Relevance: GS Prelims – Social Security / Labour & Employment / Government Schemes
About Atal Beemit Vyakti Kalyan Yojana (ABVKY)
- Atal Beemit Vyakti Kalyan Yojana (ABVKY) is a welfare scheme of the Employees’ State Insurance Corporation (ESIC) for insured persons who become unemployed.
- It provides cash compensation during unemployment, thereby offering temporary income support to workers covered under the Employees’ State Insurance (ESI) Scheme.
- The scheme came into force on 1 July 2018.
- It was initially introduced on a pilot basis.
- The scheme was particularly significant during the COVID-19 pandemic, when eligibility conditions were relaxed and the rate of relief was enhanced.
Key Features of ABVKY
- Target beneficiaries: Insured Persons (IPs) covered under the ESI Scheme.
- Contingency covered: Unemployment.
- Nature of benefit: Cash compensation.
- Maximum period: Up to 90 days.
- Frequency: Benefit available once in the lifetime of an insured person, and may be claimed in one or more spells.
- Rate of relief: 50% of average daily earning under the relaxed terms.
Eligibility Conditions
Under the relaxed conditions applicable to the scheme:
- The insured person should have completed at least one year of insurable employment.
- The insured person should have contributed for at least 78 days in the contribution period immediately preceding the unemployment/claim.
- The scheme provides relief specifically in the event of unemployment of an insured person.
ABVKY during COVID-19
To provide relief to workers who lost employment during the COVID-19 pandemic, the eligibility conditions were liberalised from 24 March 2020:
- Rate of relief was increased from 25% to 50% of average daily earnings.
- The contribution requirement was relaxed.
- The waiting period for filing a claim was reduced from 90 days to 30 days.
- The scheme was extended during the pandemic period.
Extension of ABVKY
- ESIC subsequently extended ABVKY for two years from 1 July 2024 to 30 June 2026.
- The extension continued the existing relaxed terms and contributory conditions.
- Prelims Update: The above extension period ended on 30 June 2026. Therefore, the scheme’s current operational status should not be confused with its earlier extensions.
Conclusion
Atal Beemit Vyakti Kalyan Yojana (ABVKY) is an important social-security intervention under the ESI framework that provides cash relief to insured persons facing unemployment. Its key Prelims features include ESIC, 2018, unemployment, 90 days, 50% of average daily earnings, once in a lifetime and 78-day contribution requirement.
| This concept has been elaborately discussed in the following Article ATAL BEEMIT VYAKTI KALYAN YOJANA (ABVKY) |