Social Security for Organised sector

Social Security laws in the organized sector

Social Security to the workers in the organized sector is provided through five Central Acts namely :-

• Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
• Employees’ State Insurance Act, 1948.
• Payment of Gratuity Act, 1972.
• Maternity Benefit Act, 1961.
• Employee’s Compensation Act, 1923.

Social Security Support

The principal social security laws enacted for the organised sector in India provide the following support to the workers.

• The Employees’ State Insurance Act, 1948 (ESI Act) which covers factories and establishments with 10 or more employees and provides for comprehensive medical care to the employees and their families as well as cash benefits during sickness and maternity, and monthly payments in case of death or disablement. Employees of factories and establishments covered under the Act drawing monthly wages upto Rs21000 per month and Rs 25,000/-per month for persons with disabilities are covered under the scheme.The ESI Scheme is now extended to 35 States / UnionTerritories.
• The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act) which applies to specific scheduled factories and establishments employing 20 or more employees and ensures terminal benefits to provident fund, superannuation pension, and family pension in case of death during service. Separate laws exist for similar benefits for the workers in the coal mines and tea plantations. As per the Employees' Provident Funds (Amendment) Scheme 2014 the wage ceiling for coverage under the scheme is Rs 15000 per month.
• TheEmployees' Compensation Act,1923 enables the dependents of an employee to secure compensation at the cost of his employer after the deathof employee due to employment injury. It also provides for compensation in case of employment injury during the course of employment.
• The Employees' Deposit linked Insurance Scheme 1976, which provides benefits in case of death of an employee who was a member of the scheme at the time of his/her death.
• The Maternity Benefit Act, 1961 (M.B. Act), which provides for 26 Weeks of maternity leave out of which eight weeks before the expected date of delivery for upto 2 surviving children.For more than two children and for adopting/commissioning mothers,12 weeks of paid maternity leave.
• The Payment of Gratuity Act, 1972 (P.G. Act), which provides 15 days wages for each year of service to employees who have worked for five years or more in establishments having a minimum of 10 workers.
• Separate Provident fund legislation exists for workers employed in Coal Mines and Tea Plantations in the State of Assam and for seamen.
• Employees Pension Scheme 1995 came into force on 16 November, 1995 and applies to the employees of all factories and other establishments to which the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies. The Scheme was amended in 2014 to increase the wage ceiling for coverage under the scheme from Rs 6500 to Rs 15000 per month. Under the scheme, a guaranteed minimum pension of Rs 1000 per month to the member/widow(er)/disabled/nominee/dependent parent pensioners, Rs.750/- per month for orphan pensioners andRs.250/-per month for children pensioners.

Source : Ministry of Labour and Employment