ESIC ABVKY Scheme: Get 50% Salary Compensation for 90 Days Upon Job Loss – Know the Full Rules

Employees' State Insurance Corporation (ESIC) is a government organization that provides health and social security related facilities to employees.

It is completely different from EPFO (Employees' Provident Fund Organisation). While EPFO is associated with PF, pension and life insurance, ESIC mainly provides financial assistance to employees in situations like health, illness, maternity, disability and unemployment.

Under ESIC, free and affordable healthcare facilities, hospitalisation expenses, medicines and other medical services are provided to employees and their families.

Apart from this, ESIC also gives unemployment, sickness, maternity, disability and other social security benefits. ABVKY is also a scheme of ESIC, which is specially designed to provide financial assistance to unemployed employees

Atal Bimit Vyakti Kalyan Yojana (ABVKY) is a scheme run by ESIC, which provides financial assistance to employees who have lost their jobs due to some reason. The main objective of this scheme is to keep the employees financially strong during unemployment so that they can meet their necessary expenses while looking for a new job.

The benefit of this scheme is available to those employees who have lost their jobs not out of their own will but due to the closure of the company, any non-employment caused permanent disability, or other involuntary reasons.

Further, the employee should be registered with ESIC and should have deposited ESI contribution up to the prescribed period. This scheme is not for employees who have resigned themselves, taken VRS (Voluntary Retirement), or have been fired due to misconduct.

Under ABVKY, employees get cash compensation of 50% of the average daily wage during unemployment. This assistance is given for a maximum of 90 days, i.e. for about three months you will continue to get half of your salary every month. The amount will be credited directly to your bank account without any hassle.

Another important feature of this scheme is that this assistance is given to you only once in a lifetime. So, if you have ever taken advantage of this scheme before, you will not be eligible again.

Also, once the claim is approved, the entire amount is transferred directly to your bank account, so you don't need any paperwork again.

To take advantage of ABVKY it is necessary to meet certain eligibility criteria:

The employee must be registered under the ESIC scheme.

The employee has worked in the insured employment for at least 2 years and his ESI contribution is credited during that period.

The job is not lost out of choice but due to legitimate reasons such as closure of the company or permanent disability caused by non-employment.

The employee has not started a new employment (i.e. he is still unemployed).

It is important to note that this benefit can be taken only once in a lifetime. So, if you are considering availing this scheme, make sure you meet all the eligibility criteria and you really need this help.

In some circumstances, employees may not be able to take advantage of this scheme. If the employee has been fired due to misconduct, he / she will not be eligible. Similarly, even if the employee himself has resigned, he is not eligible for this scheme.

Also, if the employee has taken Voluntary Retirement (VRS), he / she cannot avail the benefit of this scheme. Also, if the employee has been fired due to his involvement in an illegal strike, he will also not be eligible. Therefore, if you have any of these conditions with you, you cannot apply for ABVKY and you should consider other options to your financial situation.

The process of applying for ABVKY is simple. First, you have to go to your nearest ESIC branch office. There you will get the application form, which you have to fill correctly. Along with the application form, you will need to submit the following documents:

Aadhaar Card (for identification)

ESI Card or Registration Certificate.

Employment Exemption Certificate (issued by the Company)

Bank account details (in which the assistance amount will be credited)

Passport size photograph

Salary Statement or Service Certificate for the last 2 years

After submitting the application, ESIC officials will check the documents and after confirming the eligibility, you will be provided with the assistance amount. In some cases, you can also apply online, for this you can get information by visiting the official website of ESIC.

It usually takes a few weeks to receive the assistance under ABVKY. After submitting the application, ESIC officials verify all the documents and check the eligibility. If all the documents are correct and you are found eligible, the amount is credited to your bank account after you are approved.

However, if there are any errors in the documents or the information is incomplete, it may take more time.

Therefore, it is advisable that you keep your application completely correct and complete and submit all the necessary documents so that the process is not delayed. Apart from this, you can contact the ESIC branch from time to time to enquire about the status of your application.

No, the benefit of Atal Bimit Vyakti Kalyan Yojana can be availed only once in a lifetime. It is a clear rule of ESIC that an employee can get unemployment assistance only once under this scheme. So, if you have ever taken advantage of this scheme before, you will not be eligible again, even if your job is again missed for any reason.

For this reason, experts recommend that you take advantage of this plan only when it is really needed and when you are not getting any other option. If you have enough savings or you can find a new job soon, then keeping the benefit of this scheme safe for the future can be a better strategy, because this benefit you can get only once and it is not possible to get it again.

There is no minimum or maximum age limit prescribed for ABVKY, as long as the employee is registered under ESIC and fulfills other eligibility criteria. That is, under this scheme, any employee who is registered with ESIC and whose job is left due to involuntary reasons can take advantage of this scheme, no matter what his age is.

However, it is important to note that the benefit of the scheme is available only to those employees who have worked in insured employment for a minimum of 2 years. So, if you have recently joined ESIC, you may not get this benefit. If you meet the eligibility criteria, you can apply at any age.

The Government has decided to extend the period of Atal Bimit Vyakti Kalyan Yojana till 30th June 2027, which is a welcome step. The main reason for this is to provide long-term support to unemployed employees, especially at a time when economic uncertainty can increase.

The government believes that with this scheme, employees can remain financially stable while finding new jobs and providing for their families.

In addition, the extension of the scheme provides an additional safety net for employees who lose their jobs due to unforeseen reasons. The scheme was earlier applicable only till June 30, 2026, but the government has extended it for another year, so that more and more people can take advantage of it. This decision is in the interest of the employees and shows that the government is taking the problem of unemployment seriously.

Atal Bimit Vyakti Kalyan Yojana (ABVKY) is an important scheme run by ESIC, which provides financial support to employees in case of job loss. Under this scheme, eligible employees get cash compensation of 50% of the average daily wage for up to 90 days, which helps them meet their urgent expenses during unemployment.

The government has extended the period of this scheme till June 30, 2027, so that more and more employees can take advantage of it.

To take advantage of this scheme it is necessary to be registered with ESIC and work in insured employment for at least 2 years. However, this benefit can only be taken once in a lifetime and it does not accrue to employees who resigned themselves, took VRS, or have been fired due to misconduct.

If you are eligible for this scheme and you need it, go to your nearest ESIC branch and apply today. Stay tuned to timesbull.com for more such government schemes, employee welfare and financial security related information.