Pradhan Mantri Shram Yogi Mandhan Yojana (PMSYM) – Pension Scheme for Workers

Introduction

In a country with a vast informal workforce, the Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM) provides financial stability and security. Launched by the Government of India, this pension scheme is a lifeline for unorganized sector workers, ensuring they can maintain a dignified standard of living in their twilight years. This article provides a comprehensive overview of various aspects of PMSYM, including its features, benefits, eligibility criteria, application process and more, making it a one-stop source of information about this important initiative.

Also Read: Ayushman Bharat Yojana

Background and Objective of Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM)

India’s unorganized sector, which employs a significant portion of the workforce, often lacks formal social security means. Recognizing this gap and the need for financial security in old age for these workers, the Government of India introduced the PMSYM scheme. The primary objective of this scheme is to provide a minimum assured pension to the workers in the unorganized sector, ensuring that they can maintain a dignified standard of living in their twilight years.

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PM Sharan Yogi Mandhan Yojana at Glance

Below are some of the specifications of PM Sharan Yogi Mandhan Yojana:

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Eligibility Criteria for Pradhan Mantri Shram Yogi Mandhan Yojana (PMSYM)

To enrol in the PMSYM scheme, individuals must meet the following eligibility criteria:

• Age between 18 and 40 years.
• Monthly income of INR 15K or less.
• They are engaged in the unorganized sector, such as street vendors, rickshaw pullers, construction workers, agricultural workers, etc.
• Should not be covered under any other statutory social security schemes, such as the National Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC), or Employees’ Provident Fund Organization (EPFO).
• Should not be an income taxpayer.

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Key Features of Pradhan Mantri Shram Yogi Mandhan Yojana (PMSYM)

The Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM) is a social security scheme that provides old-age protection for workers in the unorganized sector. Here are the key features of the scheme:

• Voluntary and Contributory Pension Scheme: PMSYM is a voluntary and contributory pension scheme. It enables workers from the unorganized sector to contribute towards their future financial security. The government also matches the contribution, ensuring a shared responsibility in building a secure retirement corpus.
• Minimum Assured Pension: Under the scheme, eligible subscribers receive a minimum assured pension of INR 3K per month after attaining the age of 60 years. This amount provides a basic level of financial support, helping beneficiaries cover essential expenses.
• Contribution Details: The contribution amount varies depending on the age at which the individual joins the scheme. Contributions start as low as INR 55 per month for an 18-year-old and increase with age. The government matches the candidate’s contribution. For example, if a 29-year-old joins the scheme, both the individual and the government contribute INR 100 each per month.
• Family Pension: If the candidate dies while receiving the pension, the spouse is entitled to 50% of the pension amount as a family pension. This feature ensures continued support for the family in the absence of the primary beneficiary.
• Exit and Withdrawal from the scheme: Subscribers can exit the scheme under certain conditions:

1. If the exit occurs before 10 years, the subscriber’s share of the contribution, along with the accumulated interest, will be returned.
2. If the exit occurs after 10 years but before 60 years, the subscriber’s share of contribution, along with the accumulated interest and the accumulated interest on the government’s share, will be returned.
3. If the subscriber dies before 60, the spouse can continue with the scheme or exit, in which case the accumulated contributions will be returned.

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Benefits of Pradhan Mantri Shram Yogi Mandhan Yojana (PMSYM)

The Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM) provides several significant benefits, particularly for workers in India’s unorganized sector. Here are the primary benefits of the scheme:

• Financial Security in Old Age: PMSYM provides a reliable source of income post-retirement. It ensures financial security for the elderly who have spent their lives in the unorganized sector without any formal savings mechanism.
• Government Contribution: The government’s contribution to the pension fund significantly boosts savings, allowing individuals to accumulate a more substantial corpus for retirement.
• Simple and Transparent Process: The enrollment process for PMSYM is straightforward and transparent. It can be done through the Common Service Centres (CSCs) nationwide, making it accessible to all eligible workers.
• Tax Benefits: Contributions made towards PMSYM may be eligible for tax benefits under Section 80C of the Income Tax Act, providing an additional incentive for participation.
• Social Security for the Unorganized Sector: PMSYM addresses the critical need for social security in the unorganized sector. This segment has traditionally been neglected in terms of formal financial protection.

