The Narendra Modi government is planning to introduce a voluntary Universal Pension Scheme to provide social security for all, according to a report by the Economic Times. The Ministry of Labour and Employment has begun working on the scheme, which will be open to everyone, regardless of employment status. The Employees' Provident Fund Organisation (EPFO) is drafting the guidelines, after which the Labour Ministry will conduct stakeholder consultations to finalise the scheme.
The scheme aims to streamline existing pension schemes while expanding coverage to all sections of society. It will be particularly beneficial for informal workers, traders, and self-employed individuals. Anyone above 18 years of age will be eligible to enrol and receive pension benefits after turning 60.
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The new scheme is expected to integrate existing government pension plans, including the Pradhan Mantri Shram Yogi Maandhan (PM-SYM) and the National Pension Scheme for Traders and Self-Employed (NPS-Traders). Both these schemes currently offer a monthly pension of Rs 3,000 after the age of 60, based on a contribution ranging from Rs 55 to Rs 200, with a matching contribution from the government.