58  Social Security: Concept and Scope, Beveridge’s Five Giants, ILO Convention 102 (1952) Nine Contingencies, Indian Architecture (EPF, ESI, Maternity, Gratuity, Compensation), Atal Pension, PMSYM, e-Shram, the Code on Social Security 2020 and Universal Social Protection

58.1 Society’s Insurance for Life’s Contingencies

A worker may lose income for reasons that are no fault of his own — sickness, accident, unemployment, old age, death of a breadwinner. Social security is the body of public arrangements designed to protect individuals and families from such economic insecurity. The concept moved from charity to right in the 20th century — culminating in the Beveridge Report (UK, 1942), the ILO Convention 102 (1952) with its nine contingencies, and India’s progressive expansion via EPF, ESI, Maternity, Gratuity, Compensation, Atal Pension and the Code on Social Security 2020 consolidating nine major statutes.

58.2 1 · Concept and Definitions

TipStandard Definitions
Source Substance
ILO (1942 — Approaches to Social Security) Security that society furnishes — through appropriate organisation — against certain risks to which its members are exposed
Beveridge (1942) Provision against income loss in the contingencies of life, abolishing want
Sir William Beveridge “Security from cradle to grave”
Friedlander Programme to safeguard individuals against contingencies that threaten well-being
ILO Convention 102 (1952) Minimum standards for nine specified contingencies

58.3 2 · Beveridge’s Five Giants

Sir William Beveridge in his 1942 Report identified five “giants on the road to reconstruction” that social security must slay:

TipFive Giants
Giant Substance
Want Income insecurity, poverty
Disease Ill-health
Ignorance Lack of education
Squalor Poor housing
Idleness Unemployment

58.4 3 · ILO Convention 102 — Nine Contingencies

The ILO Social Security (Minimum Standards) Convention, 1952 (No. 102) is the foundational global instrument, identifying nine contingencies:

TipILO C-102 Nine Branches
# Contingency Indian Indicative Measure
1 Medical care ESI medical benefit, Ayushman Bharat
2 Sickness benefit ESI sickness benefit
3 Unemployment benefit Rajiv Gandhi Shramik Kalyan Yojana (under ESI)
4 Old-age benefit EPS pension, Atal Pension Yojana, NPS
5 Employment injury benefit Employees’ Compensation, ESI disablement
6 Family benefit Family pension (EPS)
7 Maternity benefit Maternity Benefit Act 1961; ESI
8 Invalidity benefit EPS disablement pension
9 Survivors’ benefit EPS family pension; EDLI
NotePYQ trap — Nine contingencies of C-102

ILO Convention 102 (1952) lists nine contingencies. India has not ratified C-102 (as of 2024), though its social security legislation broadly covers most of these branches.

58.5 4 · Three Pillars of Social Security

TipThree-Pillar Architecture
Pillar Type Examples
Social Insurance Contributory; tripartite or bipartite financing EPF, ESI, EPS
Social Assistance Tax-funded, non-contributory; means-tested Old-age pension under NSAP, widow pension, disability pension
Public Service / Universal Services Funded by general taxation; universal benefit Public health, education

58.7 6 · Approaches to Social Security

  • Risk-pooling / insurance model — contributions from workers, employers and state finance benefits.
  • Beveridge model — universal, tax-funded, flat-rate benefits (UK NHS).
  • Bismarck model — earnings-related, employment-based contributions (Germany).
  • Provident-fund model — individual savings (Singapore CPF, India EPF).
  • Means-tested assistance — for the poor.
  • Universal Basic Income — emerging proposal.

58.8 7 · Indian Social Security Architecture

TipIndian Social Security Statutes
Statute Year Coverage
Workmen’s / Employees’ Compensation Act 1923 Employment injury / death
Employees’ State Insurance Act 1948 Medical, sickness, maternity, disablement, dependants’ benefit
Employees’ Provident Funds Act 1952 EPF, EPS, EDLI
Maternity Benefit Act 1961 Maternity leave + cash
Payment of Gratuity Act 1972 Lump-sum on long-service termination
Unorganised Workers’ Social Security Act 2008 Unorganised — schemes
BOCW Welfare Cess Act 1996 Construction workers
Code on Social Security 2020 Consolidation of 9 Acts

