NEW DELHI: The union government has eased norms to offer 50% salary for 3 months as unemployment allowance to the lakhs of workers who are members of the Employees State Insurance Corporation and lost their jobs due to the coronavirus induced lockdown.
The government’s decision comes as a breather for the numerous factory workers who lost their jobs due to industries being shut down. Following recommendations from several quarters to provide some sort of relief to the workers, the Ministry of Finance and NITI Aayog had asked for rules to be amended.
The easing of norms enables the unemployed workers to claim the allowance for 3 months (90 days) during the period from the start of lockdown on March 24 to December 31, 2020. Welcoming the government’s decision, V. Radhakrishnan, member of ESIC Board told media that the decision would benefit some 30-35 lakh workers who were rendered jobless by the lockdown.
The government modified the Atal Bimit Vyakti Kalyan Yojana scheme to ease the norms. The ESIC scheme covers workers earning up to a specified limit and also guarantees them unemployment allowance. Relief to the extent of 25% of the average per day earning during the previous four contribution period is paid up to a maximum of 90 days of unemployment once in a lifetime subject to certain conditions. The government has now raised it to 50%.
It is to be noted that the insured person must have been rendered unemployed during the period in which he is claiming the relief. He must have been in insurable employment for at least 2 years before he lost his job. Interestingly workers can approach ESIC office directly to avail the claim and need not go through their employers. The relief becoming payable after 90 days of unemployment will now be eligible to be paid after 30 days. ESIC has extended the scheme till June 30, 2021.
