Pension Scheme for Indian Workers abroad
In what is claimed to be a landmark project, Indian government has announced a new Pension scheme and Life insurance scheme for Indian workers in UAE. This new social security scheme will encourage savings and discourage workers taking their lives. The scheme was inaugurated by Vayalar Ravi, Union Minister of Overseas Indian Affairs, who is the brain behind this scheme.
Who benefits from this scheme?
- All overseas workers between the ages of 18 and 50 years.
- All overseas workers who have not completed education beyond 10th Grade.
- All overseas workers whose passport status is Emigration Check Required or ECR.
- All overseas workers with valid passport and valid work permit.
How does it work?
The worker contributes every month, quarterly, once in 6 months or yearly. The Government encourages the workers to contribute regularly to the scheme in order to accumulate funds. Indian Government will contribute everytime they contribute the fund. Indian Government will contribute Rs.1000 every year for all the subscribers who save money between Rs.1000 to Rs.12000 a year. Government will contribute extra Rs.1000 for women working abroad. Those who contribute Rs.4000 and above will receive Rs.900 towards Return and Resettlement(R&R).
The scheme also has Life Insurance coverage for all the subscibers while working out side.
What are the benefits?
- Free Life Insurance coverage while working abroad.(5 year validity)
- Pension scheme will accummulate funds towards retirement.
With this scheme, I am sure that workers will benefit a lot and a culture of saving will be enhanced.