labour welfare and social society

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CHAPTER 1

Meaning and definition of labour welfare

Labour welfare means anything done for the comfort and

improvement, intellectual and social, of the employees over and above

the wages paid which is not a necessity of the Industry.

According to Industrial Labour Organisation (ILO)

Labour welfare may be understood and including such servicesfacilities and amenities which may be established in vicinity of

undertaking to perform their work in healthy and congenial

environment and to avail of facilities which improve their health and

bring high morale.

Meaning and definition of social security

Social security is a concept enshrined in Article 22 of the

Universal Declaration of Human Rights which states that Everyone, as

a member of society, has the right to social security and is entitled to
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realization, through national effort and international co-operation and

in accordance with the organization and resources of each State, of the

economic, social and cultural rights indispensable for his dignity and

the free development of his personality. In simple term, this meansthat the signatories agree that society in which a person lives should

help them to develop and to make the most of all the advantages

(culture, work, social welfare) which are offered to them in the

country.

Social security may also refer to the action programs of

government intended to promote the welfare of the population through

assistance measures guaranteeing access to sufficient resources for

food and shelter and to promote health and wellbeing for the

population at large and potentially vulnerable segments such as

children, the elderly, the sick and the unemployed. Services providing

social security are often called social services.
http://en.wikipedia.org/wiki/Economic,_social_and_cultural_rightshttp://en.wikipedia.org/wiki/Human_dignityhttp://en.wikipedia.org/wiki/Social_serviceshttp://en.wikipedia.org/wiki/Social_serviceshttp://en.wikipedia.org/wiki/Human_dignityhttp://en.wikipedia.org/wiki/Economic,_social_and_cultural_rights


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Social security and labour welfare in india

1. Introduction

One of the major concerns of the Government has been the

improvement of labour welfare with increasing productivity and

provision of a reasonable level of social security.

The situation of surplus labour, coupled with employment of most of

the workers in the unorganized segments of the economy, has given

rise to unhealthy social practises like bonded labour, child labour and

adverse working conditions faced by the migrant labour. Within the

available resources, a limited effort at handling these problems has not

been feasible.

2. Minimum Wage Act

The wages of the workers in the unorganized sector of employment

are primarily fixed under the Minimum Wages Act, 1948. Under the

Act both Central and State Governments are appropriate governments


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for fixation/ revision of minimum rates of wages in respect of the

scheduled employments falling under their respective jurisdiction.

3. Payments of Wagers Act, 1936

This Act was enacted to regulate the payment of wages to

certain classes of person (whose monthly wage is below Rs. 1600)

employed in industry with the object to provide for a speedy and

effective remedy to the employees arising out of illegal deductions or

unjustified delay made in paying the wages to them.

4. Wage Board for Newspaper Employees

The Working Journalists and Other Newspaper Employees

(Conditions of Service) and Miscellaneous Provisions Act, 1955

regulates conditions of service of working journalists and other

persons employed in newspaper establishments.

5. Contract Labour (regulation and Abolition Act, 1970, and

bonus Act, 1965

This Act was enacted to regulate the employment of contract labour in

certain establishments and for matters connected therewith. The Act

provides for the Constitution of Central and State Advisory Boards to

advise the concerned governments on matters arising out of the

administration of the Act. This Act provides for payment of bonus to

employees as defined under the Act.

Bonded Labour System (Abolition) Act, 1976


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This act envisages release of all bonded labourers, liquidation of their

debts and their rehabilitation. Under this Act, identification and

release of bonded labourers and rehabilitation of freed bonded

labourers is the direct responsibility of the State Governmentconcerned.

6. Industrial Relations

Trade Union Act, 1926

This Act provides for registration of trade unions. Any seven or more

workers may, by subscribing their names to the rules of a trade union

and otherwise complying with the provisions of the Act with respect

to registration, apply for registration of the trade union under the Act.

Code of Discipline

The Code of Discipline was evolved at the Indian Labour Conference

in 1958 requiring employers and workers to utilize the existing

machinery for the settlement of disputes.

Industrial Disputes Act, 1947

The layoffs, retrenchments and closures are regulated under the

provisions of the Industrial Disputes Act, 1947. The Government has

taken steps to further regulate lay offs, retrenchments and closures

through the Industrial Disputes (Amendment) Acts of 1982 and 1984.

7. Social Security


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Workmen's Compensation Act, 1923

This Act provides for payment of compensation to workmen and their

dependents in case of injury and accident (including certain

occupational disease) arising out of and in the course of employment

and resulting in disablement or death.

Maternity Benefit Act, 1961

It regulates employment of women in certain establishments for a

certain period before and after childbirth and provides for maternity

and other benefits. The Act applies to mines, factories, circus,

industry, plantation, shops and establishments employing ten or more

persons, except employees covered under the Employees State

Insurance Act, 1948.

Payment of Gratuity Act, 1972

It is applicable to factories, mines, oil fields, plantations, ports,

railways, motor transport undertakings, companies, shops and other

establishments. The Act provides for the payment of gratuity at the

rate of 15 days' wages for each completed year of service subject to a

maximum of Rs. 3,50,000.

Employees State Insurance Act

This Act is applicable in the first instance to non- seasonal factories

using power and employing 10 or more persons and non-power using

factories employing 20 or more persons. It covers employees drawing

wages not exceeding Rs. 6,500 with effect from 1 January 1997.


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Provident Fund and Miscellaneous Provisions Act, 1952

Under this Act, retirement benefits in the form of provident fund,

family pension and deposit linked insurance are available to

employees.

Employees' Deposit Insurance Scheme, 1976

It was introduced for members of the Employees' Provident Fund and

exempted provident funds with effect from 1 August, 1976.

Employees Pension Scheme, 1995

Under this scheme pension at the rate of 50% pay is payable to the

employees on retirement/superannuation on completion of 33 years'

contributory service. A minimum of 10 years' service is required for

entitlement to pension.

Emigration Act, 1983

This Act regulates immigration of citizens of India for employment in

other countries on contractual basis and seeks to safeguard the interest

of such workers. Under the provisions of the Act, an employer can

recruit any citizen of India for employment in any country or place

outside India either through Recruiting Agent competent under the

Act to make such recruitment or directly in accordance with a valid

permit issued by the Central Government under the Act.

