ACTS GOVERNING ACTS GOVERNING SOCIAL SECURITY SOCIAL SECURITY MEASURES IN MEASURES IN

INDIAINDIA

NEED FOR SOCIAL SECURITYNEED FOR SOCIAL SECURITY

Social Security protects the subscriber and Social Security protects the subscriber and his/her entire family by giving beneficial his/her entire family by giving beneficial packages in financial security and health care. It packages in financial security and health care. It facilitates people to plan their future through facilitates people to plan their future through insurance and assistance. insurance and assistance.

Social Security schemes are designed to Social Security schemes are designed to guarantee at least long-term sustenance to guarantee at least long-term sustenance to families when the earning member retires, dies families when the earning member retires, dies or suffers a disabilityor suffers a disability. .

WORKFORCE IN INDIAWORKFORCE IN INDIA

                  The dimensions and complexities of the problem in The dimensions and complexities of the problem in India can be better appreciated by taking into consideration India can be better appreciated by taking into consideration the extent of the labour force in the organized and the extent of the labour force in the organized and unorganized sectors. unorganized sectors.

    While as per the 1991 census, the total workforce was While as per the 1991 census, the total workforce was about 314 million and the organized sector accounted for about 314 million and the organized sector accounted for only 27 million out of this workforce.only 27 million out of this workforce.

The NSSO’s survey of 1999-2000 has estimated that the The NSSO’s survey of 1999-2000 has estimated that the workforce had increased to about 397 million out of which workforce had increased to about 397 million out of which only 28 million were in the organized sector. There has only 28 million were in the organized sector. There has been a growth of only about one million in the organized been a growth of only about one million in the organized sector in comparison the growth of about 55 million in the sector in comparison the growth of about 55 million in the unorganized sector.unorganized sector.

Organized sectorOrganized sector

    The organized sector includes primarily those The organized sector includes primarily those establishments whichestablishments which

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

Establishments Acts of State Governments, the Industrial Establishments Acts of State Governments, the Industrial Employment Standing Orders Act, 1946 etc.  This sector Employment Standing Orders Act, 1946 etc.  This sector

already hasalready has a structure through which social security benefits are a structure through which social security benefits are

extended to extended to workers covered under these legislations. workers covered under these legislations. 

Unorganized sectorUnorganized sector

       

        The unorganized sector on the other hand, is characterized by

the lack of labour law coverage, seasonal and temporary nature of occupations, high labour mobility, dispersed functioning of operations, lack of organizational support, etc. all of which make it vulnerable to socio-economic hardships.    Landless agricultural labourers, farmers, persons engaged in animal husbandry, fishing, horticulture, bee-keeping, rural artisans, etc. Where as in the urban areas, it comprises mainly of manual labourers in construction, carpentry, trade, transport, communication, street vendors, hawkers, head load workers, garment makers, etc. 

SYNOPSIS OF SOCIAL SYNOPSIS OF SOCIAL SECURITY LAWS SECURITY LAWS

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

The Employees’ State Insurance Act, 1948 (ESI Act)The Employees’ State Insurance Act, 1948 (ESI Act)

The Employees’ Provident Funds & Miscellaneous Provisions Act, The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act)1952 (EPF & MP Act)

The Workmen’s Compensation Act, 1923 (WC Act),The Workmen’s Compensation Act, 1923 (WC Act),

The Payment of Gratuity Act, 1972 (P.G. Act), The Payment of Gratuity Act, 1972 (P.G. Act),

The Maternity benefit Act,1961.The Maternity benefit Act,1961.

The Employees’ State Insurance The Employees’ State Insurance Act, 1948 (ESI Act)Act, 1948 (ESI Act)

The promulgation of Employees’ State Insurance Act, The promulgation of Employees’ State Insurance Act, 1948 envisaged an integrated need based social 1948 envisaged an integrated need based social insurance scheme that would protect the interest of insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or due to employment injury resulting in loss of wages or earning capacity. earning capacity.

The Act also guarantees reasonably good medical care The Act also guarantees reasonably good medical care to workers and their immediate dependants. Following to workers and their immediate dependants. Following the promulgation of the ESI Act the Central Govt. set up the promulgation of the ESI Act the Central Govt. set up the ESI Corporation to administer the Scheme. The the ESI Corporation to administer the Scheme. The Scheme, thereafter was first implemented at Kanpur and Scheme, thereafter was first implemented at Kanpur and Delhi on 24th February 1952. Delhi on 24th February 1952.

Benefits Benefits  The section 46 of the Act envisages following social security benefits :-The section 46 of the Act envisages following social security benefits :-

Medical benefitMedical benefit

Sickness benefit (SB)Sickness benefit (SB) (a) (a) Extended Sickness BenefitExtended Sickness Benefit (b) (b) Enhanced Sickness BenefitEnhanced Sickness Benefit

Maternity Benefit (MB)Maternity Benefit (MB)

Disablement BenefitDisablement Benefit (a) (a) Temporary disablement benefit (TDB)Temporary disablement benefit (TDB) (b) (b) Permanent disablement benefit (PDB)Permanent disablement benefit (PDB)

Funeral ExpensesFuneral Expenses

The Employees’ Provident Funds & The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Miscellaneous Provisions Act, 1952 (EPF & MP

Act)Act)The EPF & MP Act, 1952 was enacted by Parliament and came into force The EPF & MP Act, 1952 was enacted by Parliament and came into force with effect from 14th March,1952. A series of legislative interventions were with effect from 14th March,1952. A series of legislative interventions were made in this direction, including the Employees' Provident Funds & made in this direction, including the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. Presently, the following schemes are Miscellaneous Provisions Act, 1952. Presently, the following schemes are in operation under the Act: in operation under the Act:

I. Employees' Provident Fund Scheme, 1952II. Employees' Pension Scheme, 1995 (replacing the Employees'

Family Pension Scheme, 1971)

III. Employees' Deposit Linked Insurance Scheme, 1976

The Employees' Provident Fund Organization, India, is one of the largest The Employees' Provident Fund Organization, India, is one of the largest provident fund institutions in the world in terms of provident fund institutions in the world in terms of members and volume of financial transactions that it has been carrying on.members and volume of financial transactions that it has been carrying on.

Employees' Provident Fund Scheme, 1952Employee Provident Fund Scheme:Employee Provident Fund Scheme:

Which applies to specific scheduled factories and establishments Which applies to specific scheduled factories and establishments employing 20 or more employees and ensures terminal benefits to employing 20 or more employees and ensures terminal benefits to provident fund, superannuation pension, and family pension in case of provident fund, superannuation pension, and family pension in case of death during service. death during service. 

Employees' Provident Fund Scheme takes care of following needs of the Employees' Provident Fund Scheme takes care of following needs of the members: members:

i.i. Retirement                              Retirement                              ii.ii. Medical Care                      Medical Care                       iii.iii. HousingHousingiv.iv. Family obligation                        Family obligation                        v.v. Education of Children Education of Children vi.vi. Financing of Insurance Polices Financing of Insurance Polices

BENEFITSBENEFITS A member of the provident fund can withdraw full A member of the provident fund can withdraw full

amount at the credit in the fund on retirement from amount at the credit in the fund on retirement from service after attaining the age of 55 year. Full amount service after attaining the age of 55 year. Full amount in provident fund can also be withdraw by the in provident fund can also be withdraw by the member under the following circumstance:member under the following circumstance:

A member who has not attained the age of 55 year at A member who has not attained the age of 55 year at the time of termination of service. the time of termination of service.

A member is retired on account of permanent and A member is retired on account of permanent and total disablement due to bodily or mental infirmity. total disablement due to bodily or mental infirmity.

On migration from India for permanent settlement On migration from India for permanent settlement abroad or for taking employment abroad. abroad or for taking employment abroad.

Withdrawal before retirementWithdrawal before retirement::A member can withdraw up to 90% of the amount of A member can withdraw up to 90% of the amount of provident fund at credit after attaining the age of 54 provident fund at credit after attaining the age of 54 years or within one year before actual retirement. years or within one year before actual retirement. Claim application in form 19 may be submitted to the Claim application in form 19 may be submitted to the concerned Provident Fund Office.concerned Provident Fund Office.

Accumulations of a deceased memberAccumulations of a deceased member::Amount of Provident Fund at the credit of the Amount of Provident Fund at the credit of the deceased member is payable to nominees/ legal deceased member is payable to nominees/ legal heirs. Claim application in form 20 may be submitted heirs. Claim application in form 20 may be submitted to the concerned Provident Fund Office.to the concerned Provident Fund Office.

The Workmen's Compensation The Workmen's Compensation Act, 1923Act, 1923

Is one of the important social security legislations. It aims at providing financial Is one of the important social security legislations. It aims at providing financial protection to workmen and their dependants in case of accidental injury by means of protection to workmen and their dependants in case of accidental injury by means of payment of compensation by the employerspayment of compensation by the employers. .

WHO IS A WORKMANWHO IS A WORKMAN Workman means any person (other than a person whose employment is of a casual nature Workman means any person (other than a person whose employment is of a casual nature

and who is employed otherwise than for the purposes of the employer’s trade or business) and who is employed otherwise than for the purposes of the employer’s trade or business) who is-who is-

a railway servant as defined in section 3 of the Indian Railways Act, 1890 not permanently a railway servant as defined in section 3 of the Indian Railways Act, 1890 not permanently employed in any administrative, district or sub-divisional office of a railway and not employed in any administrative, district or sub-divisional office of a railway and not employed in any such capacity as is specified in Schedule II, oremployed in any such capacity as is specified in Schedule II, or

employed in any such capacity as is specified in Schedule II,employed in any such capacity as is specified in Schedule II, provisions of the Act have been extended to cooks employed in hotels, restaurants using provisions of the Act have been extended to cooks employed in hotels, restaurants using

power, liquefied petroleum gas or any other mechanical device in the process of cookingpower, liquefied petroleum gas or any other mechanical device in the process of cooking ..

CompensationCompensation

In case of death the minimum amount of compensation fixed is Rs,. 80,000 and Rs. 90,000 In case of death the minimum amount of compensation fixed is Rs,. 80,000 and Rs. 90,000 in case of permanent total disablement. The maximum amount of compensation payable is in case of permanent total disablement. The maximum amount of compensation payable is Rs. 4.56 lakh in the case of death and Rs. 5.48 lakh in the case of permanent total Rs. 4.56 lakh in the case of death and Rs. 5.48 lakh in the case of permanent total disablement. disablement.

