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| I. Organised sector Social Security benefits for workers in the organized sector are provided through the following five Central Acts, namely: the ESI Act; the Employees Provident Fund and Miscellaneous Provisions Act (EPF & MP); The Workmen’s’ Compensation Act; The Maternity Benefit Act; and The Payment of Gratuity Act. The Employment Provident Fund and Miscellaneous Provisions Act, 1952 The EPF & MP Act is an important piece of Labour Welfare legislation enacted by the Parliament to provide social security benefits to workers. At present, the Act and the Schemes framed thereunder provide for three types of benefits: (i) a Contributory Provident Fund, (ii) pension benefits to the employees/ family members, and (iii) insurance coverage for the members of the Provident Fund. The Act was instituted in 1952 with the aim of providing a compulsory, contributory Provident Fund for employees to which both the employee and the employer would contribute. The EPF Scheme was also included in the Act and it came into effect on 1st November, 1952. For more information: http://esic.nic.in http://epfindia.nic.in II. Unorganised sector The Unorganized Workers’ Social Security Act, 2008 The Unorganized Sector Workers’ Social Security bill was introduced in the Upper House of the Indian Parliament (Rajya Sabha), on 10th September 2007 by the Union Minister of State for Labour, Shri Oscar Fernandes. This draft Bill received the assent of the President of India on 23rd December 2008 and has now become The Unorganized Workers’ Social Security Act, 2008. With this legislation, the legal foundation for a country-wide social security system for the informal sector was introduced. Events such as hospitalisation for birth or illness, financial compensation for permanent disability or death of the head of household and savings during old age require substantial financial coverage that is usually drawn from savings or lending. So, to cover this risk, the Government of India has introduced different schemes which have created a basic social security cover for the unorganized sector. Click here to read the wording of the act. |
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