India is set to launch a Universal Pension Scheme similar to Bangladesh’s. This scheme will be open to all Indian citizens, including workers from the unorganized sector, according to sources from the Indian Ministry of Labor.
Currently, workers in the unorganized sector, such as construction workers, domestic workers, and gig workers, do not have access to major government savings schemes. The proposed pension scheme will allow these workers to participate.
Key Features of the Universal Pension Scheme:
The Indian government will not provide financial contributions; the scheme will be entirely voluntary.
It will be open to both salaried employees and self-employed individuals.
Unlike the Employees’ Provident Fund Organization (EPFO), which requires mandatory contributions, participation in this scheme will be completely optional.
The government aims to integrate various existing pension and savings schemes into a centralized framework.
Current Pension Schemes in India:
The new initiative is not intended to replace India’s existing National Pension System (NPS) but will operate as a separate scheme.
Some of India’s existing pension schemes for unorganized workers include:
Atal Pension Yojana: Provides pension benefits of ₹1,000–₹1,500 per month after the age of 60.
Pradhan Mantri Shram Yogi Maandhan Yojana: Designed for street vendors, domestic workers, and general laborers.
Pradhan Mantri Kisan Maandhan Yojana: Offers ₹3,000 monthly pension for farmers after 60.
According to reports, the Indian government is still finalizing the policy details of the Universal Pension Scheme. Once completed, discussions will take place with relevant stakeholders.