Now, Indian workers abroad to get pension & insurance benefits

New Delhi: In a move that could benefit overseas Indian workers particularly those who are in the Gulf countries, the government on Wednesday cleared a proposal for setting up of a Pension and Life Insurance Fund (PLIF) for them in the Emigration Check Required (ECR) countries.

Around 20 percent of overseas Indian workers in ECR countries are women. They are even more vulnerable to old-age poverty than men due to a higher life expectancy , lower income, a shorter working age and periodic interruptions in employment due to childbirth and other family responsibilities.

[caption id=“attachment_172817” align=“alignleft” width=“380” caption=“The overseas Indian workers have traditionally been excluded from access to formal social security and retirement savings schemes available to residents of the ECR countries. Reuters”]  [/caption]

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Under the scheme, the government will co-contribute Rs 1,000 per annum in line with Swavalamban platform for all PLIF subscribers who contribute between Rs 1,000 and Rs 12,000 per year in NPS-Lite , the new national pension scheme.

Besides, a special additional co-contribution of Rs 1,000 per annum by the overseas Indian affairs ministry (MOIA) will be made for overseas Indian women workers who contribute between Rs 1,000 and Rs 12,000 per annum in NPS-Lite.

A special Return and Resettlement co-contribution of Rs 1,000 by MOIA will also be given to overseas Indian workers who contribute Rs 4,000 per annum towards Return and Resettlement.

This scheme will provide a social security coverage to overseas Indian workers, particularly in the Gulf. The overseas Indian workers have traditionally been excluded from access to formal social security and retirement savings schemes available to residents of the ECR countries. They are similarly excluded from pension and social security schemes available to formal and informal sector workers in India.

PTI