8. Vocational Training


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Industrial Training Institutes were set up all over the country to impart

skills' in 42 engineering and 18 non- engineering trades to young men

and women in the age group of 15-25 years.

Advanced Training Institutes (ATls) at Howrah, Mumbai, Kanpur,

Ludhiana, and Hyderabad and the Central Training Institute for

instructors at Chennai, were established in 1960s to train instructor

trainees in the techniques of imparting skills, who in turn train and

make available skilled manpower for industry.

Advanced Vocational Training Scheme (AVTS) was launched inOctober 1977 for training of highly skilled workers and technicians in

a variety of advanced and sophisticated skills not available for other

vocational training programmes.

9. Womens Vocatonal Training Programme

In 1996, National Council for Vocational Training

recommended that in general ITIs, up to 25 per cent of the sanctioned

seats might be reserved for women candidates.

Under the vocational training programme managed directly by the

Ministry of Labour DGE&T, a National Vocational Training Institute

at Noida as an apex centre and ten Regional Vocational Training

Institutes at Mumbai, Bangalore, Thiruvananthapuram, Calcutta,Hissar, Tura, Allahabad, Indore, Vadodara and Jaipur have been set

up with an intake capacity of .one thousand nine hundred and twenty

in basic, advanced and instructional skills.


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Central Instructional Media Institute (CIMI) which was granted

autonomy from 1 April, 1999, has been set up in Chennai to make

available instructional materials in the form of Media Packages (MPs)

for the use of trainers and trainees in the ITIs and apprentices underthe Apprenticeship Training Scheme.

The Apprentices Act, 1961, makes it mandatory for employers in

specified industries to engage apprentices for undergoing

Apprenticeship Training, which varies from one year to four years.

10. Working Conditions and Welfare

To provide housing, medical, recreational, educational family welfare

and other welfare facilities, welfare funds have been created like:

(a) Mica Mines Labour Welfare Fund Act, 1946

(b) Limestone and Dolomite Mines Labour Welfare Fund Act, 1972

(c) Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines,

Labour Welfare Fund Act, 1976.

(d) Beedi Workers' Welfare Fund Act, 1976

(e) Cine-Workers' Welfare Fund Act, 1981.

11. National Employment Services

It has a network of nine hundred and forty five employment

exchanges/University Employment Information and Guidance

Bureaux (UEIGBX) at the end of February 1999. It assists all


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employment seekers through placement against job notified by

employers.

Under the Employment Exchanges (Compulsory Notification of

Vacancies) Act, 1959, it is obligatory for all establishments in the

public sector and such of those non- agricultural establishments in the

private sector which employ twenty five or more workers to notify

their vacancies (with certain exemptions), to employment exchanges

and supply periodic information as prescribed in the Act and in the

rules thereunder. There are thirty seven special exchanges for the

physically handicapped.

12. Workers Safety

The Factories Act 1948 is the principal legislation for regulating

various aspects relating to safety, health and welfare of workers

employed in factories. This Act is a Central enactment which aims at

protecting workers employed in factories from industrial and

occupational hazards. The Directorate General, Factory Advice

Service and Labour Institute (DGFASLI), Mumbai, an attached office

of the Ministry of Labour, renders technical advice to the States/UTs

in regard to administration and enforcement of the Factories Act.

Provisions relating to safety, health and welfare of workers employed

in docks are contained in the Dock Workers (Safety, Health, and

Welfare) Act, 1986 and rules and regulations framed thereunder. The

Act came into force on 15 April, 1987.


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The National Safety Council was set up in 1966 to promote safety

consciousness workers to prevent accidents,minimise dangers and

mitigate human sufferings. National Safety Day is celebrated on 4

March, every year to mark the foundation day of the National SafetyCouncil.

Prime Minister's Shram Awards (Shram Ratna Rs. 2 lakh, Shram

Bhushan Rs. 1 lakh, Sharm Vir Rs. 60,000 and Shram Shri/Devi Rs.

40000) are given to workmen of the departmental undertakings and

the public sector undertakings of the Central Government and State

Governments in recognition of their outstanding contribution to

production and for showing exemplary zeal in the discharge of their

duties.

Shram Vir awards which are now known as Vishwakarma Puruskar

were instituted in 1965.

The Government instituted in 1965 the National Safety Awards. The

National Safety Awards for mines were instituted in 1983, under the

purview of the Mines Act, 1952.

13. Five-Year Plan and Labour Welfare

Five-Year Plan will aim at reducing the number of laws which

determine relations between workers and employers, with theobjective that a much smaller number of laws can reach the entire

work force.

Second National Commission on Labour


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The First National Commission on Labour was constituted on 24th

December 1966 and it submitted its report on August 1969. Different

far-reaching changes have taken place. The reform measures of 1991

have brought about radical transformations in the domestic industrialscenario and the labour market.

Accordingly, the Government decided to set up the Second National

Commission on Labour on 24th December 1998, for suggesting

appropriate changes in labour legislation/policy. The resolution for

setting up the Commission was issued on 15th October, 1999.

The Second- National Commission is headed by Chairman and two

full- time Members, including Member Secretary. There are seven

part time Members representing trade unions, industry, women-expert

etc. The Commission is required to give its final report within twenty

four months from the date of its constitution.


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CHAPTER 2

INTRODUCTION TO MIS ICT LTD

Management Information systems Company Ltd (MIS) is a

conglomerate and one of the foremost Nigerian ICT, Chemical

Analysis, Test and Measurement Equipment, Medical

Equipment, B2B, Be-spoke and Portal Design, Systems

Integration companies with over two decade track record.

A leading integrator of competitive, innovative business

solutions based on Information and Communications

Technology (ICT), MIS has offices in major locations in

Nigeria. The company employs over 100 highly skilled

employees.

Management signaled a clear commitment to transformation

when the company created two subsidiaries with specialization

in their core areas of operation to provide our customers with

specialized service in their niche segment. Thus early in 2007,

MIS group created the following subsidiaries;

MIS Software Nigeria LimitedSynapse Technologies Limited
http://www.misnigeria.com/softabout.phphttp://www.misnigeria.com/synapseabout.phphttp://www.misnigeria.com/synapseabout.phphttp://www.misnigeria.com/softabout.php


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In terms of human resources and skills, we have over 45

technical staff most of whom are highly qualified and

experienced Engineers handling Hardware, Software, Network

implementation, installation, maintenance, Systems Integrationand Consulting as well as corporate and end-user training

services. Over 80% of our Engineers have one recognized

professional certification or the other.

