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Pradhan Mantri Shram Yogi Maandhan Yojana
“PM-SYM will assure monthly pension for the enrolled unorganized sector workers during their old age. It is for the first time since independence that such a scheme is envisaged for the crores of workers engaged in the informal sector.” – PM Shri Narendra Modi
Pradhan Mantri Shram Yogi Maandhan (PM-SYM), is a voluntary and contributory pension scheme launched by the Government of India to provide social security to unorganised workers. This scheme ensures a minimum monthly pension of Rs. 3,000 after the age of 60 for workers who belong to the unorganised sector and have a monthly income of up to Rs. 15,000. The scheme is a tribute to the workers in the Unorganized sectors who contribute around 50 per cent of the nation’s Gross Domestic Product (GDP).
Unorganized Workers are mostly engaged as home-based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, rickshaw pullers, landless laborers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio-visual workers or workers in similar other occupations. As per the e-Shram portal, there are over 30.51 crore unorganised workers registered, as on 31 December 2024.
Key Features of PM-SYM
The Pradhan Mantri Shram Yogi Maandhan scheme provides numerous benefits, ensuring financial security in old age for unorganised sector workers.
• Minimum Assured Pension: Rs. 3,000 per month after 60 years of age.
• Government Contribution: The Government of India matches the worker’s contribution on a 1:1 basis.
• Voluntary and Contributory: The scheme is voluntary, allowing workers to contribute based on their affordability and requirement.
• Family Pension: If the beneficiary passes away, the spouse receives 50% of the pension amount as a family pension. Family pension is applicable only to spouse.
• Exit Provisions: Participants can exit the scheme under specified conditions (detailed in section 9).
• Easy Enrolment: Eligible workers can register at Common Service Centres (CSCs) or through the Maandhan portal.
• Fund Management: The scheme is administered by LIC, ensuring financial stability and credibility.
Eligibility Criteria
To enroll in PM-SYM, individuals must meet the following eligibility conditions:
• Age Requirement: 18 to 40 years.
• Income Limit: Monthly income should be Rs. 15,000 or less.
• Unorganised Sector Employment: Workers engaged in professions such as:
• Street vendors, rag pickers, rickshaw pullers
• Construction workers, daily wage labourers
• Agricultural workers, beedi workers
• Domestic workers, weavers, artisans, fishermen, leather workers, etc.
• Exclusion Criteria:
• Should not be covered under the Employees’ Provident Fund (EPF), Employees’ State Insurance Corporation (ESIC), or National Pension Scheme (NPS).
• Should not be an income taxpayer.
• Should not be receiving benefits from any other government pension scheme.
• Documents Required:
• Aadhaar Card
• Savings bank account or Jan Dhan account details with IFSC
• Mobile number
List of professions/occupations covered under this scheme can be accessed at: (https://labour.gov.in/list-professions-occupations-covered)
Contribution Structure
The contribution amount varies based on the age at the time of enrolment. The earlier a worker enrolls, the lower the monthly contribution.
Upon reaching 60 years of age, beneficiaries start receiving a fixed pension of Rs. 3,000 per month for their lifetime.
Enrolment Process
Enrolment in PM-SYM is facilitated through Common Service Centres (CSCs) across India. The steps include:
• Visit a CSC with Aadhaar and a savings bank account.
• Provide biometric authentication using Aadhaar.
• Fill the online registration form.
• First subscription is to be paid in cash.
• Choose the auto-debit facility from the bank account.
• Receive a PM-SYM card upon successful enrolment.
All the Labour offices of State and Central Governments, all the branch offices of LIC, the offices of ESIC/EPFO will act as Facilitation Centres to give full information to the unorganised workers about the Scheme.
Implementation and Current Status
The steps taken by government to ensure that the benefits of the scheme reach the unorganized sector workers are:
• Holding periodic review meeting with States/ UTs.
• Regular meeting with state Common Services Centre (CSC) heads.
• Launch of new features such as Voluntary Exit, Revival Module, Claim Status and Account Statement.
• Extension of revival of dormant accounts from 1 year to 3 years.
• Two-way integration of PM-SYM and e-Shram.
• SMS campaign to create awareness.
• Communication with Chief Secretaries of States/UTs regarding enrolment under PM-SYM scheme.
• Launch of Donate-a-Pension Module to encourage the employer to pay the premium of their staff under PM-SYM pension scheme and increase the enrolment.
Exit and Withdrawal Provisions
Considering the hardships and erratic nature of employability of unorganised workers, the exit provisions of scheme have been kept flexible.
• Exit Before 10 Years: If a worker exits the scheme before 10 years, the contributed amount is refunded with savings bank interest rate.
• Exit After 10 Years but Before 60 Years: The beneficiary receives his/her share of contribution along with accumulated interest as actually earned by fund or at the savings bank interest rate, whichever is higher.
• Death Before 60 Years or Permanent Disability caused by an accident:
• The spouse can continue the scheme or
• Withdraw the contributed amount with interest as actually earned by fund or at the savings bank interest rate whichever is higher.
• Death After 60 Years: The spouse receives 50% of the pension as a family pension.
• After the death of subscriber as well as his/her spouse, the entire corpus will be credited back to the fund.
Situation of Default: If a subscriber has not paid the contribution continuously, he/she will be allowed to regularize his contribution by paying entire outstanding dues, along with penalty charges, if any, decided by the Government.
Conclusion
PM-SYM is a landmark initiative that provides financial security to millions of unorganised workers. By ensuring a monthly pension of Rs. 3,000, it helps workers lead a dignified life post-retirement. With large number of enrolments and ongoing promotional efforts, PM-SYM aims to provide universal pension coverage, creating a more inclusive social security framework in India.