Business Desk, Etv Bharat: In order to provide relief to industrial workers who have either lost jobs or may lose jobs in the next few months due to the impact of the coronavirus pandemic, the government has decided to increase the amount of cash relief, while relaxation in the eligibility criteria at the same time, for unemployed workers under the Atal Bimit Vyakti Kalyan Yojana -- a scheme run by the Employees’ State Insurance Corporation (ESIC).
The step is expected to benefit about 40 lakh industrial workers, ESIC said after announcing the step in a meeting on Thursday. Here’s a detailed look at the details of the scheme and the changes made to it:
What is Atal Bimit Vyakti Kalyan Yojana?
ESIC had launched a scheme named ‘Atal Bimit Vyakti Kalyan Yojana’ (ABVKY) on 1 July 2018, initially on a pilot basis for a period of two years. The scheme provides cash benefit to insured person (IP) scheme in case he/she is rendered unemployed.
What did ESIC decide on Thursday?
The ESIC has approved relaxation in eligibility criteria and enhancement in the payment of unemployment benefit under the Atal Bimit Vyakti Kalyan Yojana. It also decided to extend the scheme for one more year up to 30 June 2021.
What were the original criteria?
Earlier, in case the IP (insured person) was rendered unemployed, ESIC provided relief to the extent of 25% of the average per-day earning during the previous four contribution periods (total earning during the four contribution periods/730) to be paid up to maximum 90 days of unemployment.
What are the new criteria?
For any IP who has lost job between 24 March 2020 and 31 December 2020, the payment of relief has now been enhanced to 50% of average wages from earlier 25% of average wages.
Also, the relief shall become due for payment in 30 days from the date of unemployment now instead of becoming payable 90 days after unemployment earlier.
What if the IP is rendered unemployed after 31 December 2020?
After 31 December 2020, the scheme will be available with original eligibility condition till 30 June 2021.
The review of new relaxed conditions will be done after 31 December 2020 depending upon the need and demand for such conditions.
How can IP make the claim?
The claim may be submitted directly in the ESIC branch office. The 12-digit Aadhaar number shall be used for identification of the claims. The payment shall be made in the bank account of the IPs directly.
As per the board decision, the claim of the IPs will no more be required to come from the employers. The verification of the claim with the employer will be done by ESIC’s branch office.
Which industrial workers are covered under the scheme?
As per ESIC documents, any industrial worker who has registered under the ESIC and has been in insurable employment for a minimum period of 2 years immediately before his/her unemployment and has contributed not less than 78 days in the contribution period (six months) immediately preceding to unemployment, and minimum 78 days in one of the remaining three contribution periods in two years prior to unemployment is covered under the scheme.
Which workers can register under ESIC scheme?
Industrial workers with monthly earnings of up to Rs 21,000 can register under the ESIC scheme. Every month, a portion of their salary is deducted and deposited with the ESIC to avail medical benefits. Currently, an employee pays 0.75% of his/her basic salary and 3.25% is given by the employer to the ESIC kitty.
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