Context: The Employees' State Insurance Corporation (ESIC) has extended the Scheme, Atal Beemit Vyakti Kalyan Yojana (ABVKY) till 30.06.2021. 

More on the news: It has also decided to enhance the rate of relief under the scheme from present 25% of the average daily earning to 50% of average daily earning and also relax the eligibility conditions to provide relief to the workers who have become unemployed during COVID-19 Pandemic.


  • Objective: The Scheme was launched in 2018 and it offers cash compensation to insured persons when they are rendered unemployed. 
    • The scheme is implemented on pilot basis for a period of two years initially. 
  • Implemented by: It is a welfare measure being implemented by the Employees State Insurance (ESI) Corporation. 
  • Benefits under the scheme:
    • The scheme provides relief to the extent of 50% of the average per day earning during the previous four contribution periods.
      • It is to be paid up to a maximum 90 days of unemployment once in the lifetime of the Insured Person.
    • The claim for relief under the scheme will be payable after the three months of his/her clear unemployment. 
  • Eligibility:
    • Employees covered under Section 2(9) of the ESI Act 1948.
    • The Insured Person (IP) should have been rendered unemployed during the period the relief is claimed.
    • The Insured Person should have been in insurable employment for a minimum period of two years.
    • The Insured Person should have contributed not less than 78 days during each of the preceding four contribution periods.
    • The contribution in respect of him should have been paid or payable by the employer.
    • The contingency of the unemployment should not have been as a result of any punishment for misconduct or superannuation or voluntary retirement.
    • Aadhar and Bank Account of the Insured Person should be linked with the insured person database.

ESI Scheme:

  • The promulgation of Employees' State Insurance Act, 1948 (ESI Act), by the Parliament was the first major legislation on social security for workers in independent India. 
  • The act led to the launch of ESI scheme and establishment of Employees' State Insurance Corporation (ESIC) in 1952 for implementing the scheme.
  • ESIC, which comes under the Ministry of Labour and Employment, Government of India, is a pioneer Social Security organization providing comprehensive social security benefits like reasonable Medical Care and a range of Cash Benefits in times of need such as employment injury, sickness, death etc.