RAJIV GANDHI SHRAMIK KALYAN YOJANA

Launched from 1st April,2005

(NOTIFICATION)

       No.X-11/13/01/2004-P&D-“In pursuance of the powers conferred upon it under Section 19 of the ESI Act, 1948 (34 of 1948), the Employees’ State Insurance Corporation, today, the 27th day of February, 2005, at its 131st meeting held at New Delhi, resolves to introduce an unemployment allowance scheme from 1st day of April, 2005. The scope, eligibility and other conditions of the scheme are as under: -

Scope of the Scheme

             An insured person going out of insurable employment involuntarily on or after 1st April, 2005, on account of closure of a factory or establishment, retrenchment, or permanent invalidity arising out of non-employment injury, after being in an insurable employment and contributed under the scheme for five or more years, shall be entitled to claim unemployment allowance for a maximum period of 6 months during his/her entire service.

            For the purpose of the scheme, (i) The terms, ‘closure’ and ‘retrenchment’ shall have the meanings assigned to them under the Industrial Disputes Act, 1947 (14 of 1947), and according to provisions of sub-section-(24) of Section-2 of the ESI Act, 1948; and (ii) The term “permanent invalidity” shall mean permanent disability arising out of non-employment injury of 50% or more, as certified by a Medical Board constituted by the Central or State Governments.

Eligibility conditions

  1. The person should have been, an insured person, under the ESI Act on the date of loss of insurable employment, on account of closure of the factory or establishment, retrenchment, or permanent invalidity arising out of non-employment injury.
  1. Insured person should have contributed under the ESI Scheme, for a minimum period of five years prior to loss of employment.

 

3.       The insured person should qualify for Sickness Benefit in the benefit period corresponding to last four Contribution periods immediately preceding the date of unemployment.

  1. Unemployment Allowance shall cease to be payable from the date the insured person gets re-employed elsewhere.

 

  1. Only the insured person, who becomes unemployed as stated under (1) above, on or after 1st April, 2005, shall be entitled to receive unemployment allowance. 
  2. The unemployment allowance can be availed of in one spell or in different spells of unemployment provided that each such spell shall not be less than one month.
  3. The unemployment allowance shall not be combined with sickness benefit, maternity benefit or disablement benefit for temporary disablement for the same period. The insured person in receipt of any of these benefits during the same period shall, however, be entitled to choose which benefit he/she wishes to avail of.
  4. The payment of unemployment allowance shall be subject to the provisions of Section 61 of the ESI Act, 1948.

Rate of Unemployment Allowance

       The daily rate of unemployment allowance shall be the “standard benefit rate” as specified in the table of Standard Benefit Rates under Rule-54 of ESI (Central) Rules, 1950, corresponding to the average daily wage drawn by the said insured person during the last four completed contribution periods, immediately preceding the date of unemployment.

 Duration of Unemployment Allowance

            The maximum period, for which an insured person shall be entitled to draw unemployment allowance during his entire insurable employment, shall be six months. 

            The allowance can be availed in one spell or in different spells of not less than one month. 

 Medical Care

            During the period for which a person is entitled for unemployment allowance, he shall also be eligible for medical care for himself and his/her family from the ESI Dispensaries, ESI panel clinics and ESI hospitals to which he/she was attached prior to the date of loss of employment, based on a separate authorization by the Branch Manager making the cash allowance payment.

 Procedure

            The allowance shall be payable in the form of a monthly payment by the Branch Office of the ESIC where he/she was registered prior to loss of employment, on submission of a claim in the prescribed form duly supported by relevant documents.  The claim shall be subject to verification and fulfillment of eligibility conditions.”

The Scheme has been named as the Rajiv Gandhi Shramik Kalyan Yojana and hereinafter it will be known as such.

            Authenticated under Section 7 of the ESI Act, 1948.

(Ajay Dua )

Director General,ESIC