EMPLOYER’S LIABILITY FOR COMPENSATION EMPLOYER’S LIABILITY FOR COMPENSATION (ACCIDENTS)(ACCIDENTS)

The employer of any establishment covered under this Act, is required to The employer of any establishment covered under this Act, is required to compensate an employee :compensate an employee :

Who has suffered an accident arising out of and in the course of his employment, Who has suffered an accident arising out of and in the course of his employment, resulting into (i) death, (ii) permanent total disablement, (iii) permanent partial resulting into (i) death, (ii) permanent total disablement, (iii) permanent partial disablement, or (iv) temporary disablement whether total or partial, or(v) disablement, or (iv) temporary disablement whether total or partial, or(v) occupational disease.occupational disease.

HOWEVER THE EMPLOYER SHALL NOT BE LIABLEHOWEVER THE EMPLOYER SHALL NOT BE LIABLE

In respect of any injury which does not result in the total or partial disablement of In respect of any injury which does not result in the total or partial disablement of the workmen for a period exceeding the workmen for a period exceeding three daysthree days;;

In respect of any injury not resulting in death, caused by an accident which In respect of any injury not resulting in death, caused by an accident which is attributable to -is attributable to -

a)a) the workmen having been at the time thereof under the influence or drugs, orthe workmen having been at the time thereof under the influence or drugs, or

b)b) the willful removal or disregard by the workmen of any safeguards.the willful removal or disregard by the workmen of any safeguards.

c)c) when the employee has contacted a disease which is not directly attributable to a when the employee has contacted a disease which is not directly attributable to a specific injury caused by the accident or to the occupation.specific injury caused by the accident or to the occupation.

The Payment of Gratuity Act, The Payment of Gratuity Act, 1972 (P.G. Act1972 (P.G. Act))

Which provides 15 days wages for each Which provides 15 days wages for each year of service to employees who have year of service to employees who have worked for five years or more in factories, worked for five years or more in factories, establishments having a minimum of 10 establishments having a minimum of 10 workers.workers.

The maximum amount of gratuity payable is The maximum amount of gratuity payable is Rs. 3,50,000/-. Rs. 3,50,000/-.

The Maternity Act,1961The Maternity Act,1961

Every woman shall be entitled to, and her Every woman shall be entitled to, and her employer shall be liable for, the payment of employer shall be liable for, the payment of maternity benefit, which is the amount payable maternity benefit, which is the amount payable to her at the rate of the average daily wage for to her at the rate of the average daily wage for not less than 12 weeks i.e. preceding and not less than 12 weeks i.e. preceding and following the day of her delivery does not following the day of her delivery does not exceed 12 weeks.exceed 12 weeks.

FACTORIES ACT 1948FACTORIES ACT 1948

The Factories Act, 1948The Factories Act, 1948The Factories Act, is a social legislation which has The Factories Act, is a social legislation which has been enacted for occupational safety, health and been enacted for occupational safety, health and welfare of workers at workplaces.welfare of workers at workplaces.

Factories covered under the Factories Act –Factories covered under the Factories Act –

1.1. The industries in which 10 or more than 10 workers The industries in which 10 or more than 10 workers are employed on any day of the preceding 12 months are employed on any day of the preceding 12 months and are engaged in manufacturing process being and are engaged in manufacturing process being carried out with the aid of power.carried out with the aid of power.

2.2. The industries in which 20 or more than 20 workers The industries in which 20 or more than 20 workers are employed in manufacturing process being carried are employed in manufacturing process being carried out without the aid of power. out without the aid of power.

Welfare Measures – Factories ActWelfare Measures – Factories Act

Washing FacilitiesWashing Facilities

Facilities for storing and drying clothingFacilities for storing and drying clothing

Facilities for sittingFacilities for sitting

First – aid appliancesFirst – aid appliances

CanteensCanteens

Shelters, rest rooms and lunch roomsShelters, rest rooms and lunch rooms

CrechesCreches

Welfare officersWelfare officers

Washing Facilities –Washing Facilities –

In every Factory –In every Factory –

1.1. Adequate and suitable facilities for washing shall be Adequate and suitable facilities for washing shall be provided and maintained for the use of the workers provided and maintained for the use of the workers therein.therein.

2.2. Separate and adequately screened facilities shall be Separate and adequately screened facilities shall be provided for the use of male and female workersprovided for the use of male and female workers..

3.3. Such facilities shall be conveniently accessible and Such facilities shall be conveniently accessible and shall be kept clean. shall be kept clean.

Facilities for storing and dryingFacilities for storing and drying

Clothing – Clothing –

The State Government may, in respect of any factory or The State Government may, in respect of any factory or class or description of factories, make rules requiring class or description of factories, make rules requiring the provision therein of suitable places for keeping the provision therein of suitable places for keeping clothing not worn during working hours and for tile clothing not worn during working hours and for tile drying of wet clothing. drying of wet clothing.

Facilities for sitting –Facilities for sitting –

Suitable arrangements for sitting shall be provided and Suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a maintained for all workers obliged to work in a standing position.standing position.

The Chief Inspector may, by order in writing, require The Chief Inspector may, by order in writing, require the occupier of the factory to provide before a the occupier of the factory to provide before a specified date sitting arrangements as may be specified date sitting arrangements as may be practicable for all workers so engaged or working. practicable for all workers so engaged or working.

The State Government may, by notification in the The State Government may, by notification in the Official Gazette, declare that the provisions of sub-Official Gazette, declare that the provisions of sub-section (1) shall not apply to any specified factory or section (1) shall not apply to any specified factory or manufacturing process.manufacturing process.

First – aid appliances –First – aid appliances –

There shall in every factory be provided and There shall in every factory be provided and maintained, so as to be readily accessible during all maintained, so as to be readily accessible during all working hours, first-aid boxes or cupboards equipped working hours, first-aid boxes or cupboards equipped with the prescribed contents.with the prescribed contents.

There shall in every factory be provided and There shall in every factory be provided and maintained, so as to be readily accessible during all maintained, so as to be readily accessible during all working hours, first-aid boxes or cupboards equipped working hours, first-aid boxes or cupboards equipped with the prescribed contents.with the prescribed contents.

The number of such boxes or cupboards shall not be The number of such boxes or cupboards shall not be less than 1 for every 150 workers ordinarily employed less than 1 for every 150 workers ordinarily employed in the factory.in the factory.

Nothing except the prescribed contents shall be kept in Nothing except the prescribed contents shall be kept in a first-aid box or cupboard. a first-aid box or cupboard.

Each first-aid box or cupboard shall be kept in the Each first-aid box or cupboard shall be kept in the charge of a separate responsible person, who holds a charge of a separate responsible person, who holds a certificate in first-aid treatment recognized by the State certificate in first-aid treatment recognized by the State Government and who shall always be readily available Government and who shall always be readily available during the working hours of the factory.during the working hours of the factory.

In every factory wherein more than 500 workers are In every factory wherein more than 500 workers are ordinarily employed, there shall be provided and ordinarily employed, there shall be provided and maintained an ambulance room of the prescribed size, maintained an ambulance room of the prescribed size, containing the prescribed equipment and in the charge containing the prescribed equipment and in the charge of such medical and nursing staff as may be prescribed of such medical and nursing staff as may be prescribed and those facilities shall always be made readily and those facilities shall always be made readily available during the working hours of the factory. available during the working hours of the factory.

Canteens –Canteens –

The State Government may make rules requiring that in The State Government may make rules requiring that in any specified factory wherein more than 250 workers are any specified factory wherein more than 250 workers are ordinarily employed, a canteen or canteens shall be ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of provided and maintained by the occupier for the use of the workers.the workers.

Such rules may provide for-Such rules may provide for-

1.1. The date by which such canteen shall be provided.The date by which such canteen shall be provided.

2.2. The standards in respect of construction, The standards in respect of construction, accommodation, furniture and other equipment of the accommodation, furniture and other equipment of the canteencanteen..

3.3. The foodstuffs to be served therein and the charges The foodstuffs to be served therein and the charges which may be made therefore.which may be made therefore.

4.4. The constitution of a managing committee for the The constitution of a managing committee for the canteen and representation of the workers in the canteen and representation of the workers in the management of the canteen.management of the canteen.

5.5. The items of expenditure in the running of the canteen The items of expenditure in the running of the canteen which are not to be taken into account in fixing the which are not to be taken into account in fixing the cost of foodstuffs and which shall be borne by the cost of foodstuffs and which shall be borne by the employer.employer.

Shelters, rest rooms and lunch Shelters, rest rooms and lunch

rooms – rooms –

In every factory wherein more than 150 workers are In every factory wherein more than 150 workers are ordinarily employed, adequate and suitable shelters or ordinarily employed, adequate and suitable shelters or rest rooms and a suitable lunch room, with provision rest rooms and a suitable lunch room, with provision for drinking water, where workers can eat meals for drinking water, where workers can eat meals brought by them, shall be provided and maintained for brought by them, shall be provided and maintained for the use of the workers.the use of the workers.

The shelters or rest rooms or lunch rooms to be The shelters or rest rooms or lunch rooms to be provided under sub-section (1) shall be sufficiently provided under sub-section (1) shall be sufficiently lighted and ventilated and shall be maintained in a cool lighted and ventilated and shall be maintained in a cool and clean condition. and clean condition.

The State Government may- The State Government may-

1.1. Prescribe the standards in respect of construction, Prescribe the standards in respect of construction, accommodation, furniture and other equipment of accommodation, furniture and other equipment of shelters, rest rooms and lunch rooms to be provided shelters, rest rooms and lunch rooms to be provided under this section.under this section.

2.2. By notification in the Official Gazette, exempt any By notification in the Official Gazette, exempt any factory or class or description of factories from the factory or class or description of factories from the requirements of this section. requirements of this section.

Creches – Creches –

In every factory wherein more than 50 women workers In every factory wherein more than 50 women workers are ordinarily employed there shall be provided and are ordinarily employed there shall be provided and maintained a suitable room or rooms for the use of maintained a suitable room or rooms for the use of children under the age of six years of such women. children under the age of six years of such women.

Such rooms shall provide adequate accommodation, Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated, shall be shall be adequately lighted and ventilated, shall be maintained in a clean and sanitary condition and shall be maintained in a clean and sanitary condition and shall be under the charge of women trained in the care of under the charge of women trained in the care of children and infants.children and infants.

The State Government may make rules- The State Government may make rules-

1.1. Prescribing the location and the standards in respect Prescribing the location and the standards in respect of construction, accommodation furniture and other of construction, accommodation furniture and other equipment of rooms to be provided under this section.equipment of rooms to be provided under this section.

2.2. Requiring the provision in any factory of free milk or Requiring the provision in any factory of free milk or refreshment or both for such children.refreshment or both for such children.

3.3. Requiring that facilities shall be given in any factory Requiring that facilities shall be given in any factory for the mothers of such children to feed them at the for the mothers of such children to feed them at the necessary intervals.necessary intervals.

