Pension for all
The Modi government can give a big gift to more than 40 crore people working in the unorganized sector of India on the new year. They can be brought under the purview of the Employees Provident Fund Organization (EPFO). The government is planning to bring the existing voluntary pension scheme under the EPFO for small businesses and people working in the unorganized sector
Pension scheme will be simple
These voluntary pension schemes of Modi government include Prime Minister Shram Yogi Maandhan and National Pension Scheme. In order to make both these schemes more attractive, the Ministry of Labor wants to implement this scheme, it can be made even simpler.
Within the scope of EPFO
Even after several years of its launch, both these schemes have failed to attract many people. “We are considering bringing the Prime Minister Shram Yogi Maandhan and the National Pension Scheme under the administrative control of the EPFO for people working in the unorganized sector,” an official associated with the matter told ET.
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Discuss several options
An official said that many options are being discussed at this time. One of these is that both schemes should be brought under the ambit of EPFO. Another option is what can the EPFO do to increase its coverage for these people? The official said that though the EPFO does not have experience of handling individual contracts without an employer, a lot of preparation may be required. At present, the control of PM-Shram Yogi Maandhan Yojana and National Pension Scheme is with the Life Insurance Corporation of India.
Shram Yogi Maandhan Yojana
PM-Shram Yogi Maandhan Yojana was started in February 2019. In this, those working in the unorganized sector of 18 to 40 years have to contribute 55-200 rupees every month, the same contribution is made by the central government. After getting 60 years, you can get a pension of at least Rs 3,000 every month. Currently 44 lakh people are involved in this scheme.
Benefit of pension scheme
In 2019, the government launched the National Pension Scheme for traders and people doing their own business. Under this scheme, retailers, shopkeepers and self-employed people are entitled to pension at the age of 60 years on making a small contribution. As part of this scheme, only those businesses can have an annual turnover of not more than Rs 1.5 crore.
Self-Employed India Employment Scheme
EPFO currently provides social security benefits to more than six crore employees of organized sector under provident fund and employee pension scheme. This year, the organization has to bear the responsibility of implementing the government’s ambitious Self-Employed India Employment Scheme (ABRY) which can be a challenge for him.
