Universal Pension Scheme: According to the report, the move is aimed at bringing together all existing pension schemes under one umbrella.
Prime Minister Narendra Modi-led government at the Centre is reportedly considering a Universal Pension Scheme that could provide financial security to everyone – be it salaried, self-employed, gig workers or others. This can be a big step by the government to ensure social security and help people live a more dignified life after retirement.
According to reports, the Employees’ Provident Fund Organisation (EPFO) – a body that is responsible for maintaining and regulating provident funds in India, is working on the universal pension scheme, which is at a preliminary stage.
Once there is a final framework in place, the government is expected to hold consultations with key stakeholders to fine-tune it further.
According to the report, the move is aimed at bringing together all existing pension schemes under one umbrella. This will make them more appealing and accessible even for unorganised workers, traders and self-employed individuals.
People currently working in the unorganised sector, for example, gig workers, domestic staff and construction workers have no access to large savings schemes run by the government.
No contribution by the government under the new proposal
However, the government will not make any contributions from its side under the new proposal, and it will be voluntary. Under existing schemes like the Employee Provident Fund Organisation, the government makes some contributions from its side.
Reports also suggest that the new scheme will not replace or absorb the existing National Pension Scheme, also a voluntary pension scheme.
Government offering pension schemes for unorganised sectors
At present, the government is offering several pension schemes for the people working in the unorganised sectors. Among these are the Atal Pension Yojana, Pradhan Mantri Shram Yogi Mandhan Yojana (PM-SYM) and others. While the former provides a monthly return of Rs 1,000 to Rs 1,500, the latter offers Rs 3,000 monthly after the investor turns 60.
