Rajiv Gandhi Shramik Kalyan Yojna

The Corporation has now introduced 'Rajiv Gandhi Shramik Kalyan Yojna' for insured persons who face involuntary unemployment w.e.f. 1st April 2005.  The insured persons under the scheme are entitled to an unemployment allowance for a period of upto six months equal to almost half the wages.                                     

Scope of the Scheme

The scheme is designed to provide economic protection to workers facing involuntary unemployment due to closure of factory’ establishment, retrenchment or permanent invalidity (not less than 50%) arising out of non-employment injury. 

Rate of Allowance

The daily rate of Unemployment Allowance is equal to the Standard Benefit rate, based on average daily wages during the last four contribution periods. The allowance is payable for a maximum period of six months in one or different spells of not less than one month each. 

Eligibility Conditions 

Only an insured person covered under the ESI scheme and fulfilling under mentioned conditions is eligible to claim the “Unemployment Allowance”: 

  •  Should have been an insured person under the ESI Act on the date of loss of employment.

  • Should have contributed to the scheme for at least 5 years prior to the loss of employment.

  • An insured person entitled to Unemployment Allowance shall be eligible for medical care for self an
    family for a period at 6 months.

  • Should have become unemployed involuntarily due to closure of a factory/ establishment, retrenchment or because of permanent invalidity due to non employment injury.

  • The Unemployment Allowance shall not be combined with any other cash benefit (excluding Permanent Disablement Benefit) to which an insured person is entitled to for the same period.

  • Unemployment Allowances shall cease to payable from the date of re-employment.

  • Should have been rendered unemployed on or after 1.4.2005.

  • Applications should be submitted within 3 months from the data of closure of
    factory/establishment/retrenchment or because of permanent invalidity due to non employment injury.