Here comes a good news for the people who are working in unorganized sector, as the central government has introduce a pension scheme for them. In the budget 2019-20 the finance minister Piyush Goyal launched Pradhan Mantri Shram Yogi Mandhan Yojana (PMSYM). Under this scheme the government will provide Rs. 3000 to the workers in the unorganized sector in five years.
The government has targeted 10 crore people to provide the benefit of Pradhan Mantri Shram Yogi Mandhan Yojana. If this scheme will be implemented in the well manner, it may be the largest pension scheme of the world. Workers will have to contribute Rs 100 per month under the scheme to be able to receive a monthly pension of Rs 3,000 after 60 years of age.
Details of Pradhan Mantri Shram Yogi Madhan Yojana
Under this mega pension scheme the government will provide Rs 3000 per month to workers in unorganized sector after 60 years of age. 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 minimum guaranteed pension will benefit 100 million people earning a monthly salary less than Rs 15,000. The current minimum pension stands at Rs 1,000 per month for the organised workers. The scheme will cost the government Rs 500 crore.
Out of the total 500 million workforce, over 90% are unorganised workers who are often deprived of not just minimum wages but also any kind of social security, be it pensions or health insurance. Those earning above Rs 15,000 are covered under the Employees’ Provident Fund Organisation or the Employees’ State Insurance Corporation and hence will be out of the ambit of the scheme in the first phase.