India plans to launch a universal pension plan that will be open to all Indian nationals, including those working in the informal sector, according to local broadcaster NDTV, citing sources from the labour ministry.
Contributions to the plan, called the New Pension Scheme, will be voluntary. The labour ministry is now preparing the proposal document and upon completion, will consult with stakeholders NDTV reports on February 26.
It says some of India’s smaller pension schemes may be included into the new plan.
The report does not give a timeline for the scheme’s launch.
Spokespersons for the labour ministry did not immediately respond to questions from Asia Asset Management.
More than 400 million people were working in the informal sector in India in 2023, according to the National Statistical Office of India. They hold jobs such as construction workers, street vendors, e-hailing drivers and delivery bikers.