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Pradhan Mantri Shram Yogi Maan-dhan Yojana

  Aug 05, 2020

Pradhan Mantri Shram Yogi Maan-dhan Yojana

The Union Ministry of Labour and Employment has launched the Pradhan Mantri Shram Yogi Maan-dhan Yojana (PM-SYM), a mega pension scheme for unorganised sector. The scheme was announced in the Interim Budget 2019. 

What is the scheme all about?

PM-SYM is a voluntary and contributory pension scheme that will engage as many as 42 crore workers in the unorganised sector.  Pradhan Mantri Shram Yogi Mandhan Yojna seeks to provide assured monthly pension of 3000 rupees per month, with a contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age. 

Who are the eligible beneficiaries?

-The unorganised sector workers, with an income of less than Rs 15,000 per month and who belong to the age group of 18-40 years, will be eligible for the scheme.

-Those workers should not be covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO).

-He or she should not be an income tax payer.

What are the benefits of the programme?

Minimum Assured Pension: Each subscriber under the scheme will receive minimum assured pension of Rs 3000 per month after attaining the age of 60 years.

In case of death during receipt of pension: If the subscriber dies during the receipt of pension, his or her spouse will be entitled to receive 50 percent of the pension as family pension. This family pension is applicable only to spouse.

In case of death before the age of 60 years: If a beneficiary has given regular contribution and dies before attaining the age of 60 years, his or her spouse will be entitled to continue the scheme subsequently by payment of regular contribution or may even exit the scheme. 

Who all will contribute to the scheme?

Contribution by the Subscriber:  The subscriber is required to contribute the prescribed contribution amount from the age of joining the scheme till the age of 60 years.

Medium of contribution:  The subscriber can contribute to the PM-SYM through ‘auto-debit’ facility from his or her savings bank account or from his or her Jan- Dhan account. Equal contribution by the Central Government:  Under the PM-SYM, the prescribed age-specific contribution by the beneficiary and the matching contribution by the Central Government will be made on a ‘50:50 basis’. 

What happens after the death of beneficiary?

 If the subscriber dies while receiving the pension, his spouse will be entitled to receive 50% of the pension. If he dies before 60 years, his spouse may either join the scheme or may exit it.

On exit, the spouse will receive the beneficiary’s contribution along with accumulated interest earned by the fund or at the savings bank interest rate, whichever is higher.

If both the subscriber and spouse die, the entire corpus will be credited back to the fund. If the beneficiary becomes disabled prior to completing 60 years of age, his spouse may continue the scheme or exit it. On exiting, the spouse will receive the beneficiary’s contribution with interest as actually earned by fund or at the savings bank interest rate, whichever is higher. 

Can the person exit and withdraw from the scheme?

Any person may exit the scheme under the following conditions:

  1. If he exits within 10 years, his share of contribution will be returned to him along with savings bank interest, and
  2. If he exits the scheme after 10 years but prior to completing 60 years of age, he will get his share along with the accumulated interest earned by the fund.