I am happy to announce to the House that in pursuance of the Common Minimum Programme of the UPA Government and under the guidance of UPA Chairperson Smt. Sonia Gandhi and Hon’ble Prime Minister Dr. Manmohan Singh, the Ministry of Labour and Employment has taken a momentous decision to implement, a highly labour friendly scheme called the RAJIV GANDHI SHRAMIK KALYAN YOJANA. This scheme shall be implemented by the Employees’ State Insurance Corporation, a statutory organization under the Ministry of Labour and Employment.

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We often come across situations, where industrial units and other establishments are closed down for a variety of reasons, beyond the control of the workers. During such periods of unemployment, and till they are able to find alternative employment, the economic and social condition of the workers and their families becomes highly vulnerable. The absence of a safety net to deal with such situations leads to frustration and impoverishment of the workers.

Insured persons covered by Employees’ State Insurance Corporation and losing employment after 1st April 2005, on account of closure of factories or establishments, retrenchment, or permanent invalidity arising out of non-employment injury shall be covered under this scheme. The insured workers, who lose employment after having contributed to the ESI scheme for five or more years, shall be entitled to an Unemployment Allowance in cash, which would be equivalent to about 50% of their wages, for a maximum of six months.

In addition, the insured persons in receipt of Unemployment Allowance and their families shall also be eligible to receive medical care, as available in the ESI dispensaries and ESI hospitals.

This Scheme which will come into force from 1st April 2005 will provide the much needed social security cover for about 8 million employees who are insured with the Employees’ State Insurance Corporation. The medical benefit will extend to 30 million family members of the insured workers.

The Employees’ State Insurance Corporation proposes to meet the expenditure of the Scheme out of its existing resources without levying any additional burden either on the employees or the employers. Rs. 300 crores are being provided for, in the Rules under the ESI Act for this purpose.

Hon’ble speaker/Chairman, this is for the first time that an unemployment related benefit scheme is being launched in the country for our brethren workers and I am sure that all categories of workers and their employers in the country would welcome this important welfare measure.

By Hon'ble Labour & Employment Minister