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    The Code On Social Security

    Uploaded by

    Mukul Kumar

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    The Code On Social Security

    Uploaded by

    Mukul Kumar
    1 views1 page

    Original Title

    The Code on Social Security

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    1 views1 page

    The Code On Social Security

    Uploaded by

    Mukul Kumar

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    The Code on Social Security, 2020, is a comprehensive legislation aimed at providing social security to all

    workers and employees in India. It amalgamates various existing laws related to social security and aims to
    simplify and streamline the process. Under this code, several social security schemes and funds have been
    established for the welfare of employees. Let's delve into some of these schemes and funds:

    1. Employees' Provident Fund (EPF):


    o EPF is one of the most significant social security schemes under the Code on Social Security, 2020.
    It is aimed at providing financial security to employees after retirement.
    o Both the employer and the employee contribute a certain percentage of the employee's salary to
    the EPF account. As of now, the contribution rates are usually 12% of the employee's basic salary
    plus dearness allowance from both the employer and the employee.
    2. Employees' State Insurance (ESI):
    o ESI is a self-financing social security and health insurance scheme for workers in India. It provides
    medical and cash benefits to employees and their families.
    o Under this scheme, both the employer and the employee contribute a certain percentage of the
    employee's wages towards the ESI fund. The current contribution rates are usually 4% of the
    employee's wages, with the employer contributing 3.25% and the employee contributing 0.75%.
    3. Gratuity:
    o Gratuity is a benefit provided to employees as a gesture of gratitude for their long-term service to
    the organization. It is payable when an employee completes five or more years of continuous
    service.
    o The gratuity amount is calculated based on the employee's last drawn salary and the number of
    years of service. The employer is responsible for funding the gratuity amount.
    4. National Pension Scheme (NPS):
    o NPS is a voluntary, defined contribution retirement savings scheme aimed at providing retirement
    income to employees.
    o Under NPS, both the employer and the employee contribute a certain percentage of the employee's
    salary towards the pension fund. The contribution rates may vary depending on the terms agreed
    upon.
    5. Maternity Benefit:
    o The Code on Social Security, 2020, mandates provisions for maternity benefits to female
    employees. It includes paid maternity leave, medical benefits, and other related allowances.
    o The employer is responsible for providing these benefits to eligible female employees.
    6. Social Security Funds:
    o Apart from the specific schemes mentioned above, the Code on Social Security, 2020, also provides
    for the establishment of various social security funds to support employees in times of need, such
    as for disability, unemployment, and old age.

    The contribution for Provident Fund by both the employer and the employee is crucial in ensuring financial
    security for the employees post-retirement. As mentioned earlier, the usual contribution rates are 12% of the
    employee's basic salary plus dearness allowance. Out of this, the employer contributes a certain percentage, and
    the employee contributes the remaining percentage.

    In conclusion, the Code on Social Security, 2020, aims to provide comprehensive social security coverage to all
    workers and employees in India. Through various schemes and funds like EPF, ESI, Gratuity, NPS, and maternity
    benefits, it ensures financial stability and welfare for employees during their working years and after retirement.
    The contribution for Provident Fund, shared by both the employer and the employee, forms a vital part of this
    social security framework, fostering a sense of financial security and stability for the workforce.

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