Budget 2019: Huge gift for the poor, pension for maids, drivers, plumbers

Pradhan Mantri Shram Yogi Mandhan will give monthly pension of Rs 3000, with contribution of Rs 100 a month.

BCCL
Pradhan Mantri Shram Yogi Mandhan will provide assured monthly pension of Rs 3000, with contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age.
In a move that can lure a large number of poor voters to the BJP, Interim Finance Minister Piyush Goyal announced a mega pension scheme for the workers in the unorganised sector.

Pradhan Mantri Shram Yogi Mandhan will provide assured monthly pension of Rs 3000, with contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age.

The move is likely to benefit household helps, drivers, plumbers, electricians, barbers and other workers earning less than the threshold salary under the scheme. The minimum guaranteed pension will benefit 100 million people earning a monthly salary less than Rs 15,000. The current minimum pension stands at Rs 1,000 per month for the organised workers. The scheme will cost the government Rs 500 crore.


Out of the total 500 million workforce, over 90% are unorganised workers who are often deprived of not just minimum wages but also any kind of social security, be it pensions or health insurance. Those earning above Rs 15,000 are covered under the Employees’ Provident Fund Organisation or the Employees’ State Insurance Corporation and hence will be out of the ambit of the scheme in the first phase.
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