Atal Bimit Vyakti Kalyan Yojana: ESIC
- 24 Aug 2020
- 3 min read
Why in News
The Employees' State Insurance Corporation (ESIC) has extended the Atal Bimit Vyakti Kalyan Yojana by one year to 30th June 2021.
- Further, the ESIC has relaxed eligibility criteria and enhanced the payment of the unemployment benefit under the Yojana (applicable from 24th March-31st December 2020).
- About the Yojana:
- Atal Bimit Vyakti Kalyan Yojana was introduced w.e.f. 1st July 2018.
- Under it, unemployment benefit is paid to the workers covered under the Employees' State Insurance (ESI) scheme.
- Unemployment benefit is paid in the form of cash compensation upto 90 days, once in a lifetime, to be claimed after three months (90 days) in one or more spells for being rendered unemployed.
- The employee should have completed two years of insurable employment and has contributed not less than 78 days in each of the four consecutive contribution periods immediately preceding to the claim of the relief.
- The benefit does not exceed 25% of the average earning per day.
- About the ESI Act, 1948:
- It applies to all factories and notified establishments located in implemented areas employing 10 or more persons and is applicable on employees drawing wages up to Rs. 21,000 per month (Rs. 25,000 for persons with disabilities).
- In July 2019, the contribution rate under the ESI Act was reduced from 6.5% to 4% (employers’ contribution from 4.75% to 3.25% and employees’ contribution from 1.75% to 0.75%).
- In a financial year, there are two contribution periods each of six months duration.
- Employees in receipt of a daily average wage upto Rs.137 are exempted from payment of contribution.
- The Employees' State Insurance Scheme is administered by a corporate body called the ESI Corporation.
- The Corporation is the highest policy making and decision taking authority under the ESI Act and oversees the functioning of the Scheme.
- The Union Minister of Labour and Employment is its Chairman.
- It covers about 3.49 crore of family units of workers and provides cash benefits and medical facilities to 13.56 crore beneficiaries.