In order to deliver a world class service, MIS nurtures strong

relationships with many of the world's leading ICT companies

including HP, Agilent, IBM, BICC, Microsoft, Cisco Systems,

AutoDesk, and Netsupport.

MIS Co. Limited became Hewlett Packard Authorized

Distributor in 1985 covering from the basic Handheld to the

most sophisticated and powerful Servers in HP range. The

relationship also included HP's Authorization for sales,

installation, and maintenance of Medical Equipment, Test &

Measurement Instruments, and Chemical Analysis products

making MIS Co. Limited the Sole Full Function HP Partner in

Nigeria at the time.

In September 1997, MIS Company Limited was appointedIBM Authorized Business Partner for her PCs, RS/6000

Servers and Workstations, Networking solutions, Mass storage

solutions, Automatic Teller Machines, and electronic payment


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solutions etc.

In the same year MIS Co. Limited was also authorized as the

BICC Installer and Support Centre for Millennium StructuredCabling Scheme based on our installation expertise and volume

of business generated.

MIS in 1998 was appointed Microsoft Authorized Senior

Partner and in less than one year became Microsoft Certified

Solution Provider with a plethora of over 15 Microsoft

Certified Systems Engineers.

MIS has been appointed the sole NetSupport Partner in Nigeria

and currently covers all NetSupport Software which includes,

NetSupport DNA, NetSupport Manager, NetSupport School

and NetSupport Helpdesk.

MIS was invited by Autodesk in 2005 to be a Value Added

partner for its AutoCAD products and services. Within 6

months, MIS had the biggest Autodesk order ever in Nigeria

thereby setting the pace. Autodesk has since become one of our

favorite portfolios where we offer presales advice and after

sales support to our numerous CAD customers.

Our Cisco partnership has been weak despite our strong

commitment both in terms of human development and sales.


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Cisco partnership is one of our focus this year.

MIS Software Nigeria Limited has developed a premium

Nigerian Accounting Package known as the ExpressBook. Thisproduct was developed to provide our old and new customers

with the best accounting package Nigerianized and affordable.

In our on going quest to deliver innovative solutions that add

real business value to our clients, MIS combines our own

expertise, tools, resources and vertical sector knowledge with

that of our partners. The group believes that innovation will

shape the sustainability of the 21st century enterprise and an

innovation program is a key element of the company's internal

business improvement strategy.

Currently, we have over 30 (Thirty) high net-worth customers

in the Oil & Gas, Service, Hospitality, Manufacturing,

Government, Telecom (PTT), Power Generation &

Distribution, and Banking/Financial sectors that we are

servicing in Hardware and Software supply, installation, and

services, LAN and WAN design, implementation, and support

as well as training, IT out-sourcing, help-desk solution, and

overall IT advisory services.


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OBJECTIVES

provide customized products and services of quality and value

that satisfy their requirements.

Our business is focused on customers and a commitment to

quality. Our core values are integrity, innovation, flexibility

and high-level achievement through teamwork.

reward staff that through exceptional effort and

attitudecontribute to the success of the company.

individual freedom in attaining well-defined objectives.

company growth and achieve company objectives. Profit is the

responsibility of all staff within the company.

:: Our differentiation

The difference between MIS and its competitors is twofold.

Firstly, in the value-add that it provides, and secondly services

will make up a large portion of the company's revenue. The

traditional Information Technology business derives zero

revenue from services and provides little or no value-add in

terms of providing a solution to the customer. They tend to rely

more on demand created by the vendors for commodity type


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products and then merely fulfil the logistics function of

stocking and delivery. MIS will focus on value-add and

services encompassing pre and post sales activities.

:: Value-add and Services

"Value-add" and "Services" at MIS are not merely buzzwords!

MIS will act as the "One-Stop-Shop" for pre sales, sales, post sales

support and services to the Customer. Our primarily goal is to be

"THE TRUSTED ADVISOR" to the customer.

MIS offers a comprehensive range of services to the Reseller and

thereby enabling the Reseller to increase their revenue streams.

MIS services encompass a full range of product and service

offerings, ranging from business consulting, system development,

decision support systems and end-user support. For those services

that MIS is not able to satisfy in-house, our partners' resources are

then called in giving the customer a truly one-stop-shopping

Labor welfare has the following objectives:

1. To provide better life and health to the workers

2. To make the workers happy and satisfied

3. To relieve workers from industrial fatigue and to improve

intellectual, cultural and material conditions of living of the

workers.


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The basic features of labor welfare measures are as follows:

1. Labor welfare includes various facilities, services and amenities

provided to workers for improving their health, efficiency,

economic betterment and social status.

2. Welfare measures are in addition to regular wages and other

economic benefits available to workers due to legal provisions and

collective bargaining

3. Labor welfare schemes are flexible and ever-changing. New

welfare measures are added to the existing ones from time to time.

4. Welfare measures may be introduced by the employers,

government, employees or by any social or charitable agency.

5. The purpose of labor welfare is to bring about the development


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of the whole personality of the workers to make a better

workforce. The very logic behind providing welfare schemes is to

create efficient, healthy, loyal and satisfied labor force for the

organization. The purpose of providing such facilities is to maketheir work life better and also to raise their standard of living.

The important benefits of welfare measures can be summarized as

follows:

They provide better physical and mental health to workers and

thus promote a healthy work environment Facilities like housing

schemes, medical benefits, and education and recreation facilities

for workers families help in raising their standa rds of living. This

makes workers to pay more attention towards work and thus

increases their productivity.

Employers get stable labor force by providing welfare facilities.

Workers take active interest in their jobs and work with a feeling

of involvement and participation.

Employee welfare measures increase the productivity of

organization and promote healthy industrial relations thereby

maintaining industrial peace.The social evils prevalent among the

labors such as substance abuse, etc are reduced to a greater extent

by the welfare policies.

