Government Plans Universal Pension Scheme for All Citizens

The government is working on a universal pension scheme that will be available to all citizens, including those in the unorganised sector, according to Labour Ministry sources cited by NDTV. Currently, unorganised sector workers do not have access to the National Pension Scheme (NPS) but can subscribe to the Atal Pension Yojana (APY), which provides a guaranteed pension ranging from ₹1,000 to ₹5,000 per month after the age of 60.

Voluntary Contributions with No Government Funding

Unlike the pension schemes managed by the Employees’ Provident Fund Organisation (EPFO), the new universal pension plan will be entirely voluntary, with no financial contribution from the government. The initiative aims to streamline the country's pension framework by integrating some existing schemes while ensuring broader accessibility.

Will It Replace the NPS?

The proposed universal pension scheme will not replace or merge with the NPS, which remains a voluntary pension option. The Unified Pension Scheme (UPS), recently introduced as a subset of the NPS, will continue to be available for government employees.

Stakeholder Consultations to Begin Soon

Before finalizing the framework, the Labour Ministry will hold consultations with stakeholders. Officials emphasize that this initiative is a step towards enhancing social security for all workers, ensuring financial stability post-retirement.

With India’s pension landscape evolving, the new scheme is expected to broaden coverage, providing financial security to a larger section of the workforce while complementing existing pension systems like the EPF, PPF, and NPS.