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Germany was the first country to introduce Social security scheme (1883)
each member of a particular trade (blacksmiths, painters, weavers etc) was required
to contribute at regular intervals;
Money from this fund was used for food,lodging, hospital and feneral expenses of
aged and disabled members.
In USA, Social Security Act came into existence in 1935. (years not important, this is
only fodder material for Essay.)
India has always had a Joint Family system that took care of the social security
needs.
However with rise of migration, urbanization, nuclear families and demographic
changes, Joint family system has declined. Hence we need a formal system of
social security.
Article 42
Provision for just and humane conditions of work and maternity relief
State shall make provision for securing just and humane conditions of work and for
maternity relief.
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 social security benefits under above laws.
Examples: employees of union and state Government, army, navy, airforce,
Multinational companies, Infosys, TCS and so on.
Unorganized sector
Unorganized sector doesn’t have labour law coverage. These are seasonal and
temporary nature of occupations.
Casual nature of work, labour mobility is high hence bargaining power is low.
provides for 12 weeks wages during maternity as well as paid leave in certain other
related contingencies.
Payment of Gratuity Act, 1972 (P.G. Act)
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 10 workers.
Provident Fund
But From the point of view of government, Provident Fund is attractive because it
generates forced savings that can be used to finance national development plans.