A major difference between this new proposal and existing schemes, like the Employee Provident Fund Organization, is that contributions will be voluntary, and the government will not provide any funding, much like a retirement savings scheme.
The government is working on a Universal Pension Scheme to extend retirement savings options to all citizens, including unorganized sector workers, according to sources in the Labour Ministry.
Unlike existing schemes, such as the Employee Provident Fund Organization (EPFO), this initiative will be voluntary, with no government contributions. It aims to streamline the country's pension framework by potentially merging certain existing schemes while remaining distinct from the National Pension Scheme (NPS), NDTV reported quoting sources in the ministry.
Currently, workers in the unorganized sector — such as construction laborers, gig workers, and domestic staff — lack access to large-scale government-backed savings plans. The new scheme will also be open to salaried employees and the self-employed.
several government-run pension schemes for the unorganized sector, such as the Atal Pension Yojana, , and the Pradhan Mantri Shram Yogi Mandhan Yojana
India already has multiple pension plans for specific groups, including the Atal Pension Yojana, which provides a monthly return of ₹1,000 - ₹1,500 after the investor turns 60 and Pradhan Mantri Shram Yogi Mandhan Yojana (PM-SYM) for informal workers, as well as the Pradhan Mantri Kisan Mandhan Yojana for farmers.
Once the proposal document is finalized, stakeholder consultations will begin, NDTV quoted sources as saying.
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