Relevance: GS Prelims – Government Schemes | Social Security | Labour & Employment
Context
- The Employees’ State Insurance Corporation (ESIC) has approved the extension of the Atal Beemit Vyakti Kalyan Yojana (ABVKY) from 1 July 2026 to 30 June 2027.
- The scheme provides cash relief to eligible insured persons who become unemployed, helping them during the transition to new employment.
- The extension is aimed at ensuring continued social-security support to eligible workers.
About Atal Beemit Vyakti Kalyan Yojana
- Implemented by: Employees’ State Insurance Corporation (ESIC), under the Ministry of Labour & Employment.
- Nature: Unemployment relief/welfare measure for workers covered under the Employees’ State Insurance (ESI) Act, 1948.
- Introduced: 1 July 2018, initially on a pilot basis for two years.
- Purpose: To provide financial support to insured persons during unemployment while they search for new employment.
- Maximum period of relief: Up to 90 days.
- The rate of relief was enhanced from 25% to 50% of average daily earnings during the COVID-19 period, alongside relaxed eligibility conditions.
Eligibility Criteria
An insured person must:
- Have been in insurable employment for at least 12 months immediately before unemployment.
- Have contributed for at least 78 days in one completed contribution period during the 12 months immediately preceding unemployment.
- Unemployment should not be due to:
- Misconduct
- Lockout
- Superannuation
- Conviction for false statements under the ESI Act, 1948.
Key Features
- Cash compensation: Provides unemployment relief to eligible insured persons.
- Digital processing: Claims can be submitted and processed online.
- Direct Benefit Transfer (DBT): Benefits are transferred directly to beneficiaries’ bank accounts.
- Timely settlement: Regular monitoring is undertaken to expedite claim settlement Conclusion
Conclusion
The extension of ABVKY till 30 June 2027 reinforces the government’s focus on providing social-security protection to insured workers facing unemployment. Its combination of cash relief, online processing and DBT can improve the accessibility and efficiency of unemployment support.
| Important CTC from this article: ESI Act, 1948 AND Atal Beemit Vyakti Kalyan Yojana (ABVKY) |