4.4. Requiring suitable provision of facilities for washing Requiring suitable provision of facilities for washing and changing the clothing of children.and changing the clothing of children.

Welfare officers – Welfare officers –

In every factory wherein 500 or more workers are In every factory wherein 500 or more workers are ordinarily employed the occupier shall employ in the ordinarily employed the occupier shall employ in the factory such number of welfare officers as may be factory such number of welfare officers as may be prescribed. prescribed.

The State Government may prescribe the duties, The State Government may prescribe the duties, qualifications and conditions of service of officers qualifications and conditions of service of officers employed under the above sub-section.employed under the above sub-section.

Provident fundProvident fund

Provident fundProvident fundA part of your salary is deducted A part of your salary is deducted

every month and deposited on your every month and deposited on your behalf. If you work in a private firm behalf. If you work in a private firm then the company pays the same then the company pays the same

amount as it is deducted from your amount as it is deducted from your account and when you leave the account and when you leave the

firm you can apply and withdraw the firm you can apply and withdraw the amount saved. It's actually your amount saved. It's actually your

personal saving of your earnings. If personal saving of your earnings. If you are in government service then you are in government service then you will get the lumpsum when you you will get the lumpsum when you

retire.retire.

Provident Funds and Miscellaneous Provisions Provident Funds and Miscellaneous Provisions Act, provides for compulsory contributory Act, provides for compulsory contributory fund for the future of an employee after his fund for the future of an employee after his retirement or for his dependents in case of his retirement or for his dependents in case of his early death.It extends to the whole of India early death.It extends to the whole of India except the State of Jammu and Kashmir and is except the State of Jammu and Kashmir and is applicable to:applicable to:– every factory engaged in any industry every factory engaged in any industry

specified in Schedule 1 in which 20 or more specified in Schedule 1 in which 20 or more persons are employed; persons are employed;

– every other establishment employing 20 or every other establishment employing 20 or more persons or class of such more persons or class of such establishments which the Central Govt. may establishments which the Central Govt. may notify; notify;

Employees' Provident Funds & Employees' Provident Funds & Miscellaneous Provisions Act, 1952 Miscellaneous Provisions Act, 1952

Objective Objective promoting and securing the well being of the promoting and securing the well being of the employees by way of provident fund, family employees by way of provident fund, family pension and insurance to them. pension and insurance to them. inculcating a habit of saving amongst workers. inculcating a habit of saving amongst workers. providing a steady workforce to the employers providing a steady workforce to the employers and and assisting the government by providing funds of assisting the government by providing funds of considerable magnitude for utilization on considerable magnitude for utilization on various projects meant for promoting economic various projects meant for promoting economic and social development of the country and the and social development of the country and the well being of its people. well being of its people.

ApplicabilityApplicability

The Act shall apply toThe Act shall apply to

every establishment which is a factory every establishment which is a factory

engaged in any industry mentioned in engaged in any industry mentioned in schedule I of the Act and schedule I of the Act and

employing 20 or more persons or employing 20 or more persons or

any other establishment employing any other establishment employing twenty or more persons or twenty or more persons or

such other establishment as the central such other establishment as the central Government may notify.Government may notify.

Employees Provident Funds and Employees Provident Funds and Miscellaneous Provisions Act, 1952Miscellaneous Provisions Act, 1952

SCHEMESSCHEMES– Employees Provident Funds Scheme,1952 Employees Provident Funds Scheme,1952

– sec 5– sec 5– Employees Pension Scheme,1995 – sec 6AEmployees Pension Scheme,1995 – sec 6A– Employees Deposit-Linked Insurance Employees Deposit-Linked Insurance

Scheme,1976 – sec 6CScheme,1976 – sec 6CREGULATORY MECHANISMREGULATORY MECHANISM

– Central Board - section 5ACentral Board - section 5A– Executive Committee – section 5AAExecutive Committee – section 5AA– State Board - section 5BState Board - section 5B– Central GovernmentCentral Government

Hemant Sahai Associates

Advocates

Contribution of EmployeeContribution of Employee12% of the 12% of the Pay.Pay.* “Pay” includes basic wages# with * “Pay” includes basic wages# with

dearness allowance, retaining dearness allowance, retaining allowance. allowance. VOLUNTARY VOLUNTARY

CONTRIBUTION: -CONTRIBUTION: -Member shall be at Member shall be at liberty to make voluntary liberty to make voluntary

contribution .Minimum PF Contribution: contribution .Minimum PF Contribution: 12%, Maximum PF Contribution: 100% 12%, Maximum PF Contribution: 100%

of the Pay.of the Pay. # Tax Benefits to the # Tax Benefits to the contribution are applicable as per contribution are applicable as per

Income Tax Rules. Income Tax Rules. Employer’s Employer’s Contributions Equal to 12% of the Pay of Contributions Equal to 12% of the Pay of

employeeemployee

Employees’ Provident Fund Scheme, 1952Employees’ Provident Fund Scheme, 1952

What employee gets.What employee gets.

Benefit StructureBenefit Structure– Accumulated Balance paid out on Accumulated Balance paid out on

retirement. Balance = Employee and retirement. Balance = Employee and Employer Contributions + Interest credited Employer Contributions + Interest credited – Non-refundable Loans– Non-refundable Loans

TOPICTOPIC:: PENSIONPENSION FUND AS A MEAN OFFUND AS A MEAN OF SOCIAL SECURITY SOCIAL SECURITY

HRM PRESENTATION

MEANING OF THE TERM SOCIAL MEANING OF THE TERM SOCIAL SECURITYSECURITY

Social securitySocial security:: Primarily refers to social welfare service Primarily refers to social welfare service concerned with social protection, or protection against socially concerned with social protection, or protection against socially recognized conditions, including poverty, old age, disability, recognized conditions, including poverty, old age, disability, unemployment and othersunemployment and others..

Social security may refer to:Social security may refer to:

1) 1) Social insuranceSocial insurance

2) 2) income maintenanceincome maintenance

3) 3) ServicesServices

4) 4) basic securitybasic security

CONTDCONTD….….

Social insurance-Social insurance- where people receive benefits or services in where people receive benefits or services in recognition of contributions to an insurance scheme. These services recognition of contributions to an insurance scheme. These services typically include provision for retirement pensions, disability typically include provision for retirement pensions, disability insurance, survivor benefits and unemployment insurance.insurance, survivor benefits and unemployment insurance.

Income maintenanceIncome maintenance—mainly the distribution of cash in the event —mainly the distribution of cash in the event of interruption of employment, including retirement, disability and of interruption of employment, including retirement, disability and unemployment unemployment

ServicesServices provided by administrations responsible for social security. provided by administrations responsible for social security. In different countries this may include medical care, aspects of In different countries this may include medical care, aspects of social work and even industrial relations. social work and even industrial relations.

Basic securityBasic security, a term roughly equivalent to access to basic , a term roughly equivalent to access to basic necessities—things such as food, clothing, shelter, education and necessities—things such as food, clothing, shelter, education and medical caremedical care

NEED FOR SOCIAL SECURITYNEED FOR SOCIAL SECURITY

Poverty in India points towards the need to adopt a wider conceptPoverty in India points towards the need to adopt a wider concept of social of social security that would include both promotional and protectivesecurity that would include both promotional and protective social security social security

Prevention against increases in deprivation and the promotion of better chances Prevention against increases in deprivation and the promotion of better chances of individual developmentof individual development..

Provides financial relief at the time of distress.Provides financial relief at the time of distress.

People all over the world are living longer, having fewer children, and expecting People all over the world are living longer, having fewer children, and expecting higher standards of living in their retirement years. higher standards of living in their retirement years.

The most important feature shared by all these workers is the absence of any The most important feature shared by all these workers is the absence of any sort of protection: whether it be employment security, pension, or coverage for sort of protection: whether it be employment security, pension, or coverage for risks such as ill health, accidents, deathrisks such as ill health, accidents, death

Affects labour productivity and thus has implications that extend far Affects labour productivity and thus has implications that extend far beyond the workers and their families themselvesbeyond the workers and their families themselves

With India's traditional means of support (the extended family), gradually With India's traditional means of support (the extended family), gradually breaking down a huge, impoverished and aging segment of the population breaking down a huge, impoverished and aging segment of the population is becoming an enormous drain on the country's resources.is becoming an enormous drain on the country's resources.

As people grow older the expenditure on their health also increases.As people grow older the expenditure on their health also increases.

While social security systems are meant to take care of the While social security systems are meant to take care of the redundant/unemployed or the unemployable, self-accumulated retirement redundant/unemployed or the unemployable, self-accumulated retirement savings are the only saviour for citizens of countries where formal social savings are the only saviour for citizens of countries where formal social security systems don’t existsecurity systems don’t exist

CONTDCONTD….….

PENSIONPENSIONA A pensionpension is a steady income given to a person (usually after retirement). Pensions is a steady income given to a person (usually after retirement). Pensions are typically payments made in the form of a guaranteed annuity to a retired or are typically payments made in the form of a guaranteed annuity to a retired or disabled employee. disabled employee.

Occupational pensions are a form of deferred compensation, usually advantageous Occupational pensions are a form of deferred compensation, usually advantageous to employee and employer for tax reasons. to employee and employer for tax reasons.

Many pensions also contain an insurance aspect, since they often will pay benefits Many pensions also contain an insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries, while annuity income insures against the risk to survivors or disabled beneficiaries, while annuity income insures against the risk of longevity.of longevity.

A A Pension fundPension fund is a pool of assets forming an independent legal entity that are is a pool of assets forming an independent legal entity that are bought with the contributions to a pension plan for the exclusive purpose of bought with the contributions to a pension plan for the exclusive purpose of financing pension plan benefits.financing pension plan benefits.

PENSION FUNDPENSION FUND

SOCIAL SECURITY ACTS SOCIAL SECURITY ACTS PASSED BY THE GOVTPASSED BY THE GOVT..

WORKMEN’S COMPENSATION ACTWORKMEN’S COMPENSATION ACT

EMPLOYEE STATE INSURANCE ACTEMPLOYEE STATE INSURANCE ACT

EMPLOYEE PROVIDENT FUND ACTEMPLOYEE PROVIDENT FUND ACT

MATERNITY BENEFIT ACTMATERNITY BENEFIT ACT

PAYMENT OF GRATUITY ACTPAYMENT OF GRATUITY ACT

EMPLOYEE PROVIDENT FUNDEMPLOYEE PROVIDENT FUND

Employees Provident Funds Scheme, 1952Employees Provident Funds Scheme, 1952..

Employees Deposit-Linked Insurance Scheme, 1976 .Employees Deposit-Linked Insurance Scheme, 1976 .