Organizations provide welfare facilities to their employees to keep

their motivation levels high. The employee welfare schemes can


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be classified into two categories viz. statutory and non-statutory

welfare schemes. The statutory schemes are those schemes that are

compulsory to provide by an organization as compliance to the

laws governing employee health and safety. These includeprovisions provided in industrial acts like Factories Act 1948,

Dock Workers Act (safety, health and welfare) 1986, Mines Act

1962. The non statutory schemes differ from organization to

organization and from industry to industry.

STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic

drinking water should be provided.

2. Facilities for sitting: In every organization, especially factories,suitable seating arrangements are to be provided.

3. First aid appliances: First aid appliances are to be provided and

should be readily assessable so that in case of any minor accident

initial medication can be provided to the needed employee.

4. Latrines and Urinals: A sufficient number of latrines and urinals

are to be provided in the office and factory premises and are also

to be maintained in a neat and clean condition.


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5. Canteen facilities: Cafeteria or canteens are to be provided by

the employer so as to provide hygienic and nutritious food to the

employees.

6. Spittoons: In every work place, such as ware houses, store

places, in the dock area and office premises spittoons are to be

provided in convenient places and same are to be maintained in a

hygienic condition.

7. Lighting: Proper and sufficient lights are to be provided for

employees so that they can work safely during the night shifts.

8. Washing places: Adequate washing places such as bathrooms,

wash basins with tap and tap on the stand pipe are provided in the

port area in the vicinity of the work places.

9. Changing rooms: Adequate changing rooms are to be provided

for workers to change their cloth in the factory area and office

premises. Adequate lockers are also provided to the workers to

keep their clothes and belongings.

10. Rest rooms: Adequate numbers of restrooms are provided to

the workers with provisions of water supply, wash basins, toilets,

bathrooms, etc.


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NON STATUTORY SCHEMES

Many non statutory welfare schemes may include the following

schemes:

1. Personal Health Care (Regular medical check-ups): Some of the

companies provide the facility for extensive health check-up

2. Flexi-time: The main objective of the flextime policy is to

provide opportunity to employees to work with flexible working

schedules. Flexible work schedules are initiated by employees and

approved by management to meet business commitments while

supporting employee personal life needs

3. Employee Assistance Programs: Various assistant programs are

arranged like external counseling service so that employees or

members of their immediate family can get counseling on variousmatters.

4. Harassment Policy: To protect an employee from harassments

of any kind, guidelines are provided for proper action and also for

protecting the aggrieved employee.

5. Maternity & Adoption Leave Employees can avail maternity

or adoption leaves. Paternity leave policies have also been

introduced by various companies.


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6. Medi-claim Insurance Scheme: This insurance scheme provides

adequate insurance coverage of employees for expenses related to

hospitalization due to illness, disease or injury or pregnancy.

7. Employee Referral Scheme: In several companies employee

referral scheme is implemented to encourage employees to refer

friends and relatives for employment in the organization.


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Basic Principles of successful Labor Welfare

Programs :

1. Workers should always be paid their expected salaries. Labour

welfare should not be replaced by inadequate income or health

benefits. Rather labour welfare is a sum of adequate income,

benefits and related entities.

2. A nurturing and responsible environment must be created by the

industrial sector.

3. The industry should aim toward increasing the overall

efficiency of its workforce. Efficiency is the key to a successful

business. Efficiency can be increased by the industry by ensuring

that its workers are provided with proper housing, education,

training, and a well balanced diet.

4. Industrial labour must be treated like human beings with wants

and needs. Labour in an industry must be respected as people, and

not used as tools.

5. Everyone in the industry should equally be aware of and accept

the concept of labour welfare.

6. Welfare should not only encompass a person's work life, but

also his/her life at home, educational institution, and community.

7. Individuals involved in the creation and implementation of

welfare programs must use democratic values to make their


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decisions. The voice of the majority must be considered.

Furthermore, workers must be involved in making decisions on

welfare management.

8. Everyone involved in welfare management must accept the full

responsibility and implement it. Labour unions, together must be

involved with the senior management, must take up the

responsibility of labour welfare. In addition, various committees

must be assigned smaller tasks and must be held responsible for

9. Labor welfare programmes must be constantly reviewed andscrutinized. All the parties involved must submit to the periodic

reviews and offer their honest opinions.

10. Welfare schemes must be carried out at the correct time.

Timeliness is extremely important.

11. Welfare schemes must be aimed at simple-minded individuals.

All individuals receiving welfare must be comfortable with the

scheme and must be able to help themselves if need arises.


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LAWS RELATING TO LABOUR

WELFARE

Labour welfare refers to all such services,amenities and facilities to

the employees that improves their working conditions as well as

standard of living. The term labour welfare bears a different

interpretation from country to country and from time to time, and even

in the same country, according to its value system, social institution,

degree of industrialisation and general level of social and economic

development. Generally, the labour welfare services are divided into

two groups:-

Welfare within the precincts of an establishment - It includes

medical aid, creches, canteens, supply of clean drinking water,

health services, uniforms and protective clothing, rest shelters,etc. It is the employer's responsibility to provide these facilities

to his/ her employees and several legislations have been enacted

to set certain minimum standards for provision of these

facilities.

Welfare outside the establishment - It includes social insurance

measures like gratuity,pension fund, provident fund,etc;

educational facilities; housing facilities; recreational facilities;

workers' cooperatives; vocational training, etc.

In order to extend a measure of social assistance to workers in the


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unorganised sector, the concept of 'Labour Welfare Fund' was

evolved. Accordingly, five welfare funds have been set up under the

Ministry of Labour and Employment to provide housing, medical

care, educational and recreational facilities to workers employed inbeedi industry, certain non-coal mines and cine workers. These funds

are financed out of the proceeds of cess levied under respective

Cess/Fund Acts. The various legislation so enacted include:-

The Mica Mines Labour Welfare Fund Act, 1946 - was enacted

to provide for constitution of a fund for financing the activities

which promote welfare of labour employed in the mica mining

industry.

The Limestone and Dolomite Mines Labour Welfare Fund Act,

1972 - was enacted to provide for the levy and collection of a

cess on limestone and dolomite for financing the activities

which promote the welfare of persons employed in the

limestone and dolomite mines. The Iron Ore Mines, Manganese Ore Mines & Chrome Ore

Mines Labour Welfare Fund Act, 1976- was enacted to provide

for financing the activities which promote the welfare of

persons employed in the iron ore mines, manganese ore mines

and chrome ore mines.

