The recent Interim Budget-2019 announced the implementation of a scheme, Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM), designed to benefit India’s numerous unorganized sector workers. Administered by the Ministry of Labor and Employment, the PM-SYM will commence from February 15, 2019. Being a Central Sector Scheme, it is implemented through the Life Insurance Corporation of India (LIC) and Community Service Centers (CSCs). LIC, as the Pension Fund Manager, will be responsible for the pension payout.
Eligibility Criteria
The scheme primarily targets unorganized workers—home-based workers, street vendors, mid-day meal workers, head loaders, and landless laborers, among others—whose monthly income does not exceed Rs 15,000. To qualify, the subscriber should fall within the 18-40 years age group. Additionally, they must possess a mobile phone, savings bank account, and an Aadhaar number.
Furthermore, they should not already be covered under the New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme, or Employees’ Provident Fund Organisation (EPFO). Also, the scheme excludes income tax payers.
Key Features of PM-SYM
The PM-SYM entails a minimum assured pension of Rs 3,000 per month when the subscriber reaches 60 years. If the subscriber passes away while receiving the pension, their spouse will be eligible to claim 50% of the subscriber’s pension as family pension. This facility, however, is restricted only to the spouse.
In the event of the subscriber’s death due to any cause prior to reaching 60 years, provided they have been making regular contributions, their spouse can opt to continue in the scheme by paying the regular contributions. Alternatively, they can choose to exit the scheme, in accordance with exit and withdrawal provisions.
Contributions to the PM-SYM are facilitated through an ‘auto-debit’ from the subscriber’s savings bank account or Jan-Dhan account. The scheme operates on a 50:50 basis, with age-specific contributions from the beneficiary matched by the Central Government.
| Fact | Description |
|---|---|
| Scheme Name | Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) |
| Implementation Date | February 15, 2019 |
| Administered By | Ministry of Labour and Employment |
| Pension Fund Manager | Life Insurance Corporation of India (LIC) |
| Target Beneficiaries | Unorganised Workers earning upto Rs 15,000 per month |
| Minimum Assured Pension | Rs 3,000 per month after 60 years |
Wrapping Up: The Scheme’s Objective
The PM-SYM aims to provide financial support to about 42 crore unorganized sector workers in India, who often lack robust financial safety nets. It is one of the many progressive steps taken by the government to ensure social security for all citizens.
