How to aid your domestic help in becoming financially independent?

In India, many of us are privileged to have the support of domestic help. Our house helps clean and cook for us, attend to our children, and do much more, making our life easier. A single absent day will disturb our schedule, reminding us of their importance in more ways than one. 

We pay them a monthly salary, but if we wish to really help them, we can do much more. After all, we have the privilege of a good education and access to resources that they lack. So, our support and guidance can make a huge difference in their lives by empowering them to become financially secure.

For instance, you can empower domestic help by helping her get the right financial resources to begin her entrepreneurial journey, benefitting both you and your help. Here are some reasons why and how you should allow your domestic help to become financially independent:

Why Should You Support Your Domestic Help in Her Entrepreneurial Journey?

Domestic workers in India have no paid or sick leave, job security, maternity benefits, provident fund, employer benefits, etc. This unorganised sector depends on employer-governed wages for its survival. It is difficult for these people with inadequate financial resources to lead a good life. They do not have proper homes, lack money to buy good food, and often cannot send their children to school. Unhygienic living makes them prone to diseases, increasing their medical expenses. 

All these expenses and more keep them trapped in a vicious circle of debt and poverty. If they are in a metropolitan city, the high cost of living can take a further toll on domestic workers. Some women are stuck in unhealthy marriages with multiple kids and struggle to stay afloat financially.

Despite various government plans and special offers that cater to them, these women are often unaware of the schemes they are entitled to apply for. This, combined with the exhaustive paperwork, discourages them from availing of any authentic government scheme. They feel unwelcome, turn to unofficial neighbourhood moneylenders, and fall prey to fraudsters and cheaters who lure them with easy money but high interest rates.

While you are quick to help your domestic help when she needs her salary in advance or require moderate financial support, there is far more you can do to help your domestic help become financially secure. You could support her in setting up a small business that can create a steady income for her and her family. You could assist her to take advantage of the special bank accounts, loans, insurance, etc.

Enabling your domestic help to become financially independent will make you a philanthropist and ensure she doesn't have to struggle with high interest loans. There's good karma for you! With her small business, she can earn well for herself and her family, and they will always be grateful to you for your support and guidance. She will work for you with even more compassion and care than before.

How to Help Your Domestic Help in Her Entrepreneurial Journey?

Here are some ways you can help your domestic help start her entrepreneurial journey:

Open a Bank Account For Her
 

Opening a bank account will help her secure her money in a safe place and So, our support and guidance in introducing them refer and earn program or other such activities can make a huge difference in their lives by empowering them to become financially secure. It will also help her get affiliated with different social security schemes, such as pension plans, insurance, etc. With the right bank account, she will earn interest on her money, ensuring her funds multiply. You can also help her avail of a loan in the future if she needs it for business investment rather than rely on local money lenders who charge high interest. You could credit her salary directly to the bank account and guide her on how to spend wisely and save money to fund her business idea in the future. Educate her on how to use a chequebook, make a transaction, use an ATM card, etc. If she is hesitant, hand-hold her through the first few months until she figures things out.

Inform Her About Various Government Schemes
 

Inform your domestic help about different government schemes that aim to help underprivileged people, such as the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Rashtriya Swasthya Bima Yojana (RSBY), Sukanya Samriddhi Yojana (SSY), National Social Assistance Scheme, Pradhan Mantri Suraksha Bima Yojana (PMSBY) and more. Each of these schemes offers assistance to the unprivileged, such as insurance cover, special interest bank accounts, and more. Make her understand these plans to take advantage of the relevant schemes. For instance, PMSBY gives a Rs 2 lakh insurance cover in case of permanent total disability. Enrolling with the available government schemes will provide her with financial support and security for unexpected future events. 

Offer Useful Personal Advice

Generally, your domestic help trusts you. Your sound advice can help shape her future. You could guide her on which business idea she can evaluate. Assist her in understanding:

• What is the profit potential of the idea? 
• What amount of funding will be needed?
• How can she begin setting up the business?
• What are the risks involved?
  

Encourage your domestic help to understand a business idea's pros and cons and help her reach a sound proposition.

Help Her Deal Wisely with Debt
 

Debt is not bad if taken from the right source for the right purpose. You could guide your domestic help on how to reduce current high-interest debt and instead turn to better lending partners, such as banks that charge fair interest rates and offer special loans for the economically backward. You can make them aware of IDFC FIRST Bank's Sakhi Shakti Loan for women, which aims to empower and uplift women in India. The Sakhi Shakti Loan helps to improve the livelihood of women by providing financial assistance to boost their business and fulfil material needs. It offers several benefits, including credit and savings solutions, simple documentation, better reach, doorstep service, and quick and easy loan processing. Your domestic help only needs basic identification, such as an Aadhaar Card, to apply. The loan can be used to set up any business, such as agriculture-related, ration shop, sewing unit, etc.

Conclusion
 

In her entrepreneurial journey, guiding and supporting your house help can empower her future. She will be able to get financial benefits and freedom in the long term. However, be sure that you offer genuine and appropriate advice, keeping her best interest at heart. Do your research before assisting your domestic help in making the right decision for her financial future. You can consider your support as a medium of thanking her for her contribution to your life. It takes very little from your side to help improve someone's future!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.