The Beedi Workers Welfare Fund Act, 1976 - was enacted to

provide for financing the measures which promote the welfare

of persons engaged in beedi establishments.; and

The Cine Workers Welfare Fund Act, 1981 - was enacted to

provide for financing the activities which promote the welfare
http://business.gov.in/outerwin.php?id=http://labour.nic.in/dglw/Welf_Fund.htmlhttp://business.gov.in/outerwin.php?id=http://labour.nic.in/http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=194622http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197262http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197262http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197262http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197262http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197661http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197661http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197661http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197661http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197662http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=198133http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=198133http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197662http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197661http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197661http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197262http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=197262http://business.gov.in/outerwin.php?id=http://indiacode.nic.in/rspaging.asp?tfnm=194622http://business.gov.in/outerwin.php?id=http://labour.nic.in/http://business.gov.in/outerwin.php?id=http://labour.nic.in/dglw/Welf_Fund.html


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of certain cine-workers.

The above Acts provide that the fund may be applied by the Central

Government to meet the expenditure incurred in connection with

measures and facilities which are necessary to provide the welfare of

the respective workers.

The Labour Welfare Organization administers these funds and is

headed by a Director General (Labour Welfare) / Joint Secretary. He

is assisted by the Welfare Commissioner (Headquarters) of Director

rank, who supervises nine Regional Welfare Commissioners for thepurpose of administration of these funds in the States. These offices of

regional Commissioners are located at Allahabad, Bangalore,

Bhilwara, Bhubaneshwar, Kolkata, Hyderabad, Jabalpur, Karma

(Jharkhand) and Nagpur. They are responsible for providing welfare

facilities to the workers employed in mica, limestone and dolomite,

iron ore, manganese and chrome ore mines and in the beedi and

cinema industries.

The Chief Adviser (Labour Welfare) supervises the functioning of

Assistant Labour Welfare Commissioners (ALWCs), Deputy Labour

Welfare Commissioners (DLWCs) and Labour Welfare

Commissioners (LWCs). The ALWCs and DLWCs are posted in

Defence and other establishments, such as, CPWD, Security Presses,Mints, Ordnance Factories, Telecom Factories, and Hospitals etc.,

which are under the control of Central Government. The LWCs are

posted at the Head Quarters of these establishments. Together these

officers ensure harmonious Industrial Relations in their respective
http://business.gov.in/outerwin.php?id=http://labour.nic.in/dglw/welfareorgan.htmlhttp://business.gov.in/outerwin.php?id=http://labour.nic.in/dglw/hq.htmlhttp://business.gov.in/outerwin.php?id=http://labour.nic.in/dglw/telephonelistofWC.pdfhttp://business.gov.in/outerwin.php?id=http://labour.nic.in/dglw/telephonelistofWC.pdfhttp://business.gov.in/outerwin.php?id=http://labour.nic.in/dglw/hq.htmlhttp://business.gov.in/outerwin.php?id=http://labour.nic.in/dglw/welfareorgan.html


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establishments. They also look after the welfare and redressal of

grievances of the workers, administration of Welfare Schemes and

advise the managements on various Labour Matters including

constitution of bilateral committees, such as, Shop Councils, WorksCommittees etc.

The scheme of Welfare Funds is outside the framework of specific

employer and employee relationship, in as much as the resources are

raised by the Government on a non-contributory basis and delivery of

welfare services affected without li nkage to individual workers

contribution.

To advise the Central Government on matters related to

administration of the above Funds, tripartite Central Advisory

Committees have been set up under the respective Welfare Fund Acts.

These Committees are headed by Union Labour & Employment

Minister.

3.5.1 The productivity of labour is an essential condition for the

prosperity of enterprises and the well being of the workers and their

families. While the production facilities at workplace and the

remuneration are important, attitudes towards work, and the value

placed by the society on dignity of labour are equally important in

influencing the productivity of labour.


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A STUDY ON EMPLOYEE WELFARE MEASURES

The current financial year is expected to add 10 million tones further.

Productionfor the ful l year to be expe cte d t o b e rais ed by

10-12%. Of this, south is to be themaximum gainer with

around 10% growth.The cement industry witnessed a

contraction. In operating profit marginsnationally. In the

year ended March97 due to a slowdown in demand growth rate,

higher supplies for new commission capacitates and cost increases.

Housing sector is yielding aminimum cement demand growth rate, of

6%.T h e R a k e s h M o h a n c o m m i t t e e h a s f o r e c a s tt h e i n v e s t m e n t o u t l a y s o n infrastructure to rise to

4000-4500billion rupees over the next 5 years. Beyond 2003-

2004, these requirements would be in the range of 7500

billion rupees. The industrialgrowth rate too is expected to rise

from 8 to 8.5% in the past 10-12%.The per capital consumption is

expected to touch 85Kg by 2004 by possibly 13Kgin 2012. If the

present growth trend continues. To achieve even 75% of world

average oninvestment of 40,000 Crores rupees on plants besides

additional investment of same order on adequate infrastructure

will be required over 10-15years. The demand by 2012

is placed at 140 million -150 million tons in the wake of the industrial

and economic growthunleashed by the liberalization process.

The growth prospects of the industry are thusassured.


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METHODOLY AND ANALYSIS OF DATA

RESEARCH METHODOLY

Research methodology is a way of systematically

solving the research problem. Research methodology deals with

the research design used and methods used to present the study.

1. R e s e a r c h D e s i g n

A research design is a detailed blue print used to guide a research

study toward its o b j e c t i v e . T h e p r o c e s s o f d e s i g n i n g ar e s e a r c h s t u d y i n v o l v e s m a n y i n t e r r e l a t e d

decisions. The most significant decision is the choice of

research approach, because it determines how the

information will be obtained. The choice of the research

approach depends on the nature of the research that one wants to

do.The research design adopted for this study is Descriptive Research.

Descriptive method was adopted because it deals with description of

the state of affairs as it exists at present.

Sampling Techniques

The next step in research study after collecting data is the sampling

process. When adecision is made to use the sample, a number of

factors must be taken into consideration.The various steps involved in

the sampling process are:

Identifying target population.

Determining sample frame.


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Selecting sampling procedure.

Determine sample size.

Execute sampling.

Obtaining information from respondents.Generating information for decision making.

