Pension for informal workers

2 min read
  1. The government, in the interim budget, 2019, has announced Pradhan Mantri Shram-Yogi Maandhan, a pension scheme for workers in the unorganised sector whose income is up to Rs 15,000 per month.
  2. Under the scheme, an assured monthly pension of Rs. 3000 rupees per month will be provided to workers in the unorganised sector after 60 years of age.
  3. To avail the scheme, workers have to contribute an amount ranging from ₹55 to ₹100 each month, depending on their age, at the time of joining the scheme and equal contribution would be paid by the government.
  4. Critics have raised concerns on two issues. Firstly, The funds allocated for the scheme undermines finance for National Social Assistance Programme (NSAP) which is a social security and welfare programme for poor aged persons, widows and disabled persons.
  5. Secondly, The effectiveness of the scheme is doubtable. This is because given that the informal sector workers might refrain from voluntarily contributing to the scheme as their salaries are low.