Interim Finance Minister Piyush Goyal in his budget speech has announced a new pension scheme for the labour workforce employed in the unorganized sector, reported ANI.
The NDA government has now launched a new pension scheme called ‘Pradhan Mantri Shram Yogi Mandhan‘, to provide assured monthly pension of Rs.3000 per month for workers in unorganized sector after 60 years of age, with the maximum contribution of just Rs.100 per month. Any worker in the unorganised sector earning less than Rs 15,000 a month will be covered under the first phase of the scheme, said Piyush Goyal.
The new pension scheme will benefit 10 crore workers in the unorganised sector, and may become the world’s biggest pension scheme for unorganized sector in just five years: FM @PiyushGoyal #Budget2019#BudgetWithAIR pic.twitter.com/dlEVbc0JDV
— All India Radio News (@airnewsalerts) February 1, 2019
The acting Finance Minister Goyal said that the mega pension scheme for unorganised sector workers is set to benefit 10 crore workers, adding that the government has allocated Rs 500 crore for the new scheme. Any worker working in the unorganised sector can avail the benefits of this scheme. Workers between 18-28 years of age have to pay Rs 55 per month, while workers above 29 years will be paying Rs 100 per month to avail the benefits. The union government will also contribute an equal share every month, said the Finance Minister.
Goyal stated that half of India’s GDP comes from the sweat and toil of 42 million workers in the unorganised sector and the government has decided to provide them with a comprehensive social security coverage.
The move is likely to benefit household helps, drivers, plumbers, electricians, barbers and other workers earning less than the threshold salary under the scheme. The Finance Minister also said that the new pension scheme will be the world’s biggest pension scheme for the unorganised sector in just five years.
More than 90% of India’s workforces are employed in unorganised sectors who are often deprived of not only just minimum wages but also any kind of social security like pensions or health insurance.