Mega scheme for unorganised sector
Finance Minister Piyush Goyal Friday announced launch of Pradhan Mantri Shram Yogi Mandhan (PMSYM) scheme to provide unorganised workers an assured monthly pension of Rs 3,000 after 60 years of age.
The scheme will attract matching contribution of Rs 100 per month from government as well as from workers.
"We are launching Pradhan Mantri Shram Yogi Mandhan today. The scheme will provide assured monthly pension of Rs 3,000, with contribution of 100 rupees per month, for workers in unorganised sector after 60 years of age," Goyal said while presenting the Interim Budget for 2019-20.
The minister informed the House that the government will also provide a matching contribution of Rs 100 for every unorganised workers covered under the scheme, which is expected to benefit 10 crore workers in next five years.
He said,"The scheme will benefit 10 crore workers in unorganised sector, may become the world's biggest pension scheme for unorganised sector in five years". He said that there are around 42 crore unorganised sector workers, which contribute toward the growth of national economy.
The minister also informed the Lok Sabha that the government is providing Rs 500 crore initially for the scheme in the Budget.The workers under the scheme will have to contribute Rs 100 per month and equal contribution would be paid by the government.The scheme will cover all those unorganised sector workers like autorikshaw driver, whose income is up to Rs 15,000 per month.
The government had doubled the tax free gratuity to Rs 20 lakh in March last year. Hiking gratuity limit will enable employers to pay higher tax free gratuity to their employees who have worked for them for more five years.
Finance Minister Piyush Goyal on Friday said the Narendra Modi-led government had the decisive mandate to continue structured reforms and it was moving towards realising a "New India by 2022".
Presenting the budget for 2019-20 in the Lok Sabha, Goyal said, "We are moving towards realising New India by 2022." "We have got decisive mandate to continue structured reforms. We have reversed policy paralysis," he added.
Prime Minister Narendra Modi-led government's sixth and final budget before the polls due by May is an interim budget or a 'Vote on Account'.Goyal stepped in as interim finance minister after Arun Jaitley had to fly to New York for medical treatment.Goyal began the interim budget speech by wishing Union Minister Arun Jaitley speedy recovery and good health.
Earlier, the Cabinet had approved the Interim Budget for 2019-20.
He announced an impressive pension scheme for unorganised sector, a big reform push ahead of General elections.
Pradhan Mantri Shram Yogi Mandhan, to provide assured monthly pension of 3000 rupees per month, with contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age.
Shilpi Agarwal, Partner, TASS Advisors says, " Announcement of pension scheme for unorganised sector is a good move. Will provide social security to general public eventually."
1. Scheme named Pradhan Mantri Shram Yogi Mandhan
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Assured monthly pension of 3000 rupees per month, with contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age. The minister also informed the Lok Sabha that the government is providing Rs 500 crore initially for the scheme in the Budget .The workers under the scheme will have to contribute Rs 100 per month and equal contribution would be paid by the government .The scheme will cover all those unorganised sector workers like autorikshaw driver, whose income is up to Rs 15,000 per month.
2. Likely to be biggest pension scheme in the world
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Considering close to 90% of workforce in India are in the uroganised sector, this scheme is likely to impact huge number of people in the country, and will give them the much needed economic safety net after retirement.
FM Piyush Goyal on #Budget2019 pic.twitter.com/xlS4taEKSt
— PIB India (@PIB_India) February 1, 2019
The minister informed the House that the government will also provide a matching contribution of Rs 100 for every unorganised workers covered under the scheme, which is expected to benefit 10 crore workers in next five years.
3. Expert hails step
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Shilpi Agarwal, Partner, TASS Advisors says, " Announcement of pension scheme for unorganised sector is a good move. Will provide social security to general public eventually."
She also said, "3% tax benefit on women owmed MSMEs which indicates strong movement towards women empowerment
Increase in gratuity limit is quite encouraging and provides a relief to salaried class. It will result in tax saving up to 300,000 at the time of retirement."
Rs. 1 crore loan can now be obtained under 59 minutes: FM Shri Piyush Goyal #Budget2019 https://t.co/bwq6afFrrs
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75% of woman beneficiaries under Pradhan Mantri Mudra Yojana, 26 weeks of maternity leave and the Pradhan Mantri Matritva Yojana, are all empowering women in the country, said Goyal
