Abu Dhabi: Workers joining the pension scheme will get three benefits – a lump sum amount from the resettlement and rehabilitation fund when they go back home, monthly old age pension after the age of 60 and a free of cost life insurance cover during their stay abroad.
The workers under Emigration Clearance Required category [those who have not passed matriculation] have to open a bank account and co-contribute a minimum Rs4,000 (Dh 244) per annum towards the resettlement and rehabilitation fund.
The Indian Government will provide a contribution of up to Rs2,000 (Dh132) per year for male workers and Rs3,000 (Dh198) per year for women workers for up to either five years or until the worker returns home, whichever is earlier.
A worker contributing a minimum of Rs4,000 (Dh 244) per annum for at least five years towards this fund, could get at least Rs30,000 (Dh1,980) after going back home, according to the Ministry of Overseas Indian Affairs. The money from the fund will be invested in mutual funds so the benefit may go up depending on the profits earned from mutual funds.
The old age pension fund requires a contribution of between Rs1,000 (Dh66) and Rs12,000 (Dh792) per annum. They will derive corresponding benefits when they go back home and during their old age.
The worker will get a monthly pension when he/she is 60 years old. The amount of monthly pension depends on the amount deposited in the pension fund. The worker will get at least 9 to 10 per cent profit based on current estimates.
In this case also, the benefit may go up in proportion to the profits from the mutual funds, according to the Indian ministry.