The central government is considering bringing Universal Pension Scheme, there will be no condition of employment, everyone will get benefit
Central government is considering bringing Universal Pension Scheme, everyone will get benefit: Central government is considering bringing Universal Pension Scheme. Employment will not be a condition for this pension scheme, that is, common citizens will also be able to contribute and then get pension. This scheme is being made especially for unorganized sector laborers, small traders, self-employed and other citizens. People of 18 years or above who want to get pension benefits after 60 years will be able to join it.
The goal is to expand social security
It will be voluntary and contributory. The aim of this scheme is to expand social security beyond traditional employment. According to a report by NDTV, the Ministry of Labor and Employment has started deliberations on this proposed umbrella scheme, which will move towards integrating existing pension schemes.
What will be in the Universal Pension Scheme?
This scheme is being created under the Employees Provident Fund Organization (EPFO). After preparing its final draft, the opinion of different stakeholders will be taken. The new scheme will be voluntary, that is, anyone can join it, whether he has a job or not. With this, people from the unorganized sector, such as small traders, self-employed people will also be able to join the scheme.
Pension scheme can be merged
Pension schemes like PM-SYM and NPS-Traders can be merged. These schemes provide a monthly pension of ₹ 3,000 after retirement, in which a contribution of ₹ 55 to ₹ 200 is made and the government also contributes equally. The possibility of including APY in this new framework is also being considered. The government is also considering using the cess under the BoCW Act for pension financial assistance to workers.
Will people get benefit in this scheme?
The central government can also encourage the states to merge their pension schemes in this scheme. This will bring pension contributions to one place. Pension payout will increase. Also, a person will be prevented from taking advantage of more pension. According to current estimates, by 2036, the number of senior citizens (60 years and above) in India can reach 22.7 crores. It will be 15 percent of the total population.
Increasing pressure of elderly population in India
At the same time, by 2050 this figure can reach 34.7 crores, which will be 20 percent of the total population. In contrast, countries like America, Canada, Europe, Russia and China already have a social security system. It includes pension, health services and unemployment allowance. Universal Pension Schemes are already in place in countries like Denmark, Sweden, Norway, Netherlands and New Zealand.
Existing social security system in India
At present, India's social security system is mainly limited to Provident Fund, Old Age Pension and Health Insurance for the poor sections. The objective of this proposed Universal Pension Scheme is to expand the scope of these schemes and create an inclusive and sustainable pension system, so that more and more people can get social security.
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