{"id":305,"date":"2020-06-21T01:08:12","date_gmt":"2020-06-20T19:38:12","guid":{"rendered":""},"modified":"2026-09-03T16:46:33","modified_gmt":"2026-09-03T16:46:33","slug":"esic-unemployment-allowance-for-employees","status":"publish","type":"post","link":"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/","title":{"rendered":"ESIC unemployment allowance for employees"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1e73be;color:#1e73be\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1e73be;color:#1e73be\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#Have_you_ever_felt_the_pain_of_losing_your_job_or_fear_of_not_knowing_what_will_happen_next_You_no_longer_need_to_hurry_to_find_a_new_job_In_this_post_we_are_explaining_how_unemployment_allowances_can_be_availed_through_the_Rajiv_Gandhi_Shramik_Kalyan_Yojana_RGSKY_under_the_ESI_Act\" >Have you ever felt the pain of losing your job or fear of not knowing what will happen next? You no longer need to hurry to find a new job. In this post, we are explaining how unemployment allowances can be availed through the Rajiv Gandhi Shramik Kalyan Yojana (RGSKY), under the ESI Act.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#What_is_Rajiv_Gandhi_Shramik_Kalyan_Yojana\" >#What is Rajiv Gandhi Shramik Kalyan Yojana?<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#Rajiv_Gandhi_Shramik_Kalyan_Yojana\" >Rajiv Gandhi Shramik Kalyan Yojana<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#The_scheme_provides_an_unemployment_allowance_under_the_ESI_Scheme_for_employees_who_become_involuntarily_unemployed_due_to_layoffsfactory_closures_etc_after_meeting_certain_eligibility_conditions_The_%E2%80%9CRajiv_Gandhi_Shramik_Kalyan_Yojana%E2%80%9D_scheme_came_into_force_from_1_April_2005\" >The scheme provides an unemployment allowance under the ESI Scheme for employees who become involuntarily unemployed due to layoffs\/factory closures etc. after meeting certain eligibility conditions. The &#8220;Rajiv Gandhi Shramik Kalyan Yojana&#8221; scheme came into force from 1 April 2005.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#The_scheme_targets_an_increasing_number_of_workers_who_are_redundant_in_the_new_competitive_environment_Under_this_scheme_eligible_workers_receive_a_daily_rate_of_allowances_and_medical_care_for_themselves_and_their_families_during_periods_of_unemployment_of_up_to_two_years\" >The scheme targets an increasing number of workers who are redundant in the new competitive environment. Under this scheme, eligible workers receive a daily rate of allowances and medical care for themselves and their families during periods of unemployment of up to two years.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#What_is_the_eligibility_for_receiving_an_unemployment_allowance_under_the_%E2%80%9CRajiv_Gandhi_Shramik_Kalyan_Yojana%E2%80%9D\" >#What is the eligibility for receiving an unemployment allowance under the \u201cRajiv Gandhi Shramik Kalyan Yojana\u201d?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#Eligibility_for_receiving_unemployment_allowance\" >Eligibility for receiving unemployment allowance:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#An_ESI_holder_should_be_unemployed_after_April_2005_To_avail_of_this_scheme_An_ESIC_holder_will_have_to_wait_at_least_one_month_after_losing_the_job_Employees_previous_company_is_covered_under_the_ESI_Act_and_they_must_have_paid_at_least_2_years_for_the_contribution_of_ESI_The_employee_must_file_a_UA_claim_within_12_months_of_unemployment_The_UA_is_available_up_to_a_maximum_of_24_months_up_to_the_age_of_60_over_an_employees_lifetime_Employees_cannot_avail_of_any_other_cash_benefits_other_than_Medicare_Once_ESIC_holder_start_a_new_job_their_UA_will_end_until_they_lose_their_job_again\" >An ESI holder should be unemployed after April 2005.\n\n\nTo avail of this scheme, An ESIC holder will have to wait at least one month after losing the job.\n\n\nEmployee\u2019s previous company is covered under the ESI Act and they must have paid at least 2 years for the contribution of ESI.\n\n\nThe employee must file a UA claim within 12 months of unemployment.\n\n\nThe UA is available up to a maximum of 24 months, up to the age of 60, over an employee&#8217;s lifetime.\n\n\nEmployees cannot avail of any other cash benefits (other than Medicare).\n\n\nOnce ESIC holder start a new job, their UA will end, until they lose their job again.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#What_are_the_benefits_of_the_RGSKY_for_the_ESIC_holders\" >#What are the benefits of the RGSKY for the ESIC holders?