Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) scheme

Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) scheme

The Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme was announced in the Interim Budget of 2019 and is aimed at providing a minimum assured pension to the unorganized sector workers in India. The scheme was officially implemented from February 15, 2019, by the Ministry of Labour and Employment in collaboration with the Life Insurance Corporation of India (LIC) and Community Service Centers (CSCs). LIC serves as the Pension Fund Manager and is responsible for pension payouts.

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Objective and Target Audience

• Objective: To provide a minimum pension of Rs 3,000 per month to workers in the unorganized sector after they turn 60 years old.
• Target Audience: The scheme is specifically aimed at the unorganized sector workers who typically lack access to formal retirement savings and pension plans. These workers include:
  • Home-based workers
  • Street vendors
  • Mid-day meal workers
  • Head loaders
  • Landless laborers
  • And similar other occupations.
• Total Beneficiaries: The scheme targets around 42 crore workers in India from the unorganized sector.

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Eligibility Criteria
To be eligible for the PM-SYM, the following conditions must be met:

1. Income Limit: The worker must have a monthly income of Rs 15,000 or less.
2. Age Limit: The worker should be between the age of 18-40 years at the time of enrollment.
3. Other Requirements:
   • The subscriber must have a mobile phone, Aadhaar number, and a savings bank account or a Jan-Dhan account.
   • The subscriber should not be covered under any formal pension schemes such as the New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC), or the Employees’ Provident Fund Organization (EPFO).
   • The subscriber should not be a taxpayer.

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Key Features of PM-SYM

1. Minimum Assured Pension:
   • Subscribers will receive a minimum assured pension of Rs 3,000 per month after they turn 60 years old.
2. Family Pension:
   • If the subscriber dies before reaching 60 years, the spouse of the beneficiary will be entitled to receive 50% of the pension as a family pension.
   • This family pension will continue as long as the spouse remains alive.
3. Contribution Structure:
   • The subscriber’s contribution will be automatically deducted from their savings or Jan-Dhan account through an auto-debit facility.
   • The contribution works on a 50:50 basis: The subscriber contributes a specific age-related amount, and the Central Government matches this contribution.

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Contribution Details

• Age-wise Contributions: The amount a subscriber contributes to the scheme varies based on their age at the time of enrollment. For example, younger workers may contribute less than those who join closer to the age of 40.
• Matching Contributions: The Central Government contributes an equal amount to what the subscriber contributes.

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Exit and Withdrawal Provisions

• Before 60 Years:
  • If a subscriber dies before reaching the age of 60, the scheme allows the spouse to continue with the contributions or exit the scheme by following the exit and withdrawal provisions.
• Opting Out:
  • If a subscriber chooses to exit the scheme at any point before reaching 60 years, they can withdraw their contribution following the rules set out in the scheme.

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Implementation Agencies

1. Life Insurance Corporation of India (LIC):
   • LIC is the Pension Fund Manager and is responsible for ensuring the pension payouts once the subscriber turns 60 years old.
2. Community Service Centers (CSCs):
   • CSCs are the points of registration for the scheme, where eligible workers can enroll.

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Benefits of PM-SYM Scheme

• Social Security for Unorganized Sector:
  • PM-SYM provides a safety net for the vast majority of workers in the unorganized sector, who often do not have access to social security or pension schemes.
• Income Security in Old Age:
  • The scheme ensures that workers who are usually not covered by formal pension systems will have a reliable source of income once they retire.
• Support to Families:
  • In case of the subscriber’s untimely death, the spouse continues to receive a family pension, ensuring financial support for the family.

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Key Takeaways
The Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme is an important step towards providing social security to the unorganized sector workers in India. With the government’s matching contribution and the guaranteed pension, it aims to provide a minimum assured income for workers once they reach the age of 60, helping them maintain financial independence in their retirement years. The scheme’s focus on inclusive growth and financial security marks a significant effort to uplift some of the most vulnerable sections of society.

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