The National Pension System (NPS), introduced by the Union Government in 2004, aims to create a universal pension framework for all citizens. Initially intended for central government employees, the NPS was expanded in 2009 to include self-employed individuals and workers from the private sector through both corporate and all-citizen models. This expansion was aimed at ensuring a broader segment of the population would have access to pension benefits.
In addition, in June 2015, the government launched the Atal Pension Yojana (APY) to provide pension coverage to workers in the unorganised sector. With an estimated 550 million workers, the unorganised sector is a significant part of India's workforce, but many workers in this sector do not have access to basic social security benefits like pensions or health insurance. The APY aims to bridge this gap and offer financial security to a large segment of the population that has previously been excluded from formal pension schemes.
The government is now looking to reform the NPS in Budget 2025, with a focus on increasing pension coverage for gig workers and expanding the reach of these essential social security benefits.
