FM proposes mega pension scheme for unorganised sector workers

While presenting the Interim Budget today, Union 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, rag pickers, agricultural workers, beedi workers, handloom, leather and in numerous other similar occupations.

The Government must provide them comprehensive social security coverage for their old age.

Goyal said that this pension scheme would provide them 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 the pension scheme at the age of 29 years would have to contribute only Rs 100 per month till the age of 60 years. A worker joining the pension yojana at 18 years will have to contribute as little as Rs 55 a 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 this scheme in the next five years making it one of the largest pension schemes of the world.

The government has allocated Rs 500 crore for the scheme and additional funds would be provided as needed.