Social security means security against any unfavorable condition. Social security primarily refers to a social insurance program providing social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others.
Primarily social security means the security of income up to a minimum. Social security may provide for the welfare of person who became incapable of working by reason of old age sickness and invalidity and are unable to earn anything for their livelihood. It has been considered essential for workers, though with the development of the idea of welfare state, its scope should be widened to cover all sectors of society.
With the introduction of the industrialization and growth of society, it has been increasingly felt that the institution of social security should be established. Today, social insurance has spread throughout the world. It is an integral feature of social democracy.
According to Beveridge, social security means the security of an income to take the place of earning when they are interrupted by unemployment, sickness or accident to provide for retirement through age, to provide against loss of support by the death of another person and to meet exceptional expenditure such as these connected with birth’s death and marriage.
Meaning of Social Security
Social security is the security which the society as whole provides to its individual against the commons risks of life such as employment injury occupational disease invalidity or disablement ill health or sickness maternity or childbirth old age burial or funeral, widowhood orphans and unemployment etc which leads to income and their earning capacity without security, an average citizen can never live rather die peacefully because such risks are not only numerous but their incident is also fairly high in modern complex society.
The formal definition of ILO on social security read like this: basically, it can be taken to mean the protection which society provides for its members through a series of public measures, against the economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earning resulting from (1) sickness, (2) maternity, (3) employment injury, (4) unemployment, (5) invalidity, (6) old age and (7) death; (8) the provision of medical care; and (9) the provision for families with children (ILO 1984).
Social Security Provided By
LABOR ACT, 2074
Weekly Holiday – 1 day every week
Public Holiday – 13 days including May day. Additional 1 day to female employees including Intl Women Labor Day. Annual Leave – 1 day for every 20 worked days.
– Half paid up to 15 days. – Eligibility : Completion of 1 year of service.
Mourning Leave – 13 days
Leave in lieu – For the laborers put in work on a public holiday or weekly off.
Maternity Leave – Fully paid up to 60 days.
Paternity Leave – 15 days.
Leave is not a right! Under the Labour Rules, no employee can claim a leave as a matter of right. It should only be treated as a facility, which could be permitted by an employer. However, the court has by interpretation established that some kind of leave can be taken by an employee even if it is not authorized by the employer.
Change by collective bargaining: An employee working in the organization has the right to union. Ten or more employees working in an organization can form a Plant Level union. The Plant Level union has the right to submit a charter of demand and bargain collectively with the management. The collective agreement may change social security provisions of a particular organization. This can be settlement shall be valid for up to two year.
LABOR ACT, 2074
Provident Fund Section: 52
– Employers Contribution: 10% of basic remuneration.
– Employees Contribution: 10% of basic remuneration. – Deposited to Social Security Fund. – Eligible since the first day of employment.
Gratuity Section: 53
– There is no such restriction for the duration of service in the entity for the calculation of the amount of Gratuity as per the new act.
– Rate: 8.33% of basic remuneration every month – Eligible from the first day of employment. – Amount to be deposited to the Social security Fund.
Leave Encashment Section:49
– Accumulated annual leave up to 90 days and sick leave up to 45 days can be encashedat the time of discontinuation of service
Severance Compensation Section: 145
– Rate: 1 month salary for every year of service – Eligible on a proportionate basis. – Not entitled to severance compensation if he/she is entitled to unemployment allowance under Social Security Act
LABOR ACT, 2074
Festival Expenses Section: 37
– Amount equivalent to the monthly remuneration once a year. The employee not completing one year is entitled to the expenses on a proportional basis.
Compensation against injury
– Compensation is to be provided from the insurance amount.
– Employee or worker shall be paid from an insurance amount on the basis of the degree of disability.
– The nearest successor is entitled to the amount of accident insurance as per the act.
– Coverage: At least 1 Lakh per year for every worker. Premium to be paid equally by the employer and worker. Accident Insurance
– Coverage: At least 7 Lakh for every worker. Premium to be paid fully by the employer.
Bonus – 10% of Net Profit.