ESIC scheme Current Affairs - 2020

Enrolments in ESIC Social Security Scheme increases to 821,000

On May 23, 2020, the payroll data of the Employees State Insurance Corporation (ESIC) was released. The data says that around 821,000 new members have joined ESIC social security scheme.


The data was released by National Statistical Office (NSO). According to the data the subscribers to the scheme in 2018-19 were 14.9 million and it increased to 38.3 million in March 2020.

The NSO report issues data of several social security schemes such as PFRDA, EPFO. This is being done since 2018 covering the period 2017-18.


The Employment State Insurance Scheme was launched in 1952 under the Employees State Insurance Act, 1948. The act was the first legislative social security step for workers in India.

The scheme was designed to help employees fight against their sickness, disablement, maternity and death due to employment.

Recent Developments in the Scheme

In June 2020, the Government of India reduced the rate of contribution under the scheme. The employer contribution was reduced from 4.75% to 3.25% and Employee contribution was reduced from 1.75% to 0.75%. Also, the employees that are earning Rs 137 or less per day are exempted from payment of their contribution.

Recently, to meet the salary bills of the workers during COVID-19 lock down period, the Government of India ruled to appropriate funds of ESIC

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.