ESIC extends unemployment benefit scheme till June 2027: Who can claim up to 90 days’ allowance

ESIC extends unemployment benefit scheme June 2027 90 days allowance eligibility

The scheme will now remain in force from July 1, 2026, to June 30, 2027, following approval at the 198th meeting of the ESIC.

The extension means eligible employees covered under the Employees’ State Insurance (ESI) scheme can continue to receive financial assistance if they lose their jobs involuntarily.

What is the Atal Beemit Vyakti Kalyan Yojana?

Launched in 2018 as a pilot scheme and later extended multiple times, the Atal Beemit Vyakti Kalyan Yojana provides temporary financial relief to insured workers who become unemployed.

The objective is to help workers meet their basic expenses while they search for a new job.

What benefit does the scheme offer?

Under the scheme, eligible insured persons can receive:

• Cash compensation equal to 50% of their average daily wages
• The benefit is payable for up to 90 days during a spell of unemployment.
• The amount is paid directly into the beneficiary’s bank account.

Who is eligible?

To claim the benefit, an insured person must broadly satisfy the following conditions:

• Be covered under the Employees’ State Insurance (ESI) Scheme.
• Have contributed to the ESI scheme for the prescribed contribution period before becoming unemployed.
• Have lost employment involuntarily, such as due to closure of the establishment, retrenchment or permanent invalidity caused by a non-employment injury.
• Meet other eligibility conditions prescribed by ESIC.

Who cannot claim the benefit?

The unemployment allowance is generally not available if:

• The employee resigns voluntarily.
• The employee takes voluntary retirement.
• The employee is dismissed for misconduct.
• The employee becomes unemployed due to participation in an illegal strike.

How can eligible workers apply?

Eligible insured persons can submit their claim to ESIC in the prescribed format along with the required documents. Once the claim is verified and approved, the unemployment allowance is credited directly to the beneficiary’s bank account.

Why has the scheme been extended?

The ESIC has extended the scheme for another year to continue providing temporary income support to insured workers who lose their jobs. According to the official decision taken at the ESIC’s 198th meeting, the extension will remain effective from July 1, 2026, to June 30, 2027.

The extension ensures that eligible ESI beneficiaries continue to have access to financial assistance during periods of involuntary unemployment while they seek fresh employment.