Category: Miscellaneous

18 May 2024 06:59

Joined:	20/04/2018
Level:	Gold
Points:	55757

Points:	5

What about a compulsory PPF account for all servant maids with our contribution?

Most servant maids now have a slab for each work. There is no consolidated pay. For example, in the heart of Chennai, am told it is Rs1500 for washing clothes; similar amount for washing vessels and another such amount for sweeping and swamping the house. Some huge independent houses would cost double this amount -- naturally so.

Yet, servant maids have no social security such as PF. Some, who work full time in some houses, for a total salary and free food and accommodation are slightly well off, in relative terms.

What about a PPF account, where the upper middle class and the rich contribute Rs500 per month and the lady would chip in with whatever little she can? At the end of 15 years, she will at least have something to call back upon.

There should not a statutory compulsion. Many servant maids would simply lose their jobs. On the contrary, let us take it as our moral obligation.

Not many to whom I spoke to, liked this idea. For the time being, I go all out of the way to make her happy with all sorts of support and the salary advance at times, and so on.

#779395

18 May 2024 07:52

Joined:	10/12/2016
Level:	Diamond
Points:	109183

Points:	5

This is a great thought and a great way to give financial stability to these people. I had listened this in the past from many experts, social workers, good citizens, etc but the burning question is how to do it?
Before coming to how to do it let me first mention that in our country this type of labour is cheaply available as a large number of poor people, refugees, and infiltrators all are engaged in such household servant category jobs. Their rates vary from Rs 500 to 1500 per job per month depending upon the place and status of the house.
Many people will agree to shell out another Rs 100 per job and deduct say Rs 100 per job from their money and deposit it in an account and pay that to them after say 15 years. Now the point is whose name that account would be and where it would be opened. How much interest on that will be given by the bank or post office. Will that interest would be tax free? Will Govt recognise that account as a special PPF account for helping the poor people.
Who will keep that passbook? Who will monitor that the beneficiary is not closing that account and disappearing from the scene.
Can some citizen come ahead and take that responsibility by registering an NGO or charitable trust type of thing and run this? If there is no regulatory control then what is the guarantee that the managers of the scheme would not do any fraud with the money?
So, at implementation level there are a lot of difficulties and risk of losing that kitty.
I do not want to discourage this great idea but how to implement is to be seen.

Knowledge is power.

#779398

18 May 2024 08:54

Joined:	02/06/2009
Level:	Diamond
Points:	145594

Points:	5

Anything can be done. We can make them an organised sector and fight with the government to get PT and ESI facilities to them. As an employer, one can contribute to their EPF instead of PPF so that they will get a government pension after retirement. So author can use his influence with his experience in HR and see that first the same will be introduced in his state so that other southern states will also follow immediately without any problem. Then it will expand to the north. PPF is not compulsory where whereas if EPF is made compulsory no one escapes from paying this.
There are many such jobs where there are no incentives to them. After bringing all the servant maids into this group, the welfare officers can think of those people whose jobs are not organised and there are no retirement benefits.

drrao
always confident

#779408

18 May 2024 15:06

Joined:	20/01/2017
Level:	Diamond
Points:	25422

Points:	5

It is a good idea to create such security funds for the maids working in the houses. Only thing is the methodology of creating that fund and keeping the money safely till it is the time to pay it to the beneficiary. In some of the developed countries the Govt does that through official channels.
In our country also EPF scheme is there and employer is responsible for deductions from the salary of the employees and deposit it with EPF authorities. Can we link it with household payments also?
There are some legal issues also and insurance of the house maids is also an issue that would arise in such schemes.
I do not think that without Govt control such a massive thing can be done for the benefit of these maids.
If people can form a private group and register it as a charitable trust or agency then that trust can manage such funds but again what is the reliability that the trust managers would do it honestly?

Thoughts exchanged is knowledge gained.

#779414

18 May 2024 18:35

Joined:	28/03/2011
Level:	Gold
Points:	7917

Points:	4

That is a great idea but servants are always on their toes to collect their salaries on time, to meet their commitments. They need to be given complete information and knowledge of how the PPF account works. Once they are confident and educated about the whole process, they will be ready to invest.

Some of the servants are migrants and they do not have an idea that how long they may reside in that place. During such circumstances, they may not trust the benefits of PPF. If they are educated, all can contribute and handle their accounts personally. Education is the first and foremost thought to be given preference.

