RGSKY provides unemployment insurance for 24 months

This allowance is given to the insured person if he / she is rendered jobless due to retrenchment

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The Rajiv Gandhi Shramik Kalyan Yojana (RGSKY) introduced by the Employees’ State Insurance Corporation (ESIC) w.e.f. 01.04.2005 provides unemployment allowance to the Insured Person (IP). This allowance is given for not more than 24 months, that is, two years, in case the IP is rendered jobless involuntarily because of retrenchment as defined under the Industrial Disputes Act, 1947.

This information was given as part of a written response to a question in the Rajya Sabha, by the Minister of State for Labour and Employment Rameswar Teli.

The allowance is also given to those who lose their jobs owing to the shutting down of the factory/ establishment as defined under the Industrial Disputes Act, 1947 and also in cases where they are rendered at least 40 per cent invalid or incapable of working owing to non-employment injury.

This allowance is only allowed to insured people who have been in service for at least two years. Also, the paid/payable contribution in respect of an IP for 156 days or more in any two consecutive contribution period will be deemed as having worked for one full year. Contribution paid for 78 days or more in a contribution period will be deemed as having served for a half year. The insured person and his/her dependants are also entitled to medical care. If the IP gets re-employed or reaches the age of retirement, the allowance will be stopped. The unemployment allowance is given at the daily rate of 50 per cent of the average daily wages drawn by the IP for first 12 months and 25 per cent for the last 12 months.

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