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RAJIV GANDHI SHRAMIK KALYAN YOJNA                                            


The ESI Corporation had launched a new Yojna for the employees covered under the ESI Scheme.  This scheme provides an unemployment allowance for the employees covered under ESI scheme who are rendered unemployed involuntarily due to retrenchment/closure of factory etc. after fulfilling certain eligibility conditions.  The scheme christened as “Rajiv Gandhi Shramik Kalyan Yojna” came into effect from 1st of April 2005

            The economic scenario in the country had adverse effect on the workers in the wake of on-going liberalization and economic reforms.  The closure of many industries and large scale retrenchment of workers leading to unemployment have rendered the working class without any social security cover. At present unemployment is one of the biggest challenges for the social security sector. In these circumstances, the ESI Corporation as the chief administrator of the premier Social Security Scheme took proactive step to provide some relief to such workers.  The new scheme has been evolved with a view to address one of the pressing problems thrown up by globalization. The scheme is specially aimed at the steadily increasing number of workers who are rendered redundant in the new competitive environment. Prior to the introduction of the new Scheme ESI Act covered only those workers who are employed in the organized sector subject to certain conditions.  Under this Scheme, the eligible workers are entitled to a daily rate of allowance and medical care for self and family during the period of unemployment up to six months.

Important eligibility conditions :

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, is 12 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 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 or 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.






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