New Delhi: The Central government is likely to introduce a Universal Pension Scheme to ensure social security for every Indian.
According to multiple reports, the Ministry of Labour and Employment has started discussions with various stakeholders to shape the framework for this ambitious project.
However, there is no official communication on the scheme yet.
The scheme is expected to be voluntary, allowing individuals to participate regardless of their employment status. This means that anyone willing to make monthly contributions can enrol and receive pension benefits.
Unlike existing schemes tied to specific jobs or sectors, this pension plan will be open to all, making it accessible to workers across industries, including those in the unorganised sector.
Currently, several workers, including gig workers and domestic staff, do not have access to pension benefits.
The Universal Pension Scheme could change that by offering financial security to those who are not covered under any existing pension programmes.
The Employees’ Provident Fund Organisation (EPFO) is expected to be the nodal agency responsible for designing and implementing the scheme.
Reports suggest that the government may also contribute to the pension accounts of beneficiaries, either monthly or quarterly, to encourage more people to enrol.
This approach is similar to existing voluntary pension schemes like the National Pension Scheme (NPS) for traders and self-employed and the Pradhan Mantri Shram Yogi Maandhan (PM-SYM), which provides a monthly pension of Rs 3,000 after the age of 60.
These schemes require contributions ranging from Rs 55 to Rs 200, with the government matching the amount.
As part of the new initiative, some of these existing pension schemes may be merged into the Universal Pension Scheme.
The government is also considering integrating the Atal Pension Yojana into it, according to reports.
Currently regulated by the Pension Fund Regulatory and Development Authority (PFRDA), Atal Pension Yojana provides retirement benefits to low-income workers.
Additionally, the authorities are exploring the possibility of utilising the cess collected under the Building and Other Construction Workers (BoCW) Act to fund pensions specifically for construction workers.
If implemented, this could be a game-changer for millions of workers, particularly those in informal jobs, ensuring they have financial stability in their later years.
