Lost your job? ESIC will pay you for 3 months
What's the story
The Employees' State Insurance Corporation (ESIC) has extended its unemployment allowance scheme, the Atal Beemit Vyakti Kalyan Yojana (ABVKY), by another year. The decision was taken at the 198th meeting of the ESIC and is effective from July 1, 2026 to June 30, 2027. The move is aimed at providing financial relief to eligible employees under the Employees' State Insurance (ESI) scheme who involuntarily lose their jobs during this period.
Scheme details
What is Atal Beemit Vyakti Kalyan Yojana?
The ABVKY was launched in 2018 as a pilot scheme and has been extended several times since then. It provides temporary financial relief to insured workers who become unemployed, helping them meet their basic expenses while looking for a new job. Under this scheme, eligible insured persons can get cash compensation equal to 50% of their average daily wages for up to 90 days during unemployment.
Claim process
Who can avail benefits under the scheme?
To claim the benefits under ABVKY, an insured person must be covered under the ESI scheme and have contributed to it for a prescribed period before becoming unemployed. They should have lost employment involuntarily due to establishment closure, retrenchment or permanent invalidity due to a non-employment injury. However, those who resign voluntarily, take voluntary retirement or are dismissed for misconduct cannot claim these benefits.
Application procedure
How to apply for unemployment allowance?
Eligible insured persons can submit their claim to ESIC in the prescribed format along with the required documents. Once verified and approved, the unemployment allowance is credited directly into the beneficiary's bank account.