Social Security: A fundamental right of every worker
Social security is the protection provided by the government to ensure the country's workforce has financial security in case of retirement, unemployment, sickness, work injury, maternity, health emergencies or loss of the breadwinner.
Social Security is equal to so many benefits that you may be unaware of
Healthcare Benefits
-
A person insured under ESIC can enrol all his dependents under ESIC, and can avail of cash-free medical treatments, with no capping on expenditure at the assigned ESIC dispensary or referred ESIC hospital.
-
Medical Benefits include hospitalisations, medications, specialist consultations, laboratory testing and imaging, immunisations etc.
-
Maternity Benefits are provided to insured workers for up to 26 weeks and for specific amounts of time in case of complications, depending on the reason.
-
In case of temporary disablement, certain amounts of wages are payable for the duration of the disability. In case of permanent disablement, the duration is determined by the medical board.
Retirement Benefits
-
Members of EPF can attain a lump-sum amount on retirement.
-
Members of EPF will receive a monthly pension.
-
Those who are enrolled in EPF can withdraw partial amounts in advance for various reasons such as treatment of illnesses of self/ family, marriage of self, sibling or child, post-matriculation education of child, for purchase of a house etc.
-
Gratuity will be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
Insurance
-
In case of death of a member of EPF, the nominee is eligible for a benefit amount of up to Rs. 7 lakhs.
-
The widow/ widower of a deceased insured person is eligible for a minimum pension of Rs. 1,000/ month and each child receives a pension amount as well.
-
In case of layoffs, the insured person under ESI can get an unemployment allowance, medical treatment for themselves and their dependents at ESI dispensaries/ hospitals and vocational training for upskilling.
-
A member of EPF can avail an advance of up to 75% of the amount available in their PF account in case of unemployment.
Social Security is equal to so many benefits that you may be unaware of
95%
Gig Workers Lack Social Security
in India
Source: British Safety Council
94%
Domestic Workers Lack
Social Security Worldwide
Source: International Labour Organization
93%
Unorganised Workforce
in India
Source: Ministry of Labour & Employment, GOI
Common Questions
Social security benefits are provided through various government schemes, with EPF and ESI being two major ones. To learn more about the benefits covered under these schemes, visit www.esic.gov.in and www.epfindia.gov.in
EPF stands for Employees’ Provident Fund. It is a retirement benefits scheme launched under the supervision of the Government of India, under the applicable act, the Employee Provident Fund and Miscellaneous Provision Act, 1952. The Employee Provident Fund Scheme is regulated by the Ministry of Labour and Employment, Government of India and managed by Employee Provident Fund Organization (EPFO). The schemes covered under EPF are EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976 (EDLI).
Employees
-
PF is mandatory for employees drawing a salary of less than Rs. 15,000 per month and those drawing a salary of more than Rs.15,000 per month who are already a member of EPF.
-
PF is voluntary for those drawing a salary higher than Rs. 15,000 per month with a joint request from employer and employee. In such a case, the employer has to pay administrative charges on the higher wages (wages above Rs. 15,000/-)
-
Those who are enrolled in EPF can withdraw partial amounts in advance for various reasons such as treatment of illnesses of self/ family, marriage of self, sibling or child, post-matriculation education of child, for purchase of a house etc.
Employers
-
Contribution to PF is mandatory for organisations having 20 or more employees.
-
It is voluntary for the organisation to contribute to PF if they have less than 20 employees.
-
Employer: 13% {i.e.,12% of (Basic wage + dearness allowance + retaining allowance)+0.5% EDLI+ 0.5% Admin charges}
-
Employee: 12%, but can opt for a higher contribution.
The Employees' State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees' State Insurance Act and it is designed to accomplish the task of protecting 'employees' as defined in the Employees' State Insurance Act, 1948 against the impact of incidences of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families
Any employee earning less than or equal to Rs. 21,000 and Rs. 25,000 in case of a person with disability, is eligible for benefits under ESI scheme.
Under the ESI Scheme, employees and employers are required to contribute at a specified rate which is revised by the government from time to time. Currently, the contribution rates are:-
-
For employees: 0.75% of the wages paid/ payable
-
For the employer: 3.25% of the wages paid/ payable
Note: Employees in receipt of a daily average wage up to Rs.176/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Providing social security to your employees is the best way to contribute towards their welfare
Download the app to provide social security to your temporary, household, gig and informal workers