Now, the workers too would have something to rely on post retirement or coming back to India. The Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY), introduced by the Government of India, will encourage the workers by covering them for their old age with government contributions. They will enjoy this on their return to India and resettlement. A life insurance cover against natural death is also part of the coverage.
The coverage is for a period of five years or till the worker returns to India, whichever is earlier.
The insurance and the coverage, however, come with terms and conditions, reports bqdoha.com. For MGPSY subscribers saving between Rs 1,000 to Rs 12,000 per annum, the government would contribute Rs 1,000per annum in India's National Pension Scheme. Women workers, saving the same amount of money will be beneficiaries of a GOI contribution of Rs 2,000.
A special contribution of Rs 900 for workers who save Rs 4,000 or more per year has also been announced.
According to the ministry, approximately 5 million Indian nationals with ECR passports are working on temporary/contract visas in the GCC countries.
It said,"It is observed that a majority of the earnings periodically remitted by overseas Indian workers to their families in India are rarely accumulated as savings and often cause only a temporary improvement in the consumption expenditure of their families. As a result, a majority of overseas Indian workers face the risk of poverty when they return to India and when they are too old to work."