Social security is defined as the security that the society furnishes through appropriate organizations against certain risks to which its members are exposed.
According to Lexicon Universal Encyclopaedia, the term social security has been defined as ‘consisting of public programmes intended to protect workers and their families from income losses associated with the old age, illness, unemployment, or death.
The term sometimes is also used to include a broad system of support for all those who, for whatever reasons, are unable to maintain themselves’.
The concept of social security is based on ideas of human dignity and social justice. The underlying idea behind social security measures is that a citizen who has contributed or is likely to contribute to his/her country’s welfare should be given protection against certain hazards.
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Learn about:- 1. Meaning and Definition of Social Security 2. Concept of Social Security 3. Characteristics 4. Significance 5. Measures 6. Benefits.
Learn about the Social Security: Meaning, Definition, Concept, Characteristics, Measures and Benefits
Social Security – Meaning and Definition
The term social security has been defined differently by authorities and, thus, there is no commonly accepted definition of the term. There are mainly two streams of thought on this issue, one represented by the ILO that limits the scope of social security to maintenance of one’s income against loss or diminution.
Another view perceives social security in a broader sense; in this sense, it is a set of policies and institutions designed to enable a person to attain and maintain a decent standard of life. This is described as a preventive or promotional form of social security.
Few Definitions:
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Social security is defined as the security that the society furnishes through appropriate organizations against certain risks to which its members are exposed.
In the historical perspective, the term social security was coined for the first time when the United States Social Security Act, 1935, came into existence. Subsequently, the term became popular in other western nations of the world.
In the USA, the term is used to denote old age survivors, invalidity, and health insurance schemes which function under the control of the Federal Government. In England, the term social security includes social assistance as well as social insurance scheme and is inclusive of the National Insurance Scheme, industrial injury scheme, and social assistance scheme under which supplementary benefits are provided to the workers.
The ILO has defined social security as ‘the surety that society furnishes, through appropriate organization, against certain risks to which the members are exposed. These risks are essentially contingencies against which the individuals of small means and meagre resources cannot effectively provide by their own ability or presight or even in private combination with their fellow workers—these risks being sickness, maternity, invalidity, old age, and death. It is the characteristics of these contingencies that they imperil the ability of the working class to support itself and its dependent in health and decency’.
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According to Lexicon Universal Encyclopaedia, the term social security has been defined as ‘consisting of public programmes intended to protect workers and their families from income losses associated with the old age, illness, unemployment, or death. The term sometimes is also used to include a broad system of support for all those who, for whatever reasons, are unable to maintain themselves’.
According to Lord Beveridge, social security, “is an attack on five giants viz., want, disease, ignorance, squalor and idleness.” This concept is related to social justice and equality. ILO defines social security as, “the security that society furnishes, through appropriate organisation against certain risks to which its members are exposed…. Social security is designed to prevent and cure disease, to support when people are unable to earn and restore to gainful employment.”
Social Security – Concept Defined by National Commission on Labour (NCL)
The concept of social security is based on ideas of human dignity and social justice. The underlying idea behind social security measures is that a citizen who has contributed or is likely to contribute to his/her country’s welfare should be given protection against certain hazards.
The concept of social security, thus, is based on the ideals of human dignity and socio-economic justice. Underlying the concept is also the desire to give protection to its citizens to contribute to a country’s total welfare against certain hazards of life to which they are exposed either in the working life or as a consequence of it.
The National Commission on Labour (NCL) (1969) has Defined the Concept of Social Security as Follows:
Social Security envisages that the members of a community shall be protected by collective action against social risk causing undue hardship and deprivation to individuals whose private resources can seldom be adequate to meet them.
The concept of Social Security is based on ideas of human dignity and social justice. It further tries to protect the citizens to contribute towards the countries total welfare.
The wages provided to the employees, particularly of the lower level may not be sufficient to meet their needs like medical, children education, maternity needs of women employees and employees’ wives’ etc. Therefore, Governments of various countries insist the employers to provide the security to their employees against the social evils. In addition. Governments also provide social security measures to the people.
Social Security – 4 Main Characteristics of Social Security Program
The main characteristics of the social security program are as follows:
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(1) Social Security Schemes are providing social assistance and social insurance to employees who have to face challenges of life without regular earning due to some contingencies in their life.
