The central government is preparing to introduce a new Universal Pension Scheme aimed at providing pension benefits to all citizens of the country. This scheme will be particularly designed for those working in the unorganized sector, such as construction site workers, domestic staff, and gig workers (who receive temporary or project-based work). Currently, these groups are not covered by any of the existing government pension schemes, but the new scheme will include them as well.
What is the Objective of the Universal Pension Scheme?
The main goal of this scheme is to ensure that all salaried employees and self-employed individuals can join a pension scheme. The government is preparing proposal documents for the scheme, after which consultations will be held with stakeholders to refine it.
How Will This Scheme Differ from Existing Pension Schemes?
According to media reports, this new Universal Pension Scheme will be different from existing schemes like the Employees’ Provident Fund (EPF). The government plans to combine several types of pension schemes into a new, universal option. This will be a voluntary plan, meaning any citizen can choose to participate based on their preference. The aim is to guide people towards a secure and stable future, ensuring they are financially secure when they grow old.
What About the National Pension Scheme (NPS)?
If the Universal Pension Scheme is implemented, it will not affect the National Pension Scheme (NPS). This means that the NPS will continue to exist, and the Universal Pension Scheme will work as a separate option. Both schemes will have different purposes and will run alongside each other.
Existing Pension Schemes in India:
India already has a few pension schemes, mainly for people in the unorganized sectors:
Atal Pension Yojana (APY): This scheme provides a monthly pension ranging from ₹1,000 to ₹1,500 after the age of 60. It is aimed at people who do not have regular income, such as workers in the unorganized sector.
Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM): This scheme is for street vendors, domestic workers, and laborers. The government provides financial assistance to help improve their living standards and ensure they receive a pension.
Pradhan Mantri Kisan Maandhan Yojana: This scheme is designed for farmers. Once a farmer reaches 60 years of age, the government provides ₹3,000 per month to support them financially during their later years.
Conclusion:
The central government aims to provide a uniform and secure pension option for all citizens, ensuring they are economically stable as they age. This Universal Pension Scheme will especially benefit workers in the unorganized sector and self-employed individuals. However, it will work alongside existing schemes like NPS and other pension plans without replacing them.
Shashi Rai
