Atal Bimit Vyakti Kalyan Yojana

Atal Bimit Vyakti Kalyan Yojana

  1. Introduction
  2. About the Scheme
  3. Aim
  4. Key features
  5. Benefit
  6. Duration
  7. Eligibility conditions
  8. Latest changes
  9. Concerns


  • Atal Bimit Vyakti Kalyan Yojana is a welfare measure being implemented by the Employee’s State Insurance (ESI) Corporation.
  • It offers cash compensation to insured persons when they are rendered unemployed.
  • The Scheme was introduced w.e.f. 01-07-2018.
  • The scheme is implemented on pilot basis for a period of two years initially.
  • The scheme has been extended upto 20 June 2021.

About Atal Bimit Vyakti Kalyan Yojana

  • Launched by the Employee’s State Insurance (ESI) in 2018.


  • 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 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.

Benefits under the scheme

The scheme provides relief to the extent of 50% of the average per day earning during the previous four contribution periods (total earning during the four contribution period/730) to be paid up to maximum 90 days of unemployment once in lifetime of the Insured Person.

Duration of allowance

  • The maximum duration, for which an IP shall be eligible to draw the Relief under the Atal Beemit Vyakti Kalyan Yojana (ABVKY) will be 90 days once in life time after a minimum of two years of Insurable Employment and subject to the contributory conditions specified above.
  • The claim for relief under the Atal Beemit Kalyaan Yojana will be payable after the three months of his/her clear unemployment.
  • The relief will be paid for clear month of unemployment. No prospective claim will be allowed.
  • In case the beneficiary gets gainful employment in between the three months of unemployment for which he was eligible for relief under ABVKY, the relief will be payable for clear month of unemployment between the date of unemployment and date of re-employment.
  • The balance of 90 days of relief in this case may be claimed in the same manner as mentioned above based upon the initial contributory conditions by the beneficiary in case he again renders unemployed from Insurable employment within one year from initial unemployment.

The eligibility conditions and other features of the scheme are as under

  • The Insured Person should have been rendered unemployed during the period the relief is claimed.
  • The Insured Person should have been in insurable employment for a minimum period of two years.
  • The Insured Person should have contributed not less than 78 days during each of the preceding four contribution periods.
  • The contribution in respect of him should have been paid or payable by the employer.
  • The contingency of the unemployment should not have been as a result of any punishment for misconduct or superannuation or voluntary retirement.
  • In case the IP is working for more than one employers and is covered under the ESI scheme he will be considered unemployed only in case he is rendered unemployed with all employers.

What are the latest changes?

  • Eligibility criteria for availing the relief has been relaxed, as under:
  • The payment of relief has been enhanced to 50% of average of wages from earlier 25% of average wages payable upto maximum 90 days of unemployment.
  • Instead of the relief becoming payable 90 days after unemployment, it shall become due for payment after 30 days.
  • The Insured Person can submit the claim directly to ESIC Branch Office instead of the claim being forwarded by the last employer and the payment shall be made directly in the bank account of IP.
  • The Insured Person should have been insurable employment for a minimum period of 2 years before his/her unemployment and should have contributed for not les than 78 days in the contribution period immediately preceding to unemployment and minimum 78 days in one of the remaining 3 contribution periods in 02 years prior to unemployment.

What’s the issue?

  • It was brought to the notice of ESIC that in some cases employers have struck off their employees from the rolls few months after actually terminating them from service.
  • During this period, ESI contribution was also not filed by the employers for these employees in the system.
  • As the relief under Atal Beemit Vyakti Kalyan Yojana is available only in case of unemployment of the Insured Persons, such employees though terminated from service became ineligible for relief under this scheme.