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The government is developing the Universal Pension Scheme to provide voluntary pensions to all citizens, aiming to benefit unorganised sector workers, traders, and self-employed individuals
The scheme aims to benefit unorganised sector workers, traders and self-employed persons. (Representative/Shutterstock)
A comfortable retirement is a universal aspiration, yet pensions have traditionally been accessible only to government and private sector employees. Now, the government is developing a scheme to extend this opportunity to all citizens.
The Universal Pension Scheme, currently under consideration, will be voluntary and contributory, aiming to provide social security for everyone.
According to an Economic Times (ET) report, the Ministry of Labour and Employment has initiated discussions on the Umbrella Pension Scheme. A senior government official told ET, “This scheme will be voluntary and contributory, not linked to employment and hence everyone can contribute to it and earn a pension.”
Sources indicate that the Employees’ Provident Fund Organisation (EPFO) is extensively developing the scheme. Once the scheme’s blueprint is complete, the Ministry will initiate consultations with stakeholders for finalisation.
To enhance the Universal Pension Scheme’s appeal, some existing central schemes will be included, streamlining the process and expanding coverage.
The scheme aims to benefit unorganised sector workers, traders, self-employed persons, and any individual of the contributing age group (18 years or above) seeking pension benefits after 60 years.
Some existing government schemes that may be merged under this umbrella scheme include the Pradhan Mantri-Shram Yogi Maandhan Yojana (PM-SYM) and the National Pension Scheme for Traders and Self-Employed (NPS-Traders).
Both are voluntary and entitle subscribers to a monthly pension of Rs 3,000 after the age of 60. This is based on a contribution ranging from Rs 55 to Rs 200, depending on the age at enrolment, with an equal contribution from the government.
