'Universal Pension Scheme' planned

Highlights

New Delhi: The government is working on a 'universal pension scheme' that will be available to all citizens, including those in the unorganised...

New Delhi: The government is working on a 'universal pension scheme' that will be available to all citizens, including those in the unorganised sector, according to the Labour Ministry. 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, according to an NDTV report.

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.

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.