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#Benefits_of_the_RGSKY\" >Benefits of the RGSKY:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#1-_Unemployment_allowance\" >1- Unemployment allowance:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#Employees_UA_is_calculated_on_the_average_of_hisher_last_4_ESI_contributions_let_it_be_the_UA_wedge_For_the_first_12_months_their_UA_is_50_of_the_UA_wage_while_for_the_last_12_months_it_is_25_UA_only_applies_if_they_reluctantly_lose_their_job_due_to_the_closure_of_their_workplace_or_permanent_disability_etc_An_ESI_holder_can_avail_24_months_of_UA_in_parts_If_an_employee_does_not_have_a_job_for_3_months_they_can_get_2_months_of_their_UA_If_the_employee_got_a_job_after_3_months_they_still_have_22_months_left_of_the_UAA_The_employee_can_avail_of_UA_for_a_minimum_of_one_month\" >Employees UA is calculated on the average of his\/her last 4 ESI contributions (let it be the UA wedge).\n\n\nFor the first 12 months, their UA is 50% of the UA wage, while for the last 12 months, it is 25%.\n\n\nUA only applies if they reluctantly lose their job due to the closure of their workplace or permanent disability, etc.\n\n\nAn ESI holder can avail 24 months of UA in parts.\n\n\nIf an employee does not have a job for 3 months, they can get 2 months of their UA. If the employee got a job after 3 months, they still have 22 months left of the UAA.\n\n\nThe employee can avail of UA for a minimum of one month.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#2-_Medical_care\" >2- Medical care:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#Under_RGSKY_any_person_still_receives_all_the_medical_benefits_of_the_ESI_Act_during_his_UA_term_For_more_information_about_the_medical_benefits_of_the_ESI_Act_visit_this_link\" >Under RGSKY, any person still receives all the medical benefits of the ESI Act during his UA term. For more information about the medical benefits of the ESI Act visit this link.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#3-_Vocational_training\" >3-&nbsp;Vocational training:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#If_a_person_selects_vocational_training_from_a_government_institution_during_his_UA_term_heshe_receives_a_100_grant_The_government_also_pays_for_transportation_charges\" >If a person selects vocational training from a government institution during his UA term, he\/she receives a 100% grant. The government also pays for transportation charges.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#What_are_the_reasons_for_the_disqualification_from_the_jobemployment\" >#What are the reasons for the disqualification from the job\/employment?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#Reasons_for_disqualification_Employees_lose_their_jobs_due_to_the_strike_They_opt_for_voluntary_retirement_If_an_employee_is_60_years_or_older_An_employee_opts_for_premature_retirement_An_employee_loses_his_job_due_to_a_dispute_or_conviction_If_the_employee_gets_a_new_job\" >Reasons for disqualification\n\n\nEmployees lose their jobs due to the strike.\n\n\nThey opt for voluntary retirement.\n\n\nIf an employee is 60 years or older.\n\n\nAn employee opts for premature retirement.\n\n\nAn employee loses his job due to a dispute or conviction.\n\n\nIf the employee gets a new job.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#Who_can_claim_the_unemployment_allowance_under_ESIC\" >#Who can claim the unemployment allowance under ESIC?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#The_ESIC_holder_who_has_ESIC_registration_has_the_right_to_claim_an_unemployment_allowance_under_ESIC_through_Rajiv_Gandhi_Shramik_Kalyan_Yojana\" >The ESIC holder who has ESIC registration has the right to claim an unemployment allowance under ESIC through Rajiv Gandhi Shramik Kalyan Yojana.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#What_is_the_procedure_for_ESIC_holder_for_claiming_the_unemployment_allowance_under_ESIC\" >#What is the procedure for ESIC holder for claiming the unemployment allowance under ESIC?