Pradhan Mantri Shram Yogi Maandhan (PMS-YM)

The Pradhan Mantri Shram Yogi Maandhan (PM- SYM) is a pension scheme offered by the Indian government that targets workers in the unorganised sector of the country. It is a voluntary scheme, meaning that workers can choose to enrol themselves and contribute a small amount to a pension fund that will provide them with benefits post-retirement. It was initiated by Ministry of Labour and Employment (India) of Government of India in February 2019.

Objectives of PM-SYM

The PM-SYM scheme was launched to provide pension security to workers in the country’s unorganised sector. This sector comprises several workers, such as washermen, rag pickers, domestic workers, rickshaw pullers, cobblers, street workers, and others holding similar occupations. PM-SYM is a Central Sector Scheme and comes under the aegis of the Ministry of Labour and Employment. It ensures protection in old age through a regular pension, which can be relied on after the retirement age of 60.

Also read: Shram Suvidha Portal

Benefits of the PM-SYM scheme

The PM-SYM scheme aims to benefit approximately 42 crore people in the country. Under the scheme, beneficiaries receive a regular and assured pension of Rs. 3,000 every month after turning 60. In addition, in the event of the death of a beneficiary, the spouse will be provided 50% of the monthly pension as a family pension.

Following are some of the benefits offered under the scheme:

• Minimum monthly assured pension of Rs. 3,000 after attaining 60 years of age.
• In the event of a beneficiary’s death, the spouse is assured 50% of the pension as a family pension.
• If a beneficiary dies before turning 60 and has made regular contributions, the spouse will be provided with the option to either enter and continue the scheme with further regular contributions or withdraw from the scheme under the set provisions.

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Eligibility criteria to enrol in PM-SYM

• You must be between 18 and 40 years of age
• You have a monthly income of Rs. 15,000 or less
• You must not be an organised sector worker covered under the:
  • Employees’ Provident Fund Organisation (EPFO)
  • Employees’ State Insurance Corporation (ESIC), or
  • National Pension System (NPS)
• You must not fall under the category of income tax payers
• You must have an Aadhaar card and a savings account

Also read: UAN portal

Contribution towards PM-SYM

A beneficiary under the scheme and the central government make contributions to the pension fund on a 50:50 ratio. Once a beneficiary has enrolled in the scheme, contributory deductions can be automatically made from their linked savings account and deposited in the pension account.

The specific contribution is to be paid regularly until you turn 60, after which benefits can be reaped. The individual contribution is determined on the basis of the age at which you, as a beneficiary, enrol. The details are mentioned below:

Enrolment process

If you are eligible to join the PM-SYM, you can easily enrol through self-certification by visiting a nearby Common Services Centre (CSC) Special Purpose Vehicle (SPV). You can also self-register on the PM-SYM web portal. When you visit the CSC SPV, you are required to provide your Aadhaar number, bank account details, and a mobile number to enrol. Please note here that you will also need to make the first payment towards the pension fund in cash, while the subsequent payments will be auto deducted from your account.

Unorganised workers can get information about the PM-SYM scheme from several sources:

• Life Insurance Corporation of India (LIC) offices
• ESIC offices
• EPFO offices
• Central and State labour departments

Exit process from PM-SYM

While there are several benefits of the PM-SYM scheme for the beneficiaries, it is also crucial to know about the withdrawal process:

• If you leave the scheme within 10 years of enrolling, your accumulated contribution will be returned to you along with interest at the prevailing savings interest rate.
• If you leave the scheme after 10 years of enrolling but before attaining 60 years of age, you will receive your accumulated contribution and interest either at the savings interest rate or the amount earned by the fund, whichever is higher.
• In case of a beneficiary’s untimely death before attaining the age of 60, the spouse is given a chance to enter and continue the scheme or exit. This option is only available if regular contributions have been made until that point. The spouse can normally continue the scheme through regular payments or exit with the accumulated contribution and interest either at the savings interest rate or the amount earned by the fund, whichever is higher.
  The same provision also applies in cases where a beneficiary becomes permanently disabled due to any reason.
• If the beneficiary and their spouse both die, the funds are injected back into the scheme.
• Even if you are unable to pay your contribution regularly, you can still regularise the scheme contributions by clearing all outstanding payments, including penalties.
• The government also retains the right to make decisions on other exit provisions as would be applicable.

Given the uncertain nature of work in the unorganised sector, the exit processes have been designed to accommodate varying needs.

Conclusion

The Pradhan Mantri Shram Yogi Maandhan scheme offers a much-needed lifeline for crores of unorganised workers in India. By providing a guaranteed monthly pension after retirement, the scheme addresses a critical gap in financial security for this often-overlooked segment of the workforce.

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