India's social security scheme

The Central Government unveils various social security schemes time to time to placate the economically and socially weaker sections of the society.

These schemes are central-based, state-based or joint-venture between the centers and states.

India has a very indispensible social security system, which caters to a relatively diminutive proportion of the huge manpower of our country.

Usually, the people of our country depend on the support of extended families during serious ailments or other catastrophes.

However, with the fading of joint families, higher rates of urbanization, migration and greater social mobility, family bonds are getting weaker and neither state-run or private insurers have taken serious measures to fill up this fissure.

The two foremost social security schemes in our country are the Employees’ Provident Fund Organization (EPFO) and the Employee’ State Insurance Corporation (ESIC).

The EPFO runs a provident fund or retirement fund scheme along with an insurance scheme.

The purpose of these schemes is to provide old-age and disability benefits and financial assistance in case of the demise of the bread earner.

The ESIC offers basic healthcare and social security to employees under low-income group. The scheme was initially launched for factory workers and later expanded to workers associated with healthcare and educational sectors.

However, a huge section of the populace associated with the agricultural sector remains uncovered under any social security scheme, making them extremely vulnerable in case of calamities.

As of 2014, about 94% or 370 million of the workforce of India engaged with the “unorganized” sector are devoid of financial benefits from social security schemes