Government Plans Universal Pension Scheme

The government is working on a universal pension scheme to provide retirement savings options for all citizens, including those in the unorganised sector. Currently, workers like construction laborers, domestic staff, and gig workers lack access to large government-run savings schemes. The new scheme will also be open to salaried employees and self-employed individuals.

Unlike the Employee Provident Fund, this pension scheme will be voluntary, with no government contributions. It aims to streamline the pension framework by possibly integrating existing schemes, though it will not replace the National Pension Scheme.

India already has pension schemes for unorganised workers, such as the Atal Pension Yojana and PM-SYM, offering financial security post-retirement. There are also farmer-specific schemes like the PM Kisan Mandhan Yojana. Stakeholder consultations for the new scheme will begin once the proposal is finalized.