What is Social Security in India?
Historical Background
Key Points
9 points- 1.
Provident Fund (PF): Managed by Employees' Provident Fund Organisation (EPFO), providing mandatory savings for retirement for organized sector employees.
- 2.
Pension: Employees' Pension Scheme (EPS), National Pension System (NPS), and various state-sponsored old-age pension schemes (e.g., Indira Gandhi National Old Age Pension Scheme).
- 3.
Health Insurance/Medical Care: Employees' State Insurance Scheme (ESIS) for industrial workers, and Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) for the poor and vulnerable.
- 4.
Maternity Benefits: Maternity Benefit Act 1961, providing paid leave and other benefits to women workers during maternity.
- 5.
Gratuity: Payment of Gratuity Act 1972, providing a lump sum payment to employees on retirement or termination after a certain service period.
- 6.
Unemployment Benefits: Limited schemes, primarily for retrenched workers under Industrial Disputes Act, and some state-specific unemployment allowances.
- 7.
Disability Benefits: Provisions under Employees' Compensation Act 1923 and various government schemes for persons with disabilities.
- 8.
Social Security Code 2020: Aims to consolidate and expand social security coverage, especially for the unorganized sector, gig workers, and platform workers, through a unified framework.
- 9.
Public Distribution System (PDS): Provides food security through subsidized food grains, a crucial component of social safety nets.
Visual Insights
Social Security in India: Framework and Challenges
This mind map illustrates the constitutional basis, key components, sectors covered, and challenges faced by social security initiatives in India, along with recent reforms.
Social Security in India
- ●Constitutional Basis
- ●Sectors Covered
- ●Key Components
- ●Recent Reforms & Challenges
Key Social Security Schemes in India: A Comparison
This table compares major social security schemes in India, highlighting their target beneficiaries, administering bodies, and key benefits, crucial for understanding the diverse landscape.
| Scheme | Target Sector/Beneficiary | Administering Body | Key Benefit(s) |
|---|---|---|---|
| Employees' Provident Fund Scheme (EPF) | Organized Sector Employees (wage < ₹15k mandatory) | EPFO | Provident Fund (Retirement Savings) |
| Employees' Pension Scheme (EPS) | Organized Sector Employees (EPF members) | EPFO | Pension (Old Age, Disability, Family) |
| Employees' State Insurance Scheme (ESIS) | Organized Sector Employees (wage < ₹21k) | ESIC (Ministry of Labour & Employment) | Medical, Sickness, Maternity, Disablement, Unemployment Benefits |
| Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) | Unorganized Workers (18-40 yrs, income < ₹15k) | Ministry of Labour & Employment | Minimum Assured Pension of ₹3,000/month after 60 yrs |
| Atal Pension Yojana (APY) | All Citizens (18-40 yrs, not covered by formal SS) | PFRDA (Ministry of Finance) | Guaranteed Pension (₹1,000-₹5,000) after 60 yrs |
| Pradhan Mantri Jan Arogya Yojana (PMJAY) - Ayushman Bharat | Poor & Vulnerable Families | National Health Authority (Ministry of Health & FW) | Health cover of ₹5 lakh/family/year for secondary & tertiary care |
Recent Developments
5 developmentsImplementation of the Code on Social Security 2020, aiming for universalization of social security coverage across all sectors.
Expansion of health insurance schemes like Ayushman Bharat to cover a larger segment of the population.
Efforts to register and provide social security benefits to unorganized sector workers through platforms like the e-Shram portal.
Addressing the social security needs of the rapidly growing gig and platform economy workers, who often lack traditional employer-employee relationships.
Debates on funding mechanisms, sustainability, and effective delivery of social security schemes, especially given India's large informal workforce.