Centre devises mega pension scheme for unorganised sector workers

The Centre put forth a proposal to launch a mega pension scheme 'Pradhan Mantri ShramYogi Maandhan' for unorganised sector workers with a monthly income of up to Rs. 15,000.

Finance Minister Piyush Goyal, while presenting the Interim Budget 2019-20 in Parliament today, said the yojana shall provide them with 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.

An unorganised sector worker joining pension yojana at the age of 29 years will have to contribute Rs. 100 per month till the age of 60 years, while a worker joining the pension yojana at 18 years will have to contribute as little as Rs. 55 per month. The government will deposit equal matching share in the pension account of the worker every month.

"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, rag pickers, agricultural workers, beedi workers, handloom, leather and in numerous other similar occupations. The government must provide them with comprehensive social security coverage for their old age. Therefore, in addition to the health coverage provided under Ayushman Bharat and life and disability coverage provided under Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana, our government proposes to launch a mega pension yojana namely 'Pradhan Mantri ShramYogi Maandhan' for the unorganised sector workers with monthly income up to Rs. 15000," he said while introducing the scheme.

It is expected that at least 10 crore labourers and workers in the unorganised sector will avail benefits of the 'Pradhan Mantri Shram-Yogi Maandhan' within the next five years, making it one of the largest pension schemes of the world.

Goyal said a sum of Rs. 500 crore has been allocated for the scheme, adding that additional funds will be provided as needed.