IAS Gyan

Daily News Analysis


21st August, 2020 Economy

Context: The Employees' State Insurance Corporation (ESIC) relaxed norms to pay 50 per cent of average wages of three months as unemployment benefit between March 24 and December 31 this year in view of the COVID-19 pandemic.


  • The ESIC took the decision in its 182nd meeting held under the Chairmanship of Union Labour and Employment Minister.
  • ESIC is implementing the Atal Bimit Vyakti Kalyna Yojna under which unemployment benefit is paid to the workers covered under Employees' State Insurance (ESI) Scheme.
  • The ESIC has decided to extend the scheme for one more year.

Highlights of scheme:

  • In the scheme in case the Insured Person (IP) is rendered unemployed, provides relief to the extent of 25% of the average per day earning during the previous four contribution periods, to be paid up to maximum 90 days of unemployment once in lifetime.
  • The Insured Person should have been in insurable employment for a minimum period of two years.

Reference: http://newsonair.com/News?title=ESIC-relaxes-norms-to-pay-50-pct-of-average-wages-of-three-months-as-unemployment-benefit-in-view-of-COVID-19&id=397819