Gift a Pension

What is Gift a Pension®?

Gift-a-Pension® is a global model and social initiative conceptualized by pinBox Solutions, Singapore and the non-profit Micro Pension Foundation. This simple, digital model seeks to help deliver secure and well-regulated pension and insurance benefits to the over 100 million individuals who work as domestic help in Asia, Africa and Latin America.

Gift-a-Pension® is already live in Kenya. It has now been launched on a national level in India by a pinBox Inclusion – an India-based social enterprise, jointly with a consortium of highly committed and respected stakeholders.

What is the idea behind Gift a Pension®?

If each of us spends just a few minutes to talk to our own domestic help about the importance of saving for old age, and helps them activate their own pension account, we can collectively help change the retirement outcomes for 30 million people who work as domestic help in India. We are of course free to regularly put some savings into their pension accounts to get them started.

Please see this short 2-minute video on the Gift-a-Pension® concept.

How does Gift a Pension® work for my domestic help?

You use your WhatsApp to help activate your domestic help’s NPS account. You start periodically putting some money into your domestic help’s NPS account to get her or him started. You should encourage the person to also put some savings into her/his NPS account for old age.

Savings in your domestic help’s NPS account will be managed by HDFC Pension and will grow over time. When the person is 60 years old, she/he can withdraw up to 60% of these NPS savings as a lumpsum. The remaining NPS savings will be paid back to the person as a monthly pension for the rest of her/his life.

Please see the FAQs on “NPS Features and Rules” and “Covid-19 Insurance” on this section for more information on the Gift-a-Pension scheme features, benefits and rules.

What are the steps for Gifting a Pension?

Step 1: Start by talking to your domestic help about the importance of saving for old age. You can use the toolkits (calculator and short films) and FAQs on this website to explain the NPS and Covid-19 features, benefits and rules.

Step 2: Simply save +91 080 2300 2000 as a WhatsApp contact on your mobile. Start the chat by typing “hi”. You’ll be able to activate your domestic help’s NPS account and Covid-19 insurance of Rs.10,000 within a few minutes.

Step 3: Get her/him started by putting some money into her/his NPS account.

Step 4: Help the person e-Sign the application using Aadhaar and the NPS account number (PRAN).

Please see this short 2-minute video on the 4 easy and simple steps to Gift a Pension®.

Is e-Sign necessary?

Yes. It is mandatory for your domestic help to e-Sign the NPS application using Aadhaar and the NPS account number (PRAN). This is a simple, OTP-based process and takes a few seconds. If the application is not e-Signed, the NPS account will become inactive or frozen till the e-Sign is done.

How should I educate my domestic help about saving for old age?

You can use the simple pension calculator on this website to explain how long-term savings work. You can also show the Why Save for Old Age film that explains some key concepts. And the Cost of Inaction video that has a few short interviews with people about the importance of saving for old age.

What KYC documents does my domestic need?

Your domestic help will need her mobile number linked to Aadhaar, her Aadhaar number and her bank passbook or checkbook. Please see this short, 1-minute “Gift a Pension check-list” video.

Can I Gift-a-Pension to anyone?

Yes. You can Gift-a-Pension to any Indian citizen aged between 18 and 60 years.

Can I ‘Gift a Pension’ to more than one person?

Yes. You can use the same WhatsApp number (+9108023002000) to Gift-a-Pension to more people if you wish.

How much should I put into my domestic help’s NPS account?

The choice is entirely yours. As per NPS rules, one needs to put at least Rs.500 per contribution and at least Rs.1000 per year.

Is it mandatory for me to contribute into my domestic help’s NPS account?

No. This is not mandatory. But contributions from you can do wonders to her your domestic help started. And motivate her/ him to also save for old age. You can do this for as long as you wish. And stop whenever you want.

If I stop contributing to my domestic help’s account, can the person continue to save in NPS?

Yes. In fact, you should encourage your domestic help to also save a part of her/ his income in NPS for old age. You can also help set up your domestic help’s UPI ID to enable her/ him to do so. That way, your domestic help can continue to save for old age even if the person moves to another job or city. Please show her/ him the pension calculator to help the person decide how much she/ he wants to also save.

