New Delhi: The Government of India has launched a number of pension schemes for the benefit of workers and employees post their retirement. Even as demands for a minimum pay hike under 7th Central Pay Commission recommendations refuse to die down, take a look at the latest development in pension provisions.
Last year in February, GoI launched Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM), a voluntary and contributory pension scheme, for the benefit of unorganized workers, as per eligibility. The scheme assures a minimum monthly pension of Rs. 3000 to the beneficiaries after attaining the age of 60 years.
The criteria that have been set for all unorganized workers, in the age group of 18-40 years, to enrol under the scheme are as follows:
- Their monthly income should not exceed Rs 15,000
- They should not be members of Employees’ Provident Fund Organization or Employees’ State Insurance Corporation or National Pension System (Government contributed)
- Those who are not income-tax payers.
The subscriber is required to pay the prescribed monthly contribution amount and the Central Government provides the equal matching contribution. This Scheme is implemented through Life Insurance Corporation of India. Enrollment under the Scheme can be done through any of the Common Service Centres across the country.
Another notification issued on August 19, 2014, stated that a minimum pension of Rs. 1000 per month has been fixed with effect from September 1, 2014, for the pensioners under Employees’ Pension Scheme (EPS), 1995 framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, applicable to establishments which belong to industries and classes of establishments listed in Schedule-I and where number of employees is 20 or more. However, no decision has been taken at present to further enhance the minimum pension under EPS, 1995.
A few months later, Atal Pension Yojana (APY) was launched by GoI in May 2015. Indian citizens between the age group of 18 to 40 years are eligible to join APY through their savings bank account or post office savings bank account. Depending upon the pension plan selected, each subscriber under APY shall receive a guaranteed minimum pension of Rs 1000, Rs 2000, Rs 3000, Rs 4000 or Rs 5000 per month, after the age of 60 years until death.