The government of India in today's interim budget for fiscal 2019 has announced a major pension scheme for the employees of both organized and unorganized sector. This is one of the major announcements during today's budget speech by the Union Minister Piyush Goyal.

The government in its unique move has announced a mega pension scheme named as Pradhan Mantri Shram Yogi Mandhana Yojna which is aimed at covering the employees who are employed in both the unorganized as well as organized sector and having a monthly income of Rs 15,000. The scheme assures a monthly pension of Rs 3,000 post-retirement at the age of 60 years.

This move is likely to benefit people who work as electricians, household helps, barbers, plumbers, drivers, plumbers, carpenters, and so on whose earnings are less than the threshold salary under the scheme.

As per the scheme, the employees have to make a minimum contribution of Rs 55, beginning from the age of 18 till 60 years to avail the benefits of the scheme. The government of India will make an equal contribution to the pension corpus over the period of time till the individual attains 60 years of age (retirement age).

Currently, the country has more than 500 million workforces and more than 90% of people are working in unorganized sector who are often deprived of not just the minimum wages but they also lack social security in the form of health insurance, pensions and so on.

Till date, only government employees in India had the benefit of availing government's pension schemes. This particular scheme is in addition to the existing Atal Pension Yojana.

The government has allocated Rs 500 crore in its interim budget 2019 for this scheme which will help lakhs of people who are working in organized and unorganized sector.