Lead the leader

#779427

19 May 2024 05:38

Joined:	05/10/2013
Level:	Gold
Points:	40060

Points:	5

The thought and cause of the author are well appreciated but is it viable in practice? Let us not dwell into the merits and de-merits of it. On one side we criticize political parties for the frebies they are providing to the poor and pro now propose PF and other benefits to those section of the people who are also being benefitted by the Govt. schemes since they are your domestic help.

Such benefits are generally extended to those work on full time/regular basis or on outsourcing/contract basis who work for 8 hours a day. Moreover, they are guided by the Minimum Wages Act and should get Rs.650/- to 935/- per day based on the demographic conditions of the area. But many of the domestic help are getting the benefits extended by the various Govt. policies like benefits of White ration Card, Arogyashri and PM Awaz Yozana etc. I am not discouraging your idea and the better way to help them out is to guide them properly to get the benefits of the schemes sponsored by the Govt and also making small saving investments like PPF in Postal savings etc.

Regards,
Jagdish

#779429

19 May 2024 07:22

Joined:	20/01/2017
Level:	Diamond
Points:	25422

Points:	5

Inspired by this thread I inquired about the salaries/earnings of the persons in and around my housing complex working in the shops as salesmen or helpers, gardners, labourers, garbage collectors, security guards, drivers, etc and I found that their salaries/earnings range from Rs 8000 to 16000. This could vary from town to town or city to city but on an average these people are able to make in that range only. Some of these people who are getting employment through some registered agencies are having PF accounts as per Govt direction but others who get employment directly without much verification of their credentials do not have that.

In comparison to above, the maids/servants working in houses earn on an average Rs 8000 to 12000 (a maid generally works in 2-3 houses) and do not have the access to any PF scheme. Full time domestic servants can earn more than that.

So there is a large number of people working but do not have any access to financial security covers like PF. If Govt or any private agency thinks of some scheme for those people then everyone has to be taken in account and not only the maid servants.

Thoughts exchanged is knowledge gained.

#779430

19 May 2024 11:00

Joined:	25/11/2014
Level:	Diamond
Points:	43292

Points:	4

While talking about the maids, garbage collectors, cleanliness jobs taken up by labours inside the housing complex, we can see that their earnings vary between Rs 8, 000/- and Rs 15, 000/-per month. Unfortunately, they are not attached to any institutions providing them a financial security in case they need a fund to meet their expenses.
Whereas the servants working in the government departments or the public sectors are attached to the schemes of PPF & EPF so that they can avail of loan facility from their PPF account and being a member of PPF, they, too, are permanent members of EPF. Hence they have the excellent financial coverage.
This needs to be seriously thought of these struggling classes including them in such nets.

#779435

19 May 2024 16:27

Joined:	19/06/2011
Level:	Gold
Points:	87960

Points:	5

The author's idea is noble, but may not be practical in all contexts. But there can be some practical alternatives.

PPF is a long term saving and the money cannot be taken Until the minimum period We cannot be sure about the same person remaining for so long or even the house owner may be changing to another place. Hence short term savings is preferred.
I had done something similar in the case of our society watchman. It stated like his. One day he gave me some money and requested me to safekeep it . I thought it was only for a few days. But when I aske him to take back the money after a few days, he asked me to keep it with me as he cannot take it home and he cannot keep it at the workplace. As I was working in a bank, I immediately opened a saving bank account for him and deposited the money in it. Simultaneously I opened an RD account and started deposit money as my contribution to him, apart from the small tips I used to give him. I started the RD only for 12 months first. In between he used to entrust some small amounts which I deposited in his savings account. When the first RD matured, I opened an FD in his name taking some money from his savings account also. Then I opened another new RD account for 12 months again. So after a few years when he had to quit the job from the society, I could close his account and he got a fairly reasonable amount, for which he thanked me with tears in his eyes. There also I added a small lump sum to him and asked him to keep savings habit which he agreed.
The problem is that not all may be understanding and co-operative and may fall victims to someone's wrong instigations, Our magnanimity may not be properly understood and we may land into unnecessary problems .
So we should be prudent and cautious in our magnanimity and soft attitude also.
Now there are various schemes for the welfare of unorganized workers too. We may help them to join or enroll in those schemes and let them contribute their side contributions if it is there. Then they will feel responsible and take matters in proper seriousness. We may facilitate them joining in some medical or life insurance schemes, and help by paying the full or part premia.

The best I suggest is to separately save or keep apart the money we intend to give them and hand over to them as lump sum when thy are in need, without disclosing our actions.

What about a compulsory PPF account for all servant maids with our contribution?

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