ESIC unemployment allowance extended till June 2027: Who can claim it?

The Employees' State Insurance Corporation (ESIC) has extended the Atal Beemit Vyakti Kalyan Yojana (ABVKY), its unemployment allowance scheme, by another year. Eligible insured workers who lose their jobs can continue to claim financial assistance under the scheme till June 30, 2027.

The decision was approved during the 198th meeting of the ESIC, chaired by Union Labour and Employment Minister Mansukh Mandaviya. The scheme, which was set to end on June 30, 2026, will now remain in force from July 1, 2026, to June 30, 2027, according to the Ministry of Labour and Employment.

What is the Atal Beemit Vyakti Kalyan Yojana?

The Atal Beemit Vyakti Kalyan Yojana is an unemployment relief scheme for workers covered under the Employees' State Insurance (ESI) Act. It provides financial assistance to insured persons who lose their jobs while they look for new employment.

Who can claim the benefit?

The scheme is available to eligible employees covered under the ESI scheme who become unemployed and fulfil the prescribed conditions under the Atal Beemit Vyakti Kalyan Yojana.

With the latest decision, eligible beneficiaries can continue to avail of the unemployment allowance under the scheme until June 30, 2027.

ESIC and EPFO: What's the difference?

ESIC provides healthcare and social security benefits, including medical care, sickness, maternity, disability and unemployment benefits to eligible insured employees under the ESI Act. EPFO, on the other hand, administers provident fund, pension and insurance benefits for eligible organised sector employees.

The unemployment allowance announced by ESIC under the Atal Beemit Vyakti Kalyan Yojana is an ESIC benefit and should not be confused with EPFO benefits.

Other key decisions taken by ESIC

Apart from extending the unemployment allowance scheme, the ESIC also approved several measures aimed at strengthening healthcare services and social security delivery. These include:

• Direct management of all upcoming and newly commissioned ESIC hospitals.

• Integration of AYUSH services through a Memorandum of Understanding with the Ministry of Ayush.

• Establishment of five new sub-regional offices.

• Expansion of medical education infrastructure, including a new medical college in Haridwar and a dental college in New Delhi.

• Framing of the Employees' State Insurance (General) Regulations, 2026 under the Code on Social Security, 2020.

The extension of the Atal Beemit Vyakti Kalyan Yojana ensures that eligible ESIC-insured workers who lose their jobs can continue to receive financial assistance until June 30, 2027.