Atal Bimit Vyakti Kalyan Yojna

Table of Contents

UPSC PRELIMS 2017

Who among the following can join the National Pension System?

A) Resident Indian citizens only
B) Persons of age from 21 to 55 only
C) All State Government employees joining the services after the date of notification by the respective State Governments
D) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004

ANSWER (C)

Explanation The National Pension System (NPS) was launched on 1st January, 2004 with the objective of providing retirement income to all the citizens. NPS aims to institute pension reforms and to inculcate the habit of saving for retirement amongst the citizens.

WHO CAN JOIN NPS (UPSC 2017 QUES EXPLANATION)

Any citizen of India, whether resident or non-resident, subject to the following conditions:
Individuals who are aged between 18 – 60 years as on the date of submission of his/her application to the POP/ POP-SP.
The citizens can join NPS either as individuals or as an employee-employer group(s) (corporates) subject to submission of all required information and Know your customer (KYC) documentation. After attaining 60 years of age, you will not be permitted to make further contributions to the NPS accounts.

For unemployed insured persons
The Ministry of Labour and Employment announced a scheme to financially support those who lost their jobs and were covered under the Employees’ State Insurance Act, 1948.

WHAT ARE THE KEY FEATURES OF THE ATAL BIMIT VYAKTI KALYAN YOJANA (ABVKY)?

This scheme is a relief payable in cash directly to the bank account of insured persons in case of unemployment and while they search for a new engagement.
The detailed instructions of the scheme including the eligibility conditions and application format will be issued separately.

WHAT IS THE NEED FOR THE SCHEME?

Considering the change in employment pattern and the current scenario of employment in India which has transformed from a long-term employment to fixed short-term engagement
Government’s policy validating fixed-term employment for all businesses earlier this year. The government allowed industries to hire workers on a fixed-term contract on condition that they receive similar allowances given to a permanent worker in the same organisation.

DIFFERENCE BETWEEN ONGOING SCHEME

The ongoing Rajiv Gandhi Shramik Kalyan Yojana (RGSKY) benefits formal sector workers registered with the ESIC.
The RGSKY was introduced in 2005 for employees who were left unemployed for three reasons — the closure of factory or establishment, retrenchment or permanent invalidity. However, if an employee became unemployed for some other reason, no unemployment benefit was offered to him/her under the RGSKY scheme

DIFFERENCE BETWEEN ONGOING SCHEME

The ABVKY will provide cash allowance to ESIC subscribers who are unemployed for at least three months in a row after leaving their previous jobs, for reasons apart from retrenchment and factory closure.
The new scheme will be availed of by those who are insured by ESIC for a period of at least two years.
The ESIC is for establishments having more than 10 workers with monthly wage ceiling of Rs. 21,000.

WHO WILL FUND THE NEW SCHEME?

The scheme will be funded by the employees themselves. Nearly 4.75 per cent of a worker’s monthly salary goes towards ESI as the employer’s contribution, 1.75 per cent of the income is the employee’s share.
Those who had subscribed to the ESIC for two years continuously will be allowed to avail of the unemployment benefit to the tune of 47 per cent of their total contribution.
The move is expected to benefit over 1 million workers.