Can I continue to Gift a Pension if my domestic help stops working for me?

Yes. You’re free to do so. For as long as you like.

Why do I need to provide my own mobile number for Gift-a-Pension?

This is required so that we can send you updates and reminders for any contributions that you decide to make into your domestic help’s NPS account.

How is my domestic help’s personal data protected?

Data protection and privacy is a critical part of the process. The data provided by you through the WhatsApp chat is securely encrypted at both ends and no unauthorized person is able to view or use this data. We deploy strong, up-to-date technology, processes and access controls that are periodically tested and audited by independent experts. We never share your domestic help’s personal information with anyone without her/ his permission. Please see our Privacy Policy for more information.

How can I use UPI to put money into my domestic help’s NPS account?

You can regularly put money into your domestic help’s NPS account using your bank’s UPI app or third-party apps like WhatsApp Pay, Google Pay, BHIM, PhonePe, Paytm, etc.

Depending on the amount and frequency you decide when you help activate your domestic help’s NPS account, you will receive a periodic “collect request” from HDFC Pension. You will need to simply enter your UPI PIN on your chosen UPI app to authorize and transfer the payment.

Your money will be transferred instantly and directly from your bank account to your domestic help’s NPS account with HDFC Pension.

Please see the “How to use UPI for Regular Gift-a-Pension Payments” section on this website. Simply select the specific payment App that you are using to understand how the process works.

Please do not share your UPI PIN with anyone.

What is United Payment Interface (UPI)?

Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an entity regulated by the Reserve Bank of India. UPI allows you to instantly and electronically transfer money from your bank account to someone else’s bank account without any risk using your mobile.

What is a UPI PIN?

UPI-PIN (UPI Personal Identification Number) is a 4 to 6-digit pass code that you create or set when you first set up UPI on an app like WhatsApp Pay, Google Pay, BHIM, PayTm or PhonePe. You have to enter your UPI-PIN to authorize all bank transactions.

Note: Please do not share your UPI-PIN with anyone. UPI payment apps do not store or read your UPI-PIN details. And your bank's customer support will never ask for it.

What happens if I enter wrong UPI-PIN during a transaction?

In case you enter the wrong UPI PIN, the transaction will fail.

Do money transfers happen on UPI only during banking hours?

All UPI payments are instant and 24/7, regardless of your bank's working hours.

What happens once I make a UPI payment into the NPS account?

Once you complete a transaction with UPI, you should instantly see a success status on the UPI app screen and also receive an SMS from your bank. Sometimes, the success message or SMS from your bank can take longer. In case you do you receive your confirmation for a Gift-a-Pension contribution within an hour, please contact our helpline at 080 2300 2000.

How will my contributions flow to my domestic help’s account?

The “UPI collect request” you get from HDFC Pension will be linked to your domestic help’s NPS account number. When you approve the payment using your UPI PIN, the funds from your bank account will be transferred directly to HDFC Pension’s NPS Scheme account and automatically credited to your domestic help’s NPS account. You will get an SMS from your bank confirming the UPI payment.

How will my domestic help and I know that my contribution has reached my her/ her NPS account?

Your domestic help would get an SMS from the KCRA confirming that the contributions is credited into her /his NPS account. All such contributions should also reflect in the person’s NPS account statement.

How will I know when an NPS contribution is due?

You will receive an SMS reminder before the next NPS contribution becomes due. And you will get a UPI Collect request from HDFC Pension.

What will happen to the NPS savings if your domestic help or you miss some contributions?

The savings already in your domestic help’s NPS account will remain securely invested by HDFC Pension and will continue to earn returns and grow.

What is NPS?

NPS or the National Pension System is a retirement saving scheme launched by the Government of India on 01 January 2004. For the first 5 years, only central and state governments employees were permitted to open NPS accounts.

From 2009, any Indian citizen can open an NPS account and use it to save for old age. Around 70 lakh young government employees and over 65 lakh other people across India are already using the NPS to regularly save for their retirement.

Why should one open an NPS account?

