Social Security in India

What is Social Security?

• any of the measures established by legislation to maintain individual or family income or to provide income when some or all sources of income are disrupted or terminated or when exceptionally heavy expenditures have to be incurred (e.g., in bringing up children or paying for health care)
• social security may provide cash benefits to persons faced with sickness and disability, unemployment, crop failure, loss of the marital partner, maternity, responsibility for the care of young children, or retirement from work
• Social security benefits may be provided in cash or kind for medical need, rehabilitation, domestic help during illness at home, legal aid, or funeral expenses
• It acts as a facilitator – it helps people to plan their own future through insurance and assistance.

History of Social security

• Germany was the first country to introduce Social security scheme (1883)
• each member of a particular trade (blacksmiths, painters, weavers etc) was required to contribute at regular intervals;
• Money from this fund was used for food,lodging, hospital and feneral expenses of aged and disabled members.
• In USA, Social Security Act came into existence in 1935. (years not important, this is only fodder material for Essay.)

Social Security in India

• India has always had a Joint Family system that took care of the social security needs.
• However with rise of migration, urbanization, nuclear families and demographic changes, Joint family system has declined. Hence we need a formal system of social security.

Read more: http://mrunal.org/2012/07/economy-social-security-epfo.html#1