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Good news! 40 lakh workers to get half of 3 months salary as unemployment benefit

The government on Thursday relaxed eligibility criteria to offer half of three months salary as unemployment benefit to the industrial workers hit by job loss due to the coronavirus crisis between March 24 and December 31

twitter-logoBusinessToday.In | August 20, 2020 | Updated 22:25 IST
Good news! 40 lakh workers to get half of three months' salary as unemployment benefit
The move is expected to benefit almost 40 lakh industrial workers

The government on Thursday relaxed eligibility criteria to offer half of three months' salary as unemployment benefit to the industrial workers hit by job loss due to the coronavirus crisis between March 24 and December 31, 2020. The move is expected to benefit almost 40 lakh industrial workers.

The proposal was presented before the Employees' State Insurance Corporation (ESIC) meeting today. ESI, under the labour ministry, is a self-financing health insurance scheme for formal sector workers in India and is managed by the ESIC. Industrial workers with a monthly salary of up to Rs 21,000 fall under the ambit of the ESI scheme

"The move will give cash benefits equivalent to 50 per cent of the last drawn average wage to eligible insured persons (IP) under ESIC for three months," Amarjeet Kaur, a board member of the ESIC, told the Mint.

"The claim may be submitted directly in the ESIC branch office and the verification of the claim with the employer will be done at the branch office level. The payment shall be made in the bank account of the IPs directly," the daily also said citing the meeting's agenda.

According to the daily, the relief would become due for payment 30 days from the date of unemployment now compared to 90 days earlier. Aadhaar number would be used for identification of the claims.

Meanwhile, at least 4,98,262 people joined the formal workforce in June, according to the latest payroll data released by the Employees' Provident Fund Organisation (EPFO) revealed Thursday. Almost half are fresh joinees out of the total new subscribers.

Also read:Nearly 5 lakh people joined formal workforce in June

Also read: COVID-19 impacts EPFO withdrawals: 8 million members pull out Rs 30,000 crore during April-July

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