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#1_Procedure_for_claiming_unemployment_allowance\" >1. Procedure for claiming unemployment allowance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#A_claim_for_unemployment_allowance_must_be_submitted_by_an_individual_at_any_time_three_months_before_the_date_of_unemployment_to_the_appropriate_branch_office_in_Form_US-1_supported_by_documentary_evidence_in_Form_UA-2_to_prove_his_unemployment_This_certificate_is_issued_by_the_Inspector_of_Factories_Assistant_Deputy_Commissioner_Labor_Workers_Compensation_Commissioner_or_any_other_authority_in_this_regard\" >A claim for unemployment allowance must be submitted by an individual at any time three months before the date of unemployment to the appropriate branch office in Form (US-1) supported by documentary evidence (in Form UA-2) to prove his unemployment. This certificate is issued by the Inspector of Factories, Assistant \/ Deputy Commissioner, Labor, Workers Compensation Commissioner, or any other authority in this regard.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#2_Mode_of_payment_of_unemployment_allowance\" >2. Mode of payment of unemployment allowance.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#Allowance_is_payable_only_by_account_payee_check\" >Allowance is payable only by account payee check<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#3_Payment_in_the_event_of_the_death_of_the_recipient\" >3. Payment in the event of the death of the recipient:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/#The_amount_of_unemployment_allowance_is_payable_to_his_her_legal_heir_up_to_and_including_the_date_of_death_of_the_recipient\" >The amount of unemployment allowance is payable to his \/ her legal heir up to and including the date of death of the recipient.<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h4><span class=\"ez-toc-section\" id=\"Have_you_ever_felt_the_pain_of_losing_your_job_or_fear_of_not_knowing_what_will_happen_next_You_no_longer_need_to_hurry_to_find_a_new_job_In_this_post_we_are_explaining_how_unemployment_allowances_can_be_availed_through_the_Rajiv_Gandhi_Shramik_Kalyan_Yojana_RGSKY_under_the_ESI_Act\"><\/span>Have you ever felt the pain of losing your job or fear of not knowing what will happen next? You no longer need to hurry to find a new job. In this post, we are explaining how unemployment allowances can be availed through the Rajiv Gandhi Shramik Kalyan Yojana (RGSKY), under the ESI Act.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Rajiv_Gandhi_Shramik_Kalyan_Yojana\"><\/span><b>#What is Rajiv Gandhi Shramik Kalyan Yojana?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><\/h4>\n<h6><\/h6>\n<h5><span class=\"ez-toc-section\" id=\"Rajiv_Gandhi_Shramik_Kalyan_Yojana\"><\/span><font color=\"#ff0000\"><b>Rajiv Gandhi Shramik Kalyan Yojana<\/b><\/font><span class=\"ez-toc-section-end\"><\/span><\/h5>\n<h4><span class=\"ez-toc-section\" id=\"The_scheme_provides_an_unemployment_allowance_under_the_ESI_Scheme_for_employees_who_become_involuntarily_unemployed_due_to_layoffsfactory_closures_etc_after_meeting_certain_eligibility_conditions_The_%E2%80%9CRajiv_Gandhi_Shramik_Kalyan_Yojana%E2%80%9D_scheme_came_into_force_from_1_April_2005\"><\/span>The scheme provides an unemployment allowance under the ESI Scheme for employees who become involuntarily unemployed due to layoffs\/factory closures etc. after meeting certain eligibility conditions. The &#8220;Rajiv Gandhi Shramik Kalyan Yojana&#8221; scheme came into force from 1 April 2005.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"The_scheme_targets_an_increasing_number_of_workers_who_are_redundant_in_the_new_competitive_environment_Under_this_scheme_eligible_workers_receive_a_daily_rate_of_allowances_and_medical_care_for_themselves_and_their_families_during_periods_of_unemployment_of_up_to_two_years\"><\/span>The scheme targets an increasing number of workers who are redundant in the new competitive environment. Under this scheme, eligible workers receive a daily rate of allowances and medical care for themselves and their families during periods of unemployment of up to two years.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_eligibility_for_receiving_an_unemployment_allowance_under_the_%E2%80%9CRajiv_Gandhi_Shramik_Kalyan_Yojana%E2%80%9D\"><\/span><b><br \/>#What is the eligibility for receiving an unemployment allowance under the \u201cRajiv Gandhi Shramik Kalyan Yojana\u201d?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Eligibility_for_receiving_unemployment_allowance\"><\/span>Eligibility for receiving unemployment allowance:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h6><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"An_ESI_holder_should_be_unemployed_after_April_2005_To_avail_of_this_scheme_An_ESIC_holder_will_have_to_wait_at_least_one_month_after_losing_the_job_Employees_previous_company_is_covered_under_the_ESI_Act_and_they_must_have_paid_at_least_2_years_for_the_contribution_of_ESI_The_employee_must_file_a_UA_claim_within_12_months_of_unemployment_The_UA_is_available_up_to_a_maximum_of_24_months_up_to_the_age_of_60_over_an_employees_lifetime_Employees_cannot_avail_of_any_other_cash_benefits_other_than_Medicare_Once_ESIC_holder_start_a_new_job_their_UA_will_end_until_they_lose_their_job_again\"><\/span>\n<ul>\n<li>An ESI holder should be unemployed after April 2005.