Tools for data collection

There are several ways of colleting the appropriate data. While

deciding about the method of data collection to be used for the study,

the researcher should keep in mind, that there are 2 types of

data.1.Primary data2.Secondary data

Primary data are those which are collected a fresh and for the first

time and thus happen to be original in character. Primary data can be

collected either through experiment or through survey. The secondary

data on the other hand are those which have already been collected by

someone else and which have already been passed through the

statistical process. In this study, the data was collected from the

primary source through interview schedule.


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OVERVIEW

WHY DO WE NEED SOCIAL SECURITY

Social Security protects not just the subscriber but also his/her entirefamily by giving benefit packages in financial security and health

care. Social Security schemes are designed to guarantee at least long-

term sustenance to families when the earning member retires, dies or

suffers a disability. Thus the main strength of the Social Security

system is that it acts as a facilitator - it helps people to plan their own

future through insurance and assistance. The success of Social

Security schemes however requires the active support and

involvement of employees and employers.

As a worker/employee, you are a source of Social Security protection

for yourself and your family. As an employer you are responsible for

providing adequate social security coverage to all your workers.

Background information on Social Security

India has always had a Joint Family system that took care of the social

security needs of all the members provided it had access/ownership of

material assets like land. In keeping with its cultural traditions, family

members and relatives have always discharged a sense of shared

responsibility towards one another. To the extent that the family has

resources to draw upon, this is often the best relief for the special

needs and care required by the aged and those in poor health.However with increasing migration, urbanization and demographic

changes there has been a decrease in large family units. This is where

the formal system of social security gains importance. However,

information and awareness are the vital factors in widening the


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coverage of Social Security schemes.

Social Security Benefits in India are Need-based i.e. the component of

social assistance is more important in the publicly-managed schemes-

In the Indian context, Social Security is a comprehensive approach

designed to prevent deprivation, assure the individual of a basic

minimum income for himself and his dependents and to protect the

individual from any uncertainties. The State bears the primary

responsibility for developing appropriate system for providing

protection and assistance to its workforce. Social Security is

increasingly viewed as an integral part of the development process. It

helps to create a more positive attitude to the challenge of

globalization and the consequent structural and technological changes.

WORKFORCE IN INDIA

The dimensions and complexities of the problem in India can be better

appreciated by taking into consideration the extent of the labour force

in the organized and unorganized sectors. The latest NSSO survey of

1999-2000 has brought out the vast dichotomy between these two

sectors into sharp focus. While as per the 1991 census, the total

workforce was about 314 million and the organized sector accountedfor only 27 million out of this workforce, the NSSOs survey of 1999 -

2000 has estimated that the workforce may have increased to about

397 million out of which only 28 million were in the organized sector.

Thus, it can be concluded from these findings that there has been a


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growth of only about one million in the organized sector in

comparison the growth of about 55 million in the unorganized sector.

Organized and Unorganized Sectors

The organized sector includes primarily those establishments which

are covered by the Factories Act, 1948, the Shops and Commercial

Establishments Acts of State Governments, the Industrial

Employment Standing Orders Act, 1946 etc. This sector already has a

structure through which social security benefits are extended to

workers covered under these legislations.

The unorganized sector on the other hand, is characterized by the lack

of labour law coverage, seasonal and temporary nature ofoccupations,

high labour mobility, dispersed functioning of operations,

casualization of labour, lack of organizational support, low bargaining

power, etc. all of which make it vulnerable to socio-economic

hardships. The nature of work in the unorganized sector varies

between regions and also between the rural areas and the urban areas,

which may include the remote rural areas as well as sometimes the

most inhospitable urban concentrations. In the rural areas it comprises

of landless agricultural labourers, small and marginal farmers, share

croppers, persons engaged in animal husbandry, fishing, horticulture,bee-keeping, toddy tapping, forest workers, rural artisans, etc. where

as in the urban areas, it comprises mainly of manual labourers in

construction, carpentry, trade, transport, communication etc. and also


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includes street vendors, hawkers, head load workers, cobblers, tin

smiths, garment makers, etc.

SYNOPSIS OF SOCIAL SECURITY LAWS

The principal social security laws enacted in India are the following:

(i) The Employees State Insurance Act, 1948 (ESI Act) wh ich covers

factories and establishments with 10 or more employees and provides

for comprehensive medical care to the employees and their families as

well as cash benefits during sickness and maternity, and monthly

payments in case of death or disablement.

(ii) The Employees Provident Funds & Miscellaneous Provisions

Act, 1952 (EPF & MP Act) which applies to specific scheduled

factories and establishments employing 20 or more employees and

ensures terminal benefits to provident fund, superannuation pension,

and family pension in case of death during service. Separate laws exist

for similar benefits for the workers in the coal mines and tea

plantations.

(iii) The Workmens Compensation Act, 1923 (WC Act), which

requires payment of compensation to the workman or his family in

cases of employment related injuries resulting in death or disability.

(iv) The Maternity Benefit Act, 1961 (M.B. Act), which provides for12 weeks wages during maternity as well as paid leave in certain other

related contingencies.


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(v) The Payment of Gratuity Act, 1972 (P.G. Act), which provides 15

days wages for each year of service to employees who have worked

for five years or more in establishments having a minimum of 10workers.

Separate Provident fund legislation exists for workers employed in

Coal Mines and Tea Plantations in the State of Assam and for seamen.

Measures being undertaken at present

The various Central Acts on Social Security are being examined in

the light of the recommendations of the 2nd National Commission on

Labour. Relevant amendments are proposed in the EPF and MP Act as

also the ESI Act. The consultation process is on with reference to the

amendment suggestions received in case of the Maternity Benefit Act

and the Workmens Compensation Act.

Innovative measures are proposed in the running of the Social

Security Schemes of EPFO and ESIC. This includes flexible benefit

schemes tailored to the specific requirements of different segments of

the population.

SUMMARY OF PRESENT INITIATIVES IN

WORKING OF EPFO & ESIC

The profiles of the Employees Provident Fund Organization and the


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Employees State Insurance Corporation are being changed towards

greater accessibility and client satisfaction.

