The Labour Ministry is developing a universal pension scheme that will ensure pension security for all citizens, including workers in the unorganised sector who currently lack access to large savings schemes.
Key Features of the Universal Pension Scheme
🔹 Open to All Citizens
- Covers unorganised sector workers (construction workers, gig workers, domestic staff).
- Also available for salaried employees and self-employed individuals.
🔹 Voluntary Participation
- Unlike EPF, contributions will be voluntary, and the government will not make contributions.
🔹 No Replacement for NPS
- This new scheme will not replace or merge with the National Pension Scheme (NPS).
- However, it may subsume some existing pension schemes.
🔹 A Safe & Flexible Option
- Aims to provide a secure savings framework for all individuals.
- The government is working on the proposal document, and stakeholder consultations will begin soon.
Existing Pension Schemes for Unorganised Workers
Currently, there are several government-backed pension schemes, such as:
- Atal Pension Yojana – Provides a monthly pension of ₹1,000-₹1,500 after the age of 60.
- Pradhan Mantri Shram Yogi Mandhan Yojana (PM-SYM) – Benefits street vendors, domestic workers, and labourers.
- Pradhan Mantri Kisan Mandhan Yojana – Offers ₹3,000 per month for farmers after 60.
With this new Universal Pension Scheme, the government aims to simplify and enhance pension coverage for all citizens, ensuring financial security in retirement.
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