PRADHAN MANTRTI SHRAM YOGI MAANDHAN YOJNA (PM-SYM)
(Ministry of Labor and Employment)
Features of the scheme
How is it beneficial
- ‘Pradhan Mantri Shram-Yogi Maan-dhan’ (PMSYM) scheme, a pension scheem is launched on 15 Feb. 2019.
- This pension scheme is only for the un-organized sector workers.
- This scheme is all set to come under the “Ministry of Labour and Employment”.
- It is expected to benefit 10 crore workers over the next 5 years.
- The scheme has been brought under the Unorganised Workers’ Social Security Act, 2008.
- The central government will establish a pension fund to be administered for this scheme.
Features of the scheme
(1) Minimum Assured Pension:
From age 60, a fixed monthly pension of Rs 3,000 irrespective of the age starts getting paid till lifetime of the individual.
(2) Eligibility Criteria:
(3) contribution from the subscriber:
- The amount of monthly contribution is based on age and has to be paid till age 60.
As made clear in the given table:
(4) Matching contribution by the Central Government:
- PM-SYM is a voluntary and contributory pension scheme on a 50:50 basis of the subscriber as well as the government.
- The individual has to contribute a fixed monthly amount till age 60, while an equal amount is put into the account by the government.
(5) Things required to open the scheme:
(6) Enrolment Process:
- The eligible subscriber may visit the nearest Common Services Centres (CSC E-Governance Services India Limited) and
- get enrolled using Aadhaar number and savings bank account/ Jan-Dhan account number on self-certification basis.
Later, facility will be provided where the subscriber can also
- visit the PM-SYM web portal or
- can download the mobile app and self-register using Aadhar number/ savings bank account/ Jan-Dhan account number on self-certification basis.
(7) Facilitation Centres:
- All the branch offices of LIC,
The offices of ESIC (Employee’s State Insurance Corporation), EPFO (Employees Provident Fund Organization) and
- All Labour offices of Central and State Governments,
will facilitate the un-organized workers about the Scheme, its benefits and the procedure to be followed, at their respective centers.
(8) Fund Management:
It is implemented through-
(9) Exit provisions:
(10) Rules in the case of death of the subscriber
In the case of death during the period of contribution:
- The scheme also provides that if a subscriber has given regular contributions and died due to any cause, his spouse shall be entitled to continue with the scheme subsequently by payment of regular contribution.
- The spouse can also exit the scheme by receiving the share of contribution paid by the deceased subscriber along with accumulated interest.
In the case of death during the period of pension:
- If the death occurs during the period of pension, the spouse starts getting family pension equal to half of what was being paid to the individual.
- After death of subscriber and his or her spouse, the corpus shall be credited back to the Pension Fund of the government.
- Children of the subscriber cannot be named as nominees.
(11) Default of Contributions:
If a subscriber has not paid the contribution continuously, he will be allowed to regularize his contribution by paying entire outstanding dues, along with penalty charges, if any, decided by the Government.
How is it beneficial
Let us look at two examples to understand the benefit of the scheme- first, if the member is at the minimum age of 18 and second, if the member is at the maximum age of 40.
Example (1) – If the member is 18 years old at the time of entry, he would have to pay RS. 55 every month till the age of 60 (total years 42). In this way, he would pay for the whole period
(55 x 12) x 42 = RS. 27,720
While after 60 years of age, he will get back this amount in only less than 10 months as pension from the govt. Rest of the money paid as pension during the remaining life of the subscriber is cost of the government.
Example (2) – If the member is 40 years old at the time of entry, he would have to pay Rs. 200 every month till the age of 60 (total years 20). In this way, he would pay for the whole period- (200 x 12) x 20 = RS. 48,000
While, after 60 years of age, he will get back this amount in only 16 months as pension from the govt. Rest of the money paid as pension during the remaining life of the subscriber is cost of the government.