(2) These Schemes are implemented by enactments of law of the country.
(3) They generally are relief providers to employees who are exposed to the risks of economic and social security. This protection is provided to them by members of the society of which he is a part.
(4) These Schemes have a broad perspective. They not only provide immediate relief to the employees who have suffered on account of contingencies, but also provide psychological security to others who may face the same problems in times to come.
Social Security – Importance for the Employees as well as the Society
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Social security is basically related to the high ideals of human dignity and social justice.
The importance of social security for the employee as well as the society is incredibly high:
(a) Social Security is the main instrument of bringing about social and economic justice and equality in the society.
(b) Social Security is aimed at protecting employees in the event of contingencies. This support makes the employees feel psychologically secured. This enhances their ability to work.
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(c) Money spent on social security is the best investment which yields good harvest. The workforce maintenance is very essential not only for the organization but also for the country at large.
(d) In a welfare state, social security is an important part of public policy. In countries where social security is not given adequate consideration in public policy, the government remains unsuccessful in maintaining equality and justice.
Social Security – Measures
Ensuring social security measures for the citizens of a country is the fundamental responsibility of the government. India being a welfare state, the Constitution of India has described it as a democratic and socialist Republic.
The clauses that define fundamental rights and formulate the directive principles of State policy in our Constitution leave no doubt about the concern and commitment of the government to the rights of citizens to enjoy social security. Ours is a democratic country based on the premise of equality and accountability.
We are also a socialist state which accepts the responsibility for providing and ensuring Social Security to all its citizens without any discrimination. Broadly speaking, the idea of Social Security is that, the Centre and the State government shall make itself responsible for ensuring a minimum standard of material welfare to all its citizens on a basis wide enough to cover all contingencies of life.
There is perhaps no country in the world which does not take care of the Social Security measures. But the types of Social Security measures provided by the various governments differ from country to country.
Social Security – Benefits in India: Social Insurance and Social Assistance
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India is a Welfare State as envisaged in her constitution. Article 41 of the Indian Constitution lays down, “The State shall within the limits of its economic capacity and development make effective provision securing the right to work, to education and to public assistance in case of unemployment, old age, sickness, and disablement and other cases of unserved wants.”
Thus, social security constitutes an important step towards the goal of Welfare State, by improving living and working conditions and affording people protection against the various kinds of hazards.
Social security benefits are provided in India through legislations. Workmen’s Compensation Act, 1923 enforces the employer to provide compensation to a workman for any personal injury caused by an accident, for loss of earnings etc. The Employees’ State Insurance Act, 1948 enforces the employers to provide sickness benefits, maternity benefit to women employees, disablement benefit, dependent’s benefit, funeral benefit and medical benefits.
The Employees Provident Fund and Miscellaneous Provisions Act, 1952 enforces the employer to provide provident fund, deposit-linked insurance etc. The Maternity Benefit Act, 1961 provides for medical benefits, maternity leave etc. The Payment of Gratuity Act, 1952 provides for the payment of gratuity at the time of retirement.
Social security legislations in India suffer from the defects like duplication. For example. Employees’ State Insurance Act and Maternity Benefit Act provide for maternity benefits. In addition, different administrative authorities implement the law, resulting from overlapping. Hence, the Study Group (1957-58) appointed by the Government of India suggested an integrated social security scheme in India.
This integrated social security scheme should provide for medical care, insurance against sickness, maternity benefits unemployment insurance, employment injury, and old age pension. This scheme should be enforced by a single agency in order to avoid overlapping and duplication.
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India is a welfare state and social security is an essential component of government policy.
Social security benefits in India are provided in two major way:
1. Social Insurance.
2. Social Assistance.
1. Social Insurance:
In this scheme, a common fund is established with periodical contributions from workers, according to their nominal paying capacity. The employers and state provide the portion of the finance. Provident fund and group insurance are example of this type.
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2. Social Assistance:
Under this, the cost of benefits provided is financed fully by the government without any contributions from workers and employers. However, benefits are paid after judging the financial position of the beneficiary. Old age pension is an example.