The Centre has announced relaxation to the eligibility criteria to avail the unemployment allowance under the Employees’ State Insurance Corporation (ESIC). According to the revised norms, workers can directly claim 50 per cent of the average wage as against 25 per cent earlier, payable up to 90 days of joblessness, for their loss of employment between March 24 and December 31 in the wake of the COVID-19 pandemic.
The insured person should have been rendered unemployed during the period relief is claimed. He or she should have been in insurable employment for a minimum period of two years immediately before his/her unemployment. It also says that the insured person should have contributed for at least 78 days during each of preceding four contribution periods.
In addition, the benefits would be payable 30 days after unemployment as against 90 days earlier. Further, the Atal Bimit Vyakti Kalyan Yojana, run by ESIC and provides for the unemployment allowance, has been extended by one more year to June 30, 2021. The scheme will be available with original eligibility conditions during January 1, 2021 to June 30, 2021.
The move will benefit around 30-35 lakh workers and comes as a major relief for industrial workers, who have lost jobs or are on the verge of losing jobs due to the impact of the pandemic and the lockdown, which had stalled economic activity. There have been demands from several sections to provide wage relief to workers hit hard by the pandemic. In fact, at least two months ago, the finance ministry and Niti Aayog had demanded that the rules be eased.
