The Pradhan Mantri Shram-Yogi Maandhan (PM-SYM) is a flagship pension scheme launched by the Indian Government, aimed at safeguarding the financial well-being of workers in the vast unorganized sector. The scheme offers a safety net of a minimum monthly pension upon reaching the age of 60.
Understanding the Unorganized Sector
- Large Workforce: The unorganized sector comprises workers engaged in informal or non-formal work such as street vendors, domestic workers, agricultural laborers, construction workers, and many others.
- Lack of Social Security: These workers typically lack access to formal social security benefits like pensions, insurance, and provident funds.
- Vulnerability: They face economic uncertainty in their later years, making them highly vulnerable.
How PM-SYM Works
- Eligibility: PM-SYM is open to unorganized workers whose monthly income is below INR 15,000 and are between 18-40 years of age.
- Contribution Model: The scheme is contributory, with the worker and the government contributing equal shares to the pension fund. The monthly contribution amount is determined by the worker’s age of enrollment.
- Pension Benefits: Upon reaching the age of 60, beneficiaries receive a fixed monthly pension of INR 3,000.
- Enrollment: Eligible workers can enroll through Common Service Centres (CSCs) or online on the PM-SYM portal.
Benefits of PM-SYM
- Financial Security in Old Age: PM-SYM provides a much-needed safety net for workers who lack traditional retirement savings.
- Dignity and Independence: The assured pension income reduces economic dependency and enhances dignity in later years.
- Formalizing the Informal Sector: PM-SYM helps bring unorganized workers into a structured social security system.
FAQs
- What documents are needed for PM-SYM enrollment? Aadhaar card and a savings bank/Jan Dhan account are essential.
- What happens if a beneficiary dies before the age of 60? In such cases, the spouse is entitled to 50% of the pension as a family pension.
MCQs
- PM-SYM is primarily designed for:
- a) Government employees
- b) Organized sector workers
- c) Unorganized sector workers
- d) All Indian citizens
- The minimum assured monthly pension under PM-SYM is:
- a) INR 1000
- b) INR 3000
- c) INR 5000
- d) Varies based on contributions
Answer Key: 1-c, 2-b
Conclusion
The Pradhan Mantri Shram-Yogi Maandhan scheme is a significant step towards building a more inclusive and equitable social security system for India’s vital unorganized workforce. By offering a guaranteed pension, the scheme promotes financial security for millions of workers and their families, contributing to a more just and resilient society.