Atal Bimit Vyakti Kalyan Yojana

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Context: The Ministry of Labour and Employment announced Atal Bimit Vyakti Kalyan Yojana to financially support Insured Person (IP) who lost their jobs and were covered under the Employees' State Insurance Act, 1948.

Prelims: Current events of national and international importance.
Mains: GS-II

  • Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.
  • Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
  • Issues relating to poverty and hunger.

Concerned ministry: Ministry of Labour and Employment.

About Atal Bimit Vyakti Kalyan Yojna:

  • The Employee’s State Insurance (ESI) has approved this scheme for Insured Persons (IP) covered under the Employees’ State Insurance Act, 1948.


  • It aims to financially support those who lost their jobs or rendered jobless for whatsoever reasons due to changing employment pattern.
  • Its beneficiaries will be insured persons covered under Employees’ State Insurance Act, 1948 for a period of two years continuously.

Key features:

  • Cash assistance:
    • Under the scheme, relief will be payable in cash directly to bank account of insured persons in case of unemployment.
    • This financial assistance will be given to insured persons even while they search for new engagement. Beneficiary insured workers will be paid money, from their own contribution towards ESI scheme, in cash through bank account transfer.
  • Under this scheme, workers will be able to draw 47% of their total contributions towards ESIC after remaining unemployed for at least three months from date of leaving their previous jobs.
  • They can choose to receive the cash at one go or in instalments. It will be applicable to all factories and establishments employing at least 10 workers.
  • The contribution in respect of him should have been paid or payable by the employer.
  • The contingency of unemployment should not have been as a result of any punishment for misconduct or superannuation or voluntary retirement.
  • The IP will be eligible for Medical benefit as provided under the Act for the period he is availing this relief.

Significance of this scheme:

  • The current scenario of employment in India which has transformed from long-term employment to fixed short-term engagement in the form of contract and temping. This scheme is a relief payable in cash directly to their bank account in case of unemployment and while they search for new engagement.
  • It will curtail the multiple registrations of the same IPs and thus enable them to avail the benefits requiring longer contributory conditions.
  • This relaxation will immensely help the Insured Persons and their beneficiaries to avail super speciality treatment free of cost as per revised eligibility.

Employees’ State Insurance (ESI):

  • The ESI Act 1948 was the first major legislation on social security for workers in India. It provides for health-related events, such as sickness, maternity and temporary or permanent disability.
  • ESI is a self-financing social security and health insurance scheme for Indian workers.
  • It is an autonomous corporation by a statutory creation under Ministry of Labour and Employment, Government of India.
  • It is managed by Employees’ State Insurance Corporation (ESIC) according to rules and regulations stipulated there in the ESI Act 1948.
  • It also covers occupational disease or death due to employment injury, resulting in loss of wages or earning capacity — either total or partial.
  • Under the Act, employers and employees contribute their share, respectively, with the rate of contribution being decided through the Ministry of Labour and Employment.
  • It applies to premises where 10 or more persons are employed.
  • Employees with wages up to Rs. 21,000 a month (earlier Rs. 15,000 per month) are entitled to the health insurance cover and other benefits under the ESI Act.
  • ESIC, which is an autonomous body, regulates medical services being provided by the ESI Scheme in the respective states and Union Territories.

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