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This article has been written by Simran Ajmani and edited by Shashwat Kaushik. This article talks about the concept of social security and its evolution over time. It speaks of the relevance of social security in labour legislation and its growth with time. Lastly, it talks about the schemes and measures adopted by the Central and state governments for the welfare of labourers and the measures that can be further taken. 

This article has been published by Sneha Mahawar.

Introduction

Around 53% of all salaried workers do not have social security benefits in India, as per  the Periodic Labour Force Survey Annual Report 2021-2022. Effectively, it means that these employees have no access to health care, pension funds, disability insurance, or provident funds. Meanwhile, gig workers are one of the most prevalent concepts emerging in developing countries like India, which rarely have access to these social security measures. 

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The ILO defines social security as the protection that a society provides to individuals and households to ensure access to healthcare and guarantee income security. These risks are essentially contingencies against which an individual of small means cannot effectively provide by his own ability or foresight alone or even in private combination with his fellows. In fact, social security means security against giants of “squator,” meaning security against all those evils that come through the unplanned and unorganised growth of cities. It is to protect the poor and ensure that they have an acceptable standard of living.

Indian social security system 

If we go back to history, then in the past, social security as a crude form of social protection was made available to the needy and unfortunate under the joint family and caste system. Though the joint families suffered from shortcomings and deficiencies, the members received a crude form of protection from various difficulties. The problems of unemployment, old age, and economic hardships were not suffered by individuals alone. In such prevailing situations, the problem of providing social security was taken up by joint families. The members of a particular caste were also offered safeguards such as financial help to widows, medical aid, educational assistance for children in need through scholarships and financial support for orphans. But the advent of urbanisation and industrialization made their own contribution to the disintegration of these systems and then  the concept of social security evolved in India in obedience to the impact of western influence and of the modern industrial unit. 

The evolution of social security laws in India dates back to the time of Dr. Babasaheb Bhim Rao Ambedkar. Dr. Ambedkar was the first Labour Minister of India. Enormous initiatives were made by Dr. Ambedkar himself. His efforts led to a reduction of working hours from 14 to 8 hours, insurance for workers, the creation of the Employees Provident Fund Law and amendments to the Workmen’s Compensation Act, 1923 and the Factories Act, 1934. The efforts made by Dr. Ambedkar will always be a guiding light for the future.

Article 43 of the Constitution of India talks about the responsibility of the state to provide social security to the citizens of this country by effective legislation, economic organizations or in any other appropriate way to all workers, industries, a living wage, a decent standard of living, time for leisure and social and cultural opportunities. Social Security policies cover various types of social insurance, maternity benefits, pensions, gratuity, disability benefits, etc.

The scope of social security for both organised and unorganised workers is very wide. It includes but is not limited to, the concepts of :

  • Medical care is provided by health insurance, sickness benefits, and employment injury benefits under Workmen Compensation Act of 1923 and Employees State Insurance Act of 1948. 
  • Older people receive benefits under the National Pension Scheme and National Social Assistance Programme. 
  • Maternity Benefits Under the Maternity Benefit Act of 1961, providing prenatal and postnatal care and hospitalisation if required is a legal provision under the Act. A fixed periodical payment for six months of maternity leave is compulsory and an additional leave  can be taken without remuneration if required. Work from home facilities and opportunities also help pregnant women continue their work with ease.
  • Family benefits, including health insurance and gratuity in case of death of bread earners in the family and facilities for the wives and children of deceased persons, are provided.
  • Survivor’s benefit- refers to the benefits to the affected family in form of periodical payments to a family following the death of a breadwinner and continues during the entire period of contingency. 

Indian legislation on social security 

Indian legislations on social security are listed below:

