Did you know: Insurance against unemployment
Allowance for up to 24 months in case of involuntarily unemployment
The Minister of State for Labour and Employment, Rameswar Teli, has revealed today that there is an unemployment insurance for those removed by a company since 2005.
The government had introduced Rajiv Gandhi Shramik Kalyan Yojana (RGSKY) via the Employees’ State Insurance Corporation (ESIC) on 1 April 2005.
“It offers unemployment allowance to the Insured Person (IP) for a maximum period of 24 months in case he/she becomes unemployed involuntarily due to retrenchment as defined under the Industrial Disputes Act, 1947; closure of the factory/ establishment as defined under the Industrial Disputes Act, 1947 and permanent invalidity of not less than 40% arising out of non-employment injury,” said Teli.
According to the scheme, the IP should be in service for a minimum two years, and the paid/payable contribution in respect of an IP for 156 days or more in any two consecutive contribution period will be deemed as having worked for one full year. Contribution paid for 78 days or more in a contribution period will be deemed as having served for a half year.
The IP and his/her family are also entitled for medical care. Unemployment allowance shall cease to be payable in case the IP is re-employed or attains the age of 60 years, whichever is earlier.
Daily rate of unemployment allowance is 50% of the average daily wages drawn by the IP for first 12 months and 25% for the last 12 months.
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