Budget 2019: What is Pradhan Mantri Shram Yogi Mandhan?

New Delhi, Feb 1: Interim Finance Minister Piyush Goyal, while presenting Budget 2019, announced the launch of a social security pension scheme for workers in the unorganised sector, called the 'Pradhan Mantri Shram Yogi Mandhan'.

Under the scheme, an assured monthly pension of Rs 3,000 per month will be provided to workers in the unorganised sector after 60 years of age. However, to avail of the scheme, workers will have to contribute Rs 100 month.

He further said the scheme, which would benefit 10 crore workers, would be implemented from this fiscal itself. "It may become the world's biggest pension scheme for the unorganised sector in five years," he said. Goyal also announced an increase of gratuity limit from Rs 10 lakh to Rs 30 lakh from the next fiscal.

The new pension scheme will run alongside the existing Atal Pension Yojana, which guarantees returns post-retirement. He said 50 per cent of the country's Gross Domestic Product (GDP) comes from "sweat and toil of 42 crore workers in the unorganised sector."

A sum of Rs 500 crore has been allocated for the Scheme. Additional funds will be provided as needed. The scheme will also be implemented from the current year.