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Unemployment Insurance PDF
Unemployment Insurance PDF
Unemployment Insurance PDF
Brief Introduction
Unemployment Insurance in India TODAY'S
Problems in present schemes HIGHLIGHTS
Proposed suggestions and solutions
WHAT IS
UNEMPLOYMENT
INSURANCE?
Federal–state program that pays periodic cash
benefits to workers who are involuntarily
unemployed.
PROVIDE CASH INCOME
Maintaining their economic security
ENCOURAGE EMPLOYERS TO
INSURANCE
STABILIZE EMPLOYMENT.
33 MILLION
OF INDIA'S POPULATION IS UNEMPLOYED (7.45%)
UNEMPLOYMENT INSURANCE:
DOES IT EXIST IN INDIA?
No specific insurances labelled as
unemployment insurance.
A few schemes and policies are in effect
under the auspices of the central
government.
EMPLOYEE STATE
INSURANCE ACT, 1948
BENEFITS OF THE ACT
Social security and self contributory
health insurance scheme by GOI.
Medical Dependent Sickness
Applicability:
Employees with a monthly salary
within Rs.21,000 or daily average Maternity Disablement Funeral
wages of Rs.137
Rajiv Gandhi Shramik Kalyan
Yojana (RGSKY) 2005
Insured Persons insured for 3+ years and out of employment due to closure of Factory,
involuntary retrenchment or permanent invalidity are eligible.
Unemployment Allowance equal to 50% of wage for up to 2 years and 25% of average
salary from 13th to 24th month, subject to eligibility.
Medical care for self and family provided by ESI Hospitals/Dispensaries during period of
unemployment allowance.
Vocational training available for upgrading skills, with ESIC covering expenditure on fees
and travel allowances.
Atal Beemit Vyakti Kalyan
Yojna (ABVKY)
Earlier, application had to be made within 90 days of employment loss, reduced to 30 days
due to job volatility.
To avail benefits, insured person must be in insured employment for minimum of 2 years
before unemployment.
Must have contributed for at least 78 days in contribution period immediately preceding
unemployment.
Must also contribute for at least 78 days in one of remaining three contribution periods in two
years before unemployment.
RESTRICTED
In India, workers in
Employers should Employers should the organised sector
step up and attempt issue a reasonable in firms with more
to bridge the absence severance payment to than 50 workers have
of unemployment employees who leave access to a mandated
insurance the company. severance payments
programme.
REFERENCES:
https://www.bajajfinservmarkets.in/insurance/health-
insurance/articles/unemployment-insurance-does-it-exist-in-india.html
https://thewire.in/labour/unemployment-insurance-india-us-uk-covid-
19-pandemic
www.esic.nic.in
https://www.india.gov.in/spotlight/employees-state-insurance-
scheme#tab=tab-1
Chapter 18 of textbook
THANK
YOU!
PRESENTED BY
Himanshi
2020B3PS1270P