India to launch pension scheme for Gulf workers

A pension scheme for thousands of blue-collar Indian workers would be launched in the Gulf next month to help workers save for their retirement, a top Indian official said here yesterday.
Rajiv Mehrishi, secretary at the Ministry for Overseas Indian Affairs, who is on a fact-finding visit to the Kingdom as a follow-up to the earlier visit of Minister for Overseas Indian Affairs Vayalar Ravi, told reporters at the Indian Embassy that two Indian banks are involved in the scheme.
Thousands of Indian expatriates would be signed up soon for the Pension and Life Insurance Fund in the Kingdom, he said.
Saudi Arabia has the largest number of blue-collar Indian workers. The scheme would help them save money for their retirement, he said.
He said India received total remittances to the tune of $ 60 billion at the end of the last fiscal year ending March 2013. Remittances from Saudi Arabia were $ 6 billion, which is 10 percent of total remittances to the country.
He also thanked the Saudi government and Custodian of the Two Holy Mosques King Abdullah for extending the amnesty to Nov. 3. He urged the Indian community to use the grace period effectively to either stay in the country or go home.
Mehrishi said Saudi Arabia and India share strong and historic relations and the new extension has resulted in a sense of optimism among Indian expatriates.
Half of the 90,000 workers who applied to correct their status during the first grace period, were able to sort out their paperwork, he said.
He said the Ministry for Overseas Indian Affairs is working closely with the Ministry of Foreign Affairs and the Ministry of Civil Aviation to help expatriates go home without facing any hardship.
“We are making arrangements for extra flights between Riyadh and New Delhi and some other cities at normal fares. There will be no extra charges,” he said.
In response to a question, he said plans are in place to help workers returning to the country who cannot find jobs. “The government of India is committed to redress their grievances. There are several schemes already in place such as the Mahatma Gandhi Aparvasi Suraksha Yojana.”
He said 17 state governments are working on providing skills development programs for distressed workers.
Responding to another question, Mehrishi said that the Indian government was also working on finalyzing a labor agreement with the Kingdom, particularly for domestic workers.
He said there would also be labor agreements with other GCC countries similar to those signed with European Union countries, particularly France and Denmark. The GCC has the largest number of Indian workers in the world.