The central government is about to make a major decision regarding pensions. Those managing multiple responsibilities alongside their jobs may receive financial assistance. A new pension system could be introduced for those without job-related pensions but who work as per regulations. According to an ET report, the Union Labour Ministry is considering implementing a Voluntary Contributory System. This article will provide all the details regarding this development.

Universal Pension Scheme: A New Option for All Workers

Who Can Join This Scheme?

Currently, workers in the unorganized sector, such as construction workers, domestic workers, and gig workers, do not have access to major government savings schemes. However, this new scheme will be open to all salaried employees and self-employed individuals as well.

How Is It Different from EPFO?

Unlike the Employees’ Provident Fund Organization (EPFO), this new pension scheme will be completely voluntary, and the government will not contribute any funds to it.

Government’s Plan for a Streamlined Pension System

According to sources, the government plans to bring some existing schemes under the ‘Universal Pension Scheme’ to create a more organized pension and savings structure. These schemes will be available to all citizens as a safe and voluntary option.

Will It Replace the National Pension System?

No, the proposed scheme, currently referred to as the ‘New Pension Scheme,’ will not replace the existing National Pension System (NPS) or be merged with it.

When Will the Scheme Be Finalized?

Once the proposal is ready, the government will invite suggestions from stakeholders before finalizing the scheme.

Existing Pension Schemes in India

  • Atal Pension Yojana (APY): This offers a monthly pension of ₹1,000 to ₹5,000 after the age of 60.
  • Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM): Designed for street vendors, domestic workers, and laborers.
  • Pradhan Mantri Kisan Maandhan Yojana: Provides a monthly pension of ₹3,000 to farmers after turning 60.

This new scheme aims to provide an additional pension option for workers who currently do not have access to structured retirement benefits.