PM SHRAMYOGI MANDHAN YOJANA
The Pradhan Mantri Shram Yogi Mandhan Yojana (PM-SYM) is a pension scheme designed to provide old-age security for unorganized sector workers in India. The scheme ensures a minimum assured pension to individuals working in sectors such as street vending, agriculture, construction, and other informal jobs. PM-SYM is a significant step towards providing social security to the unorganized workforce, which forms the backbone of India’s economy.
- Launched by: Ministry of Labour and Employment
- Implemented by: Life Insurance Corporation of India (LIC) and CSC e Governance Services India Limited (CSC SPV)
RECENT BUDGET ALLOCATION
- In the Union Budget for 2025-26, the allocation for PM-SYM was increased by 37%, signaling the government’s emphasis on enhancing the reach of the scheme and providing greater social security benefits.
- This increase in funding will help enroll more workers and improve the pension payouts over time, aligning with the government’s vision of inclusive social security for all workers.
OBJECTIVES OF PM-SYM
The primary goal of PM-SYM is to ensure old-age protection and social security for the unorganized sector workers, many of whom do not have access to formal pension schemes such as EPFO, ESIC, or NPS. It aims to:
- Provide financial support after the age of 60 years.
- Ensure retirement security for millions of unorganized sector workers.
- Offer a voluntary and contributory pension scheme for informal workers.
ELIGIBILITY CRITERIA
To enroll in PM-SYM, an individual must meet the following criteria:
- Indian Citizenship: The person must be a citizen of India.
- Age Group: 18-40 years (applicable at the time of joining the scheme).
- Income: Monthly income should be below ₹15,000.
- Non-Eligibility for Other Pension Schemes: The individual must not be a member of EPFO, ESIC, or NPS (government-sponsored pension schemes). This targets workers who are outside the formal sector.
TARGET GROUP:
Workers in informal sectors, including street vendors, construction workers, agriculture workers, carpenters, handloom weavers, auto-rickshaw drivers, and others involved in small-scale work.
KEY FEATURES OF PM SYM
The PM-SYM pension scheme comes with the following important features:
a) Voluntary and Contributory Nature
- The scheme is voluntary, meaning workers can choose to opt-in based on their willingness.
- It is a contributory scheme, where both the subscriber and the Central Government contribute towards the pension fund.
b) Minimum Assured Pension
- Subscribers are assured a minimum pension of ₹3,000/month once they attain the age of 60 years.
c) Subscriber Contribution
- Contributions by the beneficiary are made through an auto-debit system from their savings bank account or Jan Dhan account.
- Age-Specific Contribution: The required monthly contribution depends on the subscriber’s age at the time of joining the scheme. The contributions will continue till the subscriber turns 60.
d) Matching Contribution by Central Government
- The contributions made by the subscriber will be matched by the Central Government on a 50:50 basis.
- This means for every rupee the subscriber contributes, the government contributes an equal amount.
e) Family Pension
- In case of the subscriber’s death while receiving the pension, the spouse of the subscriber is eligible to receive 50% of the pension as a family pension.
- If the subscriber dies before reaching the age of 60, the spouse can continue the scheme by paying regular contributions, or they can choose to exit the scheme with the accumulated balance.
f) Exit and Withdrawal Options
- Before 10 years of joining: The subscriber can exit the scheme at any time and receive their contributions back along with the savings bank interest.
- After 10 years but before 60 years: If the subscriber exits after 10 years of joining but before the age of 60, they will receive the accumulated contributions along with interest.
PENSION FUND MANAGEMENT
- The funds accumulated under the scheme will be managed and invested as per the guidelines laid out by the Government of India.
- The Life Insurance Corporation (LIC) serves as the Pension Fund Manager, responsible for the pension payouts.
IMPORTANCE OF PM SYM
- Old-Age Security for Informal Workers: PM-SYM addresses the gap in social security for informal workers who are not covered by any pension schemes like EPFO or NPS.
- Financial Inclusion: By leveraging auto-debit systems and Jan Dhan accounts, PM-SYM ensures that even workers in rural areas or those without a formal banking relationship can access the scheme.
- Social Welfare: It is a step towards inclusive growth, as it empowers unorganized workers with the financial support they need for old age, improving their quality of life.
- Economic Impact: By providing financial security to millions of workers, the scheme helps reduce dependency on family support in old age and ensures the dignity of workers post-retirement.
CONCLUSION
PM-SYM is a pioneering step to bring unorganized workers under the social security umbrella, offering them an old-age pension and ensuring a dignified retirement. With government support and a 50:50 matching contribution, the scheme ensures that both the individual and the state share responsibility for the worker’s old-age welfare. The rise in budgetary allocation highlights the government’s commitment to addressing the social security needs of the country’s largest workforce—the unorganized sector.
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