Most of us can expect to live till at least age 80. Which means that we should have enough savings set aside to take care of our expenses for at least 20 years after we stop working.

NPS is a simple, easy, secure and low-cost way to regularly save a small part of our income for old age. If we save enough while we’re still young, we won’t need to depend on our children or anyone else when we are old.

Who is responsible for supervising the NPS?

NPS is regulated by the Pension Fund Regulatory and Development Authority or PFRDA. PFRDA helps keep retirement savings of citizens safe and protects subscribers from fraud or malpractice.

The NPS Trust takes care of the savings under the NPS in the best interest of subscribers.

Can I enrol more than one Giftee using this website?

Yes. Gift a Pension allows you to add more than one Giftee.

Who can open an NPS account?

Any Indian citizen aged between 18 and 65 can voluntarily open an NPS account.

How much does one need to save in NPS?

A person needs to save at least ₹1,000 per year in NPS. The minimum amount per contribution has to be ₹500 or more.

However, we can, and should, save as much as we can afford so that we have enough savings set aside for a secure and dignified old age. Please see the pension calculator on this website to see how much one can accumulate by age 60 - depending on the amount, age of the person and the expected returns delivered by NPS.

Should one continue to save the same amount in NPS over time?

As our incomes usually grow over the years, in line with inflation, we should gradually increase the amount of money that we put into our NPS account. This makes sure that the actual value of savings we’re putting into our NPS accounts does not come down over time due to inflation.

Is there any penalty if a person is unable to save for a few months?

NPS is a flexible scheme. A person can save as per his or her own income and convenience – on a monthly, quarterly, half yearly or annual basis. There are no penalties or charges if one misses a contribution. Savings in the NPS account will remain invested and will continue to grow.

How do NPS savings grow?

NPS savings are managed and invested by as per PFRDA regulations in a mix of government bonds, corporate bonds and shares of large, listed companies. As the value of these investments go up, the value of NPS savings also grows over the years.

Please see the a href="#toolkits">pension calculator on this website to see how much even a 1% additional return can increase the savings achieved by age 60.

Would I have any say in where my savings are invested?

Yes. You can choose between 4 “funds” or “schemes” under NPS. This determines where savings are invested. You can choose between any of these funds:

• Equities
• Corporate Bond
• Government Securities
• Auto-choice

You’re allowed to shift your NPS savings from one scheme or fund to another twice a year, if you wish.

Savings through “Gift-a-Pension” are automatically put into the conservative or lowest risk “Auto-Choice” scheme.

Who manages savings in NPS?

NPS savings are managed by highly respected expert pension fund managers appointed by PRFDA. These are dedicated pension funds set up by HDFC, ICICI, UTI, SBI, Kotak Mahindra, LIC, Reliance and Aditya Birla Group. A person can select any of them to manage their NPS savings.

You can select any of these pension funds to manage your NPS savings. A person is allowed to shift her NPS savings to another fund manager, twice a year. Savings under Gift-a-Pension are managed by HDFC Pension Management.

Are returns under NPS guaranteed or fixed?

No. The rate at which savings in NPS grow is not fixed or guaranteed. The returns and the value of NPS savings may go up or down over time depending on the value of the investments.

Who is the fund manager for Gift-a-Pension?

NPS savings under Gift-a-Pension are managed by HDFC Pension Management – India’s largest private sector pension fund. HDFC already manages over ₹10,000 crore of retirement savings. It has delivered returns of over 11% per year on average over the last 7 years.

In which NPS scheme are savings under Gift-a-Pension invested?

Savings under the Gift-a-Pension initiative are automatically invested in the NPS “Auto-Choice” scheme – LC-25. This is a conservative, lifecycle scheme. In this Scheme, savings are automatically shifted from higher risk equity investments to lower risk bonds as a person grows older. Therefore, this scheme protects savings from excessive volatility risk (or ups and downs) in investments.

When can a person start getting a pension from NPS?

Pension benefits in NPS begin at 60. When a person is aged 60 years, 60% of the full savings in the NPS account can be withdrawn as a lump sum. The remaining 40% of the savings in the NPS account are converted into a monthly pension.

