Unemployment Insurance (UI) is a benefit, which is provided some amount when they lose their job because of different reasons including pandemic, personal losses, and others. It is necessary to meet certain eligibility criteria for UI. It is not for all the unemployed people but it is provided to them that are fulfilling the criteria of UI. As we know unemployment is a big issue in India. Besides, more than 31 million people are unemployed in India based on report of Centre for Monitoring Economy (CMIE), as of 2018. In that condition, leading managers have asked about the UI existence and feasibility in India.
In addition to that, insured person will receives benefits if they have lost their job because of specific reason and no apparent fault of them. These benefits will provided by the government only for a limited time. Self-employment is not considered in UI and they can’t entitle to any claims. Besides, many countries provide UI to their citizens. However, it is different in most of the countries based on their economy and other factors. In Norway, citizens can claim for UI which can be somewhere between 80 to 90 percent of their last salary withdrawal. In the USA, UI can be 27% of their salary.
Moreover, COVID-19 makes huge impact on the employment, which is directly connected with the UI. People worried about their earning and it is a necessary part of life, as they cannot survive without money. Thus, UI is only resource to survive in the COVID-19 session.
In case of India, most of the people unaware about this thing as there is no information sharing between rural areas. Currently, Rajeev Gandhi Shramik Kalyan Yojana (RGSKY) is running for unemployed persons, which will be more suitable for improving their financial condition in tough time period.