The government is working on a ‘universal pension scheme’ aimed at providing pension benefits to all citizens, including those in the unorganised sector, sources from the Labour Ministry informed NDTV on Wednesday. Currently, people in the unorganised sector, such as construction workers, domestic helpers, and gig workers, do not have access to government-sponsored savings schemes.
This new scheme will also be available to salaried employees and self-employed individuals. A key difference from existing programs like the Employee Provident Fund is that participation in this scheme will be voluntary, with no government contribution.
The primary goal, sources said, is to create a ‘universal pension scheme’ that simplifies and consolidates the country’s pension and savings options, potentially replacing several existing schemes. The new plan, temporarily referred to as the ‘New Pension Scheme,’ will not replace the National Pension Scheme (NPS), another voluntary savings program.
Consultations with stakeholders will commence once the proposal document is finalized, according to sources.
Currently, various government-run pension schemes exist for the unorganised sector, such as the Atal Pension Yojana, which offers Rs 1,000 to Rs 1,500 monthly after the individual turns 60. The Pradhan Mantri Shram Yogi Mandhan Yojana (PM-SYM) aims to benefit workers like street vendors, domestic workers, and laborers. Additionally, there are schemes for farmers, such as the Pradhan Mantri Kisan Mandhan Yojana, which provides Rs 3,000 per month after the individual reaches 60.
