Certain social groups are exceptionally vulnerable, facing risks such as old age, poverty, unemployment, and disability. To safeguard these groups from further distress, the government has instituted various schemes related to food, health, insurance, and more. Social protection measures encompass wage employment, subsidized or free food grains, old age pensions, and similar initiatives. The Food Security Act of 2013, along with the public distribution system in India, serves as a prominent example of social security.
Government Initiatives:
- Food Security Act, 2013:
- The Food Security Act ensures access to affordable or free food grains for vulnerable populations, providing a robust example of social security.
- Public Distribution System:
- The public distribution system in India plays a crucial role in implementing social security measures related to food distribution.
Social Insurance:
In the realm of social insurance, individuals receive benefits or services in exchange for contributions to an insurance scheme. These services cover various aspects, including retirement pensions and disability insurance.
- Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM):
- The government’s pension scheme for unorganized workers, PM-SYM, introduced in 2019, is a notable initiative aimed at ensuring old age protection for this vulnerable demographic.
Key Aspects of Social Security:
- Protection Against Distress:
- Social security measures are designed to protect vulnerable groups from potential distress related to old age, poverty, unemployment, disability, and other challenges.
- Government Support:
- The government provides various forms of social protection, including wage employment, food grains at affordable prices or for free, and old age pensions.
- Contributory Schemes:
- Social insurance operates on a contributory model, where individuals contribute to the insurance scheme in exchange for future benefits.
- Holistic Approach:
- Social security encompasses a holistic approach, addressing various dimensions of vulnerability through targeted schemes and initiatives.
In conclusion, social security in India involves a multifaceted approach, encompassing protective measures such as the Food Security Act, public distribution systems, and contributory schemes like PM-SYM. These initiatives play a crucial role in shielding vulnerable populations from the adverse impacts of old age, poverty, and other challenges.
Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM):
PM-SYM is a voluntary and contributory pension scheme, operating on a fifty-fifty basis. Beneficiaries make a specified contribution based on their age, which continues until the age of 60 years. Simultaneously, the central government contributes an equal amount of ₹100 per month.
Scheme Details:
- Contributions:
- Beneficiaries make monthly contributions, and the central government matches this amount on a fifty-fifty basis.
- Minimum Assured Pension:
- Subscribers under PM-SYM are assured a minimum monthly pension of ₹3000 after reaching the age of 60.
Eligibility Criteria:
- Occupational Eligibility:
- The scheme is targeted at unorganized workers engaged in various occupations, including home-based work, street vendors, head loaders, mid-day meal workers, brick kiln workers, rag pickers, cobblers, domestic helpers, rickshaw-pullers, washermen, landless laborers, own account workers, agricultural workers, beedi workers, handloom workers, construction workers, leather workers, audio-visual workers, and similar occupations.
- Income Criteria:
- Eligible individuals should have a monthly income of ₹15,000 or less.
- Age Group:
- The entry age group for PM-SYM is 18-40 years.
- Exclusion from Other Schemes:
- Individuals covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme, or Employees’ Provident Fund Organisation (EPFO) are not eligible for PM-SYM.
- Non-Income Tax Payer:
- Beneficiaries should not be income taxpayers.
Conclusion:
Pradhan Mantri Shram Yogi Maan-Dhan aims to provide a financial safety net for unorganized workers in various occupations. By ensuring a minimum assured pension after the age of 60, the scheme contributes to the social security of individuals engaged in vulnerable occupations with limited monthly income.
FAQs
1. What is Social Security?
- Social Security is a federal program designed to provide financial support to retired workers, disabled individuals, and survivors of deceased workers. It is funded through payroll taxes and provides benefits to eligible individuals and their families.
2. Who is eligible for Social Security benefits?
- Eligibility for Social Security benefits is primarily based on a worker’s contributions to the Social Security system through payroll taxes. Generally, individuals who have worked and paid into the system for a certain number of years are eligible for retirement benefits. Disability benefits are available to individuals who have a qualifying medical condition that prevents them from working, while survivors’ benefits are provided to spouses and dependents of deceased workers.
3. How are Social Security benefits calculated?
- Social Security benefits are calculated based on a worker’s lifetime earnings. The Social Security Administration uses a formula that takes into account a worker’s highest 35 years of earnings, adjusted for inflation. The age at which a person chooses to start receiving benefits also affects the amount they receive, with full retirement age typically between 66 and 67, depending on the year of birth.
4. Can I work while receiving Social Security benefits?
- Yes, it is possible to work while receiving Social Security benefits, but your earnings may affect the amount of benefits you receive. If you are below full retirement age, there is an earnings limit beyond which your benefits may be reduced. However, once you reach full retirement age, you can work and earn any amount without it affecting your Social Security benefits.
5. Is Social Security financially stable for the future?
- Social Security faces long-term financial challenges due to factors such as demographic shifts, including the aging population and declining birth rates. While the program is currently able to pay full benefits, projections indicate that the trust funds may be depleted in the coming decades if no changes are made. Policymakers are considering various reforms to ensure the long-term sustainability of Social Security, such as adjusting payroll taxes, raising the retirement age, or modifying benefit formulas.
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