Social Security Schemes

Prelims – Indian Polity and Governance.

Mains – GS I | Social empowerment, GS III | Government policies and interventions.

Why in News?

Union Labour Ministry has conducted a comprehensive data-pooling exercise in collaboration with the International Labour Organization (ILO).

Key findings of the report

As per ILO’s World Social Protection Report (WSPR) 2024-26 India’s social protection coverage has doubled from 2021 to 2024.
Nearly 65% of the country’s population is covered by at least one social protection benefit (cash and in-kind both), with 48.8% receiving cash benefits.
However, the ministry has stated that the ILO’s estimate is an underestimation, as it does not account for
- In-kind benefits such as food security and housing benefits and
- Social protection schemes administered by the States.

Social Security

It is the legal protection provided to individuals and households which helps to guarantee healthcare access and income security, especially in the event of old age, unemployment, illness, invalidity, work-related injuries, pregnancy or the death of a breadwinner.
Types of social security
Direct cash transfer (Example: Pensions, employment benefits).
In-Kind benefits (Example: subsidised food, healthcare, housing support).
Employment based schemes (Example: MGNREGA, EPF, ESI).

Constitutional and legal framework

Constitutional Provisions

Fundamental Rights - Article 21 (Right to life) includes the right to live with dignity, which extends to social security benefits.
Directive Principles of State Policy (DPSP)
- Article 41 (Right to work, education, and public assistance),
- Article 42 (Provision for just and humane conditions of work), and
- Article 43 (Living wage and social security for workers) guide social security policies.

Legal framework

Social Security to the workers in the organized sector is provided through five Central Acts namely,
Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 - Ensures provident fund, pension, and family pension for employees in 20+ workers establishments (wage ceiling: ₹15,000/month); separate laws for coal mines & tea plantations.
Employees’ State Insurance Act, 1948 - Covers employees in establishments with 10+ workers, providing medical, sickness, maternity, and disability benefits (wage limit: ₹21,000, ₹25,000 for PwDs); extended to 35 States/UTs.
Payment of Gratuity Act, 1972 - Provides 15 days’ wages per year of service to employees with 5+ years in establishments with 10+ workers.
Maternity Benefit Act, 1961 - Grants 26 weeks paid leave (12 weeks for third child, adoption, or surrogacy) to eligible women employees.
Compensation Act, 1923 - Provides compensation to employees or dependents in case of employment-related injury or death.

Social security schemes to unorganized sector

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) & Pradhan Mantri Suraksha Bima Yojana (PMSBY) - Life and Disability cover.
Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (ABPMJAY) – Provides an annual health cover of Rs. 5 lakhs per eligible family.
Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) – Provide old age protection
PM Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) Scheme – Provide collateral free working capital loan to street vendors.
e-Shram portal - Create National Database of Unorganised Workers.