Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM): A Pension Scheme for Unorganized Workers

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The Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) scheme was launched in 2019 to provide a dedicated pension plan for workers in India’s vast unorganized sector. The scheme recognizes the contributions of workers like street vendors, rickshaw pullers, domestic workers, and construction laborers, aiming to ensure their social security and a dignified life after retirement.

Key Objectives of PM-SYM

  • Assured Pension: Provide a monthly pension of ₹3000 after the age of 60 years to eligible workers in the unorganized sector.
  • Financial Security in Old Age: Reduce economic vulnerability and dependence in the later years of life for these workers.
  • Recognition of Informal Labour: Acknowledge the vital role played by workers in the unorganized sector within India’s economy.
  • Formalization and Inclusion: Encourage workers in the informal sector to enter a structured social security system.

How PM-SYM Works

  • Voluntary and Contributory: Workers in the unorganized sector between the ages of 18 and 40 years can opt for the scheme.
  • Matching Government Contribution: The worker contributes a monthly amount based on their age, and the government provides a matching contribution.
  • Pension Fund: The accumulated corpus is managed by the Life Insurance Corporation of India (LIC).

Eligibility Criteria

  • Unorganized Sector Workers: Individuals working in the unorganized sector (street vendors, domestic workers, etc.) are eligible.
  • Monthly Income Limit: Income should be less than ₹15,000 per month.
  • Age: Entry age is between 18 and 40 years.
  • Exclusions: Those covered under formal social security schemes (NPS, EPF, ESIC) are not eligible.

Enrolment in PM-SYM

  • Common Service Centres (CSCs): Workers can visit their nearest CSC for registration.
  • Labour Facilitation Centres: Enrolment facilities are also available at select labour department centers.

FAQs About PM-SYM

  • What is the contribution amount for PM-SYM?
    • The monthly contribution depends on the entry age of the worker, ranging from ₹55 to ₹200.
  • Can I withdraw the pension before the age of 60?
    • Premature exit is allowed under specific circumstances with a partial return of self-contribution.
  • Who manages the pension fund?
    • The Life Insurance Corporation of India (LIC).

MCQs

  1. The PM-SYM scheme is primarily meant for:
  • A. Government employees
  • B. Organized sector workers
  • C. Unorganized sector workers
  • D. Farmers
  1. Under PM-SYM, the government provides:
    • A. Full pension contribution
    • B. Matching contribution
    • C. No contribution, only pension disbursement
    • D. Subsidised food grains
  2. The objective of PM-SYM is to:
    • A. Provide health insurance
    • B. Promote skill development
    • C. Provide pension in old age
    • D. Offer bank loans at low interest

Conclusion

The Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) scheme reflects India’s commitment to the welfare and dignity of its informal workforce. By providing a structured pension scheme, PM-SYM recognizes their contribution to the nation’s economy and seeks to create a more inclusive and secure future. As the scheme continues to expand, it has the potential to alleviate old-age poverty for millions, bringing greater social justice and strengthening the foundations of a self-reliant India.

Answers to MCQs

  1. C
  2. B
  3. C