The Union Ministry of Labour is considering giving a big relief to the unemployed. According to the new proposal, ESIC related employees will be given 6 months allowance in case of unemployment. This allowance will be 50% of the last salary. At present, the unemployed are paid an allowance of 25 per cent of the last wage. Apart from this allowance is given for 3 months only. But now this period is going to double.
If a person becomes unemployed, he is given an allowance of 25% of his last salary for the next 3 months. The current rule is that an employee can avail this scheme only once. But now this limit will be abolished. This can bring relief to the unemployed. A meeting of the members of the Employees State Insurance Corporation will be held on August 20.The proposal will be included in it, the Economic Times has reported. If approved, the proposal would benefit 3.2 crore ESIC-linked workers.
The concept was put forward by the Prime Minister’s Office. The Corona crisis has hit the economy hard. Many have lost their jobs. Efforts are being made by the government to provide relief to them. Allowances are paid to the unemployed in the United States and Canada. In the same vein, the Modi government is considering providing financial assistance to the unemployed. The proposal was tabled in the Prime Minister’s Office last week. It will now be tabled at the ESIC meeting for approval.
The biggest hit of the lock-down has been on employees working in small and medium enterprises. According to CMIE, 12.1 crore people lost their jobs in April due to the lock down. However, in May and June, the situation improved. So far, 9.1 crore people have regained their jobs. But 3 crore people still do not have employment. The Modi government is trying to comfort them.
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