Employees Pension Scheme 1995 (Earlier the Employees Pension Scheme 1995 (Earlier the Employees Family Pension Scheme, 1971) .Employees Family Pension Scheme, 1971) .

Employees Provident Funds Employees Provident Funds Scheme, 1952Scheme, 1952

To provide old-age and post service financial support to To provide old-age and post service financial support to the workers in general employed in Industrial & the workers in general employed in Industrial & Commercial Sector establishments. Commercial Sector establishments.

The scheme provided for provident fund system on The scheme provided for provident fund system on contributory basis by the Employers and the Employees contributory basis by the Employers and the Employees at equal rate. at equal rate.

It made available to the employee concerned the It made available to the employee concerned the accretions in the Provident Fund a/c with interest in lump accretions in the Provident Fund a/c with interest in lump sum on retirement or leaving the job.sum on retirement or leaving the job.

CONTRIBUTION OF THE EMPLOYEECONTRIBUTION OF THE EMPLOYEE1.1. 12% OF THE PAY ( INCLUDING BASIC WAGES )12% OF THE PAY ( INCLUDING BASIC WAGES )

2.2. VOLUNTARY CONTRIBUTION BY EMPLOYEEVOLUNTARY CONTRIBUTION BY EMPLOYEE

3.3. EMPLOYER CANNOT REDUCE PAYEMPLOYER CANNOT REDUCE PAY

4.4. MINIMUM CONTRIBUTION – 12%MINIMUM CONTRIBUTION – 12%

5.5. MAXIMUM CONTRIBUTION – 100%MAXIMUM CONTRIBUTION – 100%

6.6. TAX BENEFITS APPLICABLE AS PER INCOME TAX TAX BENEFITS APPLICABLE AS PER INCOME TAX RULESRULES

CONTRIBUTION BY THE EMPLOYERCONTRIBUTION BY THE EMPLOYER1.1. EQUAL TO 12% PAY OF THE EMPLOYEEEQUAL TO 12% PAY OF THE EMPLOYEE

2.2. EPS – 8.33% OF PENSIONBLE SALARYEPS – 8.33% OF PENSIONBLE SALARY

3.3. PF – 12% PAY – EPSPF – 12% PAY – EPS

OTHER PROVISIONS IN THIS ACTOTHER PROVISIONS IN THIS ACT

1.1. An employee may be allowed to make a nomination An employee may be allowed to make a nomination conferring on one or more persons the right to receive conferring on one or more persons the right to receive the provident fund amount.the provident fund amount.

2.2. If an employee nominates more than one person, he If an employee nominates more than one person, he shall, in his nomination specify the amount or share shall, in his nomination specify the amount or share payable to each of the nominees.payable to each of the nominees.

3.3. Where an employee has a family at the time of making Where an employee has a family at the time of making a nomination, the nomination shall be in favour of one or a nomination, the nomination shall be in favour of one or more persons belonging to his familymore persons belonging to his family

EMPLOYEES DEPOSIT-LINK EMPLOYEES DEPOSIT-LINK INSURANCE SCHEME 1976 INSURANCE SCHEME 1976

Provides for payment of assurance benefit, upon death Provides for payment of assurance benefit, upon death of the member while in service; linked to the average of the member while in service; linked to the average balance in the provident fund account of the deceased balance in the provident fund account of the deceased member. The assurance benefit shall be payable to the member. The assurance benefit shall be payable to the person entitled to receive provident fund accumulation of person entitled to receive provident fund accumulation of the deceased memberthe deceased member..

MEMBERSHIP : ALL MEMBERS OF PROVIDENT FUNDMEMBERSHIP : ALL MEMBERS OF PROVIDENT FUNDCONTRIBUTION: EMPLOYEES NOT REQUIRED TO CONTRIBUTECONTRIBUTION: EMPLOYEES NOT REQUIRED TO CONTRIBUTE EMPLOYERS ARE REQUIRED TO CONTRIBUTE EMPLOYERS ARE REQUIRED TO CONTRIBUTE

0.50% OF PENSIONABLE SALARY 0.50% OF PENSIONABLE SALARY

EMPLOYEES PENSION SCHEME, 1995EMPLOYEES PENSION SCHEME, 1995 (EARLIER THE EMPLOYEES FAMILY (EARLIER THE EMPLOYEES FAMILY

PENSION SCHEME 1971)PENSION SCHEME 1971)

CONTRIBUTIONCONTRIBUTION1.1. Employee is not required to contribute separately Employee is not required to contribute separately

under the Employees Pension Scheme 1995.under the Employees Pension Scheme 1995.

2. Employer share of Provident Fund Contribution 2. Employer share of Provident Fund Contribution @ 8.33% is diverted to Pension Fund @ 8.33% is diverted to Pension Fund

TYPE OF PENSIONTYPE OF PENSION

Monthly Member’s Pension: On attaining the age of 58 years.Monthly Member’s Pension: On attaining the age of 58 years.

Invalidity pension: Permanent and total disablement during the Invalidity pension: Permanent and total disablement during the course of employment.course of employment.

Widow pension: Death of member whether in service or after exit Widow pension: Death of member whether in service or after exit from employment or after retirement/ commencement of monthly from employment or after retirement/ commencement of monthly member pension. Pension for life or until remarriagemember pension. Pension for life or until remarriage

Children pension: Payable to two children of deceased member Children pension: Payable to two children of deceased member upto the age of 25 years in addition to widow.upto the age of 25 years in addition to widow.

Orphan pension: Two orphan children upto the age of 25 years.Orphan pension: Two orphan children upto the age of 25 years.

Nominee pension: In case of unmarried members, a person Nominee pension: In case of unmarried members, a person nominated by the member will get pension equal to widow pension.nominated by the member will get pension equal to widow pension.

REASONS FOR A NEW PENSION SCHEMEREASONS FOR A NEW PENSION SCHEME

Close to 65% of population still live in rural areas are not Close to 65% of population still live in rural areas are not covered.covered.

Of the salaried 20% are govt employees-have a defined, Of the salaried 20% are govt employees-have a defined, indexed, pension entirely funded by the govt.indexed, pension entirely funded by the govt.

About 49% of non-govt employees only covered by EPF & About 49% of non-govt employees only covered by EPF & EPS.EPS.

Less than 10% are eligible for the formal pension fund Less than 10% are eligible for the formal pension fund scheme estimated working population.scheme estimated working population.

Serious majority of workers who are not below the poverty Serious majority of workers who are not below the poverty line might go below it after their as they have not line might go below it after their as they have not accumulated enough savings for future.accumulated enough savings for future.

NEW PENSION FUND SCHEMENEW PENSION FUND SCHEMEThe Pension Fund Regulatory and Development Authority Bill, 2005 The Pension Fund Regulatory and Development Authority Bill, 2005 establishes an authority to develop and regulate the new pension establishes an authority to develop and regulate the new pension system (NPS) which seeks to provide old age income security for all system (NPS) which seeks to provide old age income security for all individuals, including those in the unorganised sector.individuals, including those in the unorganised sector.

NPS will be implemented through a combination of retailers, NPS will be implemented through a combination of retailers, pension funds and record keeper(s).pension funds and record keeper(s).

Every subscriber will have an individual pension account, which will Every subscriber will have an individual pension account, which will be portable across job changes. The subscriber will choose the fund be portable across job changes. The subscriber will choose the fund managers and schemes to manage his pension wealth. He also has managers and schemes to manage his pension wealth. He also has the option of switching schemes and funds.the option of switching schemes and funds.

The NPS has already been operationalised for new central The NPS has already been operationalised for new central government employees through a notification. This is a 'defined government employees through a notification. This is a 'defined contribution' scheme unlike the 'defined benefit' scheme for existing contribution' scheme unlike the 'defined benefit' scheme for existing central government employeescentral government employees

KEY ISSUES AND ANALYSISKEY ISSUES AND ANALYSIS

1)1) The Bill provides a structure to the private and The Bill provides a structure to the private and unorganised sectors to plan for old age income security. unorganised sectors to plan for old age income security. It is not compulsory for these sectors to take part in this It is not compulsory for these sectors to take part in this system. Those not participating may still have to fall system. Those not participating may still have to fall back on public resources in old age. back on public resources in old age.

2) In the system for new government employees, the 2) In the system for new government employees, the investment risk is entirely borne by the employee. investment risk is entirely borne by the employee. However, he is no longer exposed to the risk of default However, he is no longer exposed to the risk of default by the government. by the government.

3)3) Only 13% of the workforce is currently covered by Only 13% of the workforce is currently covered by pension schemes. These are government employees pension schemes. These are government employees and those in the organised sector covered by the and those in the organised sector covered by the Employees Pension Scheme 1995. This Bill provides a Employees Pension Scheme 1995. This Bill provides a regulatory framework for a new pension system (NPS) regulatory framework for a new pension system (NPS) which will be available to any individualwhich will be available to any individual

Contd…..Contd…..

4)Any unfavourable event affecting market prices at the 4)Any unfavourable event affecting market prices at the time of retirement could lower both pension wealth and time of retirement could lower both pension wealth and the annuity rate. Subscribers may have to stay on in the the annuity rate. Subscribers may have to stay on in the system beyond their retirement date in order to ride over system beyond their retirement date in order to ride over such a shock.such a shock.

5)Parliamentary Research Service (PRS) estimates that 5)Parliamentary Research Service (PRS) estimates that

given current market rates for annuity, Rs 1,000 per given current market rates for annuity, Rs 1,000 per month subscribed to NPS for 35 years will result in month subscribed to NPS for 35 years will result in lifetime annual pension for self of Rs 47,000 to Rs lifetime annual pension for self of Rs 47,000 to Rs 77,000 under different scenarios of returns.77,000 under different scenarios of returns.

KEY IMPLICATIONS LEADING TO KEY IMPLICATIONS LEADING TO SOCIAL SECURITYSOCIAL SECURITY

PROVIDES SOCIAL SECURITY TO THE PEOPLE IN THE PROVIDES SOCIAL SECURITY TO THE PEOPLE IN THE FORM OF INCOME THROUGH PENSIONSFORM OF INCOME THROUGH PENSIONSINCOME REMAINS DEFINED WITH NO FLUCTUATIONSINCOME REMAINS DEFINED WITH NO FLUCTUATIONSALL CONTRIBUTIONS,ACCUMULATIONS AND RETURN ALL CONTRIBUTIONS,ACCUMULATIONS AND RETURN OF BALANCES ON RETIREMENT ARE ALL TAX-OF BALANCES ON RETIREMENT ARE ALL TAX-ADVANTAGEDADVANTAGEDENJOY THE FACILITY OF SOFT LOANS FOR HOUSINGENJOY THE FACILITY OF SOFT LOANS FOR HOUSINGFROM THE EMPLOYERSFROM THE EMPLOYERSGROWTH IN VALUE OVER THE LONG TERM.GROWTH IN VALUE OVER THE LONG TERM.INVESTMENT ACCORDING TO OUR PRIORITIESINVESTMENT ACCORDING TO OUR PRIORITIESHIGHER RETURS DUE TO CHANGES IN INVESTMENT HIGHER RETURS DUE TO CHANGES IN INVESTMENT PATTERNS ( DEBT, EQUITY )PATTERNS ( DEBT, EQUITY )OPTIONS OF WITHDRAWING ANY TIME OF THE YEAROPTIONS OF WITHDRAWING ANY TIME OF THE YEAR

WHAT ARE STATUTORY WHAT ARE STATUTORY WELFARE ACTIVITES?WELFARE ACTIVITES?

