Who Is Eligible For UPS Scheme? Will You Benefit? Check out the current update 

India is reportedly looking into a Universal Pension Scheme that would be optional and based on contributions, aiming to provide social security to all citizens, not just those in traditional jobs. According to a report from the Economic Times, the labor and employment ministry has started discussions on this comprehensive scheme, which is set to bring together existing pension programs.

A senior government official mentioned in the report, “The scheme will be voluntary and contributory, meaning it won’t be linked to employment, allowing anyone to contribute and receive a pension.”

Who Will Benefit?

An NDTV report indicates that this ‘universal pension scheme’ will be accessible to all citizens, including those working in the unorganised sector. Currently, workers in this sector—like construction laborers, domestic help, and gig workers—lack access to major government savings programs.

The scheme will also cater to salaried employees and the self-employed. If the information holds true, the universal pension scheme aims to reach a broad audience, including unorganised workers, traders, self-employed individuals, and anyone aged 18 and over who wants to secure pension benefits for when they turn 60.

Here’s how the scheme is set to operate:

The Employees’ Provident Fund Organisation (EPFO) is in the process of developing the new framework. Once it’s all set, they’ll have talks with stakeholders to fine-tune and roll out the scheme smoothly.

The goal is to bring together current pension plans like the Pradhan Mantri-Shram Yogi Maandhan (PM-SYM) and the National Pension Scheme for Traders and Self-Employed (NPS-Traders). Right now, folks under these plans get a monthly pension of Rs 3,000 after they retire, with contributions ranging from Rs 55 to Rs 200, which the government matches.

But here’s the twist: unlike the EPFO schemes where both employees and employers chip in, this new proposal will be completely voluntary. People can decide to contribute if they want, but there won’t be any matching contributions from the government.