who is the member of the Pension
Scheme means the attainment, by the said employee, of the age of
58 Years
 Employees’ Provident
Sec 5 Fund Schemes
• The Central Government may, by notification in the Official
Gazette,
• frame a Scheme to be called the Employees‟ Provident Fund
Scheme for the establishment of provident funds under this Act
• for employees or for any class of employees and specify the
establishments or class of establishments
• The Fund shall vest in, and be administered by, the Central Board
 Sec 5A Central Board.
• The Central Government may constitute,a Board of Trustees for the territories called as
Central Board consisting of the following persons as members
• a) Chairman and a Vice-Chairman to be appointed by the Central Government;
• b) the Central Provident Fund Commissioner, ex officio;]
• c) not more than 5 persons appointed by the Central Government from amongst its
officials;
• d) not more than 15 persons representing Governments of such States as the Central
Government may specify in this behalf, appointed by the Central Government;
• e) 10 persons representing employers of the establishments, recognised by the Central
Government in this behalf; and
• f)10 persons representing employees may be recognised by the Central Government
in this behalf.
 Chairman
and a Vice-
Chairman to
be appointed
by the
Central Central
10 persons Government Provident
representing Fund
employees Commissione
r, ex officio

Central Board
5 persons
appointed by
10 persons the Central
representing Government
employers from
amongst its
15 persons officials;
representing
Governments
of such States
 Sec 5A Central Board
• The Central Board shall administer the Fund vested
• The Central Board shall maintain proper accounts of its income and expenditure in such form and in
such manner as the Central Government may, after consultation with the Comptroller and Auditor-
General of India,
• The accounts be audited annually by the Comptroller and Auditor General of India and any
expenditure incurred by him in connection with such audit shall be payable by the Central Board to
the Comptroller and Auditor-General of India.
• Comptroller and Auditor-General have the right to demand the production of books, accounts,
connected vouchers, documents and papers and inspect any of the offices of the Central Board
• the audit report then forwarded to the Central Board which shall forward the same to the Central
Government along with its comments on the report of the Comptroller and Auditor-General.
• It shall be the duty of the Central Board to submit also to the Central Government an annual report
• annual report, the audited accounts together with the report of the Comptroller and Auditor-General
of India and the comments of the Central Board thereon to be laid before each House of Parliament
 Sec 5AA Executive Committee
• The Central Government may appoint an Executive Committee to assist the
Central Board in the performance of its functions
• The Executive Committee shall consist of the following persons
• (a) a Chairman appointed by the Central Government from amongst the
members of the Central Board;
• (b) 2 persons appointed by the Central Government from amongst officials
• (c) 3 persons appointed by the Central Government representing state
• (d) 3 persons representing the employers elected by the Central Board
• (e) 3 persons representing the employees elected by the Central Board
• (f) the Central Provident Fund Commissioner, ex officio
 Chairman to
be appointed
Amongst
central Board
Central
3 persons Provident
representing Fund
employees Commissione
r, ex officio
Executive
Committee
2 persons
appointed by
3 persons the Central
representing Government
employers from
amongst its
3 persons officials;
representing
Governments
of such States
 Sec 5B State Board
• The Central Government may, after consultation with the Government of any State, constitute for that State
a Board of Trustees referred as the State Board
• (2) A State Board shall exercise such powers and perform such duties as the Central Government may assign
to it from time to time.
• (3) The terms and conditions subject to which a member of a State Board may be appointed and the time,
place and procedure of the meetings of a State Board shall be such as may be provided for in the

Sec 5C Board of Trustees to body corporate

• —Every Board of Trustees constituted under section 5A or section 5B shall be a body corporate
• having perpetual succession and a common seal and shall by the said name sue and be sued
 Sec 5D Appointment of officers.
• The Central Government shall appoint
• Central Provident Fund Commissioner who shall be the chief executive officer of the Central Board and shall be
subject to the general control and superintendence of that Board.
• Financial Adviser and Chief Accounts Officers to assist the Central Provident Fund Commissioner in the
discharge of his duties
• Additional Central Provident Fund Commissioners, Deputy Provident Fund Commissioners, Regional Provident
Fund Commissioners, Assistant Provident Fund Commissioners and] such other officers and employees as it
may consider necessary for the efficient administration of the Pension Scheme and the Insurance Scheme
• No appointment to shall be made without consultation with the Union Public Service Commission except
• (a) for a period not exceeding one year; or
• (b) if the person to be appointed is at the time of his appointment— (i) a member of the Indian Administrative
Service, or (ii) in the service of the Central Government or a State Government or the Central Board in a [Group
„A‟ or Group „B‟ post].
 Appointment Of officers