<\/li>\n<\/ul>\n<ul>\n<li>To avail of this scheme, An ESIC holder will have to wait at least one month after losing the job.<\/li>\n<\/ul>\n<ul>\n<li>Employee\u2019s previous company is covered under the ESI Act and they must have paid at least 2 years for the contribution of ESI.<\/li>\n<\/ul>\n<ul>\n<li>The employee must file a UA claim within 12 months of unemployment.<\/li>\n<\/ul>\n<ul>\n<li>The UA is available up to a maximum of 24 months, up to the age of 60, over an employee&#8217;s lifetime.<\/li>\n<\/ul>\n<ul>\n<li>Employees cannot avail of any other cash benefits (other than Medicare).<\/li>\n<\/ul>\n<ul>\n<li>Once ESIC holder start a new job, their UA will end, until they lose their job again.<\/li>\n<\/ul>\n<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_the_RGSKY_for_the_ESIC_holders\"><\/span><b>#What are the benefits of the RGSKY for the ESIC holders?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Benefits_of_the_RGSKY\"><\/span><b><font color=\"#ff0000\">Benefits of the RGSKY:<\/font><\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"1-_Unemployment_allowance\"><\/span><b>1-<font color=\"#ff0000\"> <\/font><\/b><font color=\"#ff0000\">Unemployment allowance:<\/font><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Employees_UA_is_calculated_on_the_average_of_hisher_last_4_ESI_contributions_let_it_be_the_UA_wedge_For_the_first_12_months_their_UA_is_50_of_the_UA_wage_while_for_the_last_12_months_it_is_25_UA_only_applies_if_they_reluctantly_lose_their_job_due_to_the_closure_of_their_workplace_or_permanent_disability_etc_An_ESI_holder_can_avail_24_months_of_UA_in_parts_If_an_employee_does_not_have_a_job_for_3_months_they_can_get_2_months_of_their_UA_If_the_employee_got_a_job_after_3_months_they_still_have_22_months_left_of_the_UAA_The_employee_can_avail_of_UA_for_a_minimum_of_one_month\"><\/span>\n<ul>\n<li>Employees UA is calculated on the average of his\/her last 4 ESI contributions (let it be the UA wedge).<\/li>\n<\/ul>\n<ul>\n<li>For the first 12 months, their UA is 50% of the UA wage, while for the last 12 months, it is 25%.<\/li>\n<\/ul>\n<ul>\n<li>UA only applies if they reluctantly lose their job due to the closure of their workplace or permanent disability, etc.<\/li>\n<\/ul>\n<ul>\n<li>An ESI holder can avail 24 months of UA in parts.<\/li>\n<\/ul>\n<ul>\n<li>If an employee does not have a job for 3 months, they can get 2 months of their UA. If the employee got a job after 3 months, they still have 22 months left of the UAA.<\/li>\n<\/ul>\n<ul>\n<li>The employee can avail of UA for a minimum of one month.<\/li>\n<\/ul>\n<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"2-_Medical_care\"><\/span><b>2-<\/b> <font color=\"#ff0000\">Medical care:<\/font><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Under_RGSKY_any_person_still_receives_all_the_medical_benefits_of_the_ESI_Act_during_his_UA_term_For_more_information_about_the_medical_benefits_of_the_ESI_Act_visit_this_link\"><\/span>Under RGSKY, any person still receives all the medical benefits of the ESI Act during his UA term.<br \/>For more information about the medical benefits of the ESI Act visit this link.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"3-_Vocational_training\"><\/span><b>3-<\/b>&nbsp;<font color=\"#ff0000\">Vocational training:<\/font><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"If_a_person_selects_vocational_training_from_a_government_institution_during_his_UA_term_heshe_receives_a_100_grant_The_government_also_pays_for_transportation_charges\"><\/span>If a person selects vocational training from a government institution during his UA term, he\/she receives a 100% grant.<br \/>The government also pays for transportation charges.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_reasons_for_the_disqualification_from_the_jobemployment\"><\/span><b>#What are the reasons for the disqualification from the job\/employment?