The central government is working on a ‘Universal Pension Scheme’ that will benefit all Indian citizens, including those in the unorganized sector. According to NDTV, which cited sources from the Union Labor Ministry, this new scheme is under consideration.

If implemented, it will be a major change for millions of Indians, including construction workers, domestic helpers, and gig workers, who are currently not covered under any major government savings scheme. Under the new proposal, contributions will be voluntary, and the government will not provide financial support. The scheme may also integrate some existing pension plans and streamline the government’s savings structure for citizens.

The new scheme will also be available to self-employed and salaried employees. For now, it is being called the New Pension Scheme, but sources have mentioned that it may replace the existing scheme with the same name. Consultation with stakeholders will begin once the proposal document is finalized.

Existing New Pension System (NPS)

The New Pension System (NPS) is available to all Indian citizens aged 18-70 years, including those living abroad. Corporates can also opt for this scheme and provide its benefits to their employees.

Pradhan Mantri Shram Yogi Maan-Dhan Yojana

In addition, the government runs the Pradhan Mantri Shram Yogi Maan-Dhan Yojana, which provides old-age security for workers in the unorganized sector. Applicants for this scheme should not be covered under the NPS or the Employees’ State Insurance Corporation (ESIC) schemes, and they should not be income taxpayers.