The EPFO extends to the entire country covering over 393824

establishments. At present, over 3.9 crore EPF Members and theirfamilies get benefits under the social security schemes administeredby

the EPFO. The total corpus of the EPF Scheme 1952, EDLI Scheme,

1976 and Employees Pension Scheme 1995 together amounts to about

Rs.1,39,000 crores. Over the years, the volume of service rendered to

subscribers as well as investments made, etc. by EPFO have grown

manifold. With a view to provide better services to subscribers and

employers, the organization has launched the Project RE-

INVENTING EPF, INDIA since June, 2001. The prime objectives of

this Project are to provide the subscribers better and efficient services,

to help the employers by reducing the cost of compliance and to

benefit the organization to register geometric growth in all fields. An

important part of this Project is the allotment of the UNIQUE

IDENTIFICATION NUMBER-the SOCIAL SECURITY NUMBER

to the EPF subscribers, issuing of BUSINESS NUMBERS to the

employers and Business Process Re-engineering.

The strategy for implementation has been evolved and the allotment

of the Social Security Number has begun with the entire activity being

carried out in smaller phases for effective data collection. The criteria

considered for the allotment of SSN include the centralized control of Uniqueness, ensuring the least manual intervention during allotment

and near 100% Uniqueness accuracy levels. The Social Security

Number in a nutshell is a big effort towards solving the problem of

providing social protection to migrant labour and to make the data


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base of EPFO adaptable to the present trend of high job mobility

among workers.

The Employees State Insurance Scheme provides need based social

security benefits to insured workers in the organized sector. As in thecase of the EPFO, the ESIC has also taken up the daunting task of

tailoring different benefit schemes for the needs of different worker

groups. The scheme, which was first introduced at two centers in 1952

with an initial coverage of 1.20 lakh workers, today covers 71.59 lakh

workers in about 678 centers in the country. It benefits about 310. 54

lakh beneficiaries including the family workers of the insured persons,

across the country. The scheme is being gradually to cover new

centers and steps are being taken for creation of requisite

infrastructure for providing medical care to a larger number of insured

persons and their families. While the cash benefits under the scheme

are administered through a network ofabout 850 local offices and pay

offices, medical care is provided through 141 ESI Hospitals, 43 ESI

Annexes, 1451 ESI Dispensaries and 2789 Clinics of Insurance

Medical Practitioners. The total number of medical officers under the

Scheme is about 10,480.

There have been a number of new developments in the ESIS during

the past five years. Each year, it is extended to new areas to cover

additional employees. The new employees covered varied from

30,500 in 1998, 89030 in 2000 to 46430 till Jan., 2003. Low paidworkers in receipt of daily wages up to Rs. 40/- have been exempted

from payment of their share of contribution. Earlier this limit was Rs.

25/-. This measure has benefited about six lakh insured workers

across the country. In order to provide relief to insured persons


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suffering from chronic and long term diseases, the list of diseases for

which Sickness Benefit is available for an extended period up to two

years at an enhanced rate of 70% of daily wages, was enlarged by

adding four new diseases, keeping in view the internationalclassification of disease profiles and the quantum of malignancies of

some diseases which had come to light over the last few years. The

contributory conditions for this benefit were also reduced from 183

days to 156 days in the two-year period preceding the diagnosis.

The ESIC has made plans to commission Model hospitals in each

State. Thirteen States/ UTs have so far agreed, in principle, to hand

over one hospital each to the ESIC for setting up of Model hospital.

Two Hospitals have been earmarked for being developed for

superspeciality medical care in cardiology, i.e., Rohini at Delhi and

Chinchwad in Maharashtra.

In order to improve the standard of medical care in the States, the

amount reimbursable to the State Governments for running the

medical care scheme has been increased to 87.5 % of Rs. 700 per

capita with effect from 1.4.2003. The ESIC has formulated action

plans for improving medical services under the ESI scheme with focus

on modernization of hospitals by upgrading their emergency and

diagnostic facilities, development of departments as per disease

profiles, waste management, provision of intensive care services,

revamping of grievance handling services, continuing educationprogramme, computerization and upgradation of laboratories etc. The

action plans have been in operation since 1998. The ESIC has also

taken certain new initiatives to promote and popularize Indian

Systems of Medicines (ISM) along with Yoga and have drawn up


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programmes for establishing these facilities in ESI hospitals and

dispensaries in a phased manner.

SOCIAL SECURITY TO THE WORKERS IN THE

ORGANIZED SECTOR

Social Security to the workers in the Organized Sector is provided

through five Central Acts, namely, the ESI Act, the EPF & MP Act,

the Workmens Compensation Act, the Maternity Benefit Act, and thePayment of Gratuity Act. In addition, there are a large number of

welfare funds for certain specified segments of workers such as beedi

workers, cine workers, construction workers etc.

SOCIAL SECURITY AND ILO/ISSA

Government of India has accepted the international commitment that

arises from the ratification of the Covenant of Social, Economic and

Cultural Rights of the united nations. This Covenant, inter alia

recognises the right of everyone to social security including social

insurance. India has also ratified some Conventions of the ILO

including Workmens Compensation, (Occupational Diseases) (No.

18 and revised Convention No. 42 of 1934); Equality of Treatment

(Accident Compensation) No. 19 of 1925; and Equality of

Treatment (Social Security) No. 1 & 8 of 1962.


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ILO CONVENTION 102 has however not been ratified by India.

The following nine benefits are laid down in the ILO Convention

No.102 of 1952 namely, sickness benefit, medical benefit, maternitybenefit, employment injury benefit, old-age benefit, invalidity benefit,

survivors benefit, unemployment benefit and family benefit.

SOCIAL SECURITY COVERAGE IN INDIA

Most social security systems in developed countries are linked to

wage employment. In India our situation is entirely different from that

obtaining in developed countries. The key differences are:

i) We do not have an existing universal social security system

ii) We do not face the problem of exit rate from the workplace being

higher than the replacement rate. Rather on the contrary lack of

employment opportunities is the key concern,

iii) 92% of the workforce is in the informal sector which is largely

unrecorded and the system of pay roll deduction is difficult to apply.

Even today 1/8th of the worlds older people live in India. The

overwhelming majority of these depend on transfers from their

children. Addressing social security concerns with particular reference

to retirement income for workers within the coverage gap has beenexercising policy makers across the world. In India the coverage gap

i.e. workers who do not have access to any formal scheme for old-age

income provisioning constitute about 92% of the estimated workforce

of 400 million people. Hence the global debate and evaluation of


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options for closing the coverage gap is of special significance to India.

