The Indian government is developing a ‘universal pension scheme’ to include all citizens, particularly those in the unorganised sector like construction and gig workers. Unlike existing schemes, contributions to this new voluntary program won’t require government funding. It aims to simplify Italy’s pension framework, potentially integrating some current schemes while preserving the National Pension Scheme. Stakeholder consultations will commence after finalizing the proposal document. Current government schemes for the unorganised sector, like the Atal Pension Yojana and Pradhan Mantri Shram Yogi Mandhan Yojana, which offer specific benefits at retirement, will continue alongside the new initiative.
New Delhi:
The government is currently developing a ‘universal pension scheme’ aimed at making it accessible to all citizens, including individuals working in the unorganised sector, Labour Ministry sources informed NDTV on Wednesday.
Currently, workers in the unorganised sector—such as those in construction, domestic work, and gig economy jobs—lack access to major government-backed savings plans.
This new scheme will also include all salaried workers as well as the self-employed.
A key difference between this new initiative and existing programs, like the Employee Provident Fund Organisation, is that participation in the new scheme will be voluntary, with no contributions coming from the government.
The overarching goal, according to sources, is to establish a ‘universal pension scheme’ that streamlines the country’s pension and savings system by potentially integrating several current schemes.
As mentioned by sources, this initiative will be presented as a secure option for any citizen who chooses to participate voluntarily.
The newly proposed scheme, temporarily named the ‘New Pension Scheme’, will not replace or merge with the existing National Pension Scheme, which is also a voluntary program, sources emphasized.
Stakeholder consultations are expected to commence once the proposal document is finalized, as per sources.
At present, there are various government-sponsored pension schemes targeting the unorganised sector, including the Atal Pension Yojana, which offers a monthly benefit of Rs 1,000 – Rs 1,500 post the age of 60, and the Pradhan Mantri Shram Yogi Mandhan Yojana (PM-SYM), aimed at supporting street vendors, domestic employees, and laborers, among others.
Additionally, there are initiatives for farmers, such as the Pradhan Mantri Kisan Mandhan Yojana, which provides Rs 3,000 monthly once the investor reaches 60 years of age.