Jobless benefit under ESIC doubled to 50%

Up to `31,500 to be paid after 30 days of losing job

Workers who are covered under the Employees' State Insurance Corporation (ESIC) scheme will now receive 50 per cent of average wages of three months as unemployment benefit if they have lost jobs during the pandemic period of March 24 and December 31 this year.

The ESIC has relaxed the norms of Atal Bimit Vyakti Kalyna Yojna, which provides unemployment benefits to the workers covered under the ESI scheme. For the pandemic period between March-end and December-end, the unemployment benefit has been enhanced to 50 per cent of average wages, from 25 per cent earlier, payable up to maximum 90 days of unemployment.

The payment will be made after 30 days unemployment instead 90 days earlier.

The insured person can submit the claim directly to the ESIC Branch Office instead of the claim being forwarded by the last employer and the payment shall be made directly to his bank account.

The benefit will be available for those with insurable employment for a minimum period of two years before his/her of of unemployment, which means freshers are not eligible for the benefit. S/he should have contributed for at least 78 days in a 'contribution period' (sixmonth period either during April-September or October-March) immediately preceding unemployment and minimum 78 days in one of the remaining three 'contribution periods' in two years before unemployment.

The ESIC also has extended the recently expired Atal Bimit Vyakti Kalyna Yojna for one more year up to June 30, 2021. Post-December 31, 2020, the scheme will be available with original eligibility conditions till June next year.

The ESIC provides cover to about 3.49 crore of workers. The ESI scheme covers employees with a monthly salary of up to Rs 21,000. Hence the benefit under the unemployment scheme will be capped at Rs 31,500 per beneficiary.

Labour minister Santosh Gangwar said on Friday claims under the scheme will be settled within 15 days from the date of an application.

The decision would be helpful to the workers, said Tirupur Export Association president Raja M. Shanmugham, hailing the government decision.