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Govt working on ‘universal pension scheme’ for all Indian citizens: Report
The Centre is reportedly working on a ‘universal pension scheme’ that all Indian citizens will be able to avail, NDTV reported.
The Centre is working on a ‘universal pension scheme’ that all Indian citizens will be able to avail. including those working in the unorganised sector, NDTV reported citing sources in the Union Labour Ministry.
This will be a game-changer for lakhs, if not crores, of Indians like construction workers, domestic staff and gig workers. This is because they are currently not covered by any government-run large savings schemes.
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Under the new proposal, contributions will be voluntary and the government will not be contributing from its side. It may also incorporate a few existing schemes and streamline the government-run savings structure for citizens.
The new scheme will likely be available to self-employed and salaried employees too.
It is being called ‘New Pension Scheme’ for now and may subsume the existing scheme being run with the same name, sources stressed. Stakeholder consultation will begin once the proposal document is completed.
The existing New Pension System (NPS) is available for all Indian citizens, including those residing abroad, aged between 18-70 years. Even corporates can opt for the scheme and extend its benefits to employees.
Apart from this, the government also runs the Pradhan Mantri Shram Yogi Maan-dhan scheme, which ensures old age protection for workers in the unorganised sector. For the scheme, the applicants must not be covered under NPS, Employees' State Insurance Corporation schemes and should also not be an income tax payer.
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It offers minimum assured pension of ₹3,000 per month after attaining the age of 60. In the event of the pensioner's death, their spouse shall be entitled to 50% of the pension received by the beneficiary as family pension.
If a beneficiary has given regular contribution and died due to any cause (before age of 60 years), his/her spouse will be entitled to join and continue the scheme subsequently by payment of regular contribution or exit the scheme as per provisions of exit and withdrawal.