These are the Legal welfare activities for These are the Legal welfare activities for uplifment of employees.uplifment of employees.As in industries we are having Performance As in industries we are having Performance Appraisal system and 360 Degree Feedback Appraisal system and 360 Degree Feedback Method for uplifment of employees similarly we Method for uplifment of employees similarly we have to take care of employees by welfare have to take care of employees by welfare activities.activities.

•Statutory Welfare Activities (Legal)Statutory Welfare Activities (Legal)

•Non Statutory Welfare Activities (Not Non Statutory Welfare Activities (Not Legal)Legal)

•It is the function of the public authorities to promote the well-being, health and welfare of the employees. The provision of social welfare and health care services in practice is the task of the individual employee.

•Compulsory to provide by an organization as compliance to the laws which govern employee health and safety.

• These include provisions given in industrial acts like Factories Act 1948 , Dock Workers Act (Safety health & welfare) 1986 , Mines Act 1962

STATUTORY WELFARE SERVICESSTATUTORY WELFARE SERVICES

Customs/ExciseCustoms/Excise

Conveyance Allowance Conveyance Allowance

Educational AllowanceEducational Allowance

Income Tax ConcessionIncome Tax Concession

Award of Dealership by Oil CompaniesAward of Dealership by Oil Companies

Economic Assistance by Public Sector BanksEconomic Assistance by Public Sector Banks

STATUTORY WELFARE SCHEMESSTATUTORY WELFARE SCHEMES

First aid facilitiesFirst aid facilities

Rest roomsRest rooms

Changing roomsChanging rooms

CanteensCanteens

Access to workplaceAccess to workplace

Medical/Hospital facilitiesMedical/Hospital facilities

STATUTORY WELFARE SCHEMESSTATUTORY WELFARE SCHEMES

VentilationVentilation

LightingLighting

SpaceSpace

HeatingHeating

CleanlinessCleanliness

VARIOUS ACTSVARIOUS ACTS

The Factories Act, 1948 The Factories Act, 1948

Employee’s Provident Fund ActEmployee’s Provident Fund Act

Payment of GratuityPayment of Gratuity

Maternity Benefit ActMaternity Benefit Act

The Employee State Insurance Act , 1948The Employee State Insurance Act , 1948

Health and Safety at Work Act 1974 Health and Safety at Work Act 1974

Industrial Disputes ActIndustrial Disputes Act

The Factories Act, 1948 The Factories Act, 1948

The industries in which 20 or more than The industries in which 20 or more than 20 workers are employed in 20 workers are employed in manufacturing process being carried out manufacturing process being carried out without the aid of power. without the aid of power.

Sitting facilities for occasional rest for Sitting facilities for occasional rest for Workers who are obliged to work Workers who are obliged to work standing.standing.

Provided for routine inspections of Provided for routine inspections of factoriesfactories

Detailed policies about cleanliness ,disposal Detailed policies about cleanliness ,disposal of wastage, ventilation, spacing between of wastage, ventilation, spacing between workers, urinals, drainage, drinking water workers, urinals, drainage, drinking water facilities etcfacilities etc

This act is a complete document on hours This act is a complete document on hours of work, holidays, special provisions on of work, holidays, special provisions on accidents and diseases.accidents and diseases.

Need a welfare officer if working more then Need a welfare officer if working more then 500 or more workers.500 or more workers.

All factory rooms must be well ventilated All factory rooms must be well ventilated and lime-washed twice a year.and lime-washed twice a year.

Children must be supplied with two Children must be supplied with two complete outfits of clothing.complete outfits of clothing.

The work hours of children must begin The work hours of children must begin after 6 a.m., end before 9 p.m., and not after 6 a.m., end before 9 p.m., and not exceed 12 hours a day.exceed 12 hours a day.

Child labour should be avoided.Child labour should be avoided.

Male and Female children must be Male and Female children must be housed in different sleeping quarters.housed in different sleeping quarters.

Children may not sleep more than two Children may not sleep more than two per bed.per bed.

Employees’ Provident Fund ActEmployees’ Provident Fund ActThis Act may be cited as the Employees’ This Act may be cited as the Employees’ Provident Fund Act, No.15 of 1958.Provident Fund Act, No.15 of 1958.For the purposes of this Act, there shall be For the purposes of this Act, there shall be established a fund to be called the Central established a fund to be called the Central Provident Fund into which shall be paid all Provident Fund into which shall be paid all contributions authorised under this Act and out of contributions authorised under this Act and out of which shall be met all payments authorised to be which shall be met all payments authorised to be paid under this Act.paid under this Act.A worker who completes 6 months continuous A worker who completes 6 months continuous service or 120 days of work during 12 months is service or 120 days of work during 12 months is eligible.eligible.According to this scheme , the employer would According to this scheme , the employer would pay 10 to 12 percent of the basic wage to the pay 10 to 12 percent of the basic wage to the fund . The employee makes equal contribution.fund . The employee makes equal contribution.

Payment of GratuityPayment of Gratuity

This act includes all factories and establishments that This act includes all factories and establishments that employ 10 or more employees.employ 10 or more employees. Gratuity shall be payable to an employee on the termination of his Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less employment after he has rendered continuous service for not less than five years –than five years –

(a) on his superannuation, or (a) on his superannuation, or

(b) on his retirement or resignation, or (b) on his retirement or resignation, or

(c) on his death or disablement due to accident or (c) on his death or disablement due to accident or disease. disease.

The total gratuity payable should not me more The total gratuity payable should not me more than 20 months wages.than 20 months wages.

Maternity Benefit ActMaternity Benefit Act

To regulate the employment of women in certain To regulate the employment of women in certain establishments for certain periods before and establishments for certain periods before and after childbirth and to provide for maternity after childbirth and to provide for maternity benefits and certain other Benefitsbenefits and certain other Benefits

This act applies to all women not covered by ESI This act applies to all women not covered by ESI Act and who have completed 160 days of Act and who have completed 160 days of service in last 12 monthsservice in last 12 months

It allows for 6 weeks leave before and after the It allows for 6 weeks leave before and after the delivery during which she is paid the average delivery during which she is paid the average daily wage.daily wage.

A women shall be entitled to maternity benefit A women shall be entitled to maternity benefit only if she has actually worked in anonly if she has actually worked in an

Establishment of the employer for a period of not Establishment of the employer for a period of not less then eighty days in the twelve months less then eighty days in the twelve months immediately proceeding the date of her immediately proceeding the date of her expected delivery (section-5[2])expected delivery (section-5[2])

The Employee State Insurance Act, The Employee State Insurance Act, [ESIC] 1948 [ESIC] 1948

The Employee State Insurance Act, [ESIC] The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare 1948, is a piece of social welfare legislation enacted primarily with the legislation enacted primarily with the object of providing certain benefits to object of providing certain benefits to employees in case of sickness, maternity .employees in case of sickness, maternity .

The Employee State Insurance act was The Employee State Insurance act was promulgated by the Parliament of India in promulgated by the Parliament of India in the year 1948.the year 1948.

To begin with the ESIC scheme was To begin with the ESIC scheme was initially launched on 2 February 1952 at initially launched on 2 February 1952 at just two industrial centers in the country just two industrial centers in the country namely kanpur and Delhi with a total namely kanpur and Delhi with a total coverage of about 1.20 lac workers.coverage of about 1.20 lac workers.

Health and Safety at Work Act 1974 Health and Safety at Work Act 1974

Before 1974 approximately 8 million employees had no legal safety Before 1974 approximately 8 million employees had no legal safety protection at work.protection at work.

HASAWA 74 provides the legal framework to promote, stimulate and HASAWA 74 provides the legal framework to promote, stimulate and encourage high standards of health and safety in places of work. It encourage high standards of health and safety in places of work. It protects employees and the public form work activities.protects employees and the public form work activities.

Everyone has a duty to comply with the Act, including employers, Everyone has a duty to comply with the Act, including employers, employees, trainees, self-employed, manufacturers, suppliers, designers, employees, trainees, self-employed, manufacturers, suppliers, designers, importers of work equipment.importers of work equipment.

Secures Health Safety and WelfareSecures Health Safety and Welfare protects other people against risks from the activity of protects other people against risks from the activity of

other people at work.other people at work. controlling dangerous substancescontrolling dangerous substances controlling emissions controlling emissions

Industrial Disputes ActIndustrial Disputes Act

An Act to make provision for the investigation and settlement of industrial An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes.disputes, and for certain other purposes.

COLLECTIVE AGREEMENTS:-COLLECTIVE AGREEMENTS:-

(a) Collective agreement-(a) Collective agreement-

(i) any employer or employers, and(i) any employer or employers, and

(ii) any workmen or any trade union or trade unions consisting (ii) any workmen or any trade union or trade unions consisting

of workmen, andof workmen, and

(b) which relates to the terms and conditions of employment of any (b) which relates to the terms and conditions of employment of any

workman, or to workman, or to the privileges, rights or duties of any employer the privileges, rights or duties of any employer or or employers or any workmen or any trade union or trade employers or any workmen or any trade union or trade unions consisting unions consisting of workmen, or to the manner of settlement of of workmen, or to the manner of settlement of any industrial dispute.any industrial dispute.

For the purposes of this Act, the President may For the purposes of this Act, the President may from time to time appoint a panel, from time to time appoint a panel, of not less than five persons, from which of not less than five persons, from which industrial courts shall be constituted as herein industrial courts shall be constituted as herein after provided.after provided.

An industrial court consists of three persons, a An industrial court consists of three persons, a member of the court nominated by the Minister member of the court nominated by the Minister shall be the president of the court nominated by shall be the president of the court nominated by the Minister shall be the president of the court.the Minister shall be the president of the court.

