Atal Beemit Vyakti Kalyan Yojana Extension by ESIC
UPSC / SSC current affairs note · Economy
Why in news
ESIC has approved the extension of Atal Beemit Vyakti Kalyan Yojana (ABVKY) from 1 July 2026 to 30 June 2027. The scheme provides unemployment relief to insured persons. The information was shared by the Minister of State for Labour and Employment in a Lok Sabha reply.
Background
ABVKY is a social security scheme under the Employees' State Insurance Act, 1948, administered by ESIC. It provides cash compensation to insured persons who lose employment due to retrenchment, closure of establishment, or permanent invalidity. The scheme was launched to support workers during periods of involuntary unemployment.
Key facts
ABVKY has been extended for one year from 1 July 2026 to 30 June 2027.
Eligibility: The beneficiary must have been in insurable employment for at least 12 continuous months immediately before unemployment.
The beneficiary must have contributed for at least 78 days in any one contribution period during the 12 months before unemployment.
Unemployment should not be due to misconduct, lockout, superannuation, or false statement under the ESI Act, 1948.
Claims processing has been expedited through online submission, DBT, and regular monitoring.
Expenditure data: 2023-24: 688 beneficiaries, ₹1.01 crore; 2024-25: 1,978 beneficiaries, ₹2.72 crore; 2025-26: 1,406 beneficiaries, ₹1.52 crore.
The scheme is administered by the Employees' State Insurance Corporation (ESIC).
Prelims pointers
- Atal Beemit Vyakti Kalyan Yojana (ABVKY)
- Employees' State Insurance Corporation (ESIC)
- Employees' State Insurance Act, 1948
- Direct Benefit Transfer (DBT)
- Ministry of Labour and Employment
Mains angles
- Discuss the role of social security schemes like ABVKY in protecting workers during unemployment.
- Critically examine the effectiveness of ESIC in implementing welfare schemes for organized sector workers.
- Analyze the challenges in extending social security coverage to informal workers and suggest reforms.