Atal Beemit Vyakti Kalyan Yojana

Atal Beemit Vyakti Kalyan Yojana

Atal Beemit Vyakti Kalyan Yojana

Atal Beemit Vyakti Kalyan Yojana is a new scheme introduced by ESI Corporation which came into effect from 16th December 2018. This scheme is mainly introduced to provide social safety net to the persons who are insured and are jobless due to reasons such as factory closure, permanent disability due to injury, etc.

Provision under the Act

Section 19 of the ESI Act provides measures to improve the health and welfare of the Insured Persons (IPs). This is by rehabilitating and re-employing the Insured Persons who may have been disabled or injured and not in the job, i.e. unemployed.

Eligibility Conditions to Avail Benefits

  • The Insured person should be unemployed during the period of the claim.
  • The person should be in the Insurable period for the last two years before the employment loss.
  • Gainful employment will not be considered for the IP/IW.
  • The Insured Person should have contributed not less than 78 days during each of the preceding four periods.
  • Unemployment should not be due to punishment/misconduct/superannuation/voluntary retirement.
  • Aadhar and Bank account of an Insured Person should have been linked.

Other Conditions

  • If the Insured Person has worked for more than one employer and is covered under the ESI scheme, will be considered as unemployed only when the IP is rendered unemployed with all employees.
  • The Insured Person is eligible to avail medical benefits for the period of availing this relief.
  • The Insured Person will not be able to claim under the following circumstances:
    • If the company is locked out
    • Strike by employees and declared illegal by competent authorities
    • Voluntarily abandoning the job/Voluntary retirement
    • If the total contribution of service is less than 2 years
    • Attaining superannuation
    • Convicted under Section 84 of the ESI Act
    • If re-employed during the period of receiving relief under ABVKY
    • Dismissal or termination of service by the employer
    • On the death of Insured Person

Benefits & Calculation of Relief Amount

Relief to the extent of 25% of the average per day earning (total earning during the four contribution period/730) during the previous four contribution periods to be paid up to a maximum of 90 days of unemployment once in a lifetime of IP on submission of claim in the form of an affidavit.

The below illustration will explain the calculation of relief considering the date of unemployment starts from 1st April 2019:

Contribution Period

No. of days

Wages

October’18 to March’19

182

60000

April’18 to September’18

183

60000

October’17 to March’18

182

60000

April’17 to September’17

183

60000

Total

730

240000

Amount of relief/benefit available for 90 days: (2,40,000/730) X (25/100) X 90 = Rs.7397

Duration of Allowance

The relief under ABVKY can be claimed for a maximum of 90 days once in a lifetime after having a minimum of 2 years of employment and satisfying eligible conditions mentioned in previous sections of this article. The relief will be paid after 90 days of clear unemployment.

Submission of Claim Form

  1. The claim for the relief under ABVKY can be submitted through the affidavit in Form AB-1. This has to be submitted within a year of unemployment to the respective Branch office. This relief can be availed only once in the lifetime.
  2. The IP has to approach designated ESIC office, and on submitting the claim form, a separate link will be generated in the ESIC portal. The IP has to fill the following details in the link:

The system will check the eligibility and initiate for further processes. The Claim form is attached here for ready reference.

Forms for ABVKY
  1. After eligible for the claim, the IP has to submit hard copies of documents to the ESIC office and will be processed for release of funds.

Mode of Payment

The relief amount will be transferred to the Bank account of the Insured Person via online.

The notification of Atal Beemit Vyakti Kalyan Yojana is provided below for quick reference.

Atal Beemit Vyakti Kalyan Yojana

Other Related Guides

Income Tax on PPF Account Income Tax on PPF Account Public Provident Fund (PPF) Account is a long-term debt scheme, established by the Indian Government for which regular inte...
ESIC Challan ESIC Challan Employees State Insurance Scheme of India is a multifaceted Social Welfare Scheme, attuned to bestow Socio-economic providence for the '...
Tax on PF Withdrawal Tax on PF Withdrawal PF withdrawal can be taxed under certain circumstances and at the same time, it can be exempted under certain circumstances. The...
Employee’s State Insurance Employee's State Insurance The Employee's State Insurance Act, 1948 was introduced as a health insurance scheme that provides financial funds for the...
National Rural Health Mission (NRHM) National Rural Health Mission (NRHM) The National Rural Health Mission (NRHM) was initiated by the Government of India to provide quality healthcare ...

Post by Arnold Thomas

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.