Goyal announces pension scheme for unorganised sector workers

Last Updated: Fri, Feb 01, 2019 15:46 hrs
Piyush Goyal (PTI photo)

New Delhi: Finance Minister Piyush Goyal on Friday announced the "Pradhan Mantri Shram Yogi Mandhan", a scheme to provide assured monthly pension of Rs 3,000 per month for workers in the unorganised sector.

While presenting the Interim Budget for 2019-20 in the Lok Sabha, Goyal said the scheme will benefit 10 crore workers and might become the world's biggest pension scheme for the unorganised sector in the next five years.

Under the scheme, the workers will receive a monthly pension of Rs 3,000 after 60 years of age. The workers will then have to contribute Rs 100 per month towards the scheme.

This is what Finance Minister Piyush Goyal spoke in his maiden interim-budget for the year 2019-20:


"High growth and formalistation of the economy has led to the expansion of employment opportunities as shown in EPFO membership, which has increased by nearly 2 crore in two years reflecting formalisation of the economy and job creations."

"Half of India’s GDP comes from the sweat and toil of 42 crore workers in the unorganised sector working as street vendors, rickshaw pullers, construction workers, rag pickers, agricultural workers, beedi workers, handloom, leather and in numerous other similar occupations. Domestic workers are also engaged in big numbers."

"We must provide them comprehensive social security coverage for their old age. Therefore, in addition to the health coverage provided under ‘Ayushman Bharat’ and life & disability coverage provided under ‘Pradhan Mantri Jeevan Jyoti Bima Yojana’ and ‘Pradhan Mantri Suraksha Bima Yojana’, our Government proposes to launch a mega pension yojana namely 'Pradhan Mantri Shram-Yogi Maandhan' for the unorganised sector workers with monthly income upto Rs 15,000."

"This pension yojana shall provide them an assured monthly pension of Rs 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age. An unorganised sector worker joining pension yojana at the age of 29 years will have to contribute only Rs 100 per month till the age of 60 years."

"A worker joining the pension yojana at 18 years, will have to contribute as little as Rs 55 per month only. The Government will deposit equal matching share in the pension account of the worker every month. It is expected that at least 10 crore labourers and workers in the unorganised sector will avail the benefit of 'Pradhan Mantri Shram-Yogi Maandhan' within next five years making it one of the largest pension schemes of the world. A sum of Rs 500 crore has been allocated for the Scheme. Additional funds will be provided as needed. The scheme will also be implemented from the current year."

With Inputs from IANS