The Importance Of Social Security

Social Security is the integral part of development of the nation. It not only ensures the security benefits like wealth and health to an individual but also to his / her entire family. India spend around 2% of its GDP in these schemes which is very low as compared to the South American countries like Brazil and Argentina, whose annual spend on social security scheme is more than 12% of their GDP, while in other Asian countries also it is much greater than that of India. India has the world’s largest working population, employing around 475 million people, but still the benefit from these schemes are taken only by 38 million people who work in organized or formal sector which have direct employee-employer relation. So, only 8% of total Indian

This depends upon the contributory conditions. A worker covered under ESI is entitled to Extended Sickness Benefit. This provides the worker a benefit at the rate of 70% of the wage if he suffers from any of the 34 chronic and long term disease. From the day the worker enters into insurable employment, he and his family gets full medical care. Full wage for 12 weeks is provided to an insured woman in case of maternity. This period of 12 weeks can be extended further by thirty days. The scheme also provides 70% of the wage to a worker who is disabled due to injuries during the course of and out of employment. This is available from ESIC during the period of treatment and in which he is unable to work. There is no time limit under this benefit. Periodical payments are given to workers who suffer from permanent, partial or total disablement. It also given to the dependents of the worker in case of the death of the worker and is about 70% of the wage of the worker. ESIC benefits are provided through 138 ESI hospitals, 43 annexes, 1443 dispensaries and 3000 clinics of private medical practitioners located in various parts of the

The State Government with the approval of the Central Government may declare any of the provisions of this Act shall apply also to any other organization or class of establishment, commercial offices, industrial areas or any agricultural institution. The Act came into force on 16 September 1972. This Act provides for payment of lump sum gratuity to the employees. Under this scheme, the employee is liable to get Gratuity equivalent to 15 day’s wages for every completed year of service subject to a maximum of Rs.3.50 lakh per year of service completed. In case of seasonal establishments gratuity is paid equivalent to 7 day’s wages for every completed year. It is paid if the employee either leaves the job or retires or superannuate after completing at least five years of continuous service in the organization. The condition of continuous service is however, not applicable in case of death or