  • Workmen Compensation Act of 1923-  This Act, later renamed the Employees Compensation Act of 1923, provides compensation for losses brought on by accidents or occupational diseases occurring during the course of and arising from employment, including death, permanent total disability, permanent partial disability and temporary disability. It provides compensation based on the seriousness of the injury suffered while performing duty.
  • The Employees State Insurance Act of 1948- This Act created a fund to provide medical care to employees and families, as well as cash benefits during sickness and maternity and monthly payments in case of death or disability for those working in establishments with ten or more employees.
  • Maternity Benefit Act of 1961- Article 42 of the Indian Constitution, confers duty on the state to guarantee just and humane working conditions and maternity leave. This Act was passed to ensure social justice for female workers. The Act was amended in 2017 and increased some of the key benefits. The amended law provides women in the organised sector with paid maternity leave of 26 weeks. India now has the third most maternity leave in the world, following Canada and Norway.
  • The Payment of Gratuity Act of 1972- Gratuity is a lump sum amount paid by a company. The Act directs establishments with ten or more employees to provide 15 days of additional wages each to employees who have worked for five years or more.
  • The Code on Social Security, 2020- The Code replaces nine existing laws relating to social security, including the Employees’ Provident Funds and Miscellaneous Provision Act, 1952 and the Employees’ State Insurance Act, 1948. The Act was introduced as a light of good hope towards this unregulated industry as it covers employees in both organised and unorganised sectors, provides for retirement provision , provident fund, life and disability insurance, healthcare and unemployment benefits, sick pay and leaves, and paid parental leaves. The Code aims to improve the portability of social security benefits. It provides creation of a unique portable number for all workers, which will be linked to their Aadhaar number, helping them to avail of social security benefits from any part of the country. Furthermore, the Social Security Code also provides discretionary power to the Central Government and state governments to formulate schemes for the benefit of gig workers, self employed and other industrial labourers.  Some of the existing social security policies in India are  EPFO, National Pension Scheme, National Social Assistance Programme, etc.

Issues and challenges 

The legislation listed above holds a lot of relevance in labour laws and the evolution of the concept of social security has definitely improved the condition of  both organised and unorganised labourers as well as self employed people in India. But there are many issues and challenges that we are still facing in the implementation of these laws and policies in India. A few of them are-

  1. Lack of adequate budgetary allocation- The National Security Fund was set up for unorganised workers with an initial allocation of just Rs. 1000 crore, which is far below the expected requirement.
  2. Poor fund utilisation and management- The funds allocated under the schemes have not been used effectively and efficiently. The CAG audit reveals that 1927 crore accumulated in the National Society Fund since its inception has not been utilised. 
  3. Informal labour sector- Approximately 91 percent of India’s workforce works in the informal sector, which often lacks job security benefits, application of labour laws and access to formal social security programmes.  
  4. Concentration of powers with Central Government- The Central Government has been given wide power in order to establish social security schemes through the National Social Protection Board under the Code on Social Security but labour law is a state subject so such power can hamper the object  of the Act.
  5. Technology and digital divide- Most of the social security schemes provided are transitioning to digital platforms for registration and the disbursement of benefits. However, a large section of these labourers reside in villages or lack education, so they lack access to technology and internet , leading to a digital divide that hampers their participation.

Suggestions

Social security measures are an important aspect of labour legislation in India, but there are several challenges to the effective implementation of these schemes. The government must address these issues to ensure that the benefits of the scheme reach the targeted beneficiaries. These can be done  through increased awareness campaigns, better funding and government support for vulnerable workers, reducing administrative costs and simplifying administrative procedures, universal social security by consolidating its existing social security schemes and providing social security to the entire labour force. There should be mandatory social security for employees, enforced by employers; this would foster formalisation and accountability in the employer employees relationship. Introducing a nationwide labour force card will simplify the registration  process and expand the scope of social security coverage beyond the construction and gig worker sectors. By addressing these challenges and taking the necessary steps, Indians can  create a more equitable and inclusive society where citizens can lead a dignified life.

Conclusion

I will conclude this article by quoting Mahatma Gandhi Ji , Father of the  Nation “Obedience to the law of bread labour will bring about a silent revolution in the structure of society”. Labourers are a crucial part of society and providing them with a secure and dignified environment has been a high priority for a long time. Our Constitution makers incorporated this as a directive for the state to work upon in the future and the government has taken several steps to make this directive a legal obligation. The social security schemes provided by the government and the laws made by Parliament play a vital role in ensuring that the basic needs of citizens are met and that they can lead a dignified, just and equitable life. Definitely, there are enormous challenges in the effective implementation of these schemes, and these challenges need to be overcome to provide benefits to the last strata of the intended beneficiaries. The government is committed to addressing these issues and ensuring that social security measures are provided to all citizens of the country. 

References

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