Pradhan Mantri Shram Yogi Maan-Dhan

Last Updated on December 31, 2024 by Bharat Saini

The Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) is a transformative pension scheme introduced by the Ministry of Labour and Employment on February 15, 2019. This initiative caters to unorganised workers, who form a significant part of India’s workforce but often lack financial security for retirement. Designed to ensure a dignified life post-retirement, this scheme aims to benefit over 42 crore workers in India.

This comprehensive guide delves into the scheme’s benefits, eligibility, enrolment process, and its impact on the lives of unorganised workers.

Understanding Unorganised Workers

Unorganised workers include individuals engaged in occupations without formal employment benefits such as provident funds or pensions. They include:

• Home-based workers: Tailors, artisans, small-scale manufacturers.
• Street vendors: Selling goods in public spaces.
• Domestic workers: Maids, cooks, and caregivers.
• Agricultural labourers: Farmers and landless labourers.
• Construction workers and beedi rollers: Manual labourers engaged in building infrastructure or rolling beedis.

These individuals often face economic insecurity due to erratic incomes and the absence of long-term savings plans. PM-SYM provides them a solution for a financially stable retirement.

Eligibility Criteria for PM-SYM

To qualify for PM-SYM, workers must:

1. Earn ₹15,000 or less per month.
2. Be aged between 18 and 40 years.
3. Not be covered under:
   • New Pension Scheme (NPS)
   • Employees’ State Insurance Corporation (ESIC)
   • Employees’ Provident Fund Organisation (EPFO)
4. Not be an income tax payer.

Key Benefits of PM-SYM

1. Minimum Assured Pension

Enrolled workers receive a guaranteed monthly pension of ₹3,000 after turning 60. This amount ensures financial independence and stability.

2. Family Pension

• If the subscriber passes away, their spouse receives 50% of the pension as family pension.
• This benefit applies only to the spouse.

3. Low Contribution Rates

Workers contribute small monthly amounts based on their age at enrolment. For instance:

• At 18 years: ₹55 per month.
• At 29 years: ₹100 per month.
• At 40 years: ₹200 per month.

The government matches the contribution, effectively doubling the investment.

How to Enroll in PM-SYM

1. Visit Community Service Centres (CSCs)

Eligible workers can visit the nearest CSC with their Aadhaar card and bank details. The first contribution must be paid in cash to activate the account.

2. Online Registration

The scheme also allows self-registration through the PM-SYM web portal or mobile app using Aadhaar and bank account details.

3. Facilitation Centres

Branch offices of LIC, EPFO, ESIC, and state labour offices act as facilitation centres to assist workers with enrolment and information.

Fund Management and Withdrawal Process

PM-SYM is managed by the Life Insurance Corporation of India (LIC), which oversees fund management and pension payouts. The scheme’s withdrawal provisions are flexible to accommodate the unpredictable nature of unorganised work:

1. Exit within 10 years: The subscriber’s contributions are refunded with savings bank interest rates.
2. Exit after 10 years but before 60: Contributions are refunded with accumulated interest or savings bank interest rate, whichever is higher.
3. In case of death or disability:
   • The spouse can continue the scheme or withdraw contributions with interest.
   • Upon the death of both the subscriber and spouse, the entire corpus reverts to the fund.

Real-Life Impact: How PM-SYM Transforms Lives

Case Study: Rekha Devi, Domestic Worker

Rekha Devi, a 35-year-old domestic worker from Bihar, joined PM-SYM with a monthly contribution of ₹150. By the time she turns 60, Rekha will receive a pension of ₹3,000, ensuring financial stability and independence during her retirement years.

Why PM-SYM is a Game-Changer

1. Affordable Contributions: Starting at just ₹55 per month, PM-SYM is one of the most affordable pension schemes in India.
2. Government Support: The 50:50 contribution match significantly enhances returns for subscribers.
3. Flexibility: The scheme accommodates the erratic income patterns of unorganised workers.
4. Tax Benefits: Contributions qualify for tax deductions under Section 80C, making it a financially sound choice.

Frequently Asked Questions (FAQs)

1. Can I enroll if I already contribute to EPFO or ESIC? No, PM-SYM is exclusively for workers not covered under EPFO, ESIC, or NPS.

2. What happens if I miss a contribution? Missed contributions can be regularised by paying outstanding dues along with a nominal penalty.

3. Are there other government pension schemes for workers? Yes, the Atal Pension Yojana (APY) is another option available for unorganised workers.

4. Can I withdraw my contributions early? Yes, the scheme has flexible withdrawal provisions based on the duration of participation.

Conclusion

The Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) scheme is a beacon of hope for unorganised workers in India. By offering affordable contributions, government-matched benefits, and a secure pension, it paves the way for financial independence and dignity in retirement.

If you’re a domestic worker, street vendor, or agricultural labourer, PM-SYM is your ticket to a secure future. Enroll today and take the first step towards a brighter tomorrow!