Employee reward and benefits news
India informal sector pension scheme approved
A new pension scheme has been approved by the Indian Union Cabinet that will include workers employed in the informal sector.
The Swavalamban Scheme will offer funding support as a co-contribution to those subscribed to the New Pension System and is intended to encourage voluntary saving for retirement.
It is hoped that higher levels of enrolment from the informal sector will reduce the burden on the government to provide elderly Indians with social security such as pensions in the future.
The scheme includes funding support of Rs1,000 crore (�130 million) over four years for those signed up to the New Pension System.
Managed by the Pension Fund Regulatory and Development Authority, the scheme will help to protect some of India's 300 million informal sector workers that are highly vulnerable to old age poverty.
Earlier this month, British prime minister David Cameron visited India in the hope of forging new economic partnerships in the country, which could also help to create jobs.
Posted by Michael Ewing
