Gift your maid a pension! Easy as online shopping
- IWB Post
- February 6, 2015
This is what JWB is going to accomplish this weekend with help of Giftapension.com that is an online platform launched by Delhi-based non-profit Micro Pension Foundation. It enables domestic workers—cooks, maids, drivers and nannies—plan for their lives after 60.
Ideally, your role is to just enroll, which has a one time convenience fee of Rs300. Your maid can make monthly contributions through the Micro Pension prepaid card provided in the welcome kit, or use her bank accounts, if they have active accounts that they are willing to use.
“There are 40 million domestic help in India. We can change the life of one million this weekend. All we have to do is decide to change the life of that one person.” said Parul Seth Khanna, program director at Micro Pension Foundation.
The non-profit is promoted by Invest India Micro Pension Services Pvt Ltd, whose focus is on creating pension plans for informal sector workers, comprising 94 percent of India’s 487 million workforce.
“We took inspiration from Flipkart and Ebay–in four simple steps, you can gift a pension to your domestic help. The initial enrollment happens completely online, and then within four days you receive a courier in your house.” Khanna said. “Once you get their signatures, the courier gets picked up again from your doorstep, to make it super convenient,” she added.
Domestic workers in India’s big cities typically earn a monthly salary of around Rs5,000 to 12,000. That’s often barely enough to make ends meet—which is why the NPS Lite scheme enables savings as low as Rs100 a month. “Moreover, the product does not lapse, and there are no penalties if an individual misses their regular contributions.” Khanna said.
Giftapension also enables access to an SBI Life insurance plan that costs just Rs135 to Rs345 annually. “It covers life and accident, but not health. We shall add a health product as well in the next few months.” she added.
What happens when your driver goes to a new employer, or maid goes back to her village? They can continue making their contributions using their Micro Pension VISA card at recharge outlets located across the country. Alternatively, they can also use their bank accounts to make regular contributions. In both situations, the helpline guides them in nine Indian regional languages.
The money one saves in NPS Lite is invested and grows over time, earning an interest rate of around 8 percent. A 25-year-old maid who makes a monthly contribution of Rs1,000 a month would get an estimated pension of Rs15,292 monthly at retirement, and accumulate a corpus amount of nearly 23 lakh rupees.
To add more to our excitement about the project, they have wonderfully simple video to explain all the procedure about pension savings. Watch it now.
Since September 2014, roughly 1,200 employers have registered on Giftapension.com, and 450 domestic help have been gifted a pension already.
Share in the comments what all will happen this weekend, and how you will gift a pension to someone – and it means you will gift more secure and self-sufficient life in the future. Together we can empower women around!