Pradhan Mantri Shram Yogi Maan-dhan

The Indian Government introduced the Pradhan Mantri Shram Yogi Maan-dhan, a pension scheme that offers old age protection for workers of the unorganised sector. The scheme came into effect from 15 February 2019.

PM-SYM is targeted towards workers from the unorganised sector such as rickshaw pullers, audio-visual workers, leather workers, washermen, domestic workers, rag pickers, cobblers, brick kiln workers, head loaders, mid-day meal workers, street vendors, home-based workers and individuals in similar occupations. A notification from the Indian Government on 7 February 2019 stated the eligibility criteria and the rules for the PM-SYM pension scheme.

PM-SYM will be administered by the Ministry of Labour and Employment and will be a Central Sector Scheme. The implementation of the scheme will be through Common Services Centres eGovernance Sevices India Limited (CSC SPV) and Life Insurance Corporation (LIC) of India. The pay-out of the pension will be handled by LIC.

Eligibility Criteria for Pradhan Mantri Shram Yogi Maan-dhan

Given below are the eligibility criteria that an individual must meet in order to subscribe to the scheme:

• Individuals must be between the ages of 18 years and 40 years.
• Monthly income of the individual must be Rs.15,000 or less.
• Individuals should not be covered under the Employees’ Provident Fund Organisation (EPFO), Employees’ State Insurance Corporation (ESIC), or National Pension System (NPS).
• The individual must not be an income taxpayer.
• Individuals must have an active mobile number, an Aadhaar number, and a savings bank account.

Benefits of Pradhan Mantri Shram Yogi Maan-dhan

Individuals are entitled to the below-given benefits under the contributory and voluntary pension scheme:

• Minimum Pension: Individuals who are a part of the scheme are entitled to receive a minimum pension of Rs.3,000 per month once they have attained the age of 60 years.
• Family Pension: If the subscriber passes during the tenure of this pension scheme, 50% of the family pension that they were getting under the scheme will now be provided to their spouse. Only the spouse of the subscriber is eligible for family pension.
• If the subscriber, who has been regularly contributing to the scheme, dies before the age of 60 years due to any cause, their spouse has the option of either continuing the scheme by making regular contributions or can exit the scheme as per the stated terms and conditions.

Contribution towards Pradhan Mantri Shram Yogi Maan-dhan

Contribution towards the Pradhan Mantri Shram Yogi Maan-dhan scheme is made by the subscriber and the central government on a 50:50 basis. The contributions that are made by the subscriber are made by the subscriber will be auto-debited from either their bank account or their Jan-Dhan account. A predetermined amount, depending on the age of the subscriber, must be paid by the subscriber from the time of joining until he/she reaches the age of 60 years. The same contribution is made by the government as well.

Given below is a table where the monthly contributions that must be made by the subscriber and government are mentioned:

Process of Enrolment & Facilitation Centres

Subscribers who wish to join the scheme must have an Aadhaar number, a savings bank account, and an active mobile number. Individuals must visit the nearest CSC SPV and get themselves enrolled on a self-certification basis. Subscribers must provide their Aadhaar card, mobile number, and bank account details in order to enrol under this scheme. The contribution amount for the first month of the scheme must be paid in cash and a receipt will be given to confirm the payment.

All LIC branches, Employees’ Provident Fund Organisation (EPFO)/Employees’ State Insurance Corporation (ESIC) offices, and Central and State Labour offices will help unorganised sector workers understand all the features and details of the scheme.

Withdrawal & Exit from Pradhan Mantri Shram Yogi Maan-dhan

This scheme features a flexible exit procedure considering the uncertain nature of employment of unorganised sector workers.

The details for exiting the scheme are mentioned below:

• Only the beneficiary’s contribution along with the interest rate from the savings banks will be returned to subscribers if they leave the scheme within 10 years.
• If the subscriber exits the scheme after 10 years but before they attain 60 years of age, the beneficiary’s contribution along with the accumulated interest or the interest from the savings bank (whichever is higher) will be returned.
• If regular contributions are made towards the scheme, and the subscriber dies during the duration of the contributions, the spouse can continue towards the scheme by making regular payments or exit from the scheme by receiving the contribution of the beneficiary along with the interest of the savings bank or accumulated interest, whichever is higher.
• If the subscriber and his/her spouse die, the entire amount will be put back into the scheme.
• If the subscriber becomes disabled permanently, the spouse will be able to continue contributing towards the scheme or exit from the scheme by the receiving the beneficiary’s contribution and the interest of the savings bank or accumulated interest, whichever is higher
• The government can decide on other exit provisions as applicable.

Pay-out of the Pension

Individuals who join the scheme between the ages of 18 years and 40 years must contribute until they reach 60 years of age. Once individuals attain the age of 60 years, they are entitled to receive a pension of Rs.3,000 per month along with family pension, if applicable.

Non-Payment

If subscribers fail to make contributions on a regular basis, they can regularise their contributions by paying the outstanding dues and fines (if levied by the government.)

Grievances

Subscribers can contact the 24/7 customer care number - 1800 267 6888 – to register any complaints or grievances. Complaints can also be registered on the PM-SYM app or website.