Budget 2019 has introduced a new pension scheme for the unorganised sector called the Pradhan Mantri Shram Yogi Maan Dhan Yojana. This scheme will be introduced in the current year and the government estimates that 10 crore unorganised sector labourers and workers will subscribe to the scheme over the next 5 years.
Eligibility of Pradhan Mantri Shram Yogi Maandhan
This scheme is available to individuals with salary up to Rs 15,000 per month.
Details
- It proposes to pay a guaranteed pension of up to Rs 3,000 per month at the age of 60. There will be a fixed schedule of contributions with an unorganised sector worker joining the scheme at age 29 having to contribute only Rs. 100 month till 60 years of age. On the other hand, those joining the scheme at age 18 years will have to only pay Rs. 55 per month till 60 years of age to receive the same benefit.
- Government co-contribution will be available i.e. the government will deposit a matching amount into the subscriber’s pension account.
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Budget Allocation
An allocation of Rs 500 crore has been made for the Pradhan Mantri Shram Yogi Maan Dhan Yojana in the budget. Budget 2019 also made a provision for additional funds to be allocated to this scheme at a later date.
No Tax Deduction Benefit
No tax deduction or exemption has been announced in the budget for the Pradhan Mantri Shram Yogi Maan Dhan Yojana.
Atal Pension Yojana or Pradhan Mantri Shram Yogi Maan Dhan Yojana?
It is unclear how this scheme will affect the future of the Atal Pension Yojana (APY) which is also a government pension scheme for the unorganised sector. APY has more than 1 crore enrolled subscribers. APY offers a guaranteed pension of up to Rs 5,000 per month on fixed monthly contributions which start as low as Rs 42 per month. APY is open to all citizens of India from the age of 18. Subscribers get the APY pension from age 60.
You can read more about APY here.