Low and middle-income wage earners — the majority in any economy — play a vital role in the smooth operation of businesses and institutions. However, like most people at the bottom of the pyramid, they are often neglected and left at the mercy of their own social-safety net of extended family when things go wrong.
The latest initiative to bring them under a pension plan with as low as Dh300 (about Rs5,191) per annum is a move in the right direction.
However, most of the low-income workers do not save enough to support a pension scheme.
The scheme could take off well if government regulators and employers join hands to offer a comprehensive pension package to all workers across the board — without them having to pay for it — the same way a mandatory health insurance package works.
It may be too early to push for it. However, if all stakeholders start thinking on those lines, this can become a reality in the future.