The gradual breakdown of the family system has only underscored the

urgency to evolve an appropriate policy that would help current

participants in the labour force to build up a minimum retirementincome for themselves.

4. The coverage gap in India is broadly categorized under the

following groups:

a) Agricultural sector = 180 million.

b) Contract, services, construction = 60 million.

c) Trade, Commerce, transport, storage

& Communications = 100 million.

d) Others = 30 million.

___________

Total = 370 million

HOWEVER ONE IMPORTANT FACTOR TO BE KEPT IN MIND

ON THE COVERAGE ISSUE IS THAT THIS CLASSIFICATION

DOES NOT INCLUDE THE VARIOUS SOCIAL SECURITY

SCHEMES RUN BY OTHER MINISTRIES FOR DIFFERENT

TARGET GROUPS. WE HAVE ALSO NOT INCLUDED

INDIRECT FUNDING THROUGH SUBSIDIES, PDS, SOCIAL

ASSISTANCE PROGRAMMES, FOOD-FOR-WORK

PROGRAMMES, TAX CONCESSIONS ETC.EXTENSION OF COVERAGE

Currently, social security policy makers and administrators are

engaged in a wide-ranging debate to redress the problems in providing

social security in the country. This debate has thrown up various


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arguments on the efficacy of publicly managed social security

schemes as opposed to privately managed schemes. There is no

standard model that can be adopted on this issue. In the Indian context

the privately managed schemes can at best be considered assupplementary schemes after the mandatory schemes managed

publicly. It is only the publicly managed scheme, which will extend to

all the sectors of the workforce. The challenge of closing the coverage

gap in social security provisions has to be developed at two levels.

The first level involves the re-engineering of the institutional

arrangements to increase efficiency. The second level is to create an

appropriate legislative and administrative framework for significant

increase in the social security coverage especially in the unorganized

sector.

In India currently only about 35 million out of a workforce of 400

million have access to formal social security in the form of old-age

income protection. This includes private sector workers, civil

servants, military personnel and employees of State Public Sector

Undertakings. Out of these 35 million, 26 million workers are

members of the Employees Provident Fund Organization. As such

the current publicly managed system in India is more or less entirely

anchored by the Employees Provident Fund Organisation. It may be

noted that in the last 50 years, the Employees Provident Fund

Organisation has been in existence, there has been no instance of anyscam or a situation where the Fund has been exposed to speculation

and risk. Another important contribution of EPF is now proposed to

extend to the critical life benefit of providing shelter. The Shramik

Awas Yojana aims at providing a cost effective Housing Scheme


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specific for EPF numbers. This involves cooperation between

organizations such as HUDCO, Housing Agencies, State

Governments, Employers and EPF Members with the EPFO playing

the role of facilitator. The investments are directed into the prescribedsecurities and portfolios as per the pattern laid down by the Finance

Ministry.

FUNCTIONS OF SOCIAL SECURITY DIVISION

List of subjects

1. Matters concerning framing of social security policy especially for

the organized sector of workers.

2. A dministration of Employees State Insurance Act, 1948.

3. Administration of the Employees Provident Funds &

Miscellaneous Provisions Act, 1952 and three schemes framed there

under, namely:-

i. The Employees Provident Fund Scheme, 1952

ii. The Employees Pension scheme, 1995iii. The Employees Deposit linked Insurance Scheme, 1976.

4. Workmens Compensation Act, 1923.

5. Maternity Benefits Act, 1961.

6. Payment of Gratuity, Act, 1972

7. Establishment matters relating to the Employees State Insurance

Corporation Constitution of ESI Corporation, Standing Committee

and Medical Benefit Council of ESIC as also Regional Board.

8. Administrative matters of ESI Corporation including

implementation of ESI Scheme in New Geographical Areas, opening

of Sub-Regional Offices of ESIC and up-gradation of Medical


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facilities.

9. Annual report, Budget and accounts, and matters connected with

auditing of accounts of the ESIC and EPFO

10. Issues relating to International Social Security Association(ISSA); and other international Social Security organizations. Processing of

ILO Conventions relating to Social Security.

11. All Parliamentary matters and MP/VIP References in relation to

the above as also legislative matters/ amendment in respect of the

aforesaid Acts.

12. Vigilance matters/ Disciplinary proceedings relating to officers of

EPFO and ESIC.

13. Representations from employees of ESIC and EPFO, and general

public grievances on ESIC/ EPFO/Social Security measures in India.

14. All matters relating to setting up of EPF Appellate Tribunal

Establishment matters and appointment of Staff.

15. Constitution of the Central Board of Trustees and Regional

Committees, EPFO.

16. All matters relating to :

i. Pattern of investment of provident fund money;

ii. Declaration of rate of interest on the provident fund;

iii. Enhancement of the rate of provident fund contributions;

iv. Budget of the EDLI Scheme and EPS;

v. Payment of Central Government contribution and administrativecharges for Family Pension Scheme, Deposit Linked Insurance under

the EPF Act as well as the Assam Tea Plantation Provident Fund Act.

vi. References relating to recovery of EPF/ESI

dues/Exemptions and Exclusions from the EPF&MP Act


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and also the ESI Act.

EPFO Programs At A Glance

Program name

Program TypeFinancing

Coverage

ESI Contribution Rates

Employees - 1.75% of wages

Employers - 4.75% of wages

State Govts. -1/8th share of expenditure

NEW INITIATIVE IN SOCIAL SECURITY

Varishtha Pension Bima Yojana (VPBY): This scheme proposed in

the 2003-04 budget by the Ministry of Finance is to be administered

by the Life Insurance Corporation of India (LIC). Its main featues are

summarized below:

Under VPBY, any citizen above 55 years of age, could pay a lump -

sum, and get a monthly pensions are pegged at Rs. 250 and Rs. 2000

per month respectively. These amounts are not indexed to inflation.

There is a guaranteed return of 9 percent per annum for this scheme.

The difference between the actual yield earned by the LIC under this

scheme and the 9 percent will be made up by the Central Government. THE EPF & MP ACT IS PROPOSED TO BE AMENDED

SUITABLY TO ALLOW EPF SUBSCRIBERS TO INVEST IN THE

Documents

labour welfare and social society