New Delhi, Jan 15, 2024: In a bid to make the Atal Pension Yojana more attractive among the unorganized sector labourers, the Indian government is considering raising the minimum pension amount under this scheme. According to expert opinion employing the PFRDA viewpoint bigger payouts are required for it to make it look so fair when compared with organized workers’ schemes that have fallen out of season due to revenue earning.
Government sources have reported that such a proposal is being contemplated and an announcement may be made in either the upcoming Interim Budget or shortly thereafter.
The PFRDA, the regulator and developer of APY had before urged that the government should look back on what they are now offering as a guaranteed pension amount because there could be insufficiency which might lack attraction for potential subscribers. Deepak Mohanty, the Chairman of PFRDA in a statement made last September emphasized the need to hike it since value was as expected degrading with inflation over twenty years.
Wait for budget announcement amid concerns over scheme appeal.
Why is a Hike Needed?
APY was introduced in the year 2015 as a scheme which aims at providing social security benefits such as pensions, insurance and other similar facilities for workers from the unorganized sector amounting to about four hundred fifty million. Now, APY subscribers can have a guaranteed pension of only Rs 100-5,00 per month at age sixty depending upon their contributions during service life. On the other hand, it is also pointed out that these sums are not adequate for long-term sustainability regarding a good lifestyle.
The Government’s Dilemma
Granting a nod to the PFRDA’s suggestion, however; there may be some budgetary concerns faced by the Government. The financial commitment to increasing the guaranteed pension amount would be higher because each subscriber is currently paid either Rs1,000 per annum or half of the contribution by the government for five years. However, landing the necessary funds in terms of the Interim Budget could be a challenge.
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What’s Next?
Everyone is now looking forward to the presentation of an Interim Budget, which will be held on February 1 in one year. A final decision on pension increase has not yet been made; however, sources suggest that the government is considering this proposal. First launched in 2015 to serve millions, APY boasts over 63 million subscribers and Rs.38749 crore in assets under management is one of India’s most important initiatives to future-proof unorganized sector workers by providing for their retirement needs. A potential increase in the minimum pension could significantly boost its attractiveness and guarantee a more pleasant life for those receiving it.