Non – Statutory meansNon – Statutory means– Not fixed by lawNot fixed by law

Facility meansFacility means– buildings, services, equipment, etc. that are buildings, services, equipment, etc. that are

provided for a particular purpose:provided for a particular purpose:

Keep employeeKeep employee– LoyalLoyal– contentcontent

Differentiate the companyDifferentiate the company

Attract talentAttract talent

Leadership position on workplace safety Leadership position on workplace safety even before Thomas J. Watson, Jr. issued even before Thomas J. Watson, Jr. issued first formal policy in 1967first formal policy in 1967Well Being Management SystemWell Being Management System– the company’s holistic approach to managing the company’s holistic approach to managing

the health and safety of employees wherever the health and safety of employees wherever they work.they work.

At-home work locationAt-home work locationEmployee has access to qualified Employee has access to qualified physicians, nurses.physicians, nurses.

Preventive and wellness programPreventive and wellness program– Life at HomeLife at Home

Work/life balance programWork/life balance programFlexible work optionsFlexible work optionsEmployee assistance programEmployee assistance programHealth promotionHealth promotion

– Life in the workplaceLife in the workplaceAccident/Illness PreventionAccident/Illness PreventionQuality of workplace environmentQuality of workplace environmentQuality of facilitiesQuality of facilities

Healthcare management programsHealthcare management programs– Life at HomeLife at Home

Disability ManagementDisability Management

Conditions ManagementConditions Management

– Life in the workplaceLife in the workplaceProgressive return to workProgressive return to work

OnsiteOnsite Programs Programs– Express wellness onsite is a program that is Express wellness onsite is a program that is

offered at select US sites, that provide important offered at select US sites, that provide important health screenings for cholesterol, blood pressure, health screenings for cholesterol, blood pressure, glucose, body fat percentage, and bone density , glucose, body fat percentage, and bone density , as well as welfare coach consultation and goal as well as welfare coach consultation and goal setting.setting.

Online Online ProgramsPrograms– Employees can access health and wellness Employees can access health and wellness

programs without leaving their home or office.programs without leaving their home or office.– In US, Virtual Fitness Center (VFS) can be used In US, Virtual Fitness Center (VFS) can be used

by employees to help make fitness a part of their by employees to help make fitness a part of their daily lives.daily lives.

Accessible 24 x 7 from any computer in InternetAccessible 24 x 7 from any computer in InternetEmployees are able to set goals, track their Employees are able to set goals, track their activities and chart their success and stay focused activities and chart their success and stay focused on fitness goal.on fitness goal.

– Health and Wellness CompanionHealth and Wellness CompanionInteractiveInteractive online health information tool to make online health information tool to make them informed choices about their health.them informed choices about their health.They can learn about prescription, and They can learn about prescription, and nonprescription medications, evaluate their health nonprescription medications, evaluate their health risk and discover ways to improve their health risk and discover ways to improve their health including better nutrition, stress management, and including better nutrition, stress management, and maintaining a healthy weight.maintaining a healthy weight.

Healthy Living Rebate Program for Healthy Living Rebate Program for employee who don’t smoke or if they do, employee who don’t smoke or if they do, are willing to participate in an IBM – are willing to participate in an IBM – sponsored working cessation program – sponsored working cessation program – can receive a $150 cash rebate.can receive a $150 cash rebate.

Virtual Fitness CenterVirtual Fitness Center– Routine of physical activity and log their Routine of physical activity and log their

performance performance

IBM provides a range of accommodations and assistive IBM provides a range of accommodations and assistive devices for employees who have disabilities, including:devices for employees who have disabilities, including:– Constructing ramps, power doors, parking facilities and other Constructing ramps, power doors, parking facilities and other

accommodations to provide access for people with impaired accommodations to provide access for people with impaired mobility.mobility.

– Captioning videotapes and providing sign-language interpreters Captioning videotapes and providing sign-language interpreters and note takers for classes and meetings for employees who are and note takers for classes and meetings for employees who are deaf or hard of hearing.deaf or hard of hearing.

– Recording company publications on audiocassette for employees Recording company publications on audiocassette for employees and retirees who are visually impaired.and retirees who are visually impaired.

– Providing travel assistance for employees with mobility Providing travel assistance for employees with mobility impairments.impairments.

– Providing adaptive services or modifications such as screen Providing adaptive services or modifications such as screen readers, display-screen magnifiers, keyboard guards, real-time readers, display-screen magnifiers, keyboard guards, real-time captioning of meetings and Webcasts, and telecommunications captioning of meetings and Webcasts, and telecommunications devices and telephone amplifiers— to enable people with devices and telephone amplifiers— to enable people with disabilities to use work-related equipment.disabilities to use work-related equipment.

Two new IBM Accessibility Centre developments Two new IBM Accessibility Centre developments also provide IBM employees with disabilities with also provide IBM employees with disabilities with enhanced assistive technology tools and options:enhanced assistive technology tools and options:– Home Page Reader v3.04, provides employees with Home Page Reader v3.04, provides employees with

disabilities with a range of new capabilities, including disabilities with a range of new capabilities, including the ability to read accessible, tagged PDF documents the ability to read accessible, tagged PDF documents and Macromedia Flash content, and a new zoom and Macromedia Flash content, and a new zoom feature that enlarges everything on a Web page.feature that enlarges everything on a Web page.

– aDesigner is a disability/barriers simulator that helps aDesigner is a disability/barriers simulator that helps Web designers test the accessibility of Web pages for Web designers test the accessibility of Web pages for people who are visually impaired. The software people who are visually impaired. The software program is now available on IBM alphaWorks for program is now available on IBM alphaWorks for download.download.

Portable computers are being used Portable computers are being used everywhere today.everywhere today.Work can be performed anywhere anytime.Work can be performed anywhere anytime.IBM’s ergonomics program is for remote and IBM’s ergonomics program is for remote and mobile workers with a focus on mobile workers with a focus on communicating the availability of ergonomic communicating the availability of ergonomic accessories to our employees as well as accessories to our employees as well as continuing an education campaign on healthy continuing an education campaign on healthy computing practices and behaviours computing practices and behaviours worldwide.worldwide.

Stock optionsStock options

Intel UniversityIntel University

Tuition AssistanceTuition Assistance

MentoringMentoring

Career OpportunitiesCareer Opportunities

Flexible work schedulesFlexible work schedulesCompressed work weeks and alternate work Compressed work weeks and alternate work schedulesschedulesTelecommuting Telecommuting Home office optionsHome office optionsPart-time employmentPart-time employmentJob shareJob shareChildcare assistanceChildcare assistanceResource and referral servicesResource and referral servicesWork/Life seminars and trainingWork/Life seminars and trainingEmployee discounts Employee discounts

Onsite convenience stores Onsite convenience stores Fitness centres and recreation facilities Fitness centres and recreation facilities Nursing mothers rooms Nursing mothers rooms Health and wellness benefits Health and wellness benefits Employee groups and clubs Employee groups and clubs Family events Family events Rideshare and transportation programsRideshare and transportation programsIntel volunteer programs Intel volunteer programs Geographically dispersed teams Geographically dispersed teams Paid time off (including sabbaticals in the United Paid time off (including sabbaticals in the United States) States) Leaves of absenceLeaves of absence

Improve the lives of employeeImprove the lives of employee

Employee loyalty increasesEmployee loyalty increases

Employee identifies themselves with companyEmployee identifies themselves with company

Employee satisfaction increasesEmployee satisfaction increases

Attrition rate goes downAttrition rate goes down

Enhance the work life of employeeEnhance the work life of employee

Employee remains healthy, absenteeism Employee remains healthy, absenteeism lowers increasing the productivity lowers increasing the productivity

Employee get lazyEmployee get lazy

Employee may feel they are getting a free Employee may feel they are getting a free rideride

Not everybody avails the facilities like Not everybody avails the facilities like gym… hence employees do not get gym… hence employees do not get healthy healthy

ANOTHER PRESENTATION ON ANOTHER PRESENTATION ON PROVIDENT FUND ACTPROVIDENT FUND ACT

ContentsContentsObjectives of the ActObjectives of the ActEmployees Provident Fund Organisation (EPFO)Employees Provident Fund Organisation (EPFO)Benefits of Employees Provident FundBenefits of Employees Provident FundImportant DefinitionsImportant DefinitionsEmployer ContributionEmployer ContributionEmployee ContributionEmployee ContributionAdministration of the FundAdministration of the FundAdvances/Withdrawals & Final WithdrawalAdvances/Withdrawals & Final WithdrawalSchemes Under the ActSchemes Under the Act

1. Employees Family Pension Scheme1. Employees Family Pension Scheme2. Employees Deposit Linked Insurance Scheme2. Employees Deposit Linked Insurance Scheme3. Employees Pension Scheme3. Employees Pension Scheme

Achievements of EPFAchievements of EPFConclusionConclusion

What’s this Act meanWhat’s this Act mean

Employees’ Provident Fund Act 1952 provides Employees’ Provident Fund Act 1952 provides security for OLDAGE to the industrial workers security for OLDAGE to the industrial workers who are not able to save out of their meagre who are not able to save out of their meagre emoluments for their future.emoluments for their future.

Objectives of the ActObjectives of the Act

Employees Provident Fund –part of social securityEmployees Provident Fund –part of social security

promoting and securing the well being of the employees promoting and securing the well being of the employees by way of provident fund, family pension and insurance by way of provident fund, family pension and insurance to them. to them.

Inculcates a habit of saving amongst workers Inculcates a habit of saving amongst workers

Employees contributing sums to the Provident FundEmployees contributing sums to the Provident Fund

Employees Provident Fund Organization Employees Provident Fund Organization (EPFO)(EPFO)

The Employees’ Provident Fund 1952, provides for The Employees’ Provident Fund 1952, provides for compulsory provident fund, pension and deposit linked compulsory provident fund, pension and deposit linked insurance in factories / establishments employing 20 or insurance in factories / establishments employing 20 or more employees in scheduled industries, which is more employees in scheduled industries, which is implemented through offices of Employees Provident implemented through offices of Employees Provident Fund Organization. Fund Organization.

Benefits of Employee Provident FundBenefits of Employee Provident Fund

A member of the provident fund can withdraw full A member of the provident fund can withdraw full amount at the credit in the fund on retirement from amount at the credit in the fund on retirement from service after attaining the age of 55 years. Full service after attaining the age of 55 years. Full amount in provident fund can also be withdraw by the amount in provident fund can also be withdraw by the member under the following circumstance:member under the following circumstance:A member who has not attained the age of 55 years A member who has not attained the age of 55 years at the time of termination of service. at the time of termination of service. A member is retired on account of permanent and A member is retired on account of permanent and total disablement due to bodily or mental infirmity. total disablement due to bodily or mental infirmity. On migration from India for permanent settlement On migration from India for permanent settlement abroad or for taking employment abroad. abroad or for taking employment abroad.

