Concept and Scope of Social Security in the Context

of India
Introduction
Social security is a basic human right and a key part of
a welfare state. It includes financial help and support
during times like unemployment, old age, illness,
disability, maternity, and work-related injuries. In India,
social security is guided by the Constitution and
influenced by economic changes, population growth,
and international agreements.
India's social security system has both contributory
(where people pay into the system) and non-
contributory (where the government funds it) schemes.
The Social Security Code of 2020 was introduced to
make the system more organized. However, issues like
low coverage, financial challenges, and administrative
problems remain.
What is Social Security in India?
Social security in India refers to a set of measures and
programmes designed to provide protection to
individuals and families against various risks and
vulnerabilities. These risks and vulnerabilities can
include old age, disability, illness, unemployment, and
poverty. The primary objective of social security in
India is to provide a safety net for those who are unable
to support themselves due to various reasons.
Social security in India is implemented by the
government through various schemes and programmes.
These schemes and programmes provide financial
assistance, insurance coverage, and other forms of
support to individuals and families in need.
The government of India has also implemented several
other schemes and programmes to ensure social security
for its citizens. These include the Mahatma Gandhi
National Rural Employment Guarantee Act
(MNREGA), the National Rural Livelihood
Mission (NRLM), the Rashtriya Swasthya Bima Yojana
(RSBY), and the National Social Assistance Program
(NSAP), among others.
Social security in India is an important aspect of the
country's welfare system. The government of India has
implemented several programmes and schemes to
ensure social security for its citizens, providing a safety
net for those who are unable to support themselves due
to various reasons. These programmes and schemes
play a crucial role in reducing poverty and
promoting inclusive growth in the country.

1. Concept of Social Security

1.1 Definition and Meaning
Social security encompasses policies and programs
designed to provide protection against economic and
social distress. The International Labour Organization
(ILO) defines social security as:
"The protection which society provides for its members
through a series of public measures to offset the
absence or substantial reduction of income from work
resulting from various contingencies, such as sickness,
maternity, employment injury, unemployment,
invalidity, old age, and death of the breadwinner."
In the Indian context, social security comprises
statutory and welfare measures introduced by the
government to ensure social justice and economic
security. These measures include provident funds,
pensions, medical benefits, maternity benefits,
employee compensation, and welfare funds.
1.2 Constitutional Provisions Related to Social
Security in India
The Constitution of India upholds social security as a
guiding principle through:
 Directive Principles of State Policy (DPSP):
o Article 41: The state shall, within its economic
capacity, provide public assistance for
unemployment, old age, sickness, and
disablement.
 o Article 42: The state shall make provisions for
just and humane conditions of work and
maternity relief.
o Article 43: The state shall secure a living
wage, decent working conditions, and social
security for all workers.
 Fundamental Rights:
o Article 21: Right to life and personal liberty
(interpreted to include the right to health and
social security).
 Seventh Schedule:
o Social security and labour welfare are included
in the Concurrent List, allowing both the
Centre and states to legislate on these matters.

2. Scope of Social Security in India

The scope of social security in India covers formal and
informal workers, with specific provisions for various
contingencies. It can be broadly categorized as follows:
2.1 Contributory Social Security Schemes
These schemes involve contributions from employers,
employees, or both. Major schemes include:
(a) Provident Funds and Pensions
  Employees’ Provident Fund (EPF): Managed by
the Employees’ Provident Fund Organisation
(EPFO), it is a retirement savings scheme where
employees contribute 12% of their salary, matched
by employers.
 National Pension System (NPS): A voluntary,
long-term pension scheme managed by the Pension
Fund Regulatory and Development Authority
(PFRDA).
 Atal Pension Yojana (APY): Provides pension
benefits for workers in the unorganized sector.
(b) Health and Medical Benefits
 Employees’ State Insurance (ESI) Scheme:
Provides medical care, sickness benefits, and
maternity benefits to employees earning up to
₹21,000 per month.
 Ayushman Bharat-Pradhan Mantri Jan Arogya
Yojana (PM-JAY): A health insurance scheme
covering low-income families.
(c) Maternity and Employment Benefits
 Maternity Benefit Act, 1961: Provides 26 weeks
of paid maternity leave and related benefits.
 Pradhan Mantri Matru Vandana Yojana
(PMMVY): Provides financial assistance to
pregnant and lactating mothers.
(d) Employee Compensation and Disability Benefits
 Employees’ Compensation Act, 1923: Provides
compensation for workers in case of occupational
injuries or death.
 PM Suraksha Bima Yojana (PMSBY): Accident
insurance covering accidental death and disability.
2.2 Non-Contributory Social Security Schemes
These are government-funded schemes designed for
vulnerable sections of society.
(a) Welfare Programs for the Poor and Unorganized
Sector
 National Social Assistance Programme (NSAP):
Provides pensions for elderly, disabled, and widows
below the poverty line.
 MGNREGA (Mahatma Gandhi National Rural
Employment Guarantee Act): Guarantees 100
days of wage employment to rural households.
(b) Insurance and Financial Assistance Schemes
 Pradhan Mantri Jeevan Jyoti Bima Yojana
(PMJJBY): A low-cost life insurance scheme.
 Public Distribution System (PDS): Provides
subsidized food grains to low-income families.
2.3 Social Security for Unorganized Sector Workers
Since 90% of India’s workforce is in the unorganized
sector, special measures have been introduced:
 Unorganized Workers’ Social Security Act, 2008
 E-Shram Portal: A database of unorganized
workers for better policy implementation.
 Rashtriya Swasthya Bima Yojana (RSBY):
Health insurance for BPL families.

3. Challenges in Implementing Social Security in

India
Despite various initiatives, several challenges persist:
1. Low Coverage and Awareness: Many workers,
especially in the informal sector, remain uncovered
due to a lack of awareness.
2. Fragmentation of Schemes: Multiple schemes
lead to administrative inefficiencies.
3. Financial Sustainability: Pension and health
insurance schemes face fiscal pressures due to an
aging population.
4. Bureaucratic Hurdles: Complex documentation
and enrollment procedures discourage
participation.
5. Gender Disparities: Women workers often have
limited access to social security benefits.
4. The Way Forward: Strengthening Social Security
in India
1. Universal Social Security: Implementing a unified
system covering all workers.
2. Digital Integration: Leveraging Aadhaar-based
identification to streamline enrollment.
3. Public-Private Partnerships: Encouraging
corporate contributions and private pension
schemes.
4. Awareness Campaigns: Increasing literacy about
existing schemes.
5. Gender-Sensitive Policies: Ensuring maternity
benefits and equal access for women.

Conclusion
Social security in India has evolved significantly, with
comprehensive policies covering various contingencies.
However, gaps remain in coverage, financial
sustainability, and implementation. The Social Security
Code, 2020, aims to consolidate and simplify existing
laws, but its success depends on robust enforcement.
Ensuring universal coverage, digital transformation, and
inclusive policies will be key to achieving a welfare-
oriented social security system in India.
For further reading, refer to:
  Ministry of Labour & Employment
(https://labour.gov.in)
 EPFO (https://www.epfindia.gov.in)
 International Labour Organization
(https://www.ilo.org)
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