An estimated 1.4 million blue-collar Indian workers in Saudi Arabia are expected to benefit from a new social security scheme launched by the Ministry of Overseas Indian Affairs, according to a report.
The scheme called the Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) was launched by India's Consul General Faiz Ahmed Kidwai on Tuesday, the Saudi Gazette report said.
The scheme consists of three major components: free of cost insurance cover, old age pension, and return and resettlement (R&R) savings.
The beneficiaries of the scheme will get life insurance cover under the Life Insurance Corporation of India's Janashree Bima Yojana, the premium of which will be paid by the government.
In the event of death or permanent disability in an accident, a sum of Rs 75,000 will be paid to the family of the deceased, whereas in case of natural death or partial disability in accident, the beneficiary will be entitled to Rs 37,500.
In a special scheme under the National Pension System and R&R savings designed to meet the needs of Indian workers, the worker needs to pay a total of Rs 5,000 a year to which the government will contribute Rs 1,900 for male worker and Rs 2,900 for female worker for a period of five years.
The savings will be managed by public sector pension funds and the worker will be eligible to receive regular monthly pension after reaching 60 years of age. It is possible for the worker to continue to invest towards pension even after coming back to the country.
Indians, aged between 18 and 50 years, and working in all emigration clearance required (ECR) countries can take advantage of this voluntary contributory scheme through MOIA appointed service providers.
Consul (labour) Prabhat K Jain said that about 600,000 Indians working in the western region would benefit from the scheme. He said the MOIA had already appointed the service providers based in UAE, where the ministry launched the scheme for the first time.
"As these service providers have no license to operate in the Kingdom, they are now in search of partners to offer the services. The embassy and consulate will introduce the scheme among workers at 15 major labour camps across the Kingdom this month," he said.
