New Delhi, Feb 1 (KNN) Eying towards wooing the unorganized sector workers, Union Finance Minister Piyush Goyal in his budget speech announced a Rs 500 crore mega pension scheme for unorganized sector.

A pension scheme is being launched called Pradhan Mantri Shram Yogi Mandhan, to provide assured monthly pension of 3000 rupees per month, with the contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age, the Finance Minister announced.

The move is likely to benefit household helps, drivers, plumbers, electricians, barbers and other workers earning less than the threshold salary under the scheme.

Speaking with KNN India, Lawyer & Labour Issues Expert, Mukesh Saxena has appreciated this move as it will help large number of old people above 60 years age in the country.

He said “It is like old age pension scheme that will benefit large number of age old workers in unorganized sector.”

Those earning above Rs 15,000 are covered under the Employees’ Provident Fund Organisation or the Employees’ State Insurance Corporation and hence will be out of the ambit of the scheme in the first phase.

He said the high growth and formalization of economy have resulted in increased EPFO membership by 2 crore in last two years.

“EPFO shows two crore accounts in two years. This shows formalisation of the economy. When there is such a high growth, jobs are created," Piyush Goyal said.

The tax-free gratuity has been increased from Rs 10 lakh to Rs 20 lakh, Goyal said.

The Finance Minister, who has taken charge after Union Minister Arun Jaitley went to US for his treatment, said, "50 per cent of the GDP comes from sweat and toil of 42 crore workers in unorganised sector."

Meanwhile, for the soldiers, Goyal said, "Our soldiers who protect our borders are the pride and honour of the nation. In our election manifesto we promised one rank, one pension. We have resolved this and disbursed over Rs 35,000 crore in the last few years for our jawans." (KNN Bureau)