April 17, 2025 - The Centre is all set to introduce a universal pension scheme which is likely to be sent for Cabinet approval by the end of this year. The Ministry of Labour and Employment is currently working on the procedures related to the scheme. According to sources, the framework for the process will be finalised within the next few months.

As per available information, an important feature of the new pension scheme is flexibility. Contributors will be allowed to deposit amounts as per their financial capacity. They will also be allowed to make higher contributions. Sources suggest that, apart from the minimum mandatory contribution, individuals will be able to deposit additional savings into their pension accounts. The pension amount after retirement will be calculated based on total contributions.

For example, if a worker contributes Rs 3,000 monthly to their pension account and at some point has an additional amount like Rs 500 or Rs 30,000, they will be allowed to deposit that extra amount as well.

Additionally, contributors will also have the option to choose the age at which to start receiving the pension. Currently, the pension starts at age 58, but under the new scheme, contributors may opt to start it at age 60 if they wish.

The scheme will also include workers from the unorganised sector. The government aims to ensure that every individual benefits from the pension scheme, with no employment constraints or requirement. For instance, if someone runs a shop or is a daily wage earner and wants to secure part of their savings for the future as a pension, they will also be eligible to join the scheme.

The minimum age to enroll in the scheme will be 18 years, but anyone can start contributing at any age after that.

Source: Media Reports