In what could provide social security cover to 10 crore unorganised workers whose monthly income is below Rs 15,000, the Union Budget on Friday announced a scheme to provide them with an assured pension of Rs 3,000 per month after they attain 60 years of age.
Presenting the Interim Budget in the Lok Sabha, Finance Minister Piyush Goyal said, “Half of India’s GDP comes from the sweat and toil of 42 crore workers in the unorganised sector working as street vendors, rickshaw pullers, construction workers... And in numerous other similar occupations. Domestic workers are also engaged in big numbers. We must provide them comprehensive social security coverage for their old age”.
Through the Budget, the Government proposed to launch a mega pension yojana namely ‘Pradhan Mantri Shram-Yogi Mandhan’ (PMSYM) for the unorganised sector workers with monthly income up to Rs 15,000, he said.
The pension scheme will provide the informal sector workers an assured monthly pension of Rs 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age, he said.
According to the scheme, an unorganised sector worker joining the pension scheme at the age of 29 years will have to contribute only Rs 100 per month till the age of 60 years.
The scheme provides that an informal sector worker joining the scheme at 18 years will have to contribute Rs 55 per month. The Government will deposit equal matching share in the pension account of the worker every month.
It is expected that at least 10 crore labourers and workers in the unorganised sector will avail the benefit of ‘Pradhan Mantri Shram-Yogi Maandhan’ within next five years, making it one of the largest pension schemes of the world, the Minister said.
The Government has earmarked Rs 500 crore for the scheme and assured that additional funds will be allocated as needed. The scheme will also be implemented from the current year.
