Understand How to Avail Benefit of Cash Compensation From Government during Unemployment

2. ESIC has launched “Atal Beemit Vyakti Kalyan Yojana (ABVKY)” to provide relief in the
form of cash compensation to the employees covered under section 2(9) of the ESI act
1948 (called Insured Person (IP)} who have been rendered unemployed for the
specified period subject to certain conditions.
The scheme comes into effect form 01-July-2018 and is implemented on pilot basis
initially for a period of two years.
This is a welfare measure for IP, in the form of cash compensation upto 90 days,
once in a lifetime, to be claimed after 3 months on one or more spells for being
rendered unemployed, provided the employee should have completed two years of
insurable employment and has contributed not less than 78 days in each of four
consecutive contribution periods* immediate
The relief shall not exceed 25% of the average earning per day.
*each contribution period contain six months immediately preceding the date of
unemployment. (For detail refer illustrations)
INTRODUCTION

3. Cash compensation (Relief) to the extent of 25% of the average earning
per day (total earning during four contribution period/ 730 days) during
the previous four contribution periods to be paid upto maximum 90 days
of unemployment once in a life time of the IP on submission of claim in
the form of an affidavit.
Benefit Under Scheme

4. Once in a lifetime benefit in
form of cash compensation
IP has Completed 2 years of
insurable employment
and
Contributed at least 78 days in
each of the 4 consecutive
contribution period in ESI
Maximum benefit only for up to
90 days
Maximum benefit
@25% of average earning per
day
Some Key
Points

5. ESIC Registeration
Unemployed during the period
of claim
employee has Completed 2
years of insurable
employment
At least 78 days contribution
in each of the 4 consecutive
contribution period
Unemployment not resulted to
misconduct or superannuation
or voluntary retirement
Not having in any job
during the relief period
Employer had also made his
contribution in ESIC
ELIGIBILITY

6. During Lock Out
Employees Strike declared
illegal by competent authority
Voluntary retirement/
Permanent retirement
Convicted under the provisions
of section 84 of the ESI act read
with rule 62
Re-employed elsewhere during
the period IP is in receipt of relief
under ABVKY
Dismissal/ Termination
under disciplinary action
attained age of superannuation
Disqualification
On death of IP
Less than 2 years of
contributory services

7. Calculation of relief amount
Illustration-1: Date of unemployment: 01/04/2019
Contributory particulars of preceding four contribution period:
Amount of relief/ benefit available for 90 days: (2,40,000/730)*(25/100)*90 = Rs. 7397/-
Contribution Period No. of days Wages
Oct-18 to March-19 182 60,000
April-18 to Sept-18 183 60,000
Oct-17 to March-18 182 60,000
April-17 to Sept-17 183 60,000
Total 730 2,40,000
Illustration-2: Date of unemployment: 02/10/2018
Contributory particulars of preceding four contribution period:
Amount of relief/ benefit available for 90 days: (1,38,667/730)*(25/100)*90 = Rs. 4274/-
Contribution Period No. of days Wages
Apr-18 to Sept-18 80 26,667
Oct-17 to March-18 183 60,000
April-17 to Sept-17 78 26,000
Oct-16 to March-17 78 26,000
Total 730 1,38,667

8. Procedure for filing claim for relief under ABVKY
1
• Submit claim anytime after being rendered unemployed (but not later than 1 year from
the date of unemployment) to appropriate branch office in form AB-1.
2
• Login at ESIC portal. A link for generating claim for ABVKY will be given on the ESIC Portal.
3
• Enter Insurance number, Bank account number along with bank branch, Aadhar number,
period of claim, bank account details, mobile number on page open on ESIC Portal.
4
• The system after checking eligibility will generate either:
• In case IP is eligible for relief under ABVKY the claim in form AB-1 along with a
forwarding letter from his last employer in form AB-2 and instruction for the IP or
• In case IP is found not eligible, a regret message that the IP is not eligible for relief
under the scheme.
5
• Each eligible IP will take the printout of claim submitted above and letter to the
employer-AB-2 generated by the system and submit the duly signed claim in affidavit
along with required forwarding by the employer to his designated ESIC branch office.

9. Thank You
Regards
CA Rajat Jain
Website- www.thelabourcompliance.com
Mail ID- thelabourcompliance@gmail.com
Regards
CS Kamal Soni
Kamal Soni & Associates, Kota (Raj.)
Mail ID- Kamal.inos43@gmail.com