Union government planning ‘universal pension scheme’ for all in India

New Delhi: The union government is working on a ‘universal pension scheme’ that will be available to all citizens, including those in the unorganised sector, Labour Ministry sources told NDTV Wednesday.

At present, those in the unorganised sector – such as construction workers, domestic staff, and gig workers – don’t have access to government-run large savings schemes.

The scheme will also be open to all salaried employees and the self-employed too.

However, a crucial distinction between this new proposal and existing schemes, like the Employee Provident Fund Organisation, is that contributions for the former will be on a voluntary basis, and the government will not make any contributions from its side.

The general idea, sources said, is to offer a ‘universal pension scheme’ – i.e., to streamline the pension/savings framework in the country by likely subsuming a few existing schemes.

These, sources said, will be seen as a safe option for any citizen on voluntary basis.

The new scheme, dubbed ‘New Pension Scheme’ for now, will also not replace or subsume the existing National Pension Scheme, also a voluntary pension scheme, sources stressed.

Stakeholder consultation will begin once the proposal document is completed, sources said.

As of today, there are several government-run pension schemes for the unorganised sector, such as the Atal Pension Yojana, which provides a monthly return of Rs 1,000 – Rs 1,500 after the investor turns 60, and the Pradhan Mantri Shram Yogi Mandhan Yojana (PM-SYM), which seeks to benefit street vendors, domestic workers, or labourers, among others.

There are also schemes designed for farmers, such as the Pradhan Mantri Kisan Mandhan Yojana, which provides Rs 3,000 monthly after the investor is 60 years old.

Source: NDTV