THREE STEPS TO SECURE THE FINANCIAL FUTURE OF THOSE WHO WORK FOR US
Many of us have a small, but indispensable team of staff working at our homes – the driver, maid, cook, gardener etc - who make our lives so much easier. While we do look after them with the tips and bonuses, gifts at Divali and the occasional dole –outs, a systematic plan for them can secure their financial future at very little cost and effort.
Firstly, help them open a bank account under the Jan Dhan Yogna. This is a zero balance account that can be opened with an Aadhar Card, Voter ID or Driving License. It gives him/her a permanent account to which all transactions can be linked. It also gives him/her a RuPay Debit card for ATM and Merchant transactions. With this account, you can also teach them to use their mobile phones and debit cards to recharge their phones, buy bus and train tickets and remit money back home. Credit their monthly salaries in this account through electronic transfer to get them into the banking habit and to ensure that the accounts is always topped up.
Secondly, make a gift of Rs 342/ per year for each of your staff members. Buy them a Life Insurance Policy (Jeevan Jyoti Bima Yojana) for an annual premium of Rs 330/ which will pay Rs 2 Lakhs in the event of death. Buy accident cover at a princely premium of Rs 2 lakhs for accidental death or disability. A single premium of Rs 330 + 12 / per year thus provides some insurance cover for their families in case of mishap. You can make the first premium yourself and then set up an auto debit facility from his/her bank account to ensure that the premiums are renewed annually.
Thirdly, allocate a small portion of his monthly salary to the Atal Pension Yogana which enables him/her to earn a fixed pension after 60 years of age. The contribution varies depending on the age of the person and the amount desired, but as a rough yardstick, your 30 year old driver can get a pension of Rs 5000/ per month after reaching 60 years of age, if you help him put aside Rs 577/ a month as premium now.
These small and relatively easy steps can make a significant difference to the financial future of those who work for us. And all at little cost and effort.