The correct option is (c) 1 and 3 only.
Explanation
For permanent workers in the organized sector, social security mechanisms such as the Provident Fund (PF) are mandated by law. These schemes are designed to ensure financial stability for employees after retirement. The Employees' Provident Fund Organisation (EPFO) is the statutory body in India that manages these funds.
Statement-wise Analysis
- Statement 1 is Correct: In the Provident Fund system, a specific percentage of the worker's salary (typically 12% of the basic pay and dearness allowance) is deducted and deposited into a fund maintained by the government or a government-mandated trust. The employer also contributes a matching amount to this fund.
- Statement 2 is Incorrect: The government or employer does not deduct the entire salary. Only a defined fraction or percentage of the salary is deducted for social security contributions. Deducting the entire salary would leave the worker with no disposable income for immediate living expenses.
- Statement 3 is Correct: The primary objective of such savings schemes (Provident Fund and Pension) is to provide financial security during old age. The accumulated savings, along with interest, are paid to the worker upon retirement, ensuring they have funds to sustain themselves when they are no longer earning a regular wage.
Key Takeaway: Social security for permanent workers typically involves a Provident Fund, where a portion of the salary is saved with the government to provide financial protection post-retirement.