Unveiling her programme for government in the coming year, the First Minister told MSPs that the concept of the state making regular payments to all Scots "is an idea that merits deeper consideration".
Charity chief Keith Robson said a "new approach" is needed to "reduce the stigma around accessing benefits", and said the Government must ensure their plans "really delivery for Scotland's older people".
Whilst appearing to back away from holding an independence referendum anytime in the near future, the first minister said she would begin to set out the case for further extending the powers of the Scottish Parliament in areas such as immigration, social security, employment rights and trade.
The UK-wide 1% pay cap has been in place since 2013, following a two-year freeze on rises, but reports have claimed UK Prime Minister Theresa May will also scrap it.
Team Sky's Chris Froome closes on Vuelta a Espana victory
Four bonus seconds to Nibali that's alright - I'll take that for today and safe my legs for tomorrow. Trentin also won the fourth and 10th stages.
Sturgeon said we were living in a "golden age of film and TV production" in Scotland, with considerable opportunities over the next decade.
Read the official press release with more details on the Scottish Government's policies here. "Climate change innovation is at the heart of her personal agenda", said one source.
This Tuesday, Scotland's First Minister Nicola Sturgeon outlined local government's plans to end the sale of new diesel and petrol cars by 2032.
Scotland has been slow to phase in electric vehicles.
Friends of the Earth Scotland Director Dr Richard Dixon commented: "This is the greenest programme for government in the history of the Scottish Parliament".
Opposition parties called on the Scottish Government to go further to tackle climate change and austerity, and criticised the SNP for failing to move quickly enough on legislation proposed a year ago.
"On clean energy, we see a commitment to carbon capture, which remains a speculative technology and which won't help us in the immediate years ahead, and we still don't have a ban on fracking".