58.9 8 · Schemes for the Unorganised Sector

TipSchemes for the Unorganised
Scheme Year Substance
National Social Assistance Programme (NSAP) 1995 Old-age, widow, disability pension; family benefit; Annapurna
Aam Aadmi Bima Yojana 2007 Life insurance for rural landless
Rashtriya Swasthya Bima Yojana 2008 Health insurance for BPL (now folded into Ayushman Bharat)
Pradhan Mantri Suraksha Bima Yojana (PMSBY) 2015 Accidental death/disability insurance — Rs 2 lakh
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) 2015 Life insurance Rs 2 lakh
Atal Pension Yojana (APY) 2015 Old-age pension Rs 1,000-5,000
Ayushman Bharat (PM-JAY) 2018 Health cover Rs 5 lakh per family
PM Shram Yogi Maan-dhan (PMSYM) 2019 Pension for unorganised workers — Rs 3,000/month
e-Shram portal 2021 Unorganised workers’ database (>30 crore registered)
PM Vishwakarma 2023 Artisan welfare

58.10 9 · Code on Social Security 2020 — Salient Features

TipCode on Social Security 2020
Feature Substance
Consolidation Subsumes 9 earlier statutes (EPF, ESI, Maternity, Gratuity, ECA, BOCW Cess, USSA, Cinema Workers’ Welfare, etc.)
Coverage extension Gig and platform workers explicitly recognised
Social Security Fund National fund for unorganised workers
Aadhaar-linked registration e-Shram integration
Threshold flexibility Government may notify thresholds
Career Centre Replacement of employment exchange
Maternity 26 weeks; crèche at 50+
Gratuity Pro-rata for fixed-term employees

58.11 10 · Position in Constitutional Scheme

TipConstitutional Anchors
Provision Substance
Article 21 Right to life — includes livelihood, dignity
Article 38 State to secure social order
Article 39 Adequate means of livelihood; equal pay
Article 41 Right to work, education and public assistance in certain cases (old age, sickness, disablement)
Article 42 Maternity relief and just conditions
Article 43 Living wage and conditions of work
Article 47 Public health and standard of living
7th Schedule Labour and social security — Concurrent List

58.12 11 · India and ILO Conventions

India has ratified:

  • C-19 (1925) — Equality of Treatment (Accident Compensation).
  • C-118 (1962) — Equality of Treatment (Social Security) — not ratified.
  • C-102 (1952) — Minimum Standards — not ratified but broadly aligned.

58.13 12 · Critique

  • Coverage gap — 90 %+ of workforce in unorganised sector with limited statutory cover.
  • Multiplicity of schemes with low penetration.
  • Low replacement rates — minimum pension Rs 1,000-3,000 inadequate.
  • Implementation deficit — registration, payment, portability problems.
  • Funding — pay-as-you-go vs funded debate.

58.14 Practice Questions

Q 01BeveridgeMedium

"Security from cradle to grave" is associated with:

  • AMarx
  • BBeveridge
  • CBismarck
  • DRoosevelt
View solution
Correct Option: B
Beveridge Report 1942.
Q 02Five GiantsHard

Which is NOT among Beveridge's Five Giants?

  • AWant
  • BDisease
  • CInequality
  • DIdleness
View solution
Correct Option: C
The five are Want, Disease, Ignorance, Squalor, Idleness.
Q 03C-102Medium

ILO Convention 102 (1952) covers how many contingencies?

  • A3
  • B5
  • C7
  • D9
View solution
Correct Option: D
Nine contingencies.
Q 04PillarMedium

EPF is an example of:

  • ASocial insurance / provident fund
  • BSocial assistance
  • CUniversal service
  • DCharity
View solution
Correct Option: A
Contributory PF.
Q 05Old-ageEasy

Atal Pension Yojana was launched in:

  • A2000
  • B2009
  • C2015
  • D2019
View solution
Correct Option: C
2015.
Q 06PMSYMMedium

PM Shram Yogi Maan-dhan provides:

  • ARs 1,000/month pension
  • BRs 3,000/month pension
  • CRs 5,000/month pension
  • DLump-sum gratuity
View solution
Correct Option: B
Rs 3,000/month for unorganised workers.
Q 07MatchHard

Match scheme with year:

(i) NSAP (a) 2018
(ii) APY (b) 1995
(iii) Ayushman Bharat (c) 2015
(iv) e-Shram (d) 2021
  • A(i)-(b), (ii)-(c), (iii)-(a), (iv)-(d)
  • B(i)-(c), (ii)-(b), (iii)-(d), (iv)-(a)
  • C(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
  • D(i)-(d), (ii)-(a), (iii)-(b), (iv)-(c)
View solution
Correct Option: A
NSAP 1995; APY 2015; Ayushman 2018; e-Shram 2021.
Q 08BismarckMedium