The payment of provident fund be made after The payment of provident fund be made after complementing a continuous period of not less than complementing a continuous period of not less than two months immediately preceding the date on which two months immediately preceding the date on which the application for withdrawal is made by the the application for withdrawal is made by the member:member:

Where a member is discharged and is given Where a member is discharged and is given retrenchment compensation under the Industrial retrenchment compensation under the Industrial Dispute Act, 1947. Dispute Act, 1947.

Retrenchment Compensation:Retrenchment Compensation:

It is received by a workmen under the industrial It is received by a workmen under the industrial disputes Act or Under a Contract of from his disputes Act or Under a Contract of from his Employer at the time of his Retrenchment or on the Employer at the time of his Retrenchment or on the closure of Transfer of the business of the employer closure of Transfer of the business of the employer will be exempted aswill be exempted as

a)a) Amount calculate in accordance with the provision Amount calculate in accordance with the provision of the Industrial Dispute Act.of the Industrial Dispute Act.

OrOr

b)b) Rs.500000 (whichever is less, is exempt)Rs.500000 (whichever is less, is exempt)

Important DefinitionsImportant Definitions

Appropriate Government [Section 2(a)]:Appropriate Government [Section 2(a)]:

Establishments under control of Central Government or in Establishments under control of Central Government or in relation to an establishment connected with railway company or relation to an establishment connected with railway company or branches in more than one state and in relation with the State branches in more than one state and in relation with the State GovernmentGovernment

Basic Wages [Section 2(b)]: Basic Wages [Section 2(b)]:

All emoluments earned by employee while on duty or on All emoluments earned by employee while on duty or on leave or on holiday with wages in terms of the contract of leave or on holiday with wages in terms of the contract of employment which are paid or payable in cash but does not include:employment which are paid or payable in cash but does not include:

(i) the cash value of any food concession(i) the cash value of any food concession

(ii) dearness allowance, house rent allowance, overtime allowance, (ii) dearness allowance, house rent allowance, overtime allowance, bonus, commission payable to employee in respect of his bonus, commission payable to employee in respect of his employmentemployment

ContdContd……

ContributionContribution [Section 2(c)]: [Section 2(c)]:Contribution means a contribution payable in respect of Contribution means a contribution payable in respect of

a member or an employee to whom the Insurance Scheme a member or an employee to whom the Insurance Scheme applies.applies.

Controlled Industry [Section 2(d)]:Controlled Industry [Section 2(d)]:

It means any industry the control has been It means any industry the control has been declared by the Central Government to be expedient declared by the Central Government to be expedient in the public interest.in the public interest.

Employer [Section 2(e)]:Employer [Section 2(e)]:

The owner or occupier of the factory or the The owner or occupier of the factory or the person of authority having the ultimate control over person of authority having the ultimate control over the affairs of establishment.the affairs of establishment.

Employee [Section 2(f)]:Employee [Section 2(f)]:A person who is employed for wages in any kind of A person who is employed for wages in any kind of work manuallywork manually

Contd…Contd…

Factory [Section 2(g)]:Factory [Section 2(g)]:

Premises including the precincts thereof in any part of Premises including the precincts thereof in any part of which a manufacturing process.which a manufacturing process.

Family pension Fund [Section 2(gg)]:Family pension Fund [Section 2(gg)]:means established under the Family pension Schememeans established under the Family pension Scheme

Family Pension Scheme [Section 2(ggg)]:Family Pension Scheme [Section 2(ggg)]:Employees Family Pension Scheme framed under Employees Family Pension Scheme framed under

Section 6A (Consolidated Annual Contribution Statement for the Section 6A (Consolidated Annual Contribution Statement for the currency period)currency period)

Fund [Section 2(h)]: Fund [Section 2(h)]: means Provident established under the Schememeans Provident established under the Scheme

Contd…Contd…

Industry [Section 2(i)]:Industry [Section 2(i)]:Industry added to the Schedule by notification under Industry added to the Schedule by notification under

Section 4 (Contribution card for employees other than monthly paid Section 4 (Contribution card for employees other than monthly paid employees for the period)employees for the period)

Insurance Fund [Section 2(i-a)]:Insurance Fund [Section 2(i-a)]:Deposit linked insurance Fund established under section Deposit linked insurance Fund established under section

6(c)6(c)

Insurance Scheme [Section 2(i-b)]:Insurance Scheme [Section 2(i-b)]:means Employees Deposit Linked Insurance Scheme means Employees Deposit Linked Insurance Scheme

framed under Section 6(c)framed under Section 6(c)

Contd…Contd…

Manufacturing process [Section 2(i-c)]:Manufacturing process [Section 2(i-c)]:

any process for making, repairing, finishing, packing any process for making, repairing, finishing, packing any article or substance with a view to its use, sale, transport any article or substance with a view to its use, sale, transport etc.etc.

Member[Section 2(j)]:Member[Section 2(j)]:

member of the Fundmember of the Fund

Occupier of the factory [Section 2(k)]:Occupier of the factory [Section 2(k)]:

Person who has ultimate control over the affairs of the Person who has ultimate control over the affairs of the factory where the affairs are entrusted to the managing agent.factory where the affairs are entrusted to the managing agent.

Employer/Employees’ Employer/Employees’ ContributionContribution

ParticularsParticulars Statutory PFStatutory PF RPFRPF URPFURPF PPFPPF

Employer’s Employer’s ContributioContribution n

Employee’s Employee’s

ContributioContributionn

Interest on Interest on BalanceBalance

Amount is Amount is not taxable not taxable

Fully Fully exemptexempt

Fully Fully exemptexempt

Amount is Amount is not taxable not taxable

12% of 12% of salary salary

exemptexempt

9.5% of P.A9.5% of P.A

InterestexeInterestexemptmpt

Amount is Amount is not taxable not taxable

Salary fully Salary fully exemptexempt

Fully Fully exemptexempt

Amount is Amount is not taxable not taxable

He does not He does not contributecontribute

Fully Fully exemptexempt

After After retirementretirement

Amt Amt recorded at recorded at the time of the time of MaturityMaturity

Fully Fully exemptexempt

Fully Fully exemptexempt

TaxableTaxable Fully Fully exemptexempt

Employer’s contributionEmployer’s contribution

Section 6 (Return of the Contribution Cards sent Section 6 (Return of the Contribution Cards sent to the Commissioner on the expiry of the period to the Commissioner on the expiry of the period of currency)of currency) of the act provides that contribution of the act provides that contribution which shall be paid by the employer to the Fund which shall be paid by the employer to the Fund shall be 8-1/3% of the basic wages, DA, RA if shall be 8-1/3% of the basic wages, DA, RA if any for the time being payable to each of the any for the time being payable to each of the employees whether employed by him directly or employees whether employed by him directly or through a contractor through a contractor

Employees’ ContributionEmployees’ Contribution

The employee’s contribution shall be equal to The employee’s contribution shall be equal to the contribution payable by the employer in the contribution payable by the employer in respect of him an amount not exceeding 8-respect of him an amount not exceeding 8-13% of Basic wages, DA and RA, if any. 13% of Basic wages, DA and RA, if any.

Employees if they desire may make Employees if they desire may make contribution exceeding this amount subject to contribution exceeding this amount subject to the condition that employer shall not under the condition that employer shall not under any obligation to contribute over and above any obligation to contribute over and above the contribution payable under the Act.the contribution payable under the Act.

Administration of the fundAdministration of the fund

Board of Trustees or Central Board:Board of Trustees or Central Board:Section Section 5A(Return of Employees qualifying for 5A(Return of Employees qualifying for

membership of the Employees’ Provident Fund for the membership of the Employees’ Provident Fund for the first time during the monthfirst time during the month) provides the administration of ) provides the administration of the Fund and notification given the Central Government and it the Fund and notification given the Central Government and it is extends by Board of Trustees to:is extends by Board of Trustees to:

(a)(a) A Chairman and a Vice-Chairman to be appointed by the A Chairman and a Vice-Chairman to be appointed by the Central governmentCentral government

(b)(b) Not more than 15 persons to be appointed by the Central Not more than 15 persons to be appointed by the Central Government from amongst its officialsGovernment from amongst its officials

(c)(c) Not more than 15 persons representing government of such Not more than 15 persons representing government of such States as the Central Government may specify in this behalf States as the Central Government may specify in this behalf appointed by CGappointed by CG

(d)(d) 10 persons representing employers of the establishing to 10 persons representing employers of the establishing to which the Schemes applies, appointed by the CG after which the Schemes applies, appointed by the CG after consultation with such organizations of employers/employees consultation with such organizations of employers/employees as may be recognised by the CG in this behalf.as may be recognised by the CG in this behalf.

Advances/WithdrawalsAdvances/WithdrawalsNon refundable advance for payment of premia towards policies Non refundable advance for payment of premia towards policies of Life Insurance of a memberof Life Insurance of a memberWithdrawal for purchasing a dwelling house or flat or for Withdrawal for purchasing a dwelling house or flat or for construction of house including acquisition of a suitable site and construction of house including acquisition of a suitable site and necessary alterations for the improvement of the house.necessary alterations for the improvement of the house.Withdrawals for repayment of loans in special casesWithdrawals for repayment of loans in special casesNon-refundable in case of:Non-refundable in case of:(a) hospitalization lasting one month or more(a) hospitalization lasting one month or more(b) major surgical operation in a hospital(b) major surgical operation in a hospital(c) suffering from T.B., leprosy, Paralysis for the treatment of (c) suffering from T.B., leprosy, Paralysis for the treatment of which leave has been granted by the employerwhich leave has been granted by the employerNon-refundable advance for Non-refundable advance for (i) surgical operation or daughter/son’s marriage or any member (i) surgical operation or daughter/son’s marriage or any member of the family of the family (ii) for member affected by cut in the supply of electricity or (ii) for member affected by cut in the supply of electricity or incase of property damaged by calamities.incase of property damaged by calamities.(iii) or for physically handicapped members for purchasing an (iii) or for physically handicapped members for purchasing an equipmentequipment

Final WithdrawalFinal Withdrawal

Full accumulations with interest thereon are refunded Full accumulations with interest thereon are refunded

(i) in the event of death, permanent disability(i) in the event of death, permanent disability

(ii) retrenchment or migration from India for permanent (ii) retrenchment or migration from India for permanent settlement abroad, voluntary retirement, transfer to an settlement abroad, voluntary retirement, transfer to an establishment not covered under the Actestablishment not covered under the Act

With the permission of commissioner or any subordinate officer With the permission of commissioner or any subordinate officer to him, a member is allowed to draw full amount when he to him, a member is allowed to draw full amount when he ceases to be in employment and has not employed in any ceases to be in employment and has not employed in any establishment to which the Act applies for a continuous period establishment to which the Act applies for a continuous period of atleast 2 months.of atleast 2 months.