How much pension does a person get with NPS?

The value of the pension in NPS depends on: (a) the amount a person saves regularly over the years, (b) the age at which a person starts saving, and (c) the returns that these savings earn. A person should open an NPS account at the youngest possible age. And save regularly.

Please see the pension calculator on this website to see the difference in pension savings by age 60 for a person who starts saving at (say) age 20 Vs. 25 Vs. 30. This will show how even modest regular savings can add up to a large amount through the magic of compounding.

Can a person withdraw from NPS before age 60?

Yes, a person can withdraw up to 25% of the contributions made into the NPS account 3 times before age 60. The first withdrawal can be taken three years from opening an NPS account. The 2nd and 3rd withdrawals have to be 5 years after the previous withdrawal.

For what purposes are withdrawals from NPS permitted?

Pre-retirement withdrawals from NPS are permitted for (a) children’s higher education, (b) children’s marriage expenses, (c) purchase or construction of a home, (d) expenses for critical illness for self, spouse, children or dependent parents, (e) medical or incidental expenses due to disability or incapacitation, (f) cost of skills development or re-skilling, and (g) for setting up own business.

Can a person close their NPS account before age 60?

Yes. An NPS account can be closed after 10 years. At that point, if the total money in the NPS account is less than ₹1 lac, the full amount can withdraw as a lump sum.

If the total savings in the NPS account are more than ₹1 lac, only 20% of the money can be withdrawn as a lump sum. The remaining savings will be paid back as a monthly pension.

How does one get the withdrawal or monthly pension?

All withdrawals and pension benefits from NPS are transferred directly into the bank account of the subscriber.

What happens if an NPS subscriber dies before retirement?

In this unfortunate situation, the person’s nominee will be paid the full amount in the subscriber’s NPS account – all savings and returns earned till that date. This money will be directly transferred into the nominee’s bank account.

Who is a nominee?

A nominee is usually the spouse or children or legal heir of the person who has the NPS account. NPS subscribers have to provide their nominee’s details in the NPS Application Form. This is both important and compulsory.

What happens to the NPS account the person moves to another city?

The NPS account continues to remain in the name of the person. He or she can continue to put money in the same account regardless of where the person lives or works over time. Information and services can be accessed either through WhatsApp or by simply calling the national Helpline at 080 2300 2000 on any working day from 8:30 am to 6:30 pm.

What services does the Helpline provide?

Our helpline number is 080 2300 2000. The helpline works on weekdays from 8:30 pm to 6:30cpm. The Helpline is available for any questions such as NPS account balance, statement of recent transactions, etc. The Helpline also provides information and help on withdrawal application, filing of an insurance claim or filing and resolution of complaints.

Who is the insurer for the COVID-19 insurance benefit?

The Covid-19 insurance is provided by Cholamandalam General Insurance Co. Ltd.

What are the features of COVID-19 insurance?

The COVID-19 insurance pays a lumpsum benefit of Rs.10,000 if the insured person is diagnosed positive for Covid-19 by a government authorized laboratory.

How can a COVID-19 insurance claim be filed?

The person needs to simply call the HelpLine at 080 2300 2000, provide her/ his NPS PRAN number and intimate the HelpLine regarding the insurance claim. After that, the person needs to simply take a photo of the positive test report from a government authorized Covid-19 testing center. This photo should clearly show the test date, name of person and the name and address of the laboratory. This image needs to be simply sent over WhatsApp the same number 080 2300 2000. The insurance amount will be automatically transferred into the bank account of your domestic help within 3 days.

What is tenure of the COVID-19 insurance cover?

This insurance becomes valid 16 days after the person’s NPS Account is activated through Gift-a-Pension. The insurance will remain valid for 12 months thereafter.

As per NPS rules, HDFC Pension charges a one-time fee of Rs.200 for NPS account activation and a transaction fee of Rs.20 per contribution. GST of 18% is charged separately on the fees.

Here is a chart on all fees and charges under NPS and the entities that charge these fees. Information on NPS fees and charges is also available on the websites of PFRDA, NPS Trust and HDFC Pension.