Private sector employees covered under the Employees' State Insurance Corporation (ESIC) have received a major relief. The ESIC has extended its Atal Beemit Vyakti Kalyan Yojana (ABVKY), an unemployment assistance scheme that provides temporary financial support to insured workers who lose their jobs due to reasons beyond their control.

Following the decision taken during the 198th ESIC meeting, the scheme will now remain in force from July 1, 2026, to June 30, 2027. Under this initiative, eligible employees can receive 50% of their average wages for up to 90 days while they search for new employment.

Here's everything you need to know about the scheme, eligibility conditions, benefits, and the claim process.

What Is the Atal Beemit Vyakti Kalyan Yojana?

The Atal Beemit Vyakti Kalyan Yojana (ABVKY) was introduced by ESIC in 2018 as a pilot welfare initiative to provide temporary income support to insured workers who unexpectedly become unemployed.

Since its launch, the scheme has been extended multiple times due to its importance in supporting workers during periods of involuntary unemployment.

Its primary objective is to help employees meet essential household expenses while looking for another job.

Scheme Extended Until June 2027

ESIC has now approved another one-year extension of the unemployment benefit scheme.

The latest extension means the scheme will remain operational from:

• Effective Date: July 1, 2026
• Validity: June 30, 2027

Eligible insured employees who lose their jobs during this period can continue to receive financial assistance under the scheme, subject to the prescribed conditions.

Benefits Available Under the Scheme

Employees qualifying under ABVKY can receive the following benefits:

50% Wage Compensation

Eligible beneficiaries receive cash assistance equal to 50% of their average daily wages during the period of unemployment.

Financial Support for Up to 90 Days

The unemployment allowance is available for a maximum period of 90 days, helping workers manage expenses until they secure another source of income.

Direct Bank Transfer

Once the claim is approved, the sanctioned amount is transferred directly to the beneficiary's registered bank account.

Who Is Eligible to Claim the Benefit?

To receive unemployment assistance under the scheme, employees must satisfy certain eligibility conditions.

The applicant must:

• Be covered under the Employees' State Insurance (ESI) scheme.
• Have made the required ESI contributions during the prescribed contribution period before losing employment.
• Have lost employment due to circumstances beyond their control.

The scheme generally covers situations such as:

• Closure of the company or establishment.
• Layoffs or retrenchment.
• Permanent disability caused by a non-employment-related injury that results in loss of employment.

Who Cannot Claim the Benefit?

The unemployment allowance is not available under certain circumstances.

Employees are not eligible if:

• They resigned voluntarily.
• They opted for a Voluntary Retirement Scheme (VRS).
• They were dismissed due to misconduct or disciplinary action.
• They lost employment because of participation in an illegal strike.

In such cases, claims under the ABVKY scheme are generally not admissible.

How to Apply for the Unemployment Benefit

Eligible employees can apply by submitting the prescribed claim form along with the required supporting documents as specified by ESIC.

After verification of the claim and supporting records, ESIC processes the application and transfers the approved unemployment benefit directly to the claimant's registered bank account.

Applicants should ensure that all required documents and employment details are accurate to avoid delays in processing.

Why the Extension Matters

The extension of the scheme provides continued financial security to insured employees working in the private sector, especially during periods of economic uncertainty or unexpected job loss.

Temporary income support can help workers meet essential expenses while reducing financial stress during the transition to new employment.

The move also reinforces ESIC's role in providing social security benefits to employees covered under the ESI scheme.

Key Highlights of the Scheme Feature Details

Scheme Name	Atal Beemit Vyakti Kalyan Yojana (ABVKY)
Implementing Authority	Employees' State Insurance Corporation (ESIC)
Scheme Validity	July 1, 2026 – June 30, 2027
Benefit Amount	50% of average daily wages
Maximum Benefit Period	90 days
Payment Mode	Direct bank transfer
Eligible Employees	ESI-covered workers who lose jobs involuntarily

Bottom Line

The extension of the Atal Beemit Vyakti Kalyan Yojana until June 2027 offers valuable financial protection to eligible private-sector employees covered under ESIC. Workers who lose their jobs due to layoffs, establishment closure, or other qualifying reasons can receive 50% of their average wages for up to 90 days, helping them manage essential expenses while searching for new employment. Employees should carefully review the eligibility criteria and submit the required documents to ensure smooth processing of their claims.