Press Information Bureau

Government of India

Ministry of Finance

12-April-2012 15:18 IST

Extension of Swavalamban Scheme for the workers in the unorganised sector

The Union Cabinet today approved the extension of funding support for implementing the Swavalamban Scheme under the New Pension System (NPS) from present three years to five years for all subscribers who were enrolled during 2010-11, 2011-12 and 2012-13. The exit norms of the scheme have been relaxed to enable subscribers under Swavalamban to exit at the age of 50 years instead of 60 years, or a minimum tenure of 20 years, which ever is later.

The Cabinet has provided an additional funding support of Rs.2065 crore to Swavalamban Scheme upto 2016-17 towards Government’s co-contribution to the subscribers of Swavalamban Scheme and also for promotional and developmental activities. This will benefit 70 lakh workers of the unorganised sector till 2016-17. During the year 2010-12, a total of 3,01,920 subscribers were enrolled whereas during 2011-12 there are 1,93,238 subscribers till 9th March, 2012.

The Swavalamban Scheme is a co-contributory pension scheme whereby the Central Government would contribute a sum of Rs.1000 per annum in each NPS account opened having a saving of Rs.1000 to Rs.12000 per annum. The Swavalamban Scheme is targeted to benefit anganwadi workers, construction workers, occupational classes like weaver, fishermen, farmers, dairy workers etc.

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SH/RK/SK

Extension of pension co-contribution support expands subsidy period and relaxes exit norms for unorganised sector subscribers. Extension of central funding support for the Swavalamban co-contributory pension scheme under the New Pension System expands the period of government subsidy for subscribers enrolled in the specified enrollment window and increases budgetary provision for the Government's annual co-contribution to eligible NPS accounts and for promotional and developmental activities targeted at workers in the unorganised sector.