50% unemployment benefit to ESIC subscribers

blog imageThe labour ministry has notified enhanced payout under the Atal Beemit Vyakti Kalyan Yojana, paving way for 50% unemployment benefit to the subscribers of the Employees’ State Insurance Scheme with relaxed eligibility conditions up till December 31, 2020. The move will benefit formal workers, enrolled under ESIC, who would have lost jobs during the Covid-19 pandemic which led to lockdown of industries and establishments in April and May.

Besides, the scheme has been extended for a year from July 1, 2020 and would now be effective till June 30,2021. However, original provisions will be restored from January 1, 2021.

The scheme is estimated to benefit 41,94,176 subscribers who are eligible under the revised criteria and would cost ESIC Rs Rs 6710.67 crore.

ESIC data shows contribution under the scheme was neither filed nor paid for 80,43,305 subscribers during April and May while another 81,95,765 were the total number of people who exited the scheme during the contribution period ending March 2020.

However, only 30,32,821 insured persons (IPs) whose contributions have not been made in the lockdown period are eligible for the scheme while 11,61,355 IPs eligible for the scheme are among those who have not contributed till March 2020.

“In exercise of the powers conferred upon it under sub-section (1) of section 97 of the Employees’ State Insurance Act 1948 (34 of 1948), the Employees’ State Insurance Corporation hereby notify the extension of the scheme Atal Beemit Vyakti Kalyan Yojana for the period July 1, 2020 to June 30, 2021 with relaxation in following eligibility conditions for availing relief under the scheme during the period March 21, 2020 to December 31, 2020,” it said in the notification.

According to the notification, relief to the extent of 50% of the average per day earning during the previous four contribution periods to be paid up to maximum 90 days of unemployment as against 25% earlier.

Besides, the insured person should have been in insurable employment for a minimum period of two years immediately before his or her unemployment and should have contributed for not less than 78 days in the contribution period immediately preceding the unemployment and minimum 78 days in one of the remaining three contribution periods in two years prior to unemployment.

Further, the claim shall be due 30 days after the date of unemployment as against 90 days earlier and the claim can be submitted online after which the payment shall be made in the bank account of the IP within 15 days from the receipt of the duly completed claim.

The scheme Atal Beemit Vyakti Kalyan Yojana will be available with original eligibility conditions for the IPs who became unemployed on or before March 23, 2020 and on or after January 1, 2021.

 

 

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