Types of Social Security Schemes

[abhilash]

What are the different types of social security schemes available in HRM?

[nbm]

Types of Social Security Schemes are:

(a) Social assistance schemes, and
(b) Social insurance schemes.

Principal features of social assistance schemes are as follows:
1. The entire cost of the scheme is met by the State;
2. Assistance is given as of legal right to certain prescribed categories of individuals only;
3. In assessing the person need his other incomes and resources are taken into account;
4. Assistance is given to bring the person's total income to a certain predetermined minimum level. No account is taken of his previous earnings or customary standard of living.
Principal features of social insurance schemes are as follows:
1. These are financed by contributions made by employers, workers and the State;
2. Surplus funds not needed to pay current benefits are invested to earn further income;
3. A person's right to receive benefit is directly related to his making regular contributions and not to the assessment of his income or need.