The Atal Beemit Vyakti Kalyan Yojana (ABVKY) is a government initiative designed to provide financial assistance to insured employees under the Employees’ State Insurance (ESI) scheme who have lost their jobs.
Introduced in 2018 by the Employees’ State Insurance Corporation (ESIC), this scheme serves as a safety net for workers facing temporary unemployment due to layoffs or retrenchment, offering financial support to help them sustain their livelihood during difficult times.
What is Atal Beemit Vyakti Kalyan Yojana (ABVKY)?
The Atal Beemit Vyakti Kalyan Yojana was launched to support insured employees covered under the ESI Act, 1948, during times of job loss. It provides a financial benefit equivalent to a percentage of their last drawn salary, helping individuals manage their basic needs while they look for new employment opportunities.
This scheme ensures that workers do not face extreme hardships due to unforeseen circumstances like layoffs or retrenchments, thereby promoting social security and economic stability.
Objectives of Atal Beemit Vyakti Kalyan Yojana
- Financial Relief: Provide monetary assistance to workers who have temporarily lost their jobs.
- Support for insured employees: Assist employees covered under the ESI Act during financial crises.
- Promote Employment Stability: Offer a cushion to workers, enabling them to transition into new jobs without significant hardships.
Key Features of the Scheme
- Eligibility for Insured Workers: The scheme applies only to employees covered under the Employees’ State Insurance (ESI) Act, 1948.
- Monetary Assistance: A financial benefit of 50% of the average daily earnings in the last three months is provided for a maximum of 90 days.
- Direct Bank Transfer (DBT): The benefit is credited directly into the beneficiary’s bank account.
- One-Time Claim: A worker can claim the benefit only once during their period of unemployment.
- Revised Guidelines: The scheme has been extended and modified over time to include more workers and ease the claim process.
Benefits of Atal Beemit Vyakti Kalyan Yojana
1. Financial Support During Unemployment
The scheme provides financial relief to employees, ensuring they can manage their basic needs while searching for a new job.
2. Promotes Social Security
By offering a safety net, it ensures that insured workers are not left vulnerable during periods of unemployment.
3. Encourages Formal Employment
The scheme motivates workers to opt for jobs covered under the ESI scheme, ensuring better social security for themselves and their families.
4. Simplified Process
With a user-friendly application process, workers can easily claim the benefits without unnecessary complications.
5. Covers Retrenchment and Layoffs
Unlike many other schemes, ABVKY specifically addresses situations like retrenchment and layoffs, providing relief during such circumstances.
Advantages of Atal Beemit Vyakti Kalyan Yojana
- Economic Stability: Helps workers maintain financial stability during periods of unemployment.
- Inclusive Scheme: Covers a wide range of insured workers, ensuring maximum reach.
- Timely Assistance: Ensures quick disbursement of benefits through Direct Bank Transfers (DBT).
- Encourages Savings: Workers under the ESI scheme indirectly save for future uncertainties through their contributions.
Disadvantages of the Scheme
- Limited Duration: The benefit is available for a maximum of 90 days, which may not be sufficient for all individuals to secure new employment.
- Eligibility Restrictions: Only employees insured under the ESI scheme are eligible, leaving out a significant portion of the workforce.
- Dependency on Employers: Employees rely on their employers to regularly contribute to the ESI scheme, which is necessary for eligibility.
- Complex Documentation: Some applicants may face challenges in providing the required documents for claims.
Eligibility Criteria
To avail of the Atal Beemit Vyakti Kalyan Yojana, an individual must:
- Be an insured employee under the ESI Act, of 1948.
- Have been in insured employment for at least two years.
- Have contributed to the ESI scheme for a minimum of 78 days in the preceding four contribution periods.
- Have faced unemployment due to retrenchment, layoffs, or other valid reasons.
Step-by-step application process for ABVKY
Step 1: Gather Necessary Documents
- Aadhaar Card
- Bank Account Details (with IFSC code)
- ESI Insurance Number
- Employment Termination Letter
Step 2: Visit the ESIC Portal
- Go to the official Employees’ State Insurance Corporation (ESIC) website: www.esic.nic.in.
Step 3: Log In to the Portal
- Log in using your insurance number and password. If you don’t have an account, register as a new user.
Step 4: Fill Out the Application Form
- Select the Atal Beemit Vyakti Kalyan Yojana section.
- Fill out the application form with accurate details, including personal, employment, and bank account information.
Step 5: Upload Required Documents
- Scan and upload the necessary documents, such as the termination letter and bank account proof.
Step 6: Submit the Application
- Review the form and click on Submit. You will receive an acknowledgement or reference number for your application.
Step 7: Follow Up
- You can track your application status on the portal. Upon approval, the benefit amount will be directly credited to your bank account.
The Atal Beemit Vyakti Kalyan Yojana (ABVKY) is a lifeline for insured employees facing unemployment due to unforeseen circumstances. Providing financial assistance ensures that workers can meet their basic needs while searching for new employment opportunities. However, continuous awareness campaigns and streamlined implementation are essential to maximize its benefits.
For further details, visit the official Employees’ State Insurance Corporation (ESIC) website.