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Challenges and Criticisms Under Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM)

While PMSYM is a commendable initiative, it faces certain challenges and criticisms:

• Awareness and Accessibility: Despite the potential benefits, the target audience’s awareness of the PMSYM scheme remains low. Unorganized sector workers may not be fully aware of the scheme’s benefits and enrollment process.
• Sustainability and Financial Viability: The scheme’s long-term sustainability depends on the continued commitment of both the government and the subscribers. The financial viability of providing a minimum assured pension also poses challenges, especially considering the vast number of potential beneficiaries.
• Inflation and Pension Amount: Given inflation and the rising cost of living, the fixed pension amount of INR 3K per month may not be sufficient. The pension amount needs to be periodically revised to maintain its relevance.
• Inclusion of Diverse Occupational Groups: The unorganized sector is diverse, and ensuring that all eligible groups are adequately covered and enrolled in the scheme may be challenging.

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Future Prospects and Improvements Under Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM)

To enhance the effectiveness of the Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM), the following measures can be considered:

• Increased Awareness Campaigns: The government, along with NGOs and other stakeholders, should conduct widespread awareness campaigns to educate the target audience about the scheme’s benefits and enrollment process.
• Use of Technology: Leveraging technology, such as mobile apps and online portals, can simplify the enrollment process and make it more accessible to a broader audience.
• Periodic Review of Pension Amount: The government should consider periodic reviewing and adjustment of the pension amount to account for inflation and ensure it remains sufficient for the beneficiaries’ needs.
• Increased Involvement of Local Bodies: Local bodies, such as Panchayats and Municipalities, can play a crucial role in identifying eligible beneficiaries and facilitating the enrollment process.

Also Read: Ladli Behna Yojana Payment Status

Conclusion

The Pradhan Mantri Shram Yogi Maandhan Yojana is a significant step towards providing social security to India’s vast, unorganized workforce. By offering a minimum assured pension, the scheme helps ensure that workers in the informal sector can enjoy a dignified life post-retirement. While the scheme faces challenges, with proper awareness, technological integration, and periodic review, it can potentially transform the lives of millions of unorganized sector workers. As India continues to grow, initiatives like PMSYM are crucial in building an inclusive and equitable society where every citizen can have financial security and a dignified life in their later years.

Some Other Important Government Scheme Pages

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Ayushman Bharat Card

Stand Up India Scheme

Swasthya Sathi Scheme

Pm Internship Scheme

Benefits of NREGA

Bangla Shasya Bima

Pradhan Mantri Shram Yogi Mandhan Yojana (PMSYM) FAQs

1. What is the Pradhan Mantri Shram Yogi Maandhan Yojana (PMSYM)?

Ans. PMSYM is a government-backed pension scheme aimed at providing old-age security to workers in the unorganized sector. It offers a minimum assured pension of INR 3,000 per month after the age of 60.

2. Who is eligible for PMSYM?

Ans. The scheme is available to unorganized sector workers aged between 18 and 40 years with a monthly income of INR 15,000 or less. They should not be covered under the National Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC), or Employees’ Provident Fund Organization (EPFO).

3. How can one enrol in the PMSYM scheme?

Ans. Eligible individuals can enrol in the PMSYM scheme through Common Service Centres (CSCs) across India. They need to provide an Aadhaar card and details of a savings bank account or Jan Dhan account.

4. What is the contribution amount for PMSYM?

Ans. The contribution amount varies depending on the subscriber’s age at the time of joining, ranging from INR 55 to INR 200 per month. The government contributes an equal amount to the subscriber’s contribution.

5. What happens if a subscriber exits the scheme before reaching 60 years?

Ans. If a subscriber exits the scheme 10 years from now, only their contributions and accumulated interest will be refunded. If they exit after 10 years but before 60, the subscriber’s contributions with accumulated interest and the accumulated interest on the government’s contribution will be refunded.

6. Is there a family pension under PMSYM?

Ans. Yes, in case of the subscriber’s death, the spouse is entitled to receive 50% of the pension as a family pension.

7. What documents are required for enrollment in PMSYM?

Ans. To enrol, the subscriber needs an Aadhaar card and details of a savings bank account or Jan Dhan account.

8. Can a subscriber change their contribution amount?

Ans. No, the contribution amount is fixed based on the age at which the subscriber joins the scheme.

9. Is there a tax benefit for contributions to PMSYM?

Ans. Yes, contributions made to the PMSYM scheme may qualify for tax deductions under Section 80C of the Income Tax Act.

10. Can the contributions be made online?

Ans. Currently, the primary mode of enrollment and contribution payment is through Common Service Centres (CSCs).