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Unit 14: Quality of Work Life

• Maternity Benefit Notes

• Invalidity Benefit
• Survivor’s Benefit
14.3.1 Social Security in India

Social security schemes may be of two types:
(a) Social Assistance

Under this scheme, which the State finances the entire cost of the facilities and benefits is
provided. Here benefits are paid after examining the financial position of the beneficiary.

(b) Social Insurance
Under social insurance, the State organizes the facilities financed by contributions from both
the workers and employers, with or without a subsidy from the State. Here, benefits are paid
on the basis of the contribution record of the beneficiary without testing his means.
At present both types of social security schemes are in vague in India.

14.3.2 Drawbacks of Social Security Schemes in India
(a) Our social security measures are fragmented in character. All social security provisions
need to be integrated into one Act.
(b) The burden of various social security benefits, at present, is borne predominantly by
the employer. Very little contribution is made by the workers or the State. This is
against the social security principle.
(c) The social security benefits at present cover the industrial workers only. Workers in
the unorganized sectors do not get these benefits.

(d) There is no effective implementation and enforcement of the Acts pertaining to social
security schemes.

14.3.3 Laws and Acts
There are various laws and acts that have been passed since Independence to govern the
functioning of a company. These laws and acts provide social security to the employees of
the company. Following are some of the important laws and acts:
• The Employees’ State Insurance Act, 1948
• The Employees’ Provident Fund Act, 1952

• The Workmen’s Compensation Act, 1923
• The Maternity Benefit Act, 1961
• The Industrial Disputes Act, 1947

The Employees State Insurance Act, 1948
The Employees’ State Insurance Act was passed in 1948 to make available various social
welfare facilities to the employees of a company through one agency. The Employees’ State
Insurance Scheme (ESIS) is a compulsory and causative scheme for the well-being of the
employees. According to this Act, a company should provide medical benefits, such as
medical attendance, treatment, drugs and injections to the insured employees having net
salary less than ` 6,500. The scheme covers their family members too. This Act is applicable
only to the companies that employ 20 employees or more.

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