Introduction
India’s economic backbone rests significantly on its vast unorganised workforce, which contributes nearly 50% of the country’s GDP. However, these workers often lack access to formal social security benefits, making them vulnerable in their old age. To address this critical gap, the Government of India launched the Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme in the Interim Budget of 2019. This voluntary pension scheme ensures financial stability for millions of unorganised sector workers by providing them with a guaranteed monthly pension of ₹3,000 after the age of 60.
Context and Importance
The unorganised sector in India includes workers engaged in diverse informal occupations such as:
- Street vendors
- Domestic workers
- Agricultural laborers
- Construction workers
- Small shopkeepers and daily wage earners
By the end of 2024, approximately 30.51 crore unorganised workers had registered on the e-Shram portal, highlighting the vast number of individuals dependent on such social security initiatives. The PM-SYM scheme plays a crucial role in ensuring financial security and dignified post-retirement life for these workers.
Key Features of PM-SYM
The PM-SYM scheme offers several attractive benefits:
1. Minimum Assured Pension
- Beneficiaries receive a fixed monthly pension of ₹3,000 after they reach the age of 60.
2. Government Contribution
- The government matches the worker’s contribution on a one-to-one basis to ensure sustainability.
3. Voluntary and Flexible Participation
- Workers can choose their contribution amount based on their financial capability. The contribution varies with age, starting as low as ₹55 per month at 18 years and increasing with age.
4. Family Pension Benefits
- In case of the beneficiary’s demise, the spouse continues to receive 50% of the pension amount.
5. Exit and Withdrawal Provisions
- The scheme allows workers to exit under specific conditions, such as:
- Full refund of contributions with interest before 60 years in case of withdrawal.
- If a beneficiary dies before 60, their spouse can continue under the same scheme.
6. Simple and Accessible Enrolment
- Registration is hassle-free and can be done via:
- Common Service Centres (CSCs) across the country.
- Maandhan portal, offering digital enrolment.
7. Reliable Fund Management
- The scheme is managed by Life Insurance Corporation of India (LIC), ensuring transparency and security in pension disbursement.
Eligibility Criteria
To qualify for the PM-SYM scheme, an individual must meet the following requirements:
1. Age Limit
- The worker must be between 18 to 40 years old at the time of enrolment.
2. Income Limit
- The applicant’s monthly income must not exceed ₹15,000.
3. Employment Status
- The applicant must be working in the unorganised sector without access to formal pension benefits.
4. Exclusions
- Individuals already covered under the Employees’ Provident Fund (EPF), Employees’ State Insurance Corporation (ESIC), or National Pension System (NPS) cannot enroll.
- Income taxpayers and those receiving benefits from other government pension schemes are also ineligible.
Implementation and Administration
The Ministry of Labour and Employment administers the PM-SYM scheme in collaboration with:
- LIC (Life Insurance Corporation of India) – Managing the pension fund.
- Common Service Centres (CSCs) – Facilitating easy enrollment and access to the scheme.
This multi-agency approach ensures that the scheme reaches its target population efficiently and serves its intended purpose.
Conclusion
The Pradhan Mantri Shram Yogi Maandhan (PM-SYM) scheme is a landmark initiative in India’s social security framework. It provides financial independence, dignity, and security to unorganised sector workers who otherwise lack pension benefits. By offering a guaranteed pension, government support, and flexible participation, the scheme empowers millions of workers, ensuring they have a secure and stable future post-retirement.
As the government continues to expand social security coverage, PM-SYM stands as a model initiative in providing inclusive financial protection, reinforcing India’s commitment to welfare and economic security for all.