Social Security Systems In India: Special Focus On National Pension Scheme


  • Social security may be defined as any programme of social protection established by legislation, or any other mandatory arrangement, that provides individuals with a degree of income security when faced with the contingencies of old age, survivorship, incapacity, disability, unemployment or rearing children. It may also offer access to curative or preventive medical care.
  • Economists Amartya Sen and Jean Dreze distinguish two aspects of social security — “protection” and “promotion.” While the former denotes protection against a fall in living standards and living conditions through ill health, accidents, the latter focuses on enhanced living conditions, helping everyone overcome persistent capabilities deprivation.
  • India’s social security system is composed of several schemes and programs spread throughout a variety of laws and regulations. Keep in mind, however, that the government-controlled social security system in India applies to only a small portion of the population.
  • Furthermore, the social security system in India includes not just an insurance payment of premiums into government funds (like in China), but also lump sum employer obligations.

Need for Social security in India

  • Indian society is traditionally a Joint Family system. So social security was primarily provided by the community and the family. The state was obligated by the constitution to become a “welfare state”. However, due to limited capacity of the state just after the turmoil of the Independence a large chunk of the social security obligation were place under the DPSP, which are non-justifiable. Also, since formal employment is a meagre 7% in India, as per economic survey 2013-14, thus an overwhelming majority of the citizens were mostly dependent more on the social structure rather than on the state for their social security.
  • The wave of globalisation demanded greater attention and protection to informal workers as the process of globalisation has eroded employment relations, which have encouraged formal sector employers to hire workers at low wages with no social-security benefits or to subcontract the production of goods and services, which helped them maintain cost efficiency.
Location: Thiruvananthapuram, Kerala, India

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