The Employee’s Family Pension SchemeThe Employee’s Family Pension Scheme

This scheme provides Family Pension and Life This scheme provides Family Pension and Life assurance benefit to the employeesassurance benefit to the employees

The Central government provides long-term financial The Central government provides long-term financial security to the families of industrial employeessecurity to the families of industrial employees

Membership of Employee’s Family Pension Membership of Employee’s Family Pension SchemeScheme

Retention of Membership:Retention of Membership:Can Continue to be a member upto age 60 Can Continue to be a member upto age 60 Or quit the service and withdrawsOr quit the service and withdrawsOr dies during the period of reckonable serviceOr dies during the period of reckonable service

Family Pension Fund:Family Pension Fund:The contribution from one and 1/6% of employee’s The contribution from one and 1/6% of employee’s pays an equal amount of one and 1/6% from and out pays an equal amount of one and 1/6% from and out of employees contribution is remitted by the employer of employees contribution is remitted by the employer to the Family Pension Fundto the Family Pension Fund

The Employees’ Deposit-linked InsuranceThe Employees’ Deposit-linked Insurance SchemeScheme

This Act amended in 1976 by Central This Act amended in 1976 by Central GovernmentGovernment

The purpose of the scheme is providing life The purpose of the scheme is providing life insurance benefit to the employees of any insurance benefit to the employees of any establishmentestablishment

Contribution to the Insurance Fund:Contribution to the Insurance Fund:Employers pay 0.5% of the total emoluments Employers pay 0.5% of the total emoluments

Administrative ExpensesAdministrative Expenses::

Employers are required to pay at the rate of 0.01%Employers are required to pay at the rate of 0.01% The Central Government also meets the expenses at the rate of The Central Government also meets the expenses at the rate of

0.005%0.005%

Nomination:Nomination:The nomination made by a member under the The nomination made by a member under the

Employee Fund Scheme is treated as nomination under this Employee Fund Scheme is treated as nomination under this schemescheme

Benefit Payable:Benefit Payable: On the death of an employee, the person’s entitled On the death of an employee, the person’s entitled

receives an additional amount equal to the average balance in receives an additional amount equal to the average balance in the provident fund accountthe provident fund account

The Employees’ Pension Scheme, 1995The Employees’ Pension Scheme, 1995

Under this scheme pension at the rate of 50% of pay is payable Under this scheme pension at the rate of 50% of pay is payable to the employees on retirement on completion of 33yrs of to the employees on retirement on completion of 33yrs of serviceservice

Minimum 10yrs service is required for entitlement to pensionMinimum 10yrs service is required for entitlement to pension

Depending upon salary and service at time of death pension Depending upon salary and service at time of death pension ranges from Rs.450 to Rs.2500/monthranges from Rs.450 to Rs.2500/month

The Central Government also contributes at the rate of 1.16% to The Central Government also contributes at the rate of 1.16% to the schemethe scheme

Contd…Contd…

Employer not to reduce wages: Employer not to reduce wages:

It prohibits an employer from reducing directly or It prohibits an employer from reducing directly or indirectly the wages of any employee to whom the Insurance indirectly the wages of any employee to whom the Insurance Scheme appliesScheme applies

Inspector:Inspector:

The appropriate Government by notification in the The appropriate Government by notification in the Official Gazette appoint such persons as it thinks fit to be Official Gazette appoint such persons as it thinks fit to be inspectors for the purpose of this Act or the Pension Scheme or inspectors for the purpose of this Act or the Pension Scheme or the Insurance Schemethe Insurance Scheme

The inspector appointed exercise powers for the The inspector appointed exercise powers for the purpose of inquiring to the correctness of any information purpose of inquiring to the correctness of any information furnished in connection with this Actfurnished in connection with this Act

Achievements of Employees Provident FundAchievements of Employees Provident Fund

The coverage of benefits of PF, family pension and The coverage of benefits of PF, family pension and deposit linked insurance increased from 2.31 crore deposit linked insurance increased from 2.31 crore subscribers as on 31.03.1998 to nearly 3.95 crore subscribers as on 31.03.1998 to nearly 3.95 crore subscribers as on 31.03.2003subscribers as on 31.03.2003

A nationally unique Social Security Number for A nationally unique Social Security Number for each worker would be provided. The scheme was each worker would be provided. The scheme was launched by way of a Reinventing – EPF India launched by way of a Reinventing – EPF India programme on 25.02.2003 so as to reduce claim programme on 25.02.2003 so as to reduce claim settlement from 30 days to 2-3 days only settlement from 30 days to 2-3 days only

‘‘Any Time Any Where’ access for a member to Any Time Any Where’ access for a member to service for settlement of claim or for information service for settlement of claim or for information relating to account balance.relating to account balance.

Creates a facilitating environment and capacity for Creates a facilitating environment and capacity for geometric growth in membership geometric growth in membership

Additional facilities of disbursement of pension Additional facilities of disbursement of pension through 26000 post offices has been introduced so through 26000 post offices has been introduced so as to benefit the workers who after retirement go as to benefit the workers who after retirement go back to their native places located in rural and far back to their native places located in rural and far flung areasflung areas

A new Directorate of recovery has been approved A new Directorate of recovery has been approved to step up recovery of EPF dues.to step up recovery of EPF dues.

ConclusionConclusion

On the basis of the above analysis, the lists of classes of On the basis of the above analysis, the lists of classes of establishments other than factories be removed, establishments other than factories be removed, extending the provisions of the Employees' Provident extending the provisions of the Employees' Provident Fund Act 1952 and the schemes framed there under to Fund Act 1952 and the schemes framed there under to all establishments, irrespective of their activities. This will all establishments, irrespective of their activities. This will enlarge the scope of social security benefits covering the enlarge the scope of social security benefits covering the workers engaged in both the organized or non-organized workers engaged in both the organized or non-organized sector. sector.

ReferencesReferences

Book References:Book References:

Human Resources Management by T.N Human Resources Management by T.N ChabbraChabbra

Website References:Website References:

http://www.corpmen.com/labourlaws/epfmpa1952/epf_brief.htm

http://epfindia.nic.in/epf.htmhttp://epfindia.nic.in/epf.htm

anaging safety in the anaging safety in the workplace workplace

John Jacob PGM07060555

Dimensions of safetyDimensions of safety

People safetyPeople safety

Machine and Material safetyMachine and Material safety

Product safetyProduct safety

Safety legislationSafety legislationFactories Act 1948:Factories Act 1948:

No young person allowed to work on dangerous No young person allowed to work on dangerous machines without training or supervision (Sec machines without training or supervision (Sec 23)23)

If there is risk of injury to the eyes then due If there is risk of injury to the eyes then due protection must be provided to the worker. (Sec protection must be provided to the worker. (Sec 35)35)

Those persons working in gas chambers or Those persons working in gas chambers or related areas must wear gas masks for related areas must wear gas masks for protection. (Sec 36)protection. (Sec 36)

In every factory, precautions and all measures to In every factory, precautions and all measures to ensure safety against fire should be applied. (Sec 38)ensure safety against fire should be applied. (Sec 38)

If it appears to the Safety Inspector that a certain part If it appears to the Safety Inspector that a certain part of the building or machinery is not safe to use, then he of the building or machinery is not safe to use, then he can prohibit its use and recommend changes to be can prohibit its use and recommend changes to be made. (Sec 40)made. (Sec 40)

Every factory with more than 1000 employees must Every factory with more than 1000 employees must have a Safety Officer. (Sec 40B)have a Safety Officer. (Sec 40B)

A Safety Committee must be setup in those relevant A Safety Committee must be setup in those relevant industries and must have equal represent industries and must have equal represent management and workers. (Sec 41G)management and workers. (Sec 41G)

Case study 1: Vista Foods Pvt. Case study 1: Vista Foods Pvt. Ltd.Ltd.

Core business: Food processing (Supplier Core business: Food processing (Supplier for McDonalds)for McDonalds)

Products: Chicken and Veg BurgersProducts: Chicken and Veg Burgers

Location: Taloja, PanvelLocation: Taloja, Panvel

Capacity: 8000 metric tonnes/annumCapacity: 8000 metric tonnes/annum

Area: 1500 sq. metresArea: 1500 sq. metres

Employees working: 180Employees working: 180

Safety measures (people)Safety measures (people)

Safety sensorsSafety sensors

Safety lidsSafety lids

Fire extinguishers (2 per line, 2 lines)Fire extinguishers (2 per line, 2 lines)

Assembling pointsAssembling points

Flowchart for emergencyFlowchart for emergency

Training for fire emergency (annual)Training for fire emergency (annual)

Medical checkup (annual)Medical checkup (annual)

Eye washersEye washers

Emergency switchEmergency switch

Emergency exitsEmergency exits

Antiskid on floors and staircaseAntiskid on floors and staircase

Safety HelmetsSafety Helmets

Vehicular inspectionVehicular inspection

Mock drills once a yearMock drills once a year

Water hydrantsWater hydrants

SirenSiren

Smoke alarmSmoke alarm

First aidFirst aid

Other highlightsOther highlights

External trainingExternal training

One accident in 1998One accident in 1998

Safety audit by Intratec (Score:88.5%)Safety audit by Intratec (Score:88.5%)

Investment in safety has gone up.Investment in safety has gone up.

Case Study 2: Vizag Steel PlantCase Study 2: Vizag Steel Plant

Core business: Steel manufacturingCore business: Steel manufacturing

Products: Steel, manganese, alloysProducts: Steel, manganese, alloys

Location: VizagLocation: Vizag

Capacity: 4 million tonnes (annual)Capacity: 4 million tonnes (annual)

Area: 1000 acresArea: 1000 acres

Employees working: 17, 500Employees working: 17, 500

Safety measuresSafety measures

Safety engineering dept. and committeeSafety engineering dept. and committee

Safety passSafety pass

CISF Fire UnitCISF Fire Unit

Automated fire safety devicesAutomated fire safety devices

Mock drills (Bi-monthly)Mock drills (Bi-monthly)

Training programsTraining programs

Material handlingMaterial handling

Gas safetyGas safety

Road safetyRoad safety

Fire fightingFire fighting

First Aid and safety health precautionsFirst Aid and safety health precautions

Occupational health hazardsOccupational health hazards

Mock Drill Mock Drill

Other highlightsOther highlights

Investment in safety: Rs 3 crores Investment in safety: Rs 3 crores (procurement) and Rs 5-6 lakhs (training)(procurement) and Rs 5-6 lakhs (training)

Two major accidents in the last 5 years.Two major accidents in the last 5 years.

Training done internally but there are Training done internally but there are external safety audits done (OSHAS external safety audits done (OSHAS 18001)18001)

Safety Innovation Award in 2006.Safety Innovation Award in 2006.