Social security and its implications

Social security and its implications

Meaning of Social Security:

Social Security means the security provided by the society to the needy citizens on the principles of human dignity and social justice. Social Security Programmes are now sincreasingly being accepted as useful and necessary instrumented for the protection and stability of the labour force.

Definition:

According to Friedlander define as, ―The programme of protection provided by society against the contingencies of modern life, sickness, unemployment, old age dependency, industrial accidents and invalidism against which the individual cannot be exploited to protect himself and his family by his own ability for foresight‖.

Important social security measures were introduced by the Government

^Ø  Workers Compensation Act, 1923

^Ø  Employees State Insurance Act, 1948

^Ø  Maternity Benefits Act – By State and Central Gover nment

^Ø  Coal Mines Provident Fund and Bonus Act, 1948

^Ø  Employees Provident Fund Act, 1952

^Ø  Family Pension Schemes, 1971

^Ø  Payment of Gratuity Act, 1952

^Ø  Deposit Linked Insurance Scheme

^Ø  Social Security Certificate Scheme, 1982

Social Insurance

Definition:

―Giving in return for contribution, benefits upon subsistence level as if right and without means tests so that an individual may build freely upon it. Thus social insurance implies that it is compulsory and that men stand together with their follows‖.

The Principle Elements of Social Insurance

^Ø  Participation is compulsory with few exceptions.

^Ø  Contributions are accumulated in special funds out of which benefits are paid.

^Ø  Surplus funds, not needed to pay current benefits are invested to earn further income.

^Ø  A person‘s right to benefit is secured by his contribution record without any list of need or means.