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About Me Essay

4166 words - 17 pages

S O CIAL SEC U RIT Y | AN N U AL RE P O R T 2006- 2007


6.1 The Social Security schemes in India cover only a small segment of the organized work force, which may be defined as workers who are having a direct regular employer-employee relationship within an organization. The social security legislation in India derives their strength and spirit from the Directive Principles of the State Policy as contained in the Constitution of India. These provide for mandatory social security benefits either solely at the cost of the employers or on the basis of joint contribution of the employers and the employees. While protective entitlements accrue to the ...view middle of the document...

The provisions of the Workmen’s Compensation Act, 1923 are being administered exclusively by the State Governments.

• • •


6.3 The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 is administered by the Government of India through the Employees’ Provident Fund Organisation (EPFO). Cash benefits under

6.4 The Employee’s Provident Funds and Miscellaneous Provisions Act, 1952 is a welfare legislation enacted for the purpose of instituting a Provident Fund for employees working in factories and other establishments. The Act aims at providing social security and timely monetary assistance to industrial employees and their families when they are in distress and/or unable to meet family and social obligations and to protect them in old age, disablement, early death of the bread winner and in some other contingencies. Presently, the following three Schemes are


S O CIAL SEC U RIT Y | AN N U AL RE P O R T 2006- 2007

in operation under the Act through the EPFO: • • • Employees’ Provident Funds Scheme, 1952 Employees’ Deposit Linked Insurance Scheme, 1976 Employees' Pension Scheme, 1995


6.5 The Employees Provident Fund and Miscellaneous Provisions Act, 1952 extends to the whole of India, excluding the state of Jammu & Kashmir. The Act is applicable to factories and other classes of establishments engaged in specific industries, classes of establishments employing 20 or more persons. The Act, however does not apply to cooperative societies employing less than 50 persons and working without the aid of power .The Act also does not apply to employees of the Central Government or State Government or local authority. The Central Government is empowered to apply the provisions of this Act to any establishment employing less than 20 persons after giving not less than two months notice of its intent to do so by a notification in the official gazette. Once the Act has been made applicable, it does not cease to be applicable even if the numbers of employees falls below 20. An establishment/factory, which is not otherwise coverable under the Act, can be covered voluntarily with mutual consent of the employers and the majority of the employees under Section 1(4) of the Act. Thus membership of the fund is compulsory for Employees drawing a pay not exceeding Rs. 6500 per month (at the time of joining). Every employee employed in or in connection with the work of a factory or establishment shall be entitled and required to become a member of the fund from the date of joining the factory or establishment. The Employees drawing more than Rs.6500/- per month at the time of joining may become member on a joint option of employer and employee. The Act is currently applicable to factories and other establishment engaged in about 182 specified industries, class of establishments employing 20 or more...

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