Role Of Atal Pension Yojana In Improving Social Security For Unorganised Sector Workers
In a country like India, where a significant portion of the workforce is engaged in the unorganised sector, social security often remains a distant dream. Introduced in June 2015, the Atal Pension Yojana (APY) aims to bridge this gap by offering a guaranteed pension scheme, administered by the Pension Fund Regulatory and Development Authority (PFRDA). This article delves into how APY has become a game-changer for social security, particularly for unorganised sector workers.
Features of APY Beneficial for Unorganised Workers
Guaranteed Pension
One of the cornerstone features of APY is the provision of a guaranteed monthly pension, ranging from Rs. 1,000 to Rs. 5,000, at the age of 60. This certainty of income can be a life-changer for workers in the unorganised sector, who often lack any form of retirement savings.
Tax Benefits
Contributions made to APY are also eligible for tax benefits, making it financially advantageous for subscribers.
Inclusive Eligibility
The scheme is open to all Indian citizens aged between 18 and 40 who possess an Aadhaar card and an active mobile number, making it accessible to a wide demographic.
Enrollment and Contribution Process Under APY
Enrolling in APY is a straightforward process. All that is needed is an Aadhaar card and an active mobile number. Contributions can be made monthly, quarterly, or half-yearly. For instance, an 18-year-old individual must pay a monthly fee of Rs. 42 to receive a minimum pension of Rs. 1,000.
Pension Amounts Assured Under APY
Depending on the subscriber's contribution, APY assures a minimum monthly pension ranging from Rs. 1,000 to Rs. 5,000. This assures income security at an age when earning capacity generally decreases.
Impact of APY on Social Security of Unorganised Workers
Since its inception, APY has seen remarkable growth in subscriptions. As of March 2021, the total number of APY subscribers increased to 3.02 crore from 2.23 crore in March 2020. This growth signifies the increasing awareness and adoption of social security measures among unorganised sector workers.
Role of Banks and Intermediaries
The success of APY could not have been possible without the efforts of Public and Private Banks, Regional Rural Banks, Payments Banks, Small Finance Banks, the Department of Posts, and State Level Bankers’ Committees. These institutions play a pivotal role in enrolment, administration, and awareness campaigns for APY.
Conclusion
The Atal Pension Yojana has proven to be a significant stride towards improving social security in India, especially for those employed in the unorganised sector. Its features like guaranteed pensions, tax benefits, and easy enrolment make it an appealing choice. The scheme has seen tremendous growth, with total enrolments crossing 5.25 crore and assets under management exceeding Rs. 28,434 crore. For a secure future and guaranteed income post-retirement, consider enrolling in APY through Federal Bank , your perfect banking partner that's digital at the fore and human at the core.