Pension scheme for migrant workers; more you pay, more you benefit

Manusavi, a new pension scheme for Sri Lankan migrant workers, was introduced by the Ministry of Labour and Foreign Employment this week.

Addressing a ceremony at the the Sri Lankan Bureau of Foreign Employment (SLBFE), Labour and Foreign Employment Minister Manusha Nanayakkara said the Manusavi scheme was aimed at strengthening the retirement life of Sri Lankan migrant workers.

“I have to say that for a long time, the services of Sri Lankan migrant workers have not been appreciated as they should have been," the minister said.

To implement the scheme, a memorandum of understanding was signed between the SLBFE and the Sri Lanka Social Security Board.

SLBFE Chairman Mahendra Kumarasinghe said the scheme which was first proposed around 10-15 years ago had finally been set in motion and he believed it was one of the most useful pension schemes “in not just the country, but possibly the world”.

Contributions can be made in foreign currency and employees can select any option or plan customised to their needs in terms of their age and earnings. Migrant workers who are between 18 and 59 years of age are eligible to make contributions to the pension fund.

The contribution can also be converted into rupees; at amounts varying from Rs. 1,000 to Rs. 50,000 where a 5% saving rate is added to the employee fund at the age of 60. “The more you pay the more benefits you will get,” the chairman said, adding, “We are striving to expand this to assist individuals after retirement as well.”

According to SLBFE, more than 1.2 million Sri Lankans are employed overseas. In August 2022, there was an income inflow of USD 325 million -which was a new high for migrant worker remittances this year. This is a 46% increase compared to last month.