The scheme is for the unorganised sector and targets marginal workers with monthly income up to Rs 15,000.
It also promises an assured monthly pension of Rs 3,000 from the age of 60 years, in return for a nominal monthly contribution till then
Similar to existing voluntary schemes, the government will deposit an equal matching share in the pension account of the worker every month.
Around Rs 500 crore has been provisionally allocated for the new scheme, with implementation set to begin from the current year.
But, according to the experts, there maybe difficulty in calling it the “largest pension scheme in the world” looking at the previous pension schemes' performances.
Also, the new scheme will run parallel to the existing Atal Pension Yojana (APY)
APY was launched by the BJP Government in 2015 alongside the Swavalamban Scheme which was later phased out
As per the data from the Pension Fund Regulatory and Development Authority (PFRDA), both schemes have been able to cover 10.9 million Indians which is way below their targets.
Also, rights groups say contributory pension schemes are set to fail since those targeted find the monthly payments too high.
According to official statistics, half of India’s GDP comes from as many as 420 million workers in the unorganised sector.