How is the current pension scheme in India?
The pension system in india is currently divided into many pieces, that is, there are different schemes for every sector and class. This system is as important as it is complex. If we talk about salaried employees, then there is the Employees Provident Fund Organization (EPFO) for them. This is a mandatory scheme, in which both the employee and his employer (ie the government) together deposit money, so that after retirement the employee can get a fixed amount. This pension is a way to save for their future.
Apart from this, the National Pension System (NPS) is also an option. This is a voluntary scheme, that is, in this the employees have to deposit money themselves for their pension. This scheme is for employees of both government and private sectors, in which on investing, the employees also get the benefit of tax exemption and market benefits.
What for those working in the unorganized sector?
Now let's talk about those who work in the unorganized sector, like laborers, cart pushers, or domestic workers. For them, there is Atal Pension Yojana (APY). Under this scheme, these workers get a pension of Rs 1,000 to Rs 5,000 after retirement. This amount depends on the savings made by them.
The Pradhan Mantri Shram yogi Maandhan (PM-SYM) scheme is for those who work on the road, are domestic workers, or work as small traders. Under this scheme, they get a pension of Rs 3,000 per month, which can make their life a little comfortable.
Apart from this, the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) is for farmers, which gives them a pension of Rs 3,000 per month after retirement, so that they can feel financially secure in their old age.
Although people in india get some degree of security through all these schemes, still people feel the need for a pension system that covers everyone in an equal manner. The current schemes are for different classes, but there is a need for a comprehensive pension scheme which gives equal benefits to all.
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