Hike in pension subsidy for Overseas Indian workers

ACROSS DUBAI, UAE - April 9, 2014 - PRLog -- Government of India has taken positive step by increasing its subsidy to the co-contributory pension scheme – Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) introduced for overseas workers.

More than six lacs workers are employed in blue collar jobs in UAE and all of them are going to benefit from this move of the government. All the male subscribers will stand to gain because the government has doubled its contribution.  Now the government’s (Ministry of Overseas Indian affairs) share of contribution will be Rs. 1000 p.a. for all those male subscribers who save between Rs. 1000 to Rs. 12000 per year.

Another feather in the cap is that the aforesaid contribution is now complemented with another amount of Rs. 1000 from Pension Fund Regulation and Development Authority (PFRDA) by incorporating MGPSY under PFRDA’s Swavalamban Yojana pension Scheme. This subsidy of PFRDA is available for women subscribers who are already in receipt of additional contribution from ministry also.

In order to encourage savings the ministry has come with the contribution of Rs. 900 towards return and resettlement of workers who save Rs. 4000 or more per year. All this sums up the government contribution to Rs. 2900 for male workers and Rs. 3900 for female workers and free life insurance certificate for working outside India.

The main motive behind this scheme is to encourage and enable overseas Indian workers by providing co- contribution to save for their return and resettlement in India, save for their pension and obtain complimentary life insurance cover during the period of overseas employment. Those workers who have Emigration clearance required stamp on their passports are eligible to join the scheme.

The scheme is not popular at its origin. But awareness program has been conducted by Indian diplomatic missions and service providers to promote this scheme among the public. It is been expected that increase of subsidy will rope in more subscribers.

So far there are eight authorized service providers in UAE and one among them Alankit Assignments Limited has amalgamated with UAE exchange to provide professional service in UAE.

With increase in awareness campaign in this direction, it is expected that more number of workers will be educated about the benefits they avail from the said scheme when they come over to send their money home.

For moe information visit us on http://www.alankit.ae/nps.aspx