Most workers in India’s unorganised sector, such as street vendors, rickshaw pullers, domestic workers and farm labourers, have no pension. The Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme aims to change that. It was launched in 2019 by the Ministry of Labour and Employment. Here is a guide.
What the scheme offers
- A guaranteed minimum pension of Rs 3,000 a month after the age of 60.
- If the subscriber dies after pension starts, the spouse gets a family pension of 50 percent.
- It is a voluntary and contributory scheme.
Who can join
- Unorganised workers aged 18 to 40 years.
- Monthly income of Rs 15,000 or less.
- Should have a savings bank account and Aadhaar.
- Should not be a member of EPFO, ESIC or NPS funded by the government.
- Should not be an income tax payer.
Contribution
The worker pays a monthly contribution based on age at entry, ranging from Rs 55 at age 18 to Rs 200 at age 40. The central government adds an equal amount to the worker’s pension account. Contributions are deducted automatically from the bank account through auto debit until the age of 60.
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How to enrol
- Visit a Common Service Centre (CSC) with your Aadhaar card and bank passbook or account details.
- The CSC operator fills in your details and verifies with Aadhaar.
- Pay the first contribution in cash.
- Sign the auto debit mandate.
- You receive a Shram Yogi Pension Card.
Self enrolment is also possible on the Maandhan portal.
Exit rules
- If a worker exits within 10 years, they get back their own contribution with savings bank interest.
- If they exit after 10 years but before 60, they get their share with the interest earned by the fund or savings bank interest, whichever is higher.
- If the subscriber dies before 60, the spouse can continue the scheme or exit with the contribution and interest.
Who manages the fund
The pension fund is managed by the Life Insurance Corporation of India (LIC), which also handles pension payouts.
Tips for subscribers
- Keep enough balance in your bank account so the auto debit does not fail.
- If a contribution is missed, you can regularise it later by paying the dues with any penalty set by the government.
- Keep your Shram Yogi Pension Card and enrolment details safe.
- Update your nominee and mobile number if they change.
Bottom line
For a small monthly amount matched by the government, PM-SYM promises unorganised workers Rs 3,000 a month in old age. Enrol early at a CSC, since the contribution is lowest at a young age.
Source / स्रोत: Maandhan portal, Ministry of Labour and Employment, Ministry of Labour and Employment, Press Information Bureau
