Last month, the central government officially announced the Unified Pension Scheme for central employees, which will be implemented from the next financial year, i.e., April 1, 2025. Meanwhile, reports suggest that the government is also preparing to introduce a Universal Pension Scheme for common citizens. The main aim of this scheme is to provide pension benefits to workers in the unorganized sector, such as construction workers, domestic workers, and gig workers. If implemented, this scheme will bring great relief to crores of people across the country.

No Government Contribution in the Universal Pension Scheme

According to an NDTV report, the Universal Pension Scheme will allow voluntary contributions, and there will be no financial contribution from the government. However, this scheme may include existing pension schemes, which could help improve the government’s savings and pension structure. The scheme could also incorporate the current New Pension Scheme (NPS) to enhance the overall pension system.

The report mentions that the new scheme is being considered as a “New Pension Scheme” and may be proposed under this name. Once the proposal document is complete, relevant consultations will take place.

Current Pension Schemes

1. New Pension Scheme (NPS)

The New Pension Scheme (NPS) is available to all citizens of India aged between 18 and 70 years. Non-Resident Indians (NRIs) can also participate in this scheme. Additionally, companies can offer the NPS as a benefit to their employees.

2. Pradhan Mantri Shram Yogi Maandhan Pension Scheme

The government has also launched the Pradhan Mantri Shram Yogi Maandhan Yojana for workers in the unorganized sector. This scheme is available to individuals who are not part of the NPS, Employees State Insurance Corporation (ESIC), or Income Tax.

Under this scheme, beneficiaries will receive Rs 3,000 as a pension after reaching the age of 60. If a beneficiary dies, their family will receive 50% of the pension amount. Additionally, if a person who has made regular contributions to this scheme dies before reaching 60, the wife can continue contributing to the scheme.