Central Government shall appoint with

consultation of Union Public service
commission

Except
Not exceeding period of 1 year
member of the Indian Administrative , central ,
state govt or central board in Group A or B post

Central Provident Fund Commissioner Additional Central Provident Fund

who shall be the chief executive Financial Adviser and Chief Accounts Commissioners, Deputy Provident
officer of the Central Board and shall Officers to assist the Central Fund Commissioners, Regional
be subject to the general control and Provident Fund Commissioner in the Provident Fund Commissioners,
superintendence of that Board. discharge of his duties Assistant Provident Fund
Commissioners and] such other
officers and employees
 Sec 6 Contributions and matters which
may be provided for in Schemes
• Contribution of employer : 12% of basic wages(DA &
Retaining allowance)
• Contribution of Employee : 12 % of basic wage
• any employee want to pay more than 12% of his basic

wages can do
• subject to the condition that the employer shall not be

under an obligation to pay any contribution over and

above his contribution payable
For Example:
If the monthly salary of a person is Rs.30,000. The contributions calculated
are as follows-

•12% of Rs.30,000 (Employee share)= Rs.3,600

•3.67% (in EPF) of Rs.30,000 (Employer’s share)= Rs.1,101

•8.33% (in EPS) of Rs.30,000 (Employer’s share)= Rs.2,499

•Total= Rs.7200/-
 Rate of EPF Contribution

Monthly Contribution Employees’ Provident Fund Employees' Deposit Linked Insurance Employees' Pension Scheme
Scheme

By Employer 12% of Basic Wages, Dearness Allowance, 0.50% of Basic Wages, Dearness 8.33% (out of 12% contribution payable
Cash Value of Food Concession & Allowance, Cash Value of Food Concession under EPF) subject to maximum of Rs.
Retaining Allowance & Retaining Allowance (subject maximum 541/-
plus wage limit of Rs. 6,500/-)
Administrative Charges plus
Administrative Charges

By Employee 12% of Basic Wages, Dearness Allowance, NIL NIL

Cash Value of Food Concession &
Retaining Allowance

By Central Government NIL NIL 1.16%

 Sec 6A
Employees’ Pension Scheme, 1995
• The Central Government may, by notification in the Official Gazette, frame a scheme to be called the Employees‟
Pension Scheme for the purpose of providing for
• (a) superannuation pension, retiring pension or permanent total disablement pension to the employees of any
establishment or class of establishments to which this Act applies; and
• (b) widow or widower‟s pension, children pension or orphan pension payable to the beneficiaries of such
employees.
• Employer Contribution 8.33%(out of 12% of EPF)
• Central Govt Contribution 1.16%

Employee eligibility

• who are part of EPF automatically become part of EPS

• Those who where member of family pension scheme
• Employee employed by contractor : salary or wage ceiling is 15000
• the maximum limit of contribution to EPS has been raised to INR 1,250
• New entrants to the PF scheme, joining on or after 1 September 2014 and whose basic salary is more than INR 15,000
per month, will not be able to join the EPS
• On completion of 10 years of service and attained the age of 50 yrs for early pension and 58 yrs for regular pension
• On death given to nominee
 Sec 6C Employees’ Deposit linked Insurance Scheme, 1976
• The Central Government may, by notification in the Official Gazette, frame a scheme to be called the
Employees‟ Deposit-linked Insurance Scheme
• for the purpose of providing life insurance benefits to the employees of any establishment or class of
establishments to which this Act applies.
• main objective of EPFO behind this scheme was to ensure that the family of members get financial assistance
in case of death of the member

Contribution
• Employer Contribution: 0.5 % of wages(Basic, DA, Cash value of food concession & retaining allowance) or
max 75 Rs
• The employer shall pay into the Insurance Fund
• Administrative charges : 0.01%
Benefit
• lump-sum payout in the event of the death of the insured
person. If no nominee or beneficiary is registered, then the
amount would be paid to the legal heir.
The pay-out to be awarded will be calculated as under:
• claim amount under ELDI is 30 times the average monthly
salary(Capped to 15000) in the past 12 months subject to
a maximum of 6 lakh (4.5 lakh basic + 1.5 lakh bonus)
The insurance amount that the heirs of a deceased member get is calculated as

