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Social Security Schemes

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March 28, 2025

Prelims – Indian Polity and Governance.

Mains – GS I | Social empowerment, GS III | Government policies and interventions.

Why in News?

Union Labour Ministry has conducted a comprehensive data-pooling exercise in collaboration with the International Labour Organization (ILO).

Key findings of the report

  • As per ILO’s World Social Protection Report (WSPR) 2024-26 India’s social protection coverage has doubled from 2021 to 2024.
  • Nearly 65% of the country’s population is covered by at least one social protection benefit (cash and in-kind both), with 48.8% receiving cash benefits.
  • However, the ministry has stated that the ILO’s estimate is an underestimation, as it does not account for
    • In-kind benefits such as food security and housing benefits and
    • Social protection schemes administered by the States.

Social Security

  • It is the legal protection provided to individuals and households which helps to guarantee healthcare access and income security, especially in the event of old age, unemployment, illness, invalidity, work-related injuries, pregnancy or the death of a breadwinner.
  • Types of social security
  • Direct cash transfer (Example: Pensions, employment benefits).
  • In-Kind benefits (Example: subsidised food, healthcare, housing support).
  • Employment based schemes (Example: MGNREGA, EPF, ESI).

Constitutional and legal framework

Constitutional Provisions

  • Fundamental Rights - Article 21 (Right to life) includes the right to live with dignity, which extends to social security benefits.
  • Directive Principles of State Policy (DPSP)
    • Article 41 (Right to work, education, and public assistance),
    • Article 42 (Provision for just and humane conditions of work), and
    • Article 43 (Living wage and social security for workers) guide social security policies.

Legal framework

  • Social Security to the workers in the organized sector is provided through five Central Acts namely,
  • Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 - Ensures provident fund, pension, and family pension for employees in 20+ workers establishments (wage ceiling: ₹15,000/month); separate laws for coal mines & tea plantations.
  • Employees’ State Insurance Act, 1948 - Covers employees in establishments with 10+ workers, providing medical, sickness, maternity, and disability benefits (wage limit: ₹21,000, ₹25,000 for PwDs); extended to 35 States/UTs.
  • Payment of Gratuity Act, 1972 - Provides 15 days’ wages per year of service to employees with 5+ years in establishments with 10+ workers.
  • Maternity Benefit Act, 1961 - Grants 26 weeks paid leave (12 weeks for third child, adoption, or surrogacy) to eligible women employees.
  • Compensation Act, 1923 - Provides compensation to employees or dependents in case of employment-related injury or death.

Social security schemes to unorganized sector

  • Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) & Pradhan Mantri Suraksha Bima Yojana (PMSBY) - Life and Disability cover.
  • Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (ABPMJAY) – Provides an annual health cover of Rs. 5 lakhs per eligible family.
  • Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) Provide old age protection
  • PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme Provide collateral free working capital loan to street vendors.
  • e-Shram portal - Create National Database of Unorganised Workers.

References

  1. The Hindu | Social Security
  2. Vikaspedia | Social Welfare
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