Pension
Topic: Employment, Unemployment and Informalisation · NCERT: Class 10, Ch 2 "Sectors of the Indian Economy"
Meaning
A pension is a regular payment, usually monthly, that a person receives after retirement. It gives old people an income when they can no longer work. It is part of social security, meaning the protection a worker gets against old age, illness and other risks. Traditionally only organised-sector workers got pensions. Schemes now try to extend pensions to unorganised workers too.
Example
A retired government clerk gets a pension every month. For unorganised workers, PM-SYM (2019) offers a contributory pension of ₹3,000 a month from age 60. "Contributory" means the worker also pays into it. Atal Pension Yojana (2015) is another pension option.
Don't confuse with
- Gratuity: this is a one-time lump sum paid on retirement, resignation or death. A pension is paid regularly.
- Provident fund: this is a savings fund built by employer and employee contributions and withdrawn as savings. A pension is a regular income stream.
Related concepts
- Organised sector
- Unorganised sector
- Job security
- Overtime
- Paid leave
- Provident fund
- Gratuity
- Social security
- Trade unions
- Collective bargaining