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h6><b><br \/><\/b><\/h6>\n<h4><span class=\"ez-toc-section\" id=\"Reasons_for_disqualification_Employees_lose_their_jobs_due_to_the_strike_They_opt_for_voluntary_retirement_If_an_employee_is_60_years_or_older_An_employee_opts_for_premature_retirement_An_employee_loses_his_job_due_to_a_dispute_or_conviction_If_the_employee_gets_a_new_job\"><\/span>\n<ul>\n<li>Reasons for disqualification<\/li>\n<\/ul>\n<ul>\n<li>Employees lose their jobs due to the strike.<\/li>\n<\/ul>\n<ul>\n<li>They opt for voluntary retirement.<\/li>\n<\/ul>\n<ul>\n<li>If an employee is 60 years or older.<\/li>\n<\/ul>\n<ul>\n<li>An employee opts for premature retirement.<\/li>\n<\/ul>\n<ul>\n<li>An employee loses his job due to a dispute or conviction.<\/li>\n<\/ul>\n<ul>\n<li>If the employee gets a new job.<\/li>\n<\/ul>\n<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"Who_can_claim_the_unemployment_allowance_under_ESIC\"><\/span><b>#Who can claim the unemployment allowance under ESIC?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"The_ESIC_holder_who_has_ESIC_registration_has_the_right_to_claim_an_unemployment_allowance_under_ESIC_through_Rajiv_Gandhi_Shramik_Kalyan_Yojana\"><\/span>The ESIC holder who has <a href=\"https:\/\/www.legalsalaah.com\/esi-registration.html\" target=\"_blank\"><b><font color=\"#085294\">ESIC registration<\/font><\/b><\/a> has the right to claim an unemployment allowance under ESIC through Rajiv Gandhi Shramik Kalyan Yojana.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><\/h4>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_procedure_for_ESIC_holder_for_claiming_the_unemployment_allowance_under_ESIC\"><\/span>#<b>What is the procedure for ESIC holder for claiming the unemployment allowance under ESIC?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"1_Procedure_for_claiming_unemployment_allowance\"><\/span><b>1.<\/b> <font color=\"#ff0000\">Procedure for claiming unemployment allowance<\/font><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"A_claim_for_unemployment_allowance_must_be_submitted_by_an_individual_at_any_time_three_months_before_the_date_of_unemployment_to_the_appropriate_branch_office_in_Form_US-1_supported_by_documentary_evidence_in_Form_UA-2_to_prove_his_unemployment_This_certificate_is_issued_by_the_Inspector_of_Factories_Assistant_Deputy_Commissioner_Labor_Workers_Compensation_Commissioner_or_any_other_authority_in_this_regard\"><\/span>A claim for unemployment allowance must be submitted by an individual at any time three months before the date of unemployment to the appropriate branch office in Form (US-1) supported by documentary evidence (in Form UA-2) to prove his unemployment. This certificate is issued by the Inspector of Factories, Assistant \/ Deputy Commissioner, Labor, Workers Compensation Commissioner, or any other authority in this regard.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"2_Mode_of_payment_of_unemployment_allowance\"><\/span><b>2.<\/b> <font color=\"#ff0000\">Mode of payment of unemployment allowance.<\/font><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"Allowance_is_payable_only_by_account_payee_check\"><\/span>Allowance is payable only by account payee check<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"3_Payment_in_the_event_of_the_death_of_the_recipient\"><\/span><b>3.<\/b> <font color=\"#ff0000\">Payment in the event of the death of the recipient:<\/font><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<h4><span class=\"ez-toc-section\" id=\"The_amount_of_unemployment_allowance_is_payable_to_his_her_legal_heir_up_to_and_including_the_date_of_death_of_the_recipient\"><\/span>The amount of unemployment allowance is payable to his \/ her legal heir up to and including the date of death of the recipient.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Have you ever felt the pain of losing your job or fear of not knowing what will happen next? You no longer [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":558,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"class_list":["post-305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-labour-law-employment"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ESIC unemployment allowance for employees<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalsalaah.com\/blog\/esic-unemployment-allowance-for-employees\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ESIC unemployment allowance for employees\" \/>\n<meta property=\"og:description\" content=\"Have you ever felt the pain of losing your job or fear of not knowing what will happen next? 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