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An unemployment allowance scheme under the Employees State Insurance Act, 1948 has been introduced in all the States and Union Territories with effect from April 1, 2005 where the ESI Scheme is in operation. The scheme is to provide an allowance to such persons with insurable employment for five years who lose their job involuntarily due to retrenchment, closure of factories/establishments and permanent disability. The allowance is payable at the standard benefit rates (sickness benefit rate) which is approximately 50 per cent of the average daily wages earned by the insured person, which is payable for a maximum period of six months during the entire insured period of the worker.
The scheme having been recently started and all those eligible insured persons who have been rendered jobless immediately after April 1, 2005 are eligible to apply for unemployment allowance after being unemployed for a maximum of one month.
This was stated in a written reply by the Minister of Labour and Employment, Shri K. Chandrasekhar Rao, in Rajya Sabha today.
MLD/LK/ L-180 (21.4.)
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