The Bismarck model of social security is:

  • AUniversal tax-funded
  • BEmployment-based contributions
  • CProvident fund
  • DUBI
View solution
Correct Option: B
Earnings-related employment contributions.
Q 09PMJJBYHard

PMJJBY provides life insurance of:

  • ARs 1 lakh
  • BRs 2 lakh
  • CRs 5 lakh
  • DRs 10 lakh
View solution
Correct Option: B
Rs 2 lakh.
Q 10AyushmanMedium

Ayushman Bharat covers up to:

  • ARs 1 lakh per family
  • BRs 5 lakh per family
  • CRs 10 lakh per family
  • DRs 50,000 per family
View solution
Correct Option: B
Rs 5 lakh per family.
Q 11e-ShramMedium

The e-Shram portal was launched in:

  • A2014
  • B2017
  • C2020
  • D2021
View solution
Correct Option: D
August 2021.
Q 12UWAMedium

The Unorganised Workers' Social Security Act was enacted in:

  • A1996
  • B2002
  • C2008
  • D2014
View solution
Correct Option: C
2008.
Q 13Code 2020Easy

The Code on Social Security 2020 subsumes approximately:

  • A3 Acts
  • B5 Acts
  • C9 Acts
  • D29 Acts
View solution
Correct Option: C
9 social security Acts.
Q 14GigMedium

The Code on Social Security 2020 explicitly recognises:

  • AGig and platform workers
  • BDefence personnel
  • CJudges
  • DMPs
View solution
Correct Option: A
Gig and platform workers.
Q 15ArticleMedium

Right to public assistance for old age, sickness, disablement is in:

  • AArticle 14
  • BArticle 21
  • CArticle 41
  • DArticle 48
View solution
Correct Option: C
Article 41 — DPSP.
Q 16India C-102Hard

India's status on ILO Convention 102:

  • ARatified in 1952
  • BRatified in 1981
  • CNot ratified
  • DRatified in 2020
View solution
Correct Option: C
Not ratified, though broadly aligned.
Q 17PMSBYMedium

PMSBY provides accidental death/disability cover of:

  • ARs 2 lakh
  • BRs 5 lakh
  • CRs 10 lakh
  • DRs 20 lakh
View solution
Correct Option: A
Rs 2 lakh.
Q 18ProvidentHard

The "provident fund" model of social security is associated with:

  • ASingapore CPF and India EPF
  • BUK NHS
  • CGerman Bismarck
  • DUS Social Security
View solution
Correct Option: A
CPF Singapore and EPF India.
Q 19Beveridge yearMedium

The Beveridge Report was published in:

  • A1929
  • B1942
  • C1952
  • D1971
View solution
Correct Option: B
1942.
Q 20ListHard

Labour and social security in India fall under:

  • AUnion List
  • BState List
  • CConcurrent List
  • DResiduary
View solution
Correct Option: C
Concurrent List.

58.15 Quick Recall

ImportantQuick recall
  • Social security = public protection against income loss from life’s contingencies.
  • Beveridge (1942): Five Giants — Want, Disease, Ignorance, Squalor, Idleness. “Cradle to grave”.
  • ILO C-102 (1952) — Minimum Standards; nine contingencies (medical care, sickness, unemployment, old-age, employment injury, family, maternity, invalidity, survivors). India has not ratified C-102.
  • Models: Beveridge (UK), Bismarck (Germany), Provident Fund (India/Singapore), means-tested, UBI.
  • Three pillars: Social insurance / Social assistance / Universal services.
  • Indian statutes: Workmen’s Comp (1923), ESI (1948), EPF (1952), Maternity (1961), Gratuity (1972), BOCW Cess (1996), USSA (2008), Code on Social Security (2020).
  • Major schemes: NSAP (1995), AAB (2007), RSBY (2008), PMSBY/PMJJBY/APY (2015), Ayushman (2018), PMSYM (2019), e-Shram (2021), PM Vishwakarma (2023).
  • Code on Social Security 2020 subsumes 9 Acts; covers gig/platform workers.
  • Constitutional anchors: Articles 21, 38, 39, 41, 42, 43, 47; Concurrent List.