ESIC approves unemployment benefit scheme for formal sector workers

The Employees’ State Insurance Corporation (ESIC) has approved a scheme for providing unemployment allowance to workers rendered jobless due to the “changing employment pattern”, acknowledging the fact that permanent jobs are on a decline in the country.

The scheme, named Atal Bimit Vyakti Kalyan Yojana, will be applicable for employees covered under the Employees’ State Insurance (ESI) Act, 1948, the labour and employment ministry said in a press statement on Wednesday. It waill benefit over 1 million workers across the country, a senior ESIC official said.

Workers who are left unemployed for whatsoever reasons will be paid money, from their own contribution towards the ESI scheme, in cash through bank account transfer. The step has been taken “considering the change in employment pattern and the current scenario of employment in India which has transformed from a long-term employment to fixed short-term engagement,” the official statement said.