ESIC scheme Current Affairs - 2020

GoI: Benefits to COVID-19 affected workers under Atal Beema Vyakti Kalyan Yojana

On March 19, 2020, the Government of India announced that it will provide unemployment benefits to the section of unorganized workers. These workers include, persons who have lost their jobs due to the impact of the Corona Virus Pandemic.


Along the lines of countries like USA in combating the deadly Corona Virus, GoI is to provide cash to workers. These workers are those that become unemployed due to the impact of corona virus. They are to receive cash for 3 months.

This step is to be implemented by Atal Beema Vyakti Kalyan Yojana.

Atal Beema Vyakti Kalyan Yojana

The scheme provides unemployment insurance to those workers enrolled in EST scheme. ESI is Employee State Insurance Scheme. Under the scheme, the workers receive cash of 25% of their salary that they were receiving in the last 2 months. The scheme is operation since 2018. It provides compensation to those who become unemployed for three months.

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Facts Box: Drafts Security Code

The Union Government recently circulated the Draft Security Code that integrates existing labor laws and provides new initiatives to provide social security to workers of unorganized sector, insurance and helath benefits to gig workers. It includes drivers of private vehicle hiring services as well. The code also aims at corporatization of organizations like ESIC And EPFO.

Key Features of the Code

Insurance, life cover, PF for unorganized sector employees

  • According to the code, the Central Government shall formulate welfare schemes for the workers of unorganized sector from time to time on matters relating to life, disability, maternal benefits, health, old age protection.
  • While framing schemes the government will look out for key initiative relating to the workers’ housing, educational scheme for their children, funeral assistance, old age assistance, etc

Corporatization of ESIC and EPFO

The world body for the EPFO And ESIC related world bodies have been added in the scheme. This will bring an end to the autonomous body status of organizations that are responsible for pension, retirement and insurance. It aims to make the EPFO a more structured national body.

Gig Worker

The Gig workers will get insurance, health and maternal benefits under the security code.

Maternal Benefits

Every woman worker under the act will be entitled to payment of maternity benefit. The payment is to be at the rate of average daily wage for the period of her actual absence.

Merging existing labor laws

The Code on Social Security will merge the following laws

  • Employees Compensation Act, 1923
  • Employees Insurance Act, 1948
  • Maternal Benefit Act, 1961
  • Provident Funds and Miscellaneous Provisions Act, 1952
  • Cine Workers Welfare Fund Act, 1981
  • Unorganized Workers’ Social Security act, 2008

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