Employees’ State Insurance Act, 1948 (ESI Act)
- Applicability: To factories and establishments employing 10 or more persons.
- Contributions: Both employer and employee contribute a percentage of wages.
- Benefits:
- Medical care for employees and dependents.
- Sickness benefit (70% of wages for 91 days in a year).
- Maternity benefit (up to 26 weeks).
- Disablement and Dependents’ benefits.
- Funeral expenses.
Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act)
- Provident Fund (PF): Retirement savings contributed by both employer and employee.
- Pension Scheme: Monthly pension after retirement or for surviving family members in case of death.
- EDLI (Employee Deposit Linked Insurance): Insurance cover linked to the PF account.
Unorganized Workers Social Security Act, 2008
- Targets workers not covered under formal labour laws.
- Offers social security schemes like:
- Rashtriya Swasthya Bima Yojana (RSBY) for health insurance.
- Atal Pension Yojana (APY).
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
Code on Social Security, 2020
- Consolidates nine labour laws including ESI, EPF, maternity, and gratuity.
- Extends coverage to gig workers, platform workers, and unorganised sector.
- Introduces National Social Security Board for policymaking.
Significance of Social Insurance
- Economic Security: Helps families survive financial shocks.
- Health Protection: Ensures access to affordable medical treatment.
- Retirement Security: Provides post-retirement income.
- Social Equality: Reduces disparity between rich and poor.
- Productivity Boost: Motivates workers with secure futures.
Challenges
- Low coverage in unorganized sector.
- Delays in claim settlements.
- Lack of awareness among workers.
- Informal employment escaping the net.
Mnemonic to Remember Social Insurance Laws
“ESI Protects Every Worker’s Safety”
- E – ESI Act (Health & Sickness)
- P – Provident Fund Act (Retirement & Pension)
- E – EPF Insurance (EDLI)
- W – Welfare for Unorganized Sector
- S – Social Security Code, 2020