30 times the average monthly salary in the last 12 months of employment. The

maximum average monthly salary of an employee is capped at ₹ 15,000 So, 30 times

the salary comes to be around to be 30 x ₹ 15,000 = ₹ 4,50,000

A bonus amount of up to ₹ 1,50,000 is also paid to the claimant under this scheme Thus,

the total amount payable under this scheme to the beneficiary is ₹ 6,00,000
 Sec 14 : Penalties
avoiding any payment to be made by An employer who contravenes, or
himself the Scheme or the Insurance
makes default in complying
Scheme
• Imprisonment extended to 1 year • Imprisonment of 1year to 3 years
and fine 500 or both and fine of 10000 rs
• default in payment of the
employees‟ contribution which has
been deducted by the employer
from the employees‟ wages : 6
months imprisonment and fine rs.
50
 The code on Social Security, 2019
1. The Code on Social Security, 2019 was introduced in Lok Sabha by the
Minister of State for Labour and Employment, Mr. Santosh Kumar
Gangwar, on December 11, 2019
2. It replaces nine laws related to social security, including the Employees’
Provident Fund Act, 1952, the Maternity Benefit Act, 1961, and the
Unorganised Workers’ Social Security Act, 2008.
3. The Social Security Bill has introduced several new aspects for the welfare
of those working in the unorganized as well as the organized sectors of the
Economy.

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 The code on Social Security, 2019
The Social Security Bill proposes to simplify, amalgamate, rationalize and replace the following
central labour legislations:
1. The Employees' Compensation Act, 1923;
2. The Unorganised Workers' Social Security Act, 2008.
3. The Payment of Gratuity Act, 1972;
4. The Employees' State Insurance Act, 1948;
5. The Cine Workers Welfare Fund Act, 1981;
6. The Employees' Provident Fund and Miscellaneous Provisions Act, 1952;
7. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959;
8. The Maternity Benefit Act, 1961;
9. The Building and Other Construction Workers Cess Act, 1996;

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KEY ASPECTS OF THE SOCIAL SECURITY CODE, 2019
Widened the scope of the definition of "Wages"
• (i) Inclusive in the definition: All remuneration expressed in monetary
terms are wages and includes basic pay, dearness allowance and retaining
allowance.
• (ii) Specific exclusions: Provided Fund, pension and gratuity, house rent
and conveyance allowances etc. are not included in the term wages as long
as it does not exceed the 50 per cent of the total remuneration being paid.
• (iii) Benefits in kind: These will be included to the extent of 15 per cent of
total wages. Overall this will ensure that wages for social security benefits
will be at least 50 per cent of overall compensation.

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 Establishment of Social Security Organisations
The Code provides for the establishment of several bodies to administer the social security
schemes. These include:
1. A Central Board of Trustees, headed by the Central Provident Fund Commissioner, to
administer the EPF, EPS and EDLI Schemes.
2. An Employees State Insurance Corporation, headed by a Chairperson appointed by the
central government, to administer the ESI Scheme.
3. National and state-level Social Security Boards, headed by the central and state Ministers
for Labour and Employment, respectively, to administer schemes for unorganised workers.
4. State-level Building Workers' Welfare Boards, headed by a Chairperson nominated by the
state government, to administer schemes for building workers.

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SOCIAL SECURITY FOR UNORGANISED WORKERS
1. The Bill seeks to provide for framing of schemes and constitution of social security fund for
unorganised workers gig workers’ platform workers, etc.
2. The Central Government shall formulate and notify, from time to time, suitable welfare
schemes for unorganised workers (including audio visual workers, beedi workers, non-coal
workers) on matters relating to life and disability cover, health and maternity benefits, old
age protection, education, housing, etc.
3. The State Government shall formulate and notify, from time to time, suitable welfare
schemes for unorganised workers, including schemes relating to provident fund,
employment injury benefit, housing, educational schemes for children, skill up gradation of
workers, funeral assistance and old age homes.
4. A special purpose vehicle may also be constituted by the Central Government for the
purpose of implementation of such scheme.

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 Social Security Legislation in India
The Employee Provident
The Maternity Benefit The Employee State
Funds and Miscellaneous
Act, 1961 Insurance Act, 1948
Provisions Act, 1952
• An Act to regulate the • An Act to provide for • An Act to provide for
employment of women the institution of certain benefits to
in certain provident funds pension employees in case of
establishments for fund and deposit-linked sickness, maternity and
certain periods before insurance fund for employment injury and
and after child-birth and employees in factories to make provision for
to provide for maternity and other certain other matters in
benefit and certain establishments. relation thereto.
other benefits.

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 Social Security Legislation in India
The Employee The Payment of Gratuity The Unorganised Workers
Compensation Act, 1923 Act, 1972 Social Security Act, 2008
• An Act to provide for the • An Act to provide for a • An Act to provide for the
payment by certain scheme for the payment social security and
classes of employers to of gratuity to employees welfare of unorganised
their workmen of engaged in factories, workers and for other
compensation for injury mines, oilfields, matters connected
by accident. plantations, ports, railway therewith or incidental
companies, shops or thereto.
other establishments and
for matters connected
therewith or incidental
thereto.

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Thank You!!!
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