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Unit 14: Quality of Work Life

to 10 percent. The government has introduced various provident fund schemes but the Notes
contributory fund scheme became more popular than others. According to the contributory
provident fund scheme, both employer and employee contribute equal portion of the basic
salary of the employee for provident fund. The total contribution of the provident fund is
then deposited with the Provident Fund Commissioner or any trust. The employees get the
provident fund after their retirement. The employees also get 8 to 12 percent interest on the
provident fund. Under this scheme individual pension and family pension are provided to
the employees of the company.
Government has introduced various schemes under this act. These are:
• Employees’ Pension Scheme, 1995 was introduced for the individual employees of a
company in 1995. Under this scheme, the employees are provided 50 percent of the
salary as their pension after retirement or superannuation after completing 33 years
of service.
• Death Relief Fund was established by the government in January 1964 in order to
provide financial help to the nominees or the successor member of the family whose
salary does not exceed ` 1,000 per month.
• Gratuity Scheme was a scheme introduced under the Payment of Gratuity Act, 1972,
is meant for factories, mines, oil fields, plantations, ports, railways, and other companies.
This act is applicable for the employees who obtain salary less than or equal to ` 3,500
per month.

• Employees’ Deposit-Linked Insurance Scheme was launched for the members of
Employees’ Provident Fund and the exempted Provident Funds on 15 August, 1976.
According to this scheme, after the expiry of the member of the provident fund, the
individual allowed to obtain the provident fund deposits would be given an extra
payment equal to the average balance in the provident fund account of the deceased
person during last three years. This scheme is applicable only when the average
amount is greater than or equal to ` 1,000.
• Group Life Insurance is a plan that provides coverage for the risks on the lives of a
number of individuals under one contract. However, the insurance on each life is
independent from the insurance of individuals. This facility is given to the employees
that work with an employer without evidence of insurability. Following are features
of group life insurance:
• Insurance is provided to the employees without any evidence of insurability.
• The insurance contract is signed between the insurance company and the employer.
There is no direct interaction of the employee with the insurance company.
• It is yearly renewable insurance plan.
• In case of an employee’s death, the claim received by the employer from the
insurance company is given to the nominee of the employee.
• The premium of the insurance is either paid by the employer or by both the
employer and the employee.
The Workmen’s Compensation Act, 1923
The Workmen’s Compensation Act was established by the government in 1923. According
to this act, a company needs to provide a payment of compensation to its employees and
their families on the occurrence of organizational accidents and some diseases leading to the
death or any kind of disablement of the individual. The main objective of this act is to force
a commitment on the employers to offer compensation to the employees for the accidents
that occur during the course of employment. Following are the important features of The
Workmen’s Compensation Act:

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