The Atal Bimit Vyakti Kalyan Yojana (ABVKY) is an innovative initiative by the Employees’ State Insurance Corporation (ESIC) to support workers facing unemployment. Launched on a pilot basis for two years starting from July 1, 2018, this scheme provides much-needed financial relief to Insured Persons (IPs) who lose their jobs. By offering cash compensation during periods of unemployment, the scheme acts as a safety net for employees and their families.
Overview
The ABVKY scheme is designed to provide financial relief in the form of cash compensation equal to 50% of the average per-day earnings of an unemployed insured person. This benefit can be availed for a maximum of 90 days of unemployment, provided certain conditions are met.
The scheme focuses on supporting individuals who have contributed to the ESIC scheme but are rendered jobless due to unforeseen circumstances. With the continuation of medical benefits during the relief period, the scheme ensures that unemployed workers not only receive financial help but also retain access to essential healthcare services.
Key Benefits
- Cash Compensation:
- Insured Persons (IPs) can receive 50% of their average per-day earnings as compensation.
- Relief is provided for a maximum of 90 days of unemployment, which can be availed once in a lifetime.
- Eligibility for Medical Benefits:
- During the period of unemployment, IPs will continue to be eligible for medical benefits under the Employees’ State Insurance (ESI) Act.
- Support During Unemployment:
- The scheme provides financial stability to individuals and their families during challenging times of job loss.
- Ease of Administration:
- The process is streamlined, and all required documentation ensures transparency and accountability.
Eligibility Criteria
To avail of the benefits under this scheme, an individual must meet the following eligibility conditions:
- Employment Status:
- The applicant must be an Insured Person (IP) under the ESIC scheme and should have been rendered unemployed during the period for which relief is claimed.
- Insurable Employment:
- The IP must have completed a minimum of two years in insurable employment.
- Contribution Period:
- The IP must have contributed at least 78 days in each of the three consecutive contribution periods immediately preceding the claim for relief.
- Linked Aadhaar and Bank Account:
- The IP’s Aadhaar and bank account must be linked with the insured person’s database.
- Reason for Unemployment:
- The job loss should not result from misconduct, voluntary retirement, superannuation, or dismissal due to disciplinary action.
Conditions and Restrictions
- Multiple Employers:
- If the insured person is employed by more than one employer, they will only be considered unemployed if they lose employment with all employers.
- Other Cash Benefits:
- As per Section 65 of the ESI Act, an IP cannot receive relief under ABVKY and other cash compensation simultaneously for the same period.
- Other Enactments:
- Relief under ABVKY cannot be combined with similar benefits available under any other law (Section 61 of the ESI Act).
- Disqualification:
- Relief will be terminated under the following circumstances:
- Strike or lockout declared illegal by the competent authority.
- Voluntary retirement or abandonment of employment.
- Less than two years of contributory service.
- On attaining the age of superannuation.
- Conviction under the provisions of the ESI Act.
- Re-employment during the relief period.
- Relief will be terminated under the following circumstances:
Documents Required for Application
To apply for the scheme, the following documents are necessary:
- Aadhaar Card: For identification.
- Bank Passbook or Cancelled Cheque: Includes account details, IFSC code, and branch name.
- Insurance Details: Proof of the individual’s insurance under ESIC.
- Address Proof: For verification of residence.
- Employer Details: Information about the previous employer(s).
- Affidavit: A declaration confirming the unemployment status.
- Salary Slips for Last Two Months: For proof of earnings.
- Attendance Sheet: To confirm employment history.
- Other Relevant Documents: If required by the authorities.