The central government is seriously considering increasing the social security cover for unorganized workers. The government is preparing to take a major step to meet inflation and post-retirement expenses. The central government is considering increasing the retirement pension amount under the Atal Pension Yojana (APY). The Modi government is considering increasing the minimum pension limit to ₹10,000 per month. Mint has reported this based on information received from officials.

Unorganized workers lack job security. They don't have a fixed salary. They don't receive social security benefits like pensions, pensions, or vacation benefits. Unorganized workers constitute approximately 90 percent of the country's working class. They include domestic workers, laborers, the self-employed, and other workers.

What does the government say?

The Atal Pension Scheme was launched in May 2015. Its purpose is to provide financial assistance to unorganized sector workers, farmers, shopkeepers, and small businessmen in their old age. The scheme aims to provide a fixed monthly pension of ₹1,000 to ₹5,000 after the age of 60. However, this amount seems insufficient considering rising inflation.

What is the new proposal?

The Finance Ministry and the Pension Fund Regulatory and Development Authority (PFRDA) have jointly prepared a proposal. Consequently, it has been suggested to increase the maximum pension limit from Rs 8,000 to Rs 10,000 per month. It is claimed that this new change will not only make the scheme more attractive but will also help combat rising inflation.

How many members are there now?

The Atal Pension Scheme currently has over 90 million members. However, more than half of these members have stopped making regular contributions. In the financial year 2025-26, the highest number of new members has joined so far, at 13.5 million. According to the government, increasing the maximum retirement amount limit will encourage new members to join and prevent existing members from leaving the scheme.

PC:Rochak Khabre