Article:
The Employees’ State Insurance Corporation (ESIC) has announced that the Atal Bimit Vyakti Kalyan Yojana, an unemployment benefit scheme, is being extended by one year until 30th June 2021. Furthermore, the ESIC has relaxed the eligibility criteria and increased the given unemployment benefit under this specific Yojana.
Overview of Atal Bimit Vyakti Kalyan Yojana
Launched originally on 1st July 2018, Atal Bimit Vyakti Kalyan Yojana is targeted at workers that are covered under the Employees’ State Insurance (ESI) scheme. The key feature of this initiative is to provide a cash compensation up to 90 days, claimable once in a lifetime, after three continuous months (90 days) of being unemployed. However, this can be claimed in one or more phases.
To avail this compensation, the worker should have completed at least two years of insurable employment. Additionally, they must have contributed for not less than 78 days in each of four consecutive contribution periods that immediately precede their claim. The benefit amount cannot exceed 25% of the average daily earning.
Details About the ESI Act, 1948
The ESI Act applies to all factories and specified establishments located in implemented areas, employing 10 or more individuals. It is also applicable to employees who earn wages up to Rs. 21,000 per month (Rs. 25,000 for individuals with disabilities).
In July 2019, it was decided to reduce the contribution rate under the ESI Act from 6.5% to 4%, which includes employers’ contribution reduced from 4.75% to 3.25% and employees’ contribution trimmed down from 1.75% to 0.75%.
Within a fiscal year, there are two contribution periods, each lasting six months. Workers who receive a daily average wage up to Rs.137 are exempted from making any contribution.
About the Administration of the ESI Scheme
The administration of the Employees’ State Insurance Scheme is managed by the ESI Corporation, a corporate body with the Union Minister of Labour and Employment acting as its Chairman. This corporation makes the highest policy decisions and directs the functioning of the scheme.
The ESI scheme currently covers approximately 3.49 crore family units of workers. Through this scheme, they provide cash benefits and medical facilities to over 13.56 crore beneficiaries.
[source: PIB]