The workers earning less than Rs 15,000 a month are eligible to join the scheme, which provides an assured pension of Rs 3,000 per month after 60 years of age.

New Delhi: Finance minister Piyush Goyal on Friday announced a new pension scheme for unorganised workers.

The workers earning less than Rs 15,000 a month are eligible to join the scheme, which provides an assured pension of Rs 3,000 per month after 60 years of age.

The scheme — Pradhan Mantri Shram-Yogi Maandhan (PMSYM)  — is expected to provide social security to 10 crore workers in the unorganised sector within next five years making it one of the largest pension schemes in the world.

“An unorganised sector worker joining pension yojana at the age of 29 years will have to contribute only Rs 100 per month till the age of 60 years. A worker joining the pension yojana at 18 years, will have to contribute as little as Rs 55 per month only,” said finance minister Piyush Goyal.

Mr Goyal said the government will make a matching contribution to the fund.

“A sum of Rs 500 crore has been allocated for the scheme. Additional funds will be provided as needed. The scheme will alsobe implemented from the current year,” he said.

“Half of India's GDP comes from the sweat and toil of 42 crore workers in the unorganised sector working as street vendors, rickshaw pullers, construction workers and in numerous other similar occupations. Domestic workers are also engaged in big numbers. We must provide them comprehensive social security coverage for their old age,” he said.

Listing other achievement of the government, he said, “The New Pension Scheme (NPS) has been liberalised. Keeping the contribution of the employee at 10 per cent, we have increased the government contribution by 4 per cent making it 14 per cent”.

Maximum ceiling of the bonus given to the labourers has been increased from Rs 3,500 per month to Rs 7,000 per month and the maximum ceiling of the pay has been increased from rs 10,000 per month to Rs 21,000 per month, the minister said.