Indian Consul General Faiz Ahmed Kidwai (C) launches the new social security scheme for Indian workers at Saudi Binladin Group premises in Jeddah on Tuesday. Consul (labor) Prabhat K. Jain (R) and Saudi Binladin Group Jeddah Human Resources Coordinator Fauzi Dannaou are also seen in the picture. – SG photo

Hassan Cheruppa

Saudi Gazette

 

JEDDAH – About 1.4 million Indian blue-collar workers in the Kingdom are expected to benefit from the new social security scheme introduced by the Ministry of Overseas Indian Affairs (MOIA).



Indian Consul General Faiz Ahmed Kidwai launched the scheme called The Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) at the administrative headquarters of Saudi Binladin Group here on Tuesday. Consul (labor) Prabhat K. Jain, Saudi Binladin Group Jeddah Human Resources Coordinator Fauzi Dannaoui and other officials attended the function.



The scheme consists of three major components: Free of cost insurance cover, old age pension, and return and resettlement (R&R) savings.



According to the scheme, the beneficiary 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 Rs75,000 will be paid to the family of the deceased. In case of natural death or partial disability in accident, an amount of Rs37,500 will be paid.



Under 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 Rs5,000 a year, to which the government will contribute Rs1,900 for male worker and Rs2,900 for female worker for a period of five years. The savings will be managed by credible 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 toward pension even after coming back to the country.  



The beneficiary will be able to withdraw his/her accumulated R&R savings as a lump sum upon return to India. But a worker must make a minimum of Rs5,000 contribution to be eligible for the security scheme. The workers need to contact the enrollment station to be set up by the service provider with their ECR stamped passport, valid work permit and details of bank accounts opened in the Kingdom and in India. 



Speaking on the occasion, Kidwai sought cooperation from all eligible Indian workers to take advantage of the scheme.



Saudi Arabia, which is home to 2.8 million Indian expatriates, is the second country where the new scheme is being introduced by the Indian ministry. 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 (labor) Prabhat K. Jain told Saudi Gazette that about 600,000 Indians working in the western region would benefit from the scheme. He said that MOIA has 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 labor camps across the Kingdom this month,” he said.