New Delhi: In a major social welfare initiative, the Modi government is set to introduce a universal pension scheme aimed at securing the financial future of India's working population—especially those in the unorganised sector. The Ministry of Labour is currently finalising the framework and expects to send it for cabinet approval by the end of the year.
Flexible and Inclusive Contributions
One of the key features of the scheme is flexibility. Contributors will be allowed to deposit amounts according to their financial capacity. A worker contributing Rs 1,000 regularly can also make additional lump-sum deposits—like Rs 25,000 or Rs 50,000—based on their savings. The final pension amount will be calculated considering these extra contributions.
Retirement Age Choice and Opt-In Option
The scheme also allows participants to choose when they begin receiving pension benefits. While the standard retirement age is set at 58, contributors can delay withdrawals until age 60 or beyond, depending on their needs. Importantly, participation in the scheme will be voluntary, ensuring individuals can opt in without employment constraints.
Targeting the Unorganised Sector
This initiative primarily targets workers in the unorganised sector—such as shopkeepers, daily wage earners, and gig workers—who traditionally lack retirement benefits. The scheme is open to all citizens above 18, providing a retirement safety net without linking it to formal employment.
Preparing for the Future
According to government estimates, India will have around 22 crore senior citizens by 2036, making a comprehensive pension scheme a critical need. The Labour Ministry is actively gathering feedback from stakeholders to shape the most effective and inclusive policy.
