Social Security and Workers Compensation in India

Workmen's compensation is an integral part of the broader social security system in India. Social security encompasses a range of measures aimed at safeguarding individuals and families from unforeseen risks and vulnerabilities. In the context of workmen's compensation, social security goes beyond mere financial compensation.

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Social Security and Workers Compensation in India

As per The Code on Social Security, 2020 (“SS Code”), social security draft measures to protect employees, including unorganized workers, to ensure they get access to affordable health care, and to provide income security (mostly in cases of old employees) during unemployment, sickness, work-related injury, maternity or death of an employee.

The SS Code 2020 was passed in September 2020 and forms a part of the labour reforms in India. It merges some of the existing social security laws and attempts to include an unorganized workforce within the realm of social security.

Some of the social security instruments include:

Gratuity benefit

Workers Compensation/ Employees Compensation

Maternity Benefits

Employee Provident Fund

Employees Liability

Employees State Insurance

Workers compensation forms a part of India’s social security system. The Workers Compensation Act 1923 is a compensation act where the employer is required to financially compensate his employees and workers in case of any workplace-related accident leading to an injury or death.

In such situations, employees and their dependents shall receive financial support. Employers are also entitled to compensation for occupational diseases caused due to working conditions or on the job. Workers compensation is a legal liability of an employer, and it protects employees/ workers from huge financial costs.

Interplay Between Workmen's Compensation and Social Security

Workmen's compensation can be considered a microcosm of the larger social security landscape. While it specifically addresses workplace injuries, it embodies the core principles of social security, including solidarity, collective responsibility, and equitable distribution of resources.

Additionally, workmen's compensation serves as a safety net for workers who may not have access to comprehensive social security measures. It provides immediate relief in times of crisis, offering a degree of protection to workers across various industries and sectors, including those in informal employment.