The government has decided to double the unemployment insurance for retrenched workers in view of the large number of job losses in export-oriented units. However, the decision will benefit only a minuscule number.
Currently, if an employee covered by the ESI Corporation loses his job, he gets three months' salary as unemployment insurance over a period of six months.
The ESIC recently decided to increase the amount to six months' salary disbursed over a period of one year.
But the scheme comes with a rider that it would apply to only those ESI subscribers who have been ESIC subscribers for five years.
The number of beneficiaries under the scheme is a mere 2,500.
Labour secretary Sudha Pillai admitted that textile and diamond polishing units, which are currently witnessing heavy job losses, may not benefit from this unemployment insurance as